Africa’s infrastructure deficit: Summit calls for bolder action from private sector to reduce gap

By Kingsley Adegboye

THE just concluded Africa’s premier infrastructure summit in Abuja, put together by Africa Finance Corporation AFC, that brought  together experts in infrastructure financing, has called for bolder action from private sector in order to reduce Africa’s infrastructure deficit, just as it has put strong emphasis on partnerships to increase deal flow to unlock critical infrastructure investment in Africa.

Speaking, Andrew Alli, President and Chief Executive Officer, AFC, said “In 2014, we held our inaugural African infrastructure summit, bringing together our expertise, knowledge and experience in infrastructure financing. In 2017, as we celebrate 10 years of activity, we will focus on deal-making, with a view to leveraging public-private partnerships for continental infrastructure transformation”.

According to Alli, “The first day of AFCLive2017 presented 12 projects requiring US$ 13 billion investment spanning across nine African countries. They include Benin, Burundi, DRC, Kenya, Niger, Rwanda, Tanzania, Zambia and Zimbabwe. The projects were presented by the New Partnership for Africa’s Development NEPAD, the German Development Agency GIZ, the strategic advisory firm, Black Lion Holdings and international petroleum group Petrolin Group, gold sponsor.

Fast trackingcommercial projects

“AFC has invested approximately US$4bn in projects across Africa. One of the objectives of the Summit is to develop new solutions to increase deal flow and fast track commercial projects in Africa. A recent UN report said that of the total US$2tn raised globally for infrastructure projects, only US$59bn was received in Africa, representing 3 per cent.

“By bringing financiers and investors alongside project developers and fund managers, AFC wants to ensure that more capital, both African and international, can be deployed towards addressing Africa’s pressing infrastructure needs”, AFC boss said.

Samuel Dossou-Aworet, founding Chairman of Petrolin Group,noted that “The core of our business strategy is to use our international strength to bring on board first class international companies and, more importantly, to involve local indigenous partners and investors to associate them to the development of the sub-region”.

Dossou-Aworet pointed out that Petrolin’s ‘backbone project’ in French, ‘Epine dorsale’, a new backbone for Africa, is intended to reshape the future of Benin and the West African sub-region by rolling out infrastructure to boost regional trade that will propel growth over the next few decades. He stated that it includes a rail line building on existing networks linking Cotonou to Parakou, to Dosso and to Niamey (1,032 km), adding that it will be the first standard-gauge rail dedicated to logistics flows in West Africa and is designed to become a catalyst for the development of mining and oil resources in Benin, Niger and Nigeria as well as other hinterland countries.

Petrolin’s chairman further noted that the backbone also includes a new dry port, a new deep water port, a new international airport and related infrastructure such as schools, universities, health centres and tourism areas in Benin.

 

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