AFRICA INFRASTRUCTURE: INTRODUCTION No. of Countries: 55 - - PowerPoint PPT Presentation

POLICY AND PLANNING FOR INFRASTRUCTURE DEVELOPMENT: WHY THE LONG VIEW MATTERS. By

• ENGR. MUSTAFA B. SHEHU, FNSE, FSESN.

President, Federation of African Engineering Organisations

Delivered at: Chatham House, The Royal Institute

• f International Affairs, London

At the occasion of: The Africa Programme Conference on Governing for Infrastructure Delivery in Sub-Saharan Africa: Overcoming Challenges to Create Enabling Environment 14-15 March 2016.

AFRICA INFRASTRUCTURE: INTRODUCTION

Population: 1.15Billion 2015 est. Area: 30.1 million sq km

• No. of Countries: 55

AFRICA INFRASTRUCTURE: INTRODUCTION

Population Growth

INFRASTRUCTURE DEFINITION Infrastructure can be defined as:

 The physical and organizational components of

interrelated systems providing commodities and services essential to enable, sustain, or enhance societal living conditions.

INFRASTRUCTURE DEFINITION

 Public works

• Irrigation systems
• Schools
• Housing
• Hospitals

COMPONENTS OF INFRACTRUCTURE

INFRASTRUCTURE DEFINITION

 Transport sector

• Roads
• Railways
• Sea Ports
• Waterways
• Airports

COMPONENTS OF INFRACTRUCTURE

INFRASTRUCTURE DEFINITION

 Research facilities

• Laboratories
• Equipment

 Infrastructure

services

COMPONENTS OF INFRACTRUCTURE

AFRICA INFRASTRUCTURE DEFICIT

 Road access rate in Africa

is only 34%

 9 main corridors with a

total length of 59,100 km

Road Access Trans African Highways

AFRICA INFRASTRUCTURE DEFICIT

Infrastructure: Access to Water

Access to improved source of drinking water: 65%

AFRICA INFRASTRUCTURE DEFICIT

Infrastructure: Access to Sanitation

Access to proper sanitation: Global average: 66% Africa: 38%

AFRICA INFRASTRUCTURE DEFICIT

Infrastructure: Access to Electricity Access to Electricity: about 30%

AFRICA

Infrastructure: Access to ICT

 Mobile-cellular penetration in

sub-Saharan Africa is at 39%

• f the population

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Europe CIS North America Latin America Asia Pacific Arab States Africa

Mobile cellular penetration

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Europe CIS The America Asia Pacific Arab States Africa

Access to the Internet

 Access to the internet is at

20.7% of the population

INFRASTRUCTURE POLICY IN AFRICA

 A policy is a deliberate system of principles to

guide decisions and achieve rational outcomes. It is a statement of intent, and is implemented as a procedure or protocol.

 Policy and regulatory re-forms, common standards,

harmonization, economic tariffs and a culture of maintenance are essential steps towards realizing efficiency gains in the utilization of existing infrastructure and ensuring optimal utilization of infrastructure assets and their sustainability.

 Policies on infrastructure delivery is mainly

cantered around Public Private Partnerships, (PPP).

INFRASTRUCTURE POLICY IN AFRICA

 PPP is a contractual agreement between a

public agency (International, Federal, State or Local Government) and a private sector entity.

 Through this agreement, the skills and assets of

each sector (public and private) are shared in delivering a service or facility for the use of the general public.

 In addition to the sharing of resources, each

party shares in the risks and rewards potential in the delivery of the service and/or facility.

INFRASTRUCTURE POLICY IN AFRICA Why PPP?

INFRASTRUCTURE POLICY IN AFRICA

Infrastructure Policy Regulation

 For any country or continent to expect high influx

• f foreign direct investment in the infrastructure

development, there has to be strong and enforceable regulations. These regulations can be done through any of the following models:

• Regulation by government (eg. ICRC in Nigeria)
• Independent Regulation
• Outsourcing regulatory function
• Advisory regulators and expert panels
• Hybrid and transitional models

INFRASTRUCTURE PLANNING IN AFRICA

 At continental level

• Programme for Infrastructural Development in Africa

(PIDA) – 2011 to 2040 ($360 billion)

• PIDA Priority Action Plan (PAP) – 2011 to 2012

($67.9 billion)

 At National levels

Examples

• National Integrated Infrastructure Master Plan

(NIIMP) in Nigeria – 2014 to 2043 ($3.05 trillion)

• National Infrastructure Plan (NIP) in South Africa –

2012 to 2020 (about $100 billion in 2012)

INFRASTRUCTURE PLANNING IN AFRICA

PIDA Priority Action Plan (PAP)

 By Sector

• Energy -

$40.3 billion

• Transport -

$25.4 billion

• Transboundary water - $1.7 billion
• ICT -

$0.5

 By Region

• East Africa -

$23.3 billion

• Central Africa - $21.5 billion
• Southern Africa - $12.6 billion
• West Africa - $6.2 billion
• Continental - $3 billion
• North Africa - $1.3 billion

INFRASTRUCTURE PLANNING IN AFRICA

Dakar Agenda for Action

 African Heads of State and Government, Ministers and

representatives of African countries, Regional Economic Communities, leading business, investment and private sector organizations, development finance institutions as well as development partner institutions, met in Dakar, Senegal on 15 June 2014.

 Reiterated

that PIDA is the basis for the implementation of priority projects to transform Africa and the inspiration for the financing of the construction

• f modern infrastructure based on the PIDA Priority

Action Plan (PAP) projects

INFRASTRUCTURE PLANNING IN AFRICA

Dakar Agenda for Action

 Agreed that feasibility studies and infrastructure project

preparation activities for the identified 16 PAS projects should be carried out by the African Development Bank under the supervision of the NEPAD Agency toward reaching bankability and attract private sector players.

 The Summit concluded that time has come to fund

Africa’s development from African financial sources.

INFRASTRUCTURE PLANNING IN AFRICA

National Integrated Infrastructure Master Plan (NIIMP)

 The

NIIMP aims to raise Nigeria’s stock

• f

infrastructure from the current 20-25% of the GDP to at least 70% of GDP by 2043. It identifies the investment required to bridge and expand Nigeria’s infrastructure.

• About $3.05 trillion (N485 trillion) will be required to deliver

quality infrastructure across different asset classes, including energy, transport, ICT, housing, water, agriculture, mining, social infrastructure, vital registration and security over the 35-year period.

 For the first 5 years of the NIIMP (2014-2018), an

investment of $166.1 billion (N26.9 trillion) will be required to deliver quality infrastructure.

PROBLEMS ASSOCIATED WITH THE IMPLEMENTATION OF INFRASTRUCTURE POLICIES IN AFRICA Observations:

 Despite improvements in the policy environment, sub-

Saharan Africa's share of foreign direct investment (FDI) in developing countries continues to decline.

 Although SSA has reformed its institutions, improved its

infrastructure and liberalised its FDI regulatory framework, the degree of reform has not been as effective compared with the reform implemented in other developing countries.

 As a consequence, relative to other regions, SSA has become

less attractive for FDI.

 An important implication of these results is that in a

competitive global economy, it is not enough just to improve

• ne's policy environment: improvements need to be made

both in absolute and relative terms.

PROBLEMS ASSOCIATED WITH THE IMPLEMENTATION OF INFRASTRUCTURE POLICIES IN AFRICA

Other problems of infrastructure policies in SSA are:

 Inadequate regulatory and legal frameworks  Weak institutions  Poor transparency and accountability  Lack of resources  Weak legal framework  Lack of technical capacity  Frequent changes in the management of agencies  Policies do not ensure adequate participation of local

engineering firms (manufacturing and services) and personnel in infrastructure delivery

PROBLEMS ASSOCIATED WITH INFRASTRUCTURE PLANNING IN AFRICA

 Lack of accurate data on demography  Lack of accurate data on infrastructure entity  Uncoordinated sectoral plans  Frequent violation of procurement laws and procedures  Inappropriate financing structure of projects  Infrastructure policies not in sync with human

development, manufacturing and employment policies

 Lack of unified engineering regulations and standards in

Africa

 Frequent

changes in the personnel handling infrstructure planning responsibilities

ROLE OF ENGINEERING PROFESSIONAL BODIES IN SUSTAINABLE INFRASTRUCTURE DEVELOPMENT

1.

Capacity building programmes for all cadres of engineering personnel to enable them fully participate in infrastructure planning and development

2.

Development of acceptable engineering standards for use

• n the continent

3.

Development of Annual or Bi-annual Infrastructure score card and ranking system by the engineering professional bodies in each country.

1. South Africa, Ghana, Zambia and recently Nigeria have started. This will prevent the use of BAR (Build-Abandon-Rebuild) philosophy in procuring infrastructure, which is too expensive.

4.

FAEO is in the process of signing Memorandum of Agreement with the African Union towards realising items 1 & 2 above.

WAY FORWARD

 Strengthening of infrastructure regulatory institutions through

appropriate legislative framework to improve investor confidence

 Infrastructure policy to be in sync with policies on job creation as

well as manufacturing policies

 Government at continental and national levels to develop strong

relationship with professional organisations to ensure the development of African professional services firms as well as personnel through their active involvement in the processes.

 Government to put more effort to stamp out or minimise unethical

practices in procuring infrastructure

 Financing of infrastructure projects to be made in such a way that

projects do not go through abandonment before completion.

 Procuring entities to ensure detailed feasibility studies and designs

are carried out before commencement of any such project

 Procuring entities to ensure adequate coordination between

different sectors to be involved in delivery of any infrastructure

CONCLUSION

 While there is huge infrastructure deficit in Sub-Saharan

Africa, the population and size of the continent is a good incentive and yardstick of measuring the prospects

• f infrastructure development in the region.

 The effort being made by a lot of African countries on

transparency and good governance gives hope for prospective investors to come and participate in this booming infrastructure market.

 With the articulated infrastructure masterplans at

continental and national levels, it is gladdening to note that African heads of governments have also subscribed to the long view towards infrastructure delivery.

CONCLUSION