Model of Infrastructure Finance on Economic Growth in Emerging Markets: A Case Studies BELSTAR Capital LLC

Abstract

Infrastructure finance plays a pivotal role in accelerating economic growth across emerging markets by enhancing productivity, stimulating employment, and enabling regional integration. This study investigates whether the Engineering, Procurement, and Construction with Finance (EPC+F) model delivers superior economic outcomes compared to traditional Public-Private Partnerships (PPPs). The core research question examines the effectiveness of EPC+F in mobilizing private capital and improving project performance metrics such as return on investment (ROI), net present value (NPV), and completion efficiency.

The research employs a mixed-methods approach combining comparative case studies and econometric analysis. Quantitative data were collected from 30 EPC+F and PPP infrastructure projects across Sub-Saharan Africa (2015–2023), sourced from the IFC database, national regulatory agencies, and financial disclosures. The analysis applies panel-data regression to assess the relationship between infrastructure investment and GDP growth, controlling for macroeconomicandpoliticalvariables.Sensitivityanalysesevaluateexposuretoexchangerate volatility, cost overruns, and financing risks.

Key findings reveal that EPC+F projects outperform PPP son average, with a 12% higher ROI, 9% faster completion times, and 7% lower cost over runs. The case of Belstar Capital LLC highlights best practices in risk mitigation, stakeholder engagement, and political risk insurance mechanisms that enhanced project viability. The study recommends wider adoption of EPC+F, supported by robust regulatory frameworks, ESG integration, and multilateral partnerships to unlock infrastructure-led development in emerging economies.