“African economic output has more than doubled over the past decade. In its most recent World Economic outlook paper (April 2011), the IMF forecasts 5.5 per cent GDP growth for sub-Saharan Africa in 2011 and 6 per cent in 2012, with robust growth forecast in countries like Ghana, Kenya, Ethiopia, Angola, Botswana, Tanzania, Uganda and Nigeria” (Business Action for Africa- Ernst & Young South Africa). The infrastructure sector (underpinned by investment from BRICS investors) has played an important role in the economic growth of many countries in Africa. As such, more than ever before, investors are increasingly realising that Africa is a good destination for business. A number of factors are contributing to the renewed investor interest in Africa. Amongst others, these include;
- Privatisation of utilities and other infrastructure sectors previously monopolised by Governments
- Influx of BRICS investors in establishing the Africa’s credentials
- Changing view of risk and reward in African infrastructure sector
- Growing opportunities and adoption of Public Private Partnership(PPP) models for projects delivery
- Mature financial institutions and some large economies
- Improving sovereign risk profiles in many African infrastructure sectors.
Infrastructure development has contributed to Africa’s recent economic turnaround, it will need to do even more to reach the continent’s development targets (Africa’s infrastructure: a time for transformation’ by World Bank and Africa Development Bank).