WHY INFRASTRUCTURE

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WHY INFRASTRUCTURE ?

• US-AFRICA INFRASTRUCTURE CONFERENCE
• Maryland, USA
• September 27-29, 2006

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Presentation Outline

• Africas Infrastructure Need
• Domestic Economic Reforms
• Reform Achievements and Limitations
• NEPAD A Regional Initiative
• Role of the AfDB and Other Development Partners
• Conclusion

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Africas Infrastructure Needs

• Infrastructure investment needs are huge
• The Infrastructure deficit
• Low rate of access to electricity -- 24 cf 75
  in other Dev Regions
• Low per capita energy consumption only at 40
  of world average
• Poor access to Water/Sanitation at 58 cf 80
  for other Dev Reg
• Low telecom penetration rate gt 8 cf 38 world
  average
• Rural access to all weather roads stands at 32
• Ports around time of 2-5 days compared to 4-6
  hours for Singapore
• Further strain from rapid urbanization
• Investment opportunities abound for all
  categories of infrastructure

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Domestic Reforms and Benefits

• Fiscal space created for infrastructure
  investment in 2nd generation econ reforms
• Privatization creates opportunities for
  infrastructure investment
• Enhanced competition, transparency, and incentive
  structure
• Infrastructure standardization, harmonization and
  integration

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Achievements of reforms

• Some private infrastructure investments in
• Road Transport Industry
• Telecommunications
• Water Supply
• Power Sector

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Some concerns

• Limited information on projects
• Lack of well-prepared projects
• Thin financial markets and limited financing
  opportunities
• Problems with cross-border projects

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NEPAD -- A Regional Initiative

• PPP poverty reduction, partnerships, and
  pillars
• promoting Investment in Infrastructure
• building knowledge, skills and technology in
  infrastructure
• developing culture of maintenance of
  infrastructure
• integrating infrastructure development

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NEPAD STRATEGY

• Short Term Action Plan (STAP)
• Medium to Long Term Strategic Framework (MLTSF)

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STAP

• Policy
• Capacity building
• Facilitation
• Key infrastructure projects in transport, energy,
  water and ICT
• Total cost of US8.125 billion,
• of which 50 envisaged for private sector
  investment

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Implementation of STAP

• STAP activities provide basis for dialogue with
  development partners
• A number of projects financed
• IPPF established to facilitate project
  preparation
• Other NEPAD programs (APRM and standards) will
  help improve transparency and promote good
  governance

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Role of AfDB and Other Development Partners

• Infrastructure is business big at the AfDB
• AfDB is the NEPAD Lead Agency for Infrastructure
  Development
• AfDB also Secretariat for the Infrastructure
  Consortium of Africa (ICA)
• Mobilized financing for NEPAD infrastructure
  projects/programmes
• NEPAD-IPPF created to support preparation of
  regional projects to bankable stage
• Rural Water Supply and Sanitation Initiative
  (RWSSI), and the African Water Facility (AWF)
  hosted at AfDB
• Organizational restructuring created focus and
  synergy for infrastructure financing

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Role of AfDB and Other Development Partners

• Through the Private Sector window, the Bank
• provides direct financing and technical support
  to private investments
• Uses a variety of financing instruments
• leverages other sources of financing

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Conclusion

• Africa emerging as a competitive destination for
  infrastructure investment.
• Investment opportunities in both domestic and
  regional infrastructures
• AfDB available to provide financial and technical
  support

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• THANK YOU