ICA 2007 Annual Report is Published
18 September 2008
The 2007 Annual Report of the Infrastructure Consortium for Africa is now available.
Key messages include:
1. Progress has been made on bridging the financing gap
- Commitments by ICA members reached $12.4 billion in 2007, an increase of 61% from the previous year ($7.5 billion).
- African countries received a minimum of $40 billion in external financial support to infrastructure 2007 (with around 50% coming from the private sector)
- Chinese commitments are estimated to be a minimum of $5.2 billion in 2007
2. Africa’s power crisis continues to demand urgent attention
- Investment needs are estimated to be around $25 billion per year to meet basic generation needs
- Improving the performance of utilities would free up money for new investment and to upgrade existing infrastructure
- Regional solutions are important to reducing capital, maintenance and operating costs
3. Action is required now to prevent what might become â€˜Africa’s water crisis’
- Negative effects of climate change are already being experienced in Africa. More water storage facilities need to be built to help smooth out seasonal variations of water supply.
- Regional cooperation between countries needs to improve through increased support to River Basin Organisations (RBOs)
4. Greater emphasis on regional solutions is needed
- African Governments need to speed up decision making and Ministries of Finance need to allocate more resources to preparing and financing regional infrastructure projects
- Around one quarter of ICA commitments now goes to regional infrastructure - up from around 5% in 2005.
- A lack of projects prepared to a stage where they are ready for financing continues to be a significant bottleneck
5. The returns to reform and increasing the efficiency of existing infrastructure are high
- Effective institutions and reform are as important as new infrastructure to ensuring better maintenance and attracting more private sector finance
- Innovative financing structures in some sector, such as duel tariff arrangements involving long-term public subsidies, will need to become a common feature if increased private sector finance is to become a reality.
6. Significant additional spending will be required on urban infrastructure
- Urban infrastructure in many of Africa’s cities is already under strain and the rate of urbanisation is set to increase
- Governments must ensure that they put in place modern legislative and planning frameworks
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