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AFRICA An Investment Destination Conference. NEEDS FOR INFRASTRUCTURE DEVELOPMENT EXPENDITURE Presented by: P Duncan Mbonyana. Contents. Current Arrangements and Roles Integrated Framework Study Public Financing Declined Aid for Infrastructure Declined Investment Requirements are High
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AFRICAAn Investment DestinationConference NEEDS FOR INFRASTRUCTURE DEVELOPMENT EXPENDITURE Presented by: P Duncan Mbonyana
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
Integrated Framework Considerations for each level • Governance and Overall Framework • Strategic Issues • Governance • Process • Technology • Reporting NEPAD Business Foundation Secretariat and Executive Programme Management • Execution Management • Overall inter-sectoral co-ordination and integration • Risk and Issue Nerve Centre Project Management • Individual project management Effective management of risks and issues at the project and programme level Risk Management Risk Identifi- cation Risk Analysis Risk Response Risk Response Control Feedback Source: NBF
Study Feasibility study by PM Global Infrastructure Inc for African Business Roundtable lead by Per Ljung
Public Financing Declined Source: World Bank
Aid for Infrastructure Declined Source: World Bank
Investment Requirements Are High Source: Per Ljung
Africa was a late Starter (Share of Investments in New Private Projects) Source: Per Ljung
Local Participation in Infra-structure Source: Per Ljung
Local Participation by Sector Source: Per Ljung
Cross- Border Participation (In Sub-Saharan Africa excluding South Africa) Source: Per Ljung
Mindset Change • From donation driven to private sector driven investment. • Philosophy for delivery of smooth value chain. • Sustainability than once-off flagships.
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.
Process Integration • Multi-dimensional needs satisfaction. • Economic, social and environmental (e.g. 3 Gauges). • Joint planning process across sectors in infrastructure.
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.