{"id":529218,"date":"2018-08-01T23:36:41","date_gmt":"2018-08-01T23:36:41","guid":{"rendered":"http:\/\/www.webuildvalue.com\/?p=529218"},"modified":"2020-10-26T09:29:10","modified_gmt":"2020-10-26T09:29:10","slug":"africa-needs-to-raise-an-additional-1-trillion-for-infrastructure-development","status":"publish","type":"post","link":"https:\/\/www.webuildvalue.com\/en\/infrastructure\/africa-needs-to-raise-an-additional-1-trillion-for-infrastructure-development.html","title":{"rendered":"Africa needs to raise an additional $1 trillion for infrastructure development"},"content":{"rendered":"\n
\"infrastructure-gap-africa-124\"<\/figure>\n\n\n\n

A group of 10 African countries<\/strong> including Egypt<\/strong>, Ethiopia<\/strong>, Morocco<\/strong> and Senegal<\/strong> need to raise<\/strong> an additional $1 trillion for infrastructure investment<\/strong> if they are to meet<\/strong> the goals<\/strong> of sustainable development<\/strong> set by the United Nations<\/strong> for 2040 like access to clean<\/strong> water<\/strong> and sanitation<\/strong>, according to a new report.<\/p>\n\n\n\n

The amount<\/strong> is nearly double the $1.4 trillion<\/strong> that they are expected<\/strong> to channel<\/strong> into projects<\/strong> like roads<\/strong>, railways<\/strong> and other crucial<\/strong> infrastructure<\/strong> during the period, according to the report published in early July by the Global<\/strong> Infrastructure<\/strong> Hub<\/strong>. Based in Sydney, Australia, the hub is an organization set up by member countries of the Group of 20 (G20) to promote private investment in the sector. Compact with Africa (CWA) is a hub initiative to encourage<\/strong> private<\/strong> investors<\/strong> to consider projects on the continent where population and economic growth rates are among the highest in the world. The hub has developed a database on Africa, and the latest report, done in coordination Oxford Economics, marks the inclusion of more countries to it, such as Benin<\/strong>, Cote<\/strong> D\u2019Ivoire<\/strong>, Ghana<\/strong>, Guinea<\/strong>, Rwanda<\/strong> and Tunisia.<\/p>\n\n\n\n

Entitled \u201cGlobal Infrastructure Outlook: Infrastructure Investment Need in the Compact with Africa Countries\u201d,<\/em> the report comes two months after the publication of another one done with consulting firm KPMG in which the hub speaks of the need for good governance to increase the number of private investors entering the market.  <\/p>\n\n\n\n

The hub\u2019s chief executive, Chris Heathcote, told the Reuters news agency at the time of the release of the latest report that investors<\/strong> were becoming<\/strong> more<\/strong> interested<\/strong> in<\/strong> Africa<\/strong> in light of the need for more infrastructure in all its forms. \u201cAfrica is a fascinating continent for investors,\u201d he said. \u201cThey\u2019re not saying \u2018Am I going to Africa?\u2019. They\u2019re saying \u2018I am going to Africa. I want to go to Africa. Which country should I go to?\u2019\u201d<\/p>\n\n\n\n

\"7d21ff4d0b9ed016155d58586a6adfc7\"<\/figure>\n\n\n\n

Africa\u2019s<\/strong> need<\/strong> for infrastructure<\/strong> highlights how much the continent<\/strong> is<\/strong> behind<\/strong> in meeting<\/strong> the 17 Sustainable<\/strong> Development<\/strong> Goals<\/strong> set<\/strong> by<\/strong> the<\/strong> United<\/strong> Nations<\/strong> for 2030<\/strong>. In addition to clean<\/strong> water<\/strong> and sanitation<\/strong>, they include affordable and clean energy, and sustainable cities and communities. In the report\u2019s introductory remarks, Heathcote says only 60% of residents of countries<\/strong> surveyed under the CWA initiative have access<\/strong> to electricity<\/strong>, while 44% have it for water<\/strong>. He cites these goals because electricity and water are among the most urgent needs among the 10 countries surveyed.<\/p>\n\n\n\n

\u201cWe find that for the 10 CWA countries to meet the goals for universal access to electricity, water and sanitation, it would cost US $621 billion between 2016 and 2030,\u201d reads the report. \u201cThree-quarters of this figure relates to electricity, and one-quarter to water and sanitation.\u201d<\/p>\n\n\n\n

The UN\u2019s Goals<\/strong>, which came<\/strong> into<\/strong> effect<\/strong> in 2016<\/strong>, are a call to action to end poverty across the globe.<\/p>\n\n\n\n

The total<\/strong> spending<\/strong> requirements<\/strong> for the 10 countries under review are<\/strong> dominated<\/strong> by<\/strong> Egypt<\/strong> and Ethiopia<\/strong>, which each account for more than 30% of the CWA total under both the current trends and relative investment need scenarios, according to the report. Ethiopia, for one, is spending<\/strong> massive amounts on the construction<\/strong> of hydroelectric<\/strong> dams<\/strong> to become<\/strong> an energy<\/strong> hub<\/strong> for the region.<\/p>\n\n\n\n

As for the gap between what is spent and what is needed, the report says it is widest in the case of Guinea among the 10 countries. \u201cThe investment need forecast is more than 80 percent greater than what would be spent under current trends,\u201d it says.<\/p>\n\n\n\n

 \u201cThe question for many investors is\u2026 which<\/strong> countries<\/strong> in the continent will<\/strong> be<\/strong> most likely<\/strong> to stand behind<\/strong> the sort<\/strong> of long<\/strong>–term<\/strong> contracts<\/strong> investors<\/strong> are interested in, and have the economic plan to create and maintain the stability they require,\u201d it says.<\/p>\n\n\n\n

As the benefits<\/strong> that come from private<\/strong> investment<\/strong> start<\/strong> to show<\/strong>, other countries will want to follow<\/strong> suit with reforms<\/strong> of their own.<\/p>\n\n\n\n

The report cites good<\/strong> governance<\/strong>, capable<\/strong> institutions<\/strong> and consistent<\/strong> regulatory<\/strong> frameworks<\/strong> are the necessary ingredients to attract<\/strong> private<\/strong> investors<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

A group of 10 African countries including Egypt, Ethiopia, Morocco and Senegal need to raise an additional $1 trillion for infrastructure investment if they are to meet the goals of sustainable development set by the United Nations for 2040 like access to clean water and sanitation, according to a new report. The amount is nearly double the $1.4 […]<\/p>\n","protected":false},"author":10,"featured_media":107846,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[36],"tags":[19017,19016,19003],"yst_prominent_words":[4109,3818,4936,6377,6358,11518,1549,12119,691,664,295,676,6374,6368,1587,15040,6372],"class_list":["post-529218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-infrastructure","tag-city-of-tomorrow","tag-demographic-boom-and-megacities","tag-global-investments"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/posts\/529218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/comments?post=529218"}],"version-history":[{"count":4,"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/posts\/529218\/revisions"}],"predecessor-version":[{"id":542477,"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/posts\/529218\/revisions\/542477"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/media\/107846"}],"wp:attachment":[{"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/media?parent=529218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/categories?post=529218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/tags?post=529218"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.webuildvalue.com\/en\/wp-json\/wp\/v2\/yst_prominent_words?post=529218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}