Poor project preparation and lack of proper management have resulted into failure by African states to attract private investors in infrastructure, the African Development Bank (AfDB) has said.
This comes at a time when the continent is faced with a $95 billion infrastructure deficit per annum, largely compromising the region’s growth prospects.
The bilateral lender has also blamed African governments for not implementing favourable policies and reforms to attract private investments in infrastructure.
“One thing that makes it more difficult for people to invest is the change of policies whenever a regime changes.
You need to be sure that circumstances in your country remain consistent,” said Solomon Asamoah, the vice-president for infrastructure, private sector and regional integration at AfDB in a statement.
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Sector stakeholders have also called on the African Union Commission to collaborate with the regional economic communities to harmonise standards in road designs and implementation of all infrastructure projects.
“Roads should connect to feeder roads in rural areas, the same as the interconnection of rural power projects.
Development must be inclusive,” said Alex Rugamba, AfDB’s director for energy, environment and climate change at workshop comprised of 150 participants, including infrastructure commissioners from the African Union, infrastructure experts from development institutions, regional economic communities, the United Nations and the private sector.
Over the last 10 years, AfDB has invested more than $30 billion) in infrastructure, accounting for over half of its lending activities.
The bank urged regional authorities to structure and package their projects in a manner that is attractive to private investors at the initial stages.
A recent study by American consulting firm McKinsey shows that each year, about $15 billion is available from the international private sector for investment in the African energy sector but the continent is yet to take advantage of these funds due to lack of well-prepared projects.
