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| High level panel at the 3rd 2017PIDA week in Swakopmund, Namibia |
RELIABLE partnerships between countries seem to be the panacea for Africa’s energy infrastructure inadequacies.
Intra-regional energy projects, if funded, could potentially enable countries across the continent to deliver enough power to its people and industries.
The challenge, however, is on countries in Africa failing to forge partnerships and funding energy projects beyond their national budgets.
Africa’s infrastructure insufficiency does not only affect the energy sector, but it is also visible in the transport and Information and Communications Technology (ICT) sectors.
To bridge this gap, experts gathered for 2017 third Programme for Infrastructure Development in Africa (PIDA) week from December 10 to 14, 2017 in Swakopmund, Namibia.
The meeting called for innovative ways of financing infrastructure projects in Africa to sustain the continent’s aspirations for sustainable development.
“Africa needs to work together and hunt as a team in order to develop its infrastructure and grow its economy. The lack of modern roads, power networks and other infrastructure hampers Africa’s economic development,” New Partnership for Africa’s Development (NEPAD) chief executive officer Ibrahim Mayaki said at the meeting.
For Dr Mayaki, to succeed, Africa must develop infrastructural corridors that will link one country to the other. He said by so doing, African countries will be better equipped to develop infrastructure and create jobs.
“The burdens could be relieved and future opportunities captured by developing economic corridors and investing more in infrastructure development as a continent,” Dr Mayaki says.
“Economic corridors create virtuous circles, spurring additional growth, improving living standards and, through this, a greater uptake of commodities – be it from increased consumerism or further infrastructure investment.”
He said the creation of economic corridors has potential to increase the capacity of the continent to create jobs for its people and bring about economic growth.
“PIDA is about regional projects not national projects. 80 percent of infrastructure is done nationally. Sadly, fiscal pressure in Africa is very low, but we need to grow it to 25-30 percent. African governments need to work together and hunt as a team, until them, we will continue facing challenges in addressing the challenges that hinder the continent’s economic growth,” he says.
As the African Union Commission director for infrastructure and energy, Cheikh Bedda notes, the development of roads and energy infrastructure, among others, are necessary to make regional integration possible.
“Job creation through massive infrastructure development is vital for Africa’s growth. We have political will, [but] we need to move and solve problems and stop being skeptical about ourselves. Challenges do not equal to failure,” Mr Bedda says.
The majority of the world’s fastest growing economies in recent years are said to be in African, and economic analysts believe this is what has created demand for good infrastructure.
However, there are fears that infrastructure inadequacies could confine the continent to the developing world.
“Infrastructure is Africa’s top priority. With low levels of intra-regional economic exchange and the smallest share of global trade, Africa is the least integrated continent in the world. Infrastructure inefficiencies are costing Africa billions of dollars annually and are stunting growth,” Mr Bedda adds,
Bridging the gap in infrastructure is thus vital for economic advancement and sustainable development. However, this can only be achieved through regional and continental collaboration.
Development Bank of Southern Africa (DBSA) group executive for origination and client coverage Mohan Vivekanandan feels Africa needs bankable project proposals to secure funding for infrastructure projects.
He also believes the continent has potential to fund its own projects.
“As a continent, Africa needs to save enough and fund its own infrastructure. Some projects do not require government offtake,” Mr Vivekanandan says.
In line with the continent’s Agenda 2063 and the “The Africa We Want” slogan, PIDA has about 400 proposed infrastructural projects.
Among those under implementation are the Zambia-Tanzania-Kenya power interconnection; Batoka HydroPower plant; the Central Corridor, Dar es Salaam to Chalinze toll road; Kinshasa-Brazzaville road and railway bridge.
Africa Development Bank Group division manager under the NEPAD Infrastructure Project Preparation Facility Shem Simuyemba challenged AU member states to partner on projects that will have equal spillover benefits to respective countries.
Mr Simuyemba said the infrastructure investment gap in Africa is estimated at US$100 billion annually out of which US$45 billion is bridged, leaving an annual funding gap of US$55 billion.
“Cumulatively over the years, this gap has been growing as demand for infrastructure grows,” Mr Simuyemba says.
It is envisaged that as Africa’s economies grow at all levels, the demand for infrastructure will also grow and the gaps will get wider, if countries do not get smarter about bridging the gaps.
But with constrained national budgets, the continent needs to enhance private sector participation in infrastructure projects and also moot innovative ways of financing. PUBLISHED IN THE ZAMBIA DAILY MAIL ON DECEMBER 19, 2017. LINK: https://www.daily-mail.co.zm/infrastructure-deficit-africas-sticky-point/
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