Africa faces an infrastructure investment shortfall, of an estimated US $130 billion to US $170 billion annually.
This is for essential power, transport, water, and digital systems, leading to underpowered energy, fragmented transport, and limited digital connectivity.
This is according to the Public Investment Corporation (PIC) first research report ever, titled “Accelerating Infrastructure Development in Africa: Strategies to Reduce Lead Times” as part of G20 Dialogues.
The report, released on Monday, is the product of two technical work streams of the G20 Finance Track, led by the National Treasury and the South African Reserve Bank.
The report makes the case for the development of an investable infrastructure pipeline, scaling up sustainable infrastructure through blended finance approaches and delivering cross-border infrastructure for regional development.
Efforts will go towards strengthening the global sustainable finance architecture, scaling up financing for adaptation and a just transition, and unlocking the financing potential of carbon markets.
Participants at the tabling of the report on Monday, were Kabelo Rikhotso, the PIC Chief Investment Officer (CIO), Sonia Saunderson CIO of the eppf, Amadou Wadda, Senior Director Portfolio Management and Optimisation for the African Finance Corporation (AFC), and Dr Leila Fourie, Group CEO of Johannesburg Stock Exchange (JSE).
The research shows eighty percent (80%)of infrastructure development projects stall before moving past the planning phase.
Therefore some initial solutions discussed by the panel, include addressing a combination of regulatory hurdles, financing constraints, institutional weaknesses, corruption and a lack of professional skills development.