By PETER EGWUATU

One of the top developmental challenges in Africa continues to be the shortage of infrastructure as  public sources alone cannot meet the funding needs , Elizabeth Uwaifo, Partner, Fasken Martineau LLP and Director, Africa Agribusiness Knowledge Centers Inc. has said.

He noted that African countries are seeking strategies to increase private sector investment in infrastructure.

While presenting a paper titled “Taking African Infrastructure to the Future”, he said that inadequate physical infrastructure covering transportation, power and communication is inhibiting growth and productivity while inadequate social infrastructure including water supply, sanitation, sewage disposal, education and health are adversely affecting the quality of life.

“Energy, water, transport, information technology services and other infrastructure require extensive renewal or installation in order to support the projected growth over the coming years” he added.

In a report issued in 2010, the World Bank found that the poor state of infrastructure in sub-Saharan Africa, reduced national economic growth by two percentage points every year and cut business productivity by as much as 40%.

The growth in infrastructure needs to be transformational in order to have an impact. African development institutions and African governments have recognised that adequate infrastructure is critical to achieving the growth levels expected and required.

According to the World Bank Africa Infrastructure Country Diagnostic (2009), the infrastructure need of sub-Saharan Africa exceeds US $93 billion annually over the next 10 years.  It is reported by the African Development Bank that less than half of this amount is being provided which leaves a financing gap of more than US $50 billion per annum to fill.

Uwaifo further stated that Public-Private Partnership (“PPP”) arrangements have emerged as one of the major avenues for channelling the participation of private capital and expertise in delivering infrastructure projects in recent years.

On the way farward, Uwaifo said “It is critical that African governments double efforts to provide a policy and regulatory environment that promotes investor confidence and facilitates the growth of the debt capital markets and alternative investment markets.

In addition, international financial institutions should be engaged to facilitate private sector participation and investors and other transaction participants should consider employing structured solutions to enhance investment opportunities.”