Africa Infrastructure Investment Report - UN-OHRLLS
AfricaInfrastructureInvestment Report2013Published in association with:And:An initiative of
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The AfricaInfrastructureInvestment Report 2013Published on behalf of the Commonwealth Business Council by:Commonwealth Business Communications LimitedTrans-World House, 100 City RoadLondon, EC1Y 2BP, UKTel: 44 (0) 207 871 0128Fax: 44 (0) 207 871 0101Project Director: Sylvia PowellProject Manager: Bee SachaniaPublisher: Jane NethersoleEditorial Managers: Emma Wiseman and Daniela SeverinoSub-editors: John Saunders and Nick RiceAccount Managers: Philip Sims,Vivian Mensah, Karim Ullah, Mark MaynardDesigner: Tina DavidianProduction Manager: Daniel H BrownPrinter: Buxton Press LtdCopyright: Commonwealth Business Communications or as otherwise stated.First published: March 2013ISBN: 978-0-9570432-6-8The information contained in this publication has been published in good faith and the opinions herein are those of the authors and not ofCommonwealth Business Communications Limited or the Commonwealth Business Council. Commonwealth Business CommunicationsLimited and the Commonwealth Business Council can not accept responsibility for any error or misinterpretation based on this information, andnether do they endorse any of the products advertised herein.Reproduction in whole or part of any contents of this publication (either in print form or electronically) without permission is strictly prohibited.1
CONTENTS7 WelcomePeter LongworthDirector GeneralCommonwealth Business Council9 ForewordDr Ibrahim Assane MayakiChief Executive OfficerNEPAD21 Engineering capacityneeds in sub-SaharanAfrica40 Infrastructure andNigeria’s transformationagendaHolly Wright and her co-authorsat the Africa-UK Engineering forDevelopment Partnership, discussengineering capacity needs in subSaharan Africa.His Excellency President GoodluckJonathan discusses Nigeria’s plan tobecome one of the world’s top 20economies by 2020.25 Infrastructure inthe west Africa region10 Africa’sInfrastructureroadmap11 Addressing Africa’sinfrastructurechallengesJacob G Zuma, President of theRepublic of South Africa andChairman of the Committee ofHeads of State of the Programmefor Infrastructure Development inAfrica, outlines Africa’s infrastructurechallenges.14 PIDA – an overviewof the programme totransform AfricaShem Simuyemba, Chief InfrastructureEconomist at the African DevelopmentBank, details the main areas andinitiatives covered by the Programmefor Infrastructure Development inAfrica.Kadré Désiré Ouedraogo, Presidentof the Economic Community of WestAfrican States Commission, explains thecurrent priorities in infrastructure forwest Africa.30 Infrastructurechallenges andopportunities in theCOMESA regionSindiso Ndema Ngwenya and AbuSufian E Dafalla of COMESA explainthe priorities for infrastructuredevelopment in eastern and southernAfrica.34 Infrastructurepriorities in southernAfricaRemmy Makumbe of the SouthernAfrican Development CommunitySecretariat gives details of theRegional Infrastructure DevelopmentMaster Plan.45 Capitalising onMozambique’s naturalresourcesPresident Armando Emílio Guebuza,outlines Mozambique’s infrastructurechallenges and highlights theimportance of improving infrastructure.50 Bridging theFunding Gap51 Financing Africa’sinfrastructure deficitthrough cooperationMr. Rintaro Tamaki, Deputy SecretaryGeneral of the OECD underlines theneed for collaborative and effective privateinvestment in Africa’s infrastructure.57 Innovative thinkingto meet Africa’sinfrastructure needsGilbert Mbesherubusa of the AfricanDevelopment Bank considers lesstraditional financing methods forAfrica’s infrastructure needs.3
61 Creating a favourableinvestment climate inZambia76 Financing urbaninfrastructure:challenges and optionsHis Excellency Michael Sata, thePresident of Zambia, outlines how hisgovernment is making the countryincreasingly attractive to domestic andforeign private investment throughimprovements in infrastructure.Alberto Gianoli and Aloysius Bongwaof the Institute for Housing and UrbanDevelopment Studies outline challengesfacing urban infrastructure and optionsfor improvements.64 A new phase in globalproject financeGeoff Haley, founder and Chairman of theInternational Project Finance Association,welcomes the arrival of new initiatives andtechniques to turn infrastructure projectsinto bankable investments.67 European privatesector investment inAfricaBruno Wenn, Chairman of the Germandevelopment finance institution, DEG,illustrates private sector investment fromEurope in African infrastructure projects.72 Creating a businessenvironment conducivefor investmentOmari Issa, Chief Executive Officerof the Investment Climate Facility forAfrica, describes how the organisationassists African governments andthe private sector in improving theframework for investors.4infrastructure, diversify economies andinvest in education.98 East African energyinfrastructure80 PoweringAfrica’sEnergy NeedsSection sponsored by:81 Africa’s power crisisProfessor Anton Eberhard at theGraduate School of Business,University of Cape Town, discussessome of the factors that have led to theunderpowered Africa of today.85 Helping Africabenefit from energyinfrastructureMakhtar Diop, the World Bank’sVice President for Africa, outlines theinitiatives and support of the WorldBank in building more robust energyinfrastructure for Africa.92 Africa’s expandingenergy landscapeAlex Vines of Chatham House calls forthe strategic use of oil and gas resourcesin east Africa to enhance regionalCBC Africa Infrastructure Investment ReportLuzze Andrew Kaggwa, ExecutiveDirector of the East African BusinessCouncil, assesses the opportunitiesand challenges of developing energyinfrastructure in the East AfricanCommunity.104 Financingrenewables indeveloping countriesAdnan Z Amin, Director-Generalof the International RenewableEnergy Agency, discusses howgood national policy design canovercome the barriers to renewableenergy finance.109 Urban energypolicy designMaria van der Hoeven, ExecutiveDirector of the InternationalEnergy Agency, explains whyenergy demand and generationrequirements must be included inthe early stages of city planning.
113 Driving theTransport Agenda114 Africa’s transportsector: key challengesDr George Banjo of the World Bankdepicts the nature of the transport sectorin the emerging development agenda forAfrica, and how the challenges can beturned into opportunities.120 New land transporttrends for AfricaRamón Cruz of the Africa TransportPolicy Program lays out the keychallenges of capacity, institutionaldevelopment and financing of roadtransport.125 Essential investmentin rural transportPeter Njenga, Executive Directorat International Forum for RuralTransport and Development reiteratesthe importance of integrated transportpolicy in achieving internationaldevelopment goals.130 Railwayinfrastructure in subSaharan AfricaLouis S. Thompson outlines railwayinfrastructure challenges in sub-SaharanAfrica and the potential for domesticand foreign investment.136 Maritimeinfrastructurechallenges andopportunitiesSamuel Kamé-Domguia examines thesituation of Africa’s ports and relatedtransport facilities and explains the roleof the African Union’s initiatives for themarine environment.140 MainstreamingWater and Sanitation141 Water andsanitation in AfricaEllen Johnson Sirleaf, Africa’s GoodwillAmbassador for Water and Sanitation,outlines the continent’s water andsanitation crisis and proposes thesolutions so desperately needed.151 Sustainablesanitation for Africa’sgrowing citiesChristoph Lüthi and Rahul Ingle atthe Sustainable Sanitation Allianceillustrate how the demands of sustainabledevelopment require us to rethink the waysewage waste is managed in urban areas.156 Waterinfrastructure forhydropower andagricultureBai-Mass Taal, Executive Secretaryof the African Ministers’ Council onWater explores the current role andthe potential of water infrastructure forhydropower and agriculture.159 Connecting thecontinent160 ICT in Africa:trends and investmentopportunitiesThe African Development Bankhighlights trends and investmentopportunities in information andcommunication technology in Africa.164 Investingin broadbandinfrastructureDr Hamadoun Touré, Secretary-Generalof the International TelecommunicationUnion, examines the technical, policyand business decisions involved in thedevelopment of broadband infrastructure.169 Developing internetexchange points inAfricaMichuki Mwangi of the InternetSociety shows how the African Union’sAXIS initiative is helping build internetexchange points and bring about aneffective continental network.5
Special features& organisationprofilesPage NumberOrganisation2Barloworld Equipment8IBM20Elsewedy Electric29Stag Engineering Nigeria Ltd39Kohath Investment Group (KIG)44BESIX49University of Nairobi56JLT Speciality Ltd60Vale63Zambia Development Agency66Treasure Capital & Trusts Ltd70-71Ministry of Finance, The United Republic of Tanzania74-75Couteville Business Solutions Plc88-91Nigerian National Petroleum Corporation (NNPC)96-97Copperbelt Energy Corporation Plc102-103Zakhem International Construction Group112Amsted Rail Company119Metro Bus Services Ltd128-129Federal Roads Maintenance Agency (FERMA)135Imfuyo Projects Pty145Biwater International Ltd146Federal Ministry of Water Resources, Nigeria150Taraba State Ministry of Water155Atkins163Konza Techno City6CBC Africa Infrastructure Investment Report
WELCOMEMessage from Peter LongworthDirector GeneralCommonwealth Business CouncilI am delighted to introduce theAfrica Infrastructure InvestmentReport produced by theCommonwealth Business Council(CBC) in collaboration with theProgramme for InfrastructureDevelopment in Africa (PIDA) the new continent-wide initiativeled by the African Union,NEPAD Agency and the AfricanDevelopment Bank.A core function of the CBC isto provide a bridge between theprivate sector and governments,between emerging markets anddeveloped markets and betweensmall businesses and internationalprivate sector. With public privatepartnerships being crucial forthe implementation of Africa’sinfrastructure projects, we aredelighted to facilitate dialoguethrough this timely publicationand its launch event, the AfricaInfrastructure InvestmentNetworking Forum.Developing regional infrastructureis crucial to sustaining Africa’scurrent economic growth andWe are delighted to facilitate dialoguethrough this timely publication and its launchevent, the Africa Infrastructure InvestmentNetworking Forum.competitiveness. This Reportoutlines the infrastructure deficitand challenges, highlights modelsfor financing the continent’sambitious projects and providesa sector-by-sector guide to themain priority areas, namely energy,transport, water and ICTs.Partnerships are key to bridgingthe infrastructure gap; as such thisreport spans across multilateralorganisations, regional economiccommunities, member states,donors and delivery organisations;all committed to implementingAfrica’s infrastructure plans. Ourhope is that this Report provides aneffective platform for organisationsto meet, share knowledge andcollaborate in delivering thesolutions that are shaping andbuilding the new Africa.Finally, I wish to thank our strategicpartners - the International ProjectFinance Association (IPFA), thetrade association for the projectfinance industry, and the rangeof hugely eminent authors,sponsors and advertisers thathave contributed to this Report.Together we can realise the visionof developing Africa’s regionaland continental infrastructureand promote socio-economicdevelopment and poverty reductionacross the continent.7
WE USED TOSCHEDULE REPAIRS.Faced with ever-shrinkingbudgets and constantstreamlining, governments,utility agencies andbusinesses around the worldare struggling to keep theiroperations running smoothly.That’s why leaders and theirteams are fixing the way theyfix things.Predictive maintenance can helpreduce breakdowns by up to 75%Managing its infrastructureproactively rather thanreactively has helped theutility reduce its customercalls by 36%.FROM SCHEDULED TOPREDICTIVE MAINTENANCE.The world has always workedon scheduled maintenance.“Change your oil every3,000 miles,” for example.The problem is, things don’talways break on schedule.With predictive maintenance,organizations are able toanticipate not only whena problem will occur, butwhere and how. Which meansthat instead of fixing thingswhether or not they need it,they can predict a problem andhelp prevent it from becomingan even bigger one.FIXING WHAT WILL BREAKNEXT, FIRSTImagine a leaky faucet inyour house. Now imagine youhave 10,000 leaky faucets andREPLACING INTUITION WITHANALYTICS.With IBM predictivemaintenance, you can spendless time and fewer resourcesrepairing things. Because thesimplest and most efficientway to fix a problem is tomake sure the problem neverhappens in the first place. Tolearn more, please visit us atibm.com/predictivemaintenanceNOW WEPREDICT THEM.they’re all buried under-ground.That’s what senior managers ata major city’s water utility wereconstantly struggling with.Rather than replace every pipeand valve in the system, theyadded sensor and analytics thatcan identify which assets aremost in need of attention. Nowthe utility can pinpoint smallleaks and stem them beforethey become floods.LET’S BUILD ASMARTER PLANET.IBM, the IBM logo, ibm.com, Smarter Planet and the planet icon are trademarks of International Business Machines Corp. registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web atwww.ibm.com/legal/copytrade. International Business Machines Corporation 2012
ForewordMessage from Dr Ibrahim Assane MayakiChief Executive Officer, NEPADOn behalf of the New Partnershipfor Africa’s Development (NEPAD)Agency, it gives me great pleasureto share with you the AfricaInfrastructure Investment Report.A comprehensive guide forplanning, funding and developinginfrastructure, this CommonwealthBusiness Council Report comesat a time when infrastructure istaking centre stage on Africa’sdevelopment agenda.PIDA provides a commonframework for us to build theinfrastructure necessary for moreintegrated transport, energy, ICTand trans-boundary water networksto boost trade, stimulate growth andcreate jobs. Implementing it willtransform the way we do business,help deliver a well-connected Africaand realise the building of theAfrican Economic Community, asoutlined in the 1991 Abuja Treaty.Since its launch in 2001, NEPADhas recorded numerous policyframeworks and programmes suchas the NEPAD Short Term ActionPlan (STAP), the ComprehensiveAfrica Agriculture DevelopmentProgram (CAADP) and morerecently, the Programme forInfrastructure Development inAfrica (PIDA). PIDA is a jointinitiative of the NEPAD Planningand Coordinating Agency (NPCA),the African Union Commissionand the African Development Bankin collaboration with several otherAfrican stakeholders, including theRegional Economic Communities(RECs) and Member States (MS).Among its objectives, PIDA aimsto develop a supply-side web of37,200km of highways, 30,200kmof railways and 16,500km ofinterconnected power lines by 2040.It also plans to add 54,150 megawattof hydroelectric power generationcapacity and an extra 1.3 billion tonsthroughput capacity at the ports.With capital costs for PIDAestimated at more than US 360billion by 2040, and US 68 billionby 2020, at present, the fundinggap stands at US 31 billion peryear which includes 75 per cent ofcapital investment and 25 per centof maintenance expenditures.In order to close this funding gapand efficiently implement PIDA,prudent coordination structuresand mobilising of all relevantfunding sources, both public andprivate are required.The Institutional Architecture forInfrastructure Development inAfrica (IAIDA) architecture definesthe implementation mechanism ofPIDA where Member States are todrive the delivery of projects, withRegional Economic Communitiesplaying an implementation processoversight role.As the agency tasked with PIDAimplementation coordination, I callupon the development partners andthe private sector to support theAfrican Union’s ‘one-programme,one voice’ regional and continentalinfrastructure agenda in support ofPIDA’s delivery, which support, wesincerely hope, will help realise theAfrica Union’s vision and inclusivegrowth agenda, for an integrated,prosperous and peaceful continent,driven by its citizens and standing asa dynamic force on the world scene.9
Africa’s infrastructureroadmap10CBC Africa Infrastructure Investment Report
Addressing Africa’sinfrastructurechallengesJacob G Zuma, President of the Republic of SouthAfrica and Chairman of the Committee of Heads of Stateof the Programme for Infrastructure Developmentin Africa (PIDA) outlines initiatives to address Africa’sinfrastructure challenges and issues an invitation to participatein African integration.The impact of Africa’sinfrastructure deficitAfrica is faced with a hugechallenge of infrastructure deficit,which limits regional integrationinitiatives. Integration influencesthe rate of development on thecontinent, and is therefore essentialas a building block towards aprosperous Africa.Improving continentalinfrastructure is the foundationupon which Africa’s developmentrests. Without sound and wellmaintained infrastructure, nationaleconomic development will remainseverely constrained. Infrastructurehas been responsible for more thanhalf of Africa’s recent improvedperformance, and has the potentialto contribute even more in thefuture. Conversely, inadequateinfrastructure holds back fastergrowth in Africa.Efficient infrastructure networkshave the effect of generating newinvestments in other sectors. Inview of the fact that the majorityof Africa’s population lives in ruralareas, an integrated and efficientinfrastructure system will unleashthe production potential of thesecommunities and provide thenecessary links to markets.Expanding road networks andelectrical generation capacityprovides a basis for industrialmanufacturing, and the ability ofthe agriculture sector to fulfil itspotential contribution to economicgrowth. The growth of the ruraleconomy in primary production,value-adding agro-industries andnon-farm enterprises, is criticallylinked to rural roads that are wellmaintained and to accessing power.These are the vital developmentalareas that African leaders view inthe most serious light.The lack of infrastructure inAfrica is widely recognised, andthe impact of this deficit oncompetitiveness in Africa is clear.African countries (particularlythose south of the Sahara) areamong the least competitive inthe world, and infrastructureappears to be one of themost important factors in thedetermination of their globalcompetitiveness. The globalcompetitiveness indices (GCIs),11
Africa’s infrastructure roadmapThese projects shouldultimately unlock theeconomic potentialof the continent andprovide developmentopportunities forcommunities, citiesand regions.for people and goods to movebetween markets and places, and tocontribute to the overall economicdevelopment of the continent. Thisinitiative has linked Heads of Stateto specific infrastructure corridors,to ensure political leadership inthe championing of cross-borderinfrastructure projects. Ideally,these projects should ultimatelyunlock the economic potentialof the continent and providedevelopment opportunities forcommunities, cities and regions.The PICI process is a prerequisitefor the successful completion anddelivery of these projects.calculated by the World EconomicForum, are revealing. Generally,for Africa, these indices are lowerthan those of other regionsof the developing world andinfrastructure appears to be theunderlying factor that contributesmost significantly to this relativelylow competitiveness.PICI projectsIn addition to other initiatives,and to create a catalyst forinfrastructure development inAfrica, the NEPAD Heads of Stateand Government OrientationCommittee (HSGOC) inKampala in July 2010 adopted12
Africa, outlines Africa’s infrastructure challenges. 14 PIDA – an overview of the programme to transform Africa Shem Simuyemba, Chief Infrastructure Economist at the African Development Bank, details the main areas and initiatives covered by the Programme for Infrastructure Development in Africa. 21 Engineering capaci
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management in Africa 3. Community involvement in natural resources management in Africa – regional overviews 3.1 Introduction: Different understandings of, and approaches to, CBNRM in different regions 3.2 Central Africa 3.3 East Africa 3.4 Southern Africa 3.5 West Africa 3.6 Summary 4. What has CBNRM achieved in Africa? The ‘3Es .
The African Consumer and Retail White Goods in Africa Insurance in Africa Agriculture in Africa Power in Africa Construction in Africa . this regard, already having a notable presence in a number of SSA countries. International retailers are also looking to expand into Africa, most notably
ow Can Investment in Nature Close the Infrastructure Gap? Executive Summary New research shows that nature-based infrastructure (NBI) is up to 50% cheaper than traditional "grey" infrastructure to provide the same infrastructure service. In addition, NBI provides 28% better value for money than grey infrastructure. These numbers are based
North Africa West Africa Central Africa Eastern Africa Southern Africa Africa On average, African governments spend 6.5-7.8% of the government budget on health, though with wide variation. Until 2010, the spending was uneven. Since then all sub-regions show an increase of budget allocation for health.
Source: United Nations World Urbanization Prospects, IFs version 7.22. figure 2: Africa’s expected levels of urbanisation 2016–2050, by region 100 90 80 70 60 50 40 30 20 45 44 55 28 2020 49 eastern Africa/the Horn southern Africa central Africa North Africa west Africa African average 49
(National Geography Standard 13, p. 169, C, E) U1.3.1 Use maps to locate the major regions of Africa (northern Africa, western Africa, central Africa, eastern Africa, southern Africa). (National Geography Standard 1, p. 144) U1.3.2 Describe the life and cultural development of people living in western Africa before the 16th century with respect
Grade 2 ELA Week of April 13-17, 2020 Day Skill Instructions Monday . There was a city park very close to their apartment. The park was really big. Maybe part of it could be turned into a park for dogs. Then Oscar s puppy would have a place to run! 4 Now Oscar needed to turn his idea into a plan. Oscar worked very hard. He wrote letters to newspapers. He wrote to the mayor about his idea for .
