Infrastructure Financing Trends in Africa – 2015 Report
The ICA’s annual publication about infrastructure financing trends (the seventh in the series) identifies how resources are being mobilised to make an impact on Africa’s infrastructure development.
Innovations in this year’s report include more detailed analysis of the processes and dynamics that drive (or restrain) the continent’s infrastructure financing trends. The report includes views from a wide range of stakeholders on these forces and how strategies are emerging and developing to address the challenges of infrastructure financing in Africa.
As well as perspectives from ICA members, the report includes views from private sector stakeholders in Africa’s infrastructure development, including private equity investors, debt financiers, developers and major contractors.
Urban transport in sub-Saharan Africa – summary of diagnostic study & project development and investment pipeline
Commissioned by the Infrastructure Consortium for Africa (ICA), this diagnostic study identifies opportunities for investment to improve sustainable urban transport and mobility in five African cities – Accra, Addis Ababa, Dakar, Dar-es-Salaam and Lagos.
Assessing a number of the fastest-growing cities in Africa, the Diagnostic Study and Project Development/Investment Pipeline for Urban Transport in Sub-Saharan Africa seeks opportunities to support and assist cities in overcoming urban mobility challenges. It provides an understanding of the urban transport development landscape in the five cities and seeks to identify potential opportunities for investment and support in improving sustainable transport and accessibility.
Assessment of African Sub-Regional Development Banks’ contribution to infrastructure development
This study, commissioned by the Infrastructure Consortium for Africa, assesses the current and past contributions of African Sub-Regional Development Banks (SRDBs) to infrastructure development in Africa. The study reviews the Eastern and Southern African Trade Development Bank (commonly referred to as the PTA Bank), the East African Development Bank (EADB), the West African Development Bank (BOAD – Banque Ouest Africaine de Développement) and the Ecowas Bank for Investment and Development (EBID).
The study was designed primarily to provide answers to questions relating to the relevance of African SRDBs in bridging the infrastructure financing gap and the enhancement of these sub-regional banks, taking into account their strengths, challenges and the opportunities facing them.
The study makes a number of recommendations around issues such as the mandate of African SRDBs, their capital and financing, their role in supporting regional development and integration, governance & institutional processes and capacity building.
Assessment of African Infrastructure Project Preparation Facilities - lessons learned and best practice
This study, commissioned by the Infrastructure Consortium for Africa, provides a detailed assessment of African Project Preparation Facilities (PPFs). The study assesses 19 PPFs currently focusing on project preparation in African countries, covering aspects such as:
- Their work and modus operandi;
- Best practice and lessons learned;
- Success factors and challenges faced;
- Current levels of information-sharing and networking;
- Current levels of resources available for PPFs as well as the financing gap.
The study makes a number of recommendations, primarily around the strengthening of the corporate governance of PPFs, enhancing their effectiveness, developing sustainable funding models and adopting best practice. The study further recommends greater levels of project information sharing and the development of common operational guidelines and capacity building programmes, all of which would improve both efficiency and financial performance.
The "Nexus", as understood in the context of this document, can be defined as the place where water, energy and agricultural security intersect. At its heart is a strong understanding of the interdependencies between these three systems. As a concept, the Nexus is being promoted as a process for allocating and using resources to ensure water, energy and food security for an ever-growing population at a time of climate change, land use transformation, economic diversification and the need to make development pay.
The study was commissioned by the International Water Association on behalf of the Infrastructure Consortium for Africa. The International Union for Conservation Nature was also a partner in development of the study. It was originally intended to apply a structured analytical process to Africa’s Volta and Lake Victoria basins and using this information i) provide an overview of selected regional challenges and opportunities for multipurpose (water infrastructure); and based on that ii) to design a Rapid Assessment Framework with which to assess how current and upcoming infrastructure projects deal with nexus challenges.
A major element of the analytical process comprised an extensive review of the “Nexus” literature. The review itself suggested that a suitable point of departure for the study would be an acknowledgement that the Nexus itself can be thought of as a response to perceptions of insecurity on the part of various classes of stakeholders.
A key assumption at this point of the study was that the nexus provides an approach by which to broker a suite of trade-offs, comprises and synergies that increase the security of its three elements when defined as follows: water security, agricultural security and energy security.
In keeping with the objectives of the study and notwithstanding the fact that a nexus approach could involve political or institutional initiatives (and as such is not limited to infrastructure), a range of possible infrastructural measures was mapped into each nexus sector and onto the security expectations of the stakeholder classes.
Infrastructure Financing Trends in Africa - 2014 Report
This annual publication about infrastructure financing trends (the sixth in the series) serves as a unique document monitoring the flow of resources to Africa’s infrastructure.
In line with the ICA's continuous efforts to provide ever broader and more granular analysis of Africa’s infrastructure financing, this year’s report includes data and discussions on domestic resource mobilisation for infrastructure from central and local government budget allocations, state utility contributions and the private sector.
The ICA vision is that all Africans should have access to sustainable and reliable infrastructure services, including energy, transport, water, and ICT. We hope this report will inform and assist the mobilisation of resources needed to achieve that vision.
PIDA FINANCIAL STRUCTURING PLAN
Within context of the significant resource mobilization effort required for PIDA-PAP and in aligned with its mandate of resource mobilization for infrastructure development in Africa, the Infrastructure Consortium for Africa (ICA) in partnership with the African Development Bank (AfDB), at the request of the AUC, NPCA and the RECs, commissioned this PIDA Financial Structuring Plan with the following objectives;
A. To develop a PIDA financial resourcing plan that will assist the Regional Economic Communities (RECs), national governments of member countries and other project sponsors such as power utilities to access finance for the PIDA-PAP;
B. To identify and plot already existing and planned main financing vehicles and financing sources (including private and public, international and local sources, regional development banks) in and for each region that could be eligible for the regional PIDA-PAP projects;
C. To recommend the optimum financing structure(s) for the identified PIDA-PAP projects for both public and private sector financing arrangements;
D. To provide advice on the various infrastructure financing and regulatory frameworks in existence in the countries where PIDA-PAP projects are to be implemented and recommend the optimum enabling environment (legal, financial policy).
- PIDA-FIN-STCTRNG-PLAN-REPORT-ICA.pdf (3.6 MB)
Opening Up Aviation Services in Africa
The World Bank’s Africa Infrastructure Country Diagnostics (AICD) study1 provides analysis of infrastructure gaps, including for aviation, where lack of airline competition and the development of regional airport hubs are noted as important constraints. The Programme for Infrastructure Development in Africa (PIDA), a continent wide programme, builds on this analysis and has identified a number of priority projects (PIDA Priority Action Plan -PAP) which, if implemented would help interconnect, integrate and transform the continent. These include a number of projects that relate to the aviation sector.
A recent study commissioned by the Infrastructure Consortium for Africa (ICA) Transport Sector Platform highlighted both the potential for private sector participation in Africa, as well as a number of issues that constrain or discourage involvement.
This study aims to build on this foundation work and assist African stakeholders in addressing the next steps in promoting efficient African aviation services. The overall objective is to contribute to addressing the barriers to the expansion of effective aviation services across Africa through analysis and targeted interventions in support of relevant PIDA - PAP projects. Specifically, the study assesses the Yamoussoukro Decision implementation, and West Africa Air Transport and Central Africa Air Transport Hubs.
Infrastrurcture Financing Trends in Africa - 2013 Report
This annual publication of the ICA, provides a comprehensive easy-to-read review and description of the infrastructure financing trends in Africa. It provides specific information on the volume of finance/investment going into infrastructure development in Africa.
The figures contained in there report are based on figures reported by the participating banks, institutions, donors including bilateral and multilateral ICA members and also independent research and analysis.
Effective Project Preparation for Africa's Infrastructure Development
The lack of a strong pipeline of well-prepared, bankable projects has been widely recognized as one of the key constraints to infrastructure development in Africa.
‘Project preparation’ is a process which comprises the entire set of activities undertaken to take a project from conceptualization to actual implementation. The level of complexity and therefore cost of preparation varies according to the project size, sector, target beneficiaries, rural or urban focus, and various other parameters. Recent estimates by the NEPAD-IPPF show that project preparation can be up to 10-12% of the total project costs for large regional projects in Africa. The continent is grappling with resource constraints, both financial and of technical capacity for undertaking project preparation. Hence, enhancing the effectiveness of project preparation requires an analysis of factors influencing demand and supply of project preparation financing. On the demand side, there is a need to assess the institutions involved in project preparation, so that efficiencies can be reaped through better utilisation of the current resources available for project preparation; on the supply side there is a need to understand how to mobilise the requisite resources to enhance the capacity for systematic project preparation.
The objective of this paper is to raise both the demand and supply side issues, as well as to propose recommendations for addressing these concerns for the deliberation of the ICA Annual Meeting 2014