AFRICA An Investment Destination Conference NEEDS FOR INFRASTRUCTURE DEVELOPMENT EXPENDITURE Presented by: P Duncan Mbonyana

2 Contents 1.Current Arrangements and Roles 2.Integrated Framework 3.Study 4.Public Financing Declined 5.Aid for Infrastructure Declined 6.Investment Requirements are High 7.Africa was a late Starter 8.Local Participation in Infrastructure 9.Local Participation by Sector 10.Cross-Border Participation 11.Mindset Change – Donor vs Private Participation 12.Project Integration 13.Process Integration 14.Conclusion

3 Current Arrangements and Roles LEVELROLERESPONSIBILITIES CONTINENTAL NEPAD/AU ParentPolitical will Facilitation Resource mobilisation Knowledge sharing Sub-regions RECs/Power pools Building blocks Coordination Prioritisation Monitoring and review CountriesNuclei ownersOwnership Delegation of implementation Sectoral organisationsRegional implementing agencies Implementation Technical support Networking Monitoring and evaluation Bilateral and multilateral partner institutions (IFIs & DFIs) Capacity building Resource mobilisation

4 Integrated Framework NEPAD Business Foundation Secretariat and Executive Programme Management Project Management Execution Management Overall inter-sectoral co-ordination and integration Risk and Issue Nerve Centre Governance and Overall Framework Strategic Issues Risk Identifi- cation Risk Analysis Risk Response Risk Response Control Risk Management Feedback Governance Process Technology Reporting Individual project management Effective management of risks and issues at the project and programme level Considerations for each level Source: NBF

5 Study Feasibility study by PM Global Infrastructure Inc for African Business Roundtable lead by Per Ljung

6 Public Financing Declined Source: World Bank

7 Aid for Infrastructure Declined Source: World Bank

8 Investment Requirements Are High Source: Per Ljung

9 Africa was a late Starter (Share of Investments in New Private Projects) Source: Per Ljung

10 Local Participation in Infra- structure Source: Per Ljung

11 Local Participation by Sector Source: Per Ljung

12 Cross- Border Participation (In Sub-Saharan Africa excluding South Africa) Source: Per Ljung

13 Mindset Change From donation driven to private sector driven investment. Philosophy for delivery of smooth value chain. Sustainability than once-off flagships.

14 Project Integration Seamless project value chain development. Pre-feasibility, feasibility, detail design, construction up to operation and maintenance planning. Avoid disjointed sectional expenditure of same project.

15 Process Integration Multi-dimensional needs satisfaction. –Economic, social and environmental (e.g. 3 Gauges). –Joint planning process across sectors in infrastructure.

16 Conclusion Local participation by Regional and National firms critical. Leadership by local private investment funds. Increase expenditure on infrastructure critical – –Ops and maintenance. –New build projects. Investment in infrastructure is a business with excellent social impact.