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We Accelerate Growth
African Infrastructure Development
David Winter
Business Unit Leader Infrastructure - Africa
Why should African infrastructure development interest you and your business?
Africa – Key Infrastructure Statistics
$810 billion Total spending
needed over the next five years to upgrade,
rehabilitate and expand Africa’s infrastructure
$363 billion Is the current spending on
infrastructure development in Sub-
Saharan Africa
% of investment in Sub-Saharan
Africa on transport
infrastructure
56%
70% In land-locked
countries, transport accounts for 70%
Is the number of
countries in Africa which have regular
power outages
30
South Africa is currently
investing $145 billion in
infrastructure
$145
billion
50 years It will take 50 years for most
countries in Africa to reach
universal access to modern
infrastructure
50% Infrastructure
development has been responsible
for more than half of Africa’s
improved economic
performance
35% % of
investment in Sub-Saharan
Africa on energy and
power infrastructure
of the value of exported
goods
*based on active projects in 2011
Source: World Bank and Frost and
Sullivan analysis
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Infrastructure Africa: Market Outlook
Infrastructure Development in Sub-Saharan Africa
< 0.5
0.5 – 1.0
1.0 – 5.0
5.0 – 10.0
0.0 – 15.0
15.0
Transport
$161 billion
Energy
$127 billion
Telecoms
$17 billion Water
$15 billion Social
$43 billion
Legend:
Investment ($ billion)
Total investment amounts to
$363 billion
Number of high value
projects, many valued
>$1 billion
Most projects
valued < $100
million
*based on active projects in 2011
Source: Frost and Sullivan analysis
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Infrastructure Africa: Market Outlook
$363 billion is being invested in infrastructure development in Sub-
Saharan Africa
Nigeria and Mozambique
account for 10.8% and
9.4% of infrastructure
investment
South Africa is the leader in infrastructure development on the continent, investing $145 billion
$288 billion will be invested in the
transport and energy and power sectors
(Includes housing, hospital
and school construction)
*based on active projects in 2011
Source: Frost and Sullivan analysis
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Infrastructure Africa: Market Outlook
What impacts infrastructure development on the continent?
Drivers
Restraints
Millennium
Development
Goal targets
Expansion of
the mining
industry
Increasing
private sector
participation
Corruption and
mal-
administration
Reliance on
private sector /
donor funding
Poor power
supply capacity, restricting the
growth of economies
Challenges
Project funds have to be secured from the private
sector / donors as African countries do not have
sufficient funds to support infrastructure development
Skills shortage on the continent results in
engineers and other skilled labour being imported for
projects, increasing costs
Political Instability in the long term increases
the risk of future projects. This challenge is
particularly pertinent in a country like Nigeria.
Source: Frost and Sullivan analysis
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Infrastructure Africa: Market Outlook
$28 billion will be invested in transport corridor development in Sub-
Saharan Africa
Road
Rail
Ports
$9.2 billion
$14.8 billion
$3.5 billion
Roads in good condition
Western 72%
Central 49%
Eastern 82%
Southern 100%
Container dwell times (International standard: 7 days)
Western 11-30
days
Eastern 5-28 days
Southern 4-8 days
Freight transport by rail
Western 11%
Central 2%
Eastern 2%
Southern 85%
Creation of 9 Trans-African Highways
Rail networks to receive bulk of investment
Ports development to decrease bottlenecks
10 transport corridors are being developed
across the region
Current state of transport infrastructure:
*based on active projects in 2011
Source: World Bank and Frost and Sullivan analysis
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Infrastructure Africa: Market Outlook
Rail infrastructure is the fastest growing segment of transport
infrastructure
Ethiopia
$3.70B
Kenya
$405.5M
Tanzania
$5.37B
Mozambique
$3.66B
Botswana
$1.40B
Zambia
$93.8 M
Nigeria
$6.40B
Ghana
$6.40B
Namibia
$2.68B
Morocco
$14.67B Active rail projects amount
to $48 billion Planned
Ongoing
2
1
5
1
1
7 7
3
3 1
3
4 1
1
2
2
3 Multi-Country Mega Projects
Botswana-Mozambique-
Zimbabwe $7.0B
Isaka-Keza-Kigali
(Tanzania-Rwanda) $1.9B
Namibia-Botswana $1.3B *based on active projects in 2011
Source: Frost and Sullivan analysis
African
governments are
trying hard to
reduce the burden
on road
infrastructure
This will reduce
transport costs and
help open up land-
locked economies
$4.8 billion to be
invested in public
transport
infrastructure: Lagos, Abuja, Maputo, Addis
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Infrastructure Africa: Market Outlook
$94 billion will be invested in the energy sector in Sub-Saharan
Africa
2009 52.6 GW 2020 111.6 GW
Mining industry drives growth in installed capacity
2.0 GW
5.0 GW
3.3 GW
18.0 GW
0.4 GW
2.0 GW 3.6 GW
0.5 GW
1.7 GW
4.2 GW
2.0 GW
6.3 GW
2.2 GW
5.2 GW
0.4 GW
1.1 GW
0.1 GW
0.7 GW
40.0 GW
65.4 GW 2009
2020
$57.7 billion (12 GW) to be
developed in renewable
energies by 2020 across Africa
10,000 km of transmission
lines will be used to exploit
larger scale, cheaper energy
sources
Will continue to be the major
energy source to 2020
Governments to encourage
involvement of private
sector
*based on active projects in 2011
Source: Frost and Sullivan analysis
Sub-Saharan Africa generation capacity is 68 GW - equal to Spain in Europe – South Africa produces 40 GW alone…
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Infrastructure Africa: Market Outlook
$15 billion will be invested in water and wastewater infrastructure in
Sub-Saharan Africa
Legend
Number of
projects
WT/
WWT
20/0
1/0
10/1
13/0
9/3
66/13
4/2
10/0 6/2
7/2 15/7
12/6
Number of projects
% o
f G
ree
nfie
ld p
roje
cts
<20%
20%-40%
40%-60%
60%-70%
>70%
Water projects greatly outnumber wastewater projects in Africa
Rehabilitation, upgrading and
improvement projects characterise
development
Large number of projects,
valued at less than $100 million
Piped water
Urban 39%
Rural 5%
Flushing toilet
Urban 25%
Rural 2%
Access to modern infrastructure:
Millennium Development Goals
are key driver
Majority of funding is donor
sourced
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Infrastructure Africa: Market Outlook
Snapshot of Mega-Infrastructure Projects across the
Continent
$2.5 billion
1600 MW
hydropower station
$10 billion
200,000 low
cost houses
$7 billion
1,100 km railway linking
Botswana to Mozambique
via Zimbabwe
$1.2 billion
1,500 km railway line linking
Namibia to Botswana
$14.5 billion
World’s 3rd
largest
supercritical
coal fired plant
$6.3 billion
2,000 MW Wind and
2,000 MW Solar Power Plan
$7 billion
Rehabilitation of
60,000km of urban
and rural roads
$6 billion
Development of a
new deep sea port
*based on active projects in 2011
Source: Frost and Sullivan analysis