Optimism & opportunity abounds but a bumpy and slow journey ahead for some
The African continent continues to attract the interest of global investors, developers and operators searching for growth.
While there are short term concerns in some of Africa’s regions, the opportunities abound for infrastructure investment and development. Infrastructure spend in the region is projected to reach $180bn per annum by 2025, according to PwC’s ‘Capital Projects & infrastructure in East Africa, Southern Africa and West Africa,’ report issued on Tuesday.
More than half of respondents indicated that their planned spending on infrastructure – both new projects and refurbishment of assets – would increase by more than 25% from the previous year. They said much of their spending would be focused on new development, with 51% of all respondents planning to spend more than half of their budgets on new assets.
Respondents from West Africa were especially bullish, with 58% planning an increase of more than 25% in spending, followed by those in East Africa (53%) and Southern Africa (40%).
Jonathan Cawood, Capital Projects & Infrastructure Leader for PwC Africa, says: “The shallow economic recovery in most developed markets has shifted the focus to faster-growing regions. This is also true for the infrastructure development sector.
“With an abundance of natural resources and recent mineral, oil and gas discoveries, demographic and political shifts and a more investor-friendly environment, the investor spotlight shines brightly on Africa.”
Interviews were conducted among 95 key players in the infrastructure sector, including development finance institutions, private financiers, government organisations and private construction and operations companies across East, West and Southern Africa. The sectors surveyed included water, transport and logistics, energy, mining, telecoms, and real estate, with the main focus being on economic infrastructure.
Highlighting the different stages of development and uniqueness of each country, the report provides insights into the world of infrastructure delivery across African countries and regions in sub-Saharan Africa (SSA). It showcases the drivers for success, the current thinking and challenges stakeholders are experiencing within the region.
“While respondents are clearly committed and optimistic about the continent’s infrastructure development, there are a number of obstacles they recognise must be dealt with. Resolving these quickly and creatively will not only positively affect their current projects, but more importantly, will attract other project developers, owners and investors to enter the African market,” says Cawood.
Distributed by APO (African Press Organization) on behalf of PricewaterhouseCoopers LLP (PwC).