An 'infrastructure revolution' seen as summit in Nigeria showcases projects

At least 600 experts met in Abuja, the capital of Nigeria, on May 15 and 16 to discuss strategies of financing Africa's infrastructure sector. Billed as the continent's most critical summit, the Africa Finance Corp's AFC Live 2017 summit brought together financiers, developers and policymakers to explore new solutions that will unlock private sector investment and fast-track commercial African infrastructure projects.

According to the United Nations, out of the total $2 trillion (1.8 trillion euros; ￡1.5 trillion) raised globally for infrastructure projects, only $59 billion, or 3 percent, is received in Africa.

The event, the second hosted by the AFC, comes as a recent report by Ernst & Young, a London-based professional services company, says China is the single largest contributor of foreign investment to the continent. Moreover, Deloitte's annual construction report, released in March, says China leads in financing and construction in the growing economies of East Africa.

The increased Chinese presence has been led by State-owned enterprises. Discussions on the continent have frequently centered on how to unlock private participation, which is said to be the driver of economic growth.

"We are seeking an infrastructure revolution in Africa," says Chukwuma Soludo, the former governor of the Central Bank of Nigeria, who is among the founders of the AFC.

Despite an uptick in the number of construction projects witnessed across the continent recently, the speed is below expectations, says Soludo. "Very little can be achieved in terms of sustainable economic growth if the deficit is not bridged. Private players are the catalyst of mobilizing required resources."

However, governments need to undertake policy reforms, says Matia Kasaija, the finance, planning and economic development minister of Uganda. "We need policies to encourage foreign policy and direct investments. Moreover, peace and stability in Africa must prevail to lock in this capital investment."

Obiageli Ezekwesili, the former Nigerian minister of education, says that the basic lesson Africa can learn from China is that regardless of economic growth, national budget allocations must go toward infrastructure construction.

"The Belt and Road initiative is a global reminder that infrastructure investment is critical and determines the growth path of a country," she says. "Africa needs to internally seek solutions to solve the billion-dollar infrastructure deficit and learn how China mobilized resources, defined its problem, prioritized infrastructure construction and the sequence of choices taken over time."

She says China's efficiency in executing its strategy also is an invaluable lesson. "Discipline remains important in the implementation success," she adds.

Other dignitaries who attended the summit were Nigerian Vice-President YemiOsinbajo, Central Bank of Nigeria Governor Godwin Emefiele and Isatou Touray, the Gambian minister of trade.

Touray says more collaboration among African countries is needed to accelerate integration. "Approaching developing partners as a bloc will increase investors' appetite. China is keen to invest in these projects, and we have seen them participating in East Africa, where they are engaged in the construction of the Ethiopia-Djibouti railway," she says.

More than 30 investment-ready projects were showcased at the event, including energy, natural resources and transportation projects. Commercial projects included expansion of Dar es Salaam Port in Tanzania and the Autonomous Port of Cotonou in Benin and power production and transmission line projects in Zambia, Tanzania and Kenya.

The New Partnership for Africa's Development, an African Union agency, presented 12 projects that will require investment of about $12 billion in nine countries across the continent.

lucymorangi@chinadaily.com.cn

(China Daily Africa Weekly 05/26/2017 page28)