Tag Archives | PPP
The centralisation of policy decisions in most African countries adds to this, leaving local municipalities out of the loop despite the impact of mega-infrastructure in their area. More comprehensive national development plans will be needed to ensure that the people on the ground enjoy the benefits of economic growth as they were envisaged in the AMV. Boylan suggests tying small business investment to PPP development to promote projects and encourage local participation.
The infrastructure deficit is often noted as having a massive impact on the continent’s development and growth, with infrastructure highlighted as a key area requiring investment. The 23rd World Economic Forum has a central theme of Delivering on Africa’s Promise, and has infrastructure as a dominant and recurring topic for discussion.
Based on the principles of the Spatial Development Initiative (SDI) conceived by the South African government in 1995, resource corridors in Africa are areas in which opportunities (mainly resource-based anchor projects and associated infrastructure) have been identified that can be realised through investments to achieve sustainable development, particularly development brought in other sectors through access to the resource infrastructure.
After almost two decades of civil war, Mozambique is rapidly emerging as one of the fastest growing economies in Africa. Economic growth is expected to average around 8 percent over the next few years, inflation is slowing from 8 percent in 2012 to an estimated 6 percent by 2016, and current account deficits are declining as a proportion of gross domestic product (GDP) to around 4.8 percent by 2016.
Modern infrastructure is the backbone of any economy. Inefficient infrastructure is an impediment to sustainable economic growth. Infrastructure development continues to be significant in Africa. It is, however, important to focus on the dual nature of infrastructure development – namely development of the people as well as physical development.
The World Economic Forum (“WEF”) is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas.
African infrastructure development faces a key challenge in attracting private sector and foreign direct investment. Fortunately, catalyst projects can encourage investment in infrastructure development and thereby stimulate growth. This is on condition African nations address the need for bankable projects and the successful financial closure of projects.
Many JSE companies are seeing Africa as the new frontier and an important source of long-term growth, especially those companies doing business in mature markets. The International Monetary Fund forecast the region to grow at 5.5% both this year and next. By comparison, South Africa’s economic growth rate is forecast at just 2.7%.