AFRICA An Investment Destination Conference

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AFRICAAn Investment DestinationConference

• NEEDS FOR INFRASTRUCTURE DEVELOPMENT EXPENDITURE
• Presented by
• P Duncan Mbonyana

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Contents

• Current Arrangements and Roles
• Integrated Framework
• Study
• Public Financing Declined
• Aid for Infrastructure Declined
• Investment Requirements are High
• Africa was a late Starter
• Local Participation in Infrastructure
• Local Participation by Sector
• Cross-Border Participation
• Mindset Change Donor vs Private Participation
• Project Integration
• Process Integration
• Conclusion

3
Current Arrangements and Roles
4
Integrated Framework
Source NBF
5
Study

• Feasibility study by
• PM Global Infrastructure Inc
• for
• African Business Roundtable
• lead by Per Ljung

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Public Financing Declined
Source World Bank
7
Aid for Infrastructure Declined
Source World Bank
8
Investment Requirements Are High
Source Per Ljung
9
Africa was a late Starter
(Share of Investments in New Private Projects)
Source Per Ljung
10
Local Participation in Infra-structure
Source Per Ljung
11
Local Participation by Sector
Source Per Ljung
12
Cross- Border Participation
(In Sub-Saharan Africa excluding South Africa)
Source Per Ljung
13
Mindset Change

• From donation driven to private sector driven
  investment.
• Philosophy for delivery of smooth value chain.
• Sustainability than once-off flagships.

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Project Integration

• Seamless project value chain development.
• Pre-feasibility, feasibility, detail design,
  construction up to operation and maintenance
  planning.
• Avoid disjointed sectional expenditure of same
  project.

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Process Integration

• Multi-dimensional needs satisfaction.
• Economic, social and environmental (e.g. 3
  Gauges).
• Joint planning process across sectors in
  infrastructure.

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Conclusion

• Local participation by Regional and National
  firms critical.
• Leadership by local private investment funds.
• Increase expenditure on infrastructure critical
• Ops and maintenance.
• New build projects.
• Investment in infrastructure is a business with
  excellent social impact.