The 7th annual Infrastructure Africa Business Forum will present stakeholders with an opportunity to unpack the enormous growth potential in addressing Africa’s infrastructure needs. Thus, the 2020 edition of the Sustainable Infrastructure Development Symposium focused on how to revive the various sectors of the economy in a […] With public infrastructure financing still under immense pressure, following the financial crisis of 2008 and the enforcement of the Third Basle Accord, private capital must be pressed into action in helping to fund African projects if development is to stay in line with demand. One of OCP AFRICA's primary goals is to provide assistance to smallholder farmers in making the transition from subsistence to commercial farming, including through the development of infrastructure across the African continent. Infrastructure development is crucial to the economic development of any region; public infrastructure development drives economic growth. Lagos, 3 December 2020 – Africa Finance Corporation (“AFC” or “the Corporation”), the leading infrastructure solutions provider in Africa, today announces it has signed a Memorandum of Understanding with its equity shareholder, the Arab Bank for Economic Development in Africa (“BADEA”) to deepen their co-operation in the sustainable and inclusive development of Africa. Indeed, it currently boasts some of the world’s fastest growing economies, and is ideally placed to continue to experience tremendous levels of economic growth over the next few years. Yet globally investment in infrastructure is currently grossly under-financed. The private sector must be pushed into action, not merely “as financiers and implementers, but also as conduits of technology, innovation and skills”. An emerging consensus from the literature is that, under the right conditions, infrastructure development can play a major role in promoting growth and equity – and, through both channels, help reduce poverty. Philip Gerbert, a senior partner at BCG, notes in the report that the tools presented in the report “support potential investors in their analysis but more importantly will also help African governments in understanding private-sector thinking”. Following decades spent in the economic shadows, the continent is experiencing an economic drive and, despite facing a number of daunting challenges, is making great strides in political and socio-economic development. ��rCw����fˉ[��o}�eK�����{Wϭ� | Dmք5oG�>{Q_��y���'|�+�f�J'� �2�͚�捄Ϯ�b. As a result, ODA is likely to fall in the near future. The Group of 24 (G24) developing countries in particular have championed the need for increased infrastructure funding in Africa. The aftershocks of the financial crisis are still being felt across the globe, with public budgets becoming more and more strained. Infrastructure has also been earmarked as a key priority for African economic development, under the African Union’s Strategic Plan for 2009-12. Infrastructure development is a key driver of progress across the African continent and a critical enabler for productivity and sustainable economic growth. Investment in infrastructure accounts for over half of the recent improvement in economic growth in Africa and has … Following decades spent in the economic shadows, the continent is experiencing an economic drive and, despite facing a number of daunting challenges, is making great strides in political and socio-economic development. About ANWIN: the African Network for Women in Infrastructure (ANWIN), which was endorsed by the Specialized Technical Committee (STC) in its Second Ordinary Session in Cairo from 17 to 18th April 2019 and officially launched at the 5th Edition of the Programme for Infrastructure Development in Africa (PIDA) Week in Cairo in November 2019, functions as a key instrument for … According to PIDA’s estimations, access to power in Africa will rise from 39 percent of the population in 2009 to around 70 percent in 2040 – an additional 800 million people. That report states that, driven by burgeoning populations, increasing levels of education and technology absorption, spreading industrialisation and a greater demand for goods and services, the average economic growth rate for African states will be around 6 percent per year between 2010 and 2040. Additionally, these new institutions should be adequately resourced, in terms of both financing and skills. To tackle this, a number of regional economic communities have begun to establish their own project preparatory facilities. Development in Africa (PIDA) is a strategic continental initiative which has the buy-in of all African countries to mobilize resources and transform Africa through modern infrastructure. Announcements on the two projects, which will be selected from a shortlist of 15, will be made in July. The AIDI serves a number of key objectives, principally: (i) to monitor and evaluate the status and progress of infrastructure development across the continent; (ii) to assist in resource allocation within the framework of ADF replenishments; and (iii) to contribute to policy dialogue within … Kenya delivered a diverse economy and sustained expansion in consumer demand, urbanisation, EAC integration, structural reforms and infrastructure development, which include an oil pipeline, railways, ports and power generation. Theme: “Accelerating Infrastructure Implementation for Africa’s Integration” Who: African Union Commission in partnership with the NEPAD Agency and the African Development Bank. The DBSA Infrastructure Barometer 2012: Progress in infrastructure development since democracy quantifies the types and levels of water, sanitation, energy and transport services, communication network infrastructure and social infrastructure for education and health care that are available to South Africa’s people. In May 2012, as part of the World Economic Forum on Africa, 35 companies, multilateral development banks, NGOs and regional experts, and organisations formed a Business Working Group (BWG) designed to provide a private sector perspective to the implementation of the PAP programs. Dr Giami noted that this could only be achieved by international organisations, universities, multinational corporations and other developmental partners investing in human capital and research and development. The World Bank Group aims to address some of the gaps and constraints in the communications infrastructure through policy and catalytic investments. The African Development Bank is also attempting to create a broad infrastructure facility, which would serve as a financing mechanism as well as work in conjunction with the above new measures, smoothing out any potential pitfalls or impediments in the finance value chain while offering advisory services, development equity, and helping to scale up and compliment existing infrastructure financing. In the aftermath of the financial crisis and the eurozone sovereign debt crisis, the world’s economic strength is shifting from West to East and from North to South. Infrastructure Development and Economic Growth in South Africa: A Review of the Accumulated Evidence Johannes Fedderke and Rob Garlicky May 26, 2008 Abstract This paper provides a broad overview of the relationship between infrastructure and growth, focusing on the South African case. Currently just under half of that figure ($45bn) is financed; the majority of which is sourced from governments, multilateral and bilateral sources of finance, via Official Development Assistance (ODA), and from the private sector. Without The gap between Africa’s economic need and available funding continues to widen. A media conference on the closing day of the meeting on 18th November 2015. The World Bank has estimated that $48bn a year is required to fund unfinanced African infrastructure projects. The Lamu Port-South Sudan Ethiopia Transport Corridor (LAPSSET) is a complex initiative that combines many elements: the development of a new port at Lamu, Kenya; an oil pipeline from Lamu to South Sudan; and road and railway links to the western part of Ethiopia. Infrastructure development in Africa is entering a crucial period. Project preparation is crucial for moving projects to bankability, and, although data held by the Infrastructure Consortium for Africa states that there are currently 67 project preparation facilities in Africa, only a handful of these facilities are viable due to limitations of finance, skill set and institutional capacity. Infrastructure development is critical to the growth and development of South Africa’s economy, but the ongoing COVID-19 crisis has caused a lot of delays and hold-ups in the country’s infrastructure development program. The goal is to improve the quality and delivery of ICT across the region, improving the daily lives of the people of Africa and helping to support industry and economic development. Infrastructure Manager, Chief Information Officer, Director of Strategy and more on Indeed.com Infrastructure Development Jobs - November 2020 | Indeed.com South Africa Skip to Job Postings , … The PIDA was ratified by the African heads of state in Ethiopia in May 2012. Their method includes a number of analytical tools to be employed in four basic steps including: (i) unbundling complex programs into individual projects to help facilitate direct comparisons; (ii) grouping projects by their potential along three key thresholds (data quality and availability, project environment, and project complexity); (iii) utilising “two lens clustering” in order to identify a project’s readiness for acceleration and the likely value creation and impact; and (iv) fine tuning the shortlist of high value creation/impact projects on other considerations, such as public support and regional diversity. He also called on African governments to create a bold and visionary energy and infrastructure future for the continent. The National Treasury has allocated R416 billion to spending on infrastructure development and maintenance, broadly de–ned, in the current three-year budget cycle (National Treasury, 2007). Development in Africa (PIDA) is a strategic continental initiative which has the buy-in of all African countries to mobilize resources and transform Africa through modern infrastructure. But few impact investors have identified the opportunities abound in social infrastructure, whether it’s building humane prisons or connecting communities to the internet. Clearly, finding the right projects is as important to the economic growth of Africa as the funding of infrastructure development. Dr Ken Giami, CEO of African Leadership Magazine, agrees. Since 2000, economic growth in the region has accelerated, making it the world’s third fastest growing region. Project preparation facilities are also being overhauled. In an attempt to promote regional integration, these programs are all due to be auctioned by 2020. Last December in Cairo these 54 states demonstrated the development that has already occurred since the founding of the “Program for Infrastructure Development in Africa”, PIDA by the “African Union Development Agency”, AUDA-NEPAD. With governments across the continent committing billions of dollars to infrastructure, Africa is at the start of a 20 to 30-year infrastructure development boom. Rwanda is another fast-growing economy, boasting the second-best business environment. Massive, capital-intensive infrastructure projects tend to ignore important realities such as poverty and income inequalities, as well as the need to promote sustainable development in light of Africa’s vulnerability to the impacts of climate change. Tenbite Ermias, a partner at BCG, notes that “These new products to de-risk African infrastructure projects will play a crucial role in attracting the international private sector investors needed to meet Africa’s infrastructure demand and support economic growth across the continent”. Its 51 cross-border infrastructure projects comprise more than 400 sub-projects in energy, transport, Furthermore, the traditional channels of aid and investment are also facing increasing pressure as a result of the European sovereign debt crisis. Therefore, the task of selecting appropriate projects to move forward is a difficult one. The government has committed substantial resources to infrastructure development and has established several integrated planning initiatives to provide direction. But public infrastructure funding is becoming increasingly more difficult to acquire. Its 51 cross-border infrastructure projects comprise more than 400 sub-projects in energy, transport, Conversely, the lack of infrastructure affects productivity and raises production and transaction costs, which hinders growth by reducing the competitiveness of businesses and Infrastructure plays a key role in economic growth and poverty reduction. Africa, with a population exceeding 1 billion people is well placed as an emerging market, keen for investment and growth. Sub-Saharan Africa ranks at the bottom of all developing regions in virtually all dimensions of infrastructure performance. Infrastructure development in Africa is entering a crucial period. The overall goal of the PIDA is to promote socio-economic development and poverty reduction in Africa through improved access to integrated regional and continental infrastructure networks and services. Sub-Saharan Africa ranks at the bottom of all developing regions in virtually all dimensions of infrastructure performance. Developmental investing provides investors with both commercial returns and a tangible social and developmental impact. Furthermore, mechanisms are being designed to improve oversight of public institutions responsible for implementing infrastructure development. Out of the strategic plan came the Programme for Infrastructure Development in Africa (PIDA). Programme for Infrastructure Development in Africa (PIDA) is a strategic continental initiative which has the buy-in of all African countries, for mobilizing resources to … Infrastructure development is a key driver of progress across the African continent and a critical enabler for productivity and sustainable economic growth. Failure to gain an investment grade rating could mean that some international institutional investors would be unable to invest. The report also notes that the GDP of African countries will increase six fold, average per capita income will break the $10,000 barrier, and demand for infrastructure will also increase. Africa’s infrastructure development requires significant financing as well as strengthening of the international funding and delivery architecture. 6Programme for Infrastructure DeveloPment In afrIca focus in the ICT sector is on enabling-envi- ronment reforms to promote private sector investment, along with investments to im- prove broadband connectivity. In East Africa, these mega infrastructure projects have multiplied as well. The G24 states that global demand for infrastructure investment will be between $1.8 trillion and $2.3 trillion by 2020 – more than double the 2008 level of $800bn to $900bn. In South Africa, the primary development focus is around the provision of basic services - and infrastructure development focuses on sectors such as power, healthcare, transport, education, small, medium and micro-sized enterprise development… This position should help drive local demand for infrastructure investment, which is one of the continent’s greatest challenges as it attempts to achieve sustainable economic development. The World Economic Forum’s report proposes a methodology for indentifying infrastructure projects for acceleration. Following decades spent in the economic shadows, the continent is experiencing an economic drive and, despite facing a number of daunting challenges, is making great strides in political and socio-economic development. It contributes significantly to human development, poverty reduction, and the attainment of the Millennium Development Goals (MDGs). Africa is currently positioning itself as the world’s leading ‘resource frontier’ as its number of resource rich economies increases. It was estimated in a study by the Organisation for Economic Co-Operation and Development (OECD), released in February 2011, that the medium term impact of Basel III on GDP growth would be in the region of -0.05 percent to -0.15 percent per annum. Last December in Cairo these 54 states demonstrated the development that has already occurred since the founding of the “Program for Infrastructure Development in Africa”, PIDA by the “African Union Development Agency”, AUDA-NEPAD. The group has called on the International Monetary Fund and the World Bank to take action to tackle the growing underinvestment. Fibre-optic investments along power transmission lines, road and railways are included in the energy and transport sector PAP. 6. Many analysts feel that the lack of infrastructure investment across the continent is stymieing true economic development. Collectively, the countries of Africa would need to spend $130-170 billion per year to meet their infrastructure needs, but, according to the African … An emerging consensus from the literature is that, under the right conditions, infrastructure development can play a major role in promoting growth and equity – and, through both channels, help reduce poverty. The role of the Infrastructure Consortium for Africa (ICA) is to help improve the lives and economic well-being of Africa’s people through encouraging, supporting and promoting increased investment in infrastructure in Africa. The PIDA states that the continent requires transformational infrastructure development in order to push Africa to the next level economically. The government has courted foreign direct investment to lure investors into areas that need infrastructure, and foreign companies often build, own an… Infrastructure development in Africa is entering a crucial period. Introduced in 2010, the accord has made it significantly harder for banks to lend. All these i ntentions Infrastructure funding is largely provided by South Africa’s national government. According to a report issued by the World Economic Forum, ‘Strategic Infrastructure: Steps to Prioritize and Deliver Infrastructure Effectively and Efficiently’, for every dollar spent on public infrastructure development the gross domestic product (GDP) of a country rises between $0.05 and $0.25. Possible interviews with the drivers of infrastructure in Africa. Given the time, labour and capital limitations it is imperative that decision makers give priority to those projects that will bring the greatest social and economic benefits to the area. It contributes significantly to human development, poverty reduction, and the attainment of the Millennium Development Goals (MDGs). Mike Salawou, ICA Coordinator, and Manager of Infrastructure Partnerships, at the African Development Bank, commented: “Over the years the Infrastructure Financing Trends in Africa report has become an important document for presenting, in a consistent manner, how funding is being mobilised to develop the continent’s infrastructure. Africa Finance Corporation (“AFC” or “the Corporation”), the leading infrastructure solutions provider in Africa, today announces it has signed a Memorandum of Understanding with its equity shareholder, the Arab Bank for Economic Development in Africa (“BADEA”) to deepen their co-operation in the sustainable and inclusive development of Africa. PIDA also aims to reduce transportation costs while boosting intra-African trade, and to guarantee access to water and food security. In mid-May the PIDA announced that it was on the verge of identifying two “transformational” regional infrastructure projects for development. 54 African states are on their way to form an African Union (AU) according to the European model. Latest Celebrity News | Trending African Stories | Breaking News Nigeria Yet estimated investments of $67.9bn up to 2020, and $360bn up to 2040, will be required in a number of critical sectors, including energy, cross-boundary water supply, transport and information and communications technology (ICT), if Africa is to maximise its potential. Dr Giami told the 2013 African Energy and Infrastructure conference that the prevailing energy and infrastructure deficit on the continent prevents Africa from reaching its true economic potential. 54 African states are on their way to form an African Union (AU) according to the European model. Parastatal companies also undertake infrastructure development in some sectors, while other initiatives include the government’s Expanded Public Works Programme, and public-private partnerships. Infrastructure development is a key driver for progress across the African continent and a critical enabler for productivity and sustainable economic growth. Investment in infrastructure accounts for over half of the recent improvement in economic growth in … Without a doubt, Africa is one of the world’s fastest-growing economic hubs.Crucial to this rate of development is the ability to meet the demand for key infrastructure. But despite the impressive figures, Africa still has to contend with significantly underdeveloped infrastructure. The implementation of the Third Basel Accord has also had a detrimental effect on infrastructure funding globally. These bonds can be raised from either domestic or international currency markets, provided that adequate credit enhancements and project structuring provide an investment grade rating. If Africa is to benefit from this economic reboot, it is imperative that private sector funding is sourced and put to work as soon as possible. The Africa Infrastructure Development Index (AIDI) is produced by the African Development Bank. Growth Initiative - South Africa (ASGI-SA) has identi–ed inadequate infrastructure as one of the six most important constraints to growth in South Africa. This is particularly important for projects in the feasibility stage. At the heart of the PIDA is the Priority Action Plan (PAP), a list of 51 immediately actionable infrastructure programs. Fortunately, Kenya has access to a global network of exports, which it needs to be utilising optimally to ensure a stable infrastructure, both digital and physical. Accordingly, the PIDA was created in order to help engender a reasoned, strategic and long term plan for pan-African infrastructure development. The World Economic Forum’s report suggests a number of innovations and new products in African project financing which could help attract the necessary funding to the region, as well as highlighting other efforts currently underway to increase infrastructure delivery in the continent. In May the World Economic Forum, in conjunction with the Boston Consulting Group, released a report concerning strategic infrastructure in Africa. The PIDA believes that the continent has demonstrated, by partnering with the wider international community, the necessary tenacity and political desire to push through wide ranging transformative projects by utilising its own vast resource base. Infrastructure developmental investing is a sub-sector of developmental investing, and can also be called impact investing. These innovations, if properly and comprehensively implemented in African infrastructure financing, would help bring more and more projects to bankability. It contributes significantly to human development, poverty reduction, and the attainment of the Millennium Development Goals (MDGs). There are, understandably, myriad factors which go into green-lighting a project, but the challenge is all the more urgent in areas where severely underdeveloped infrastructure is prohibiting potentially large scale economic growth. In the past ten years, development finance has found its way into some of Africa’s largest infrastructure, power and agribusiness projects. Power is Africa's biggest infrastructure weak point, with as many as 30 countries facing regular power outages, according to a 2010 report by the World Bank and France's development agency. Infrastructure in Sub-Saharan Africa - 3 Section B compares the trends in infrastructure development along different sectors and dimensions from an international perspective.5 We compare the performance of the region (as well as selected groups/countries) vis-à-vis selected world geographic/income region/sub-regions. The OECD report notes that “Ensuring synergies and complementarities across existing and emerging project preparation facilities will be important going forward”. The World Bank and other analysts have stated that Africa requires an annual investment of around $93bn a year in order to catch up with other developing regions. Geoffrey White, CEO of Agility Africa, is an expert on infrastructure development, retail supply chains, agri-business, and investment for African markets. The Africa Infrastructure Development Index (AIDI) is produced by the African Development Bank. 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