What's Hot

    CYNK – Africa’s first verifiable carbon market launches in Kenya

    September 22, 2023

    Ionic Rare Earths engages DRA Global to advance Makuutu Development

    September 20, 2023

    Turkey Exporters Assembly plans Saudi-Turkish trade summit

    September 18, 2023
    Gulf Africa ReviewGulf Africa Review
    • Industry
    • Infrastructure
      1. Airport
      2. Hospitality
      3. Ports
      4. Power
      5. Rail
      6. Roads
      7. Transport
      Featured

      Osun seeks to capitalise on infrastructure momentum

      Infrastructure May 21, 2018
      Recent

      India reveals expansive rail and ports corridor for Middle East and South Asia

      September 13, 2023

      Green energy – UAE funds African projects through $4.5 billion initiative

      September 6, 2023

      West African ports benefit from international investment

      September 1, 2023
    • Business & Trade
      1. Agri-Business
      2. Entrepreneurship
      3. FDI
      4. Legislative
      5. MEA
      6. Telecoms
      7. Properties
      Featured

      Analysts predict bullish future for Nigeria’s REITs market

      Business Business & Trade January 21, 2018
      Recent

      CYNK – Africa’s first verifiable carbon market launches in Kenya

      September 22, 2023

      Ionic Rare Earths engages DRA Global to advance Makuutu Development

      September 20, 2023

      Turkey Exporters Assembly plans Saudi-Turkish trade summit

      September 18, 2023
    • Finance
      1. Banking
      2. Islamic finance
      Featured

      MENAT to see investment flows increase substantially

      Business Business & Trade Finance September 4, 2023
      Recent

      MENAT to see investment flows increase substantially

      September 4, 2023

      Ballim – GGC can play a major role in Africa

      July 17, 2023

      Africa50 invests USD 6.6bln in infrastructure over 6 years

      July 7, 2023
    • Innovation
    Gulf Africa ReviewGulf Africa Review
    Business

    DP World launches infrastructure report at Africa Global Business Forum

    November 17, 20154 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Infrastructure development to lead foreign investment says DP World Chairman

    A five point plan to help tackle Africa’s infrastructure gap is among the findings of a new DP World report to be unveiled at the Africa Global Business Forum this week.

    Public private partnerships, domestic bond financing, monitoring the life cycle of infrastructure by maintaining and upgrading existing stock, enhancing trade integration and improved trade facilitation are key point raised in the study “Africa at the Crossroads: Bridging The Infrastructure Gap”, produced in association with the Economist Intelligence Unit. Our ports in Africa have shown us how the region has enjoyed strong growth over the last 10 years, leading to rising incomes, falling poverty and a step toward economic diversification.

    Over the past decade, investment in African infrastructure has risen sharply and some notable projects have been completed, but despite the impressive flow of projects and policy reforms, the continent’s infrastructure development has failed to keep up with the average annual GDP growth of 5%. The development of “soft” infrastructure, such as the legal and regulatory frameworks that enable physical infrastructure to be built and maintained, has also fallen short of requirements.

    The report traces the continent’s strong economic growth in recent years and highlights how infrastructure development has not kept pace, placing an increasing strain on existing infrastructure assets.

    To overcome infrastructure deficits on the continent, as much as $93bn will be required annually (approx 10% of African GDP), with only half of that amount currently available the report explains. Related article Djibouti begins DP World terminal expansion, specialist cattle port

    Dubai operater port concession at Doraleh to double capacity by 2015; cattle town Damerjog in the Arta region to host livestock port terminal

    Speaking on behalf of DP World, chairman H.E Sultan Ahmed bin Sulayem said; “African countries need a solid foundation on which to place the building blocks of their economies. Both soft and hard infrastructure is needed, which will determine how quickly physical assets are built and how quickly trade develops.

    “Our ports in Africa have shown us how the region has enjoyed strong growth over the last 10 years, leading to rising incomes, falling poverty and a step toward economic diversification. However, all this has also placed an increasing strain on existing inland and marine infrastructure. If Africa’s countries and regions were better connected, market sizes would increase and encourage greater foreign investment.”

    Yet while Sub-Saharan Africa currently spends around $6.8bn per year on paving roads, this figure needs to be closer to $10bn.

    H.E Bin Sulayem stressed the significance of the Public-Private Partnerships (PPP) model, explaining how several African governments have already started to design policies to accelerate infrastructure projects.

    Referring to report findings, he added: “PPP’s are an increasingly popular model to fund projects and the regulatory frameworks supporting them are improving. In addition, resource-rich countries are using their commodities as leverage to obtain infrastructure investment. Today, a growing number of the new natural resource contracts that African governments had out have an ‘infrastructure industrialisation’ component – requiring the company in question to invest in new infrastructure.”

    DP World has long advocated the power of partnership, having agreements with governments in all six of its ports in five African countries. Africa is a key market in DP world’s network, where it employs over 5,000 people and has established strong community ties, while creating jobs and opportunities for local businesses.

    The report also finds that to address the soft infrastructure gap, better internal trade integration is key. One solution to encourage intra-African trade would be to create a pan-Africa free trade agreement, which has already been proposed.

    The paper concludes that growth in Africa brings new challenges and current evidence suggests that the African continent is moving at a rate with which its infrastructure cannot keep up. There are encouraging signs of world-class infrastructure delivery on the continent, like South Africa’s Gautrain rapid rail transit system and Kenya’s new railway connecting Nairobi with Mombasa.

    Other high impact projects underway could also be game-changers if they can overcome operational challenges. A notable example is the Inga Dam in the Democratic Republic of Congo. Meanwhile, a range of policies from regional free trade agreements to improved PPP frameworks across a large number of countries are starting to happen, which suggests that the enabling environments for infrastructure development is improving. If momentum can be maintained and accelerated then it could help the continent overcome its critical deficits and seize the economic transformation that now lies within its grasp.

    Our ports in Africa have shown us how the region has enjoyed strong growth over the last 10 years, leading to rising incomes, falling poverty and a step toward economic diversification.

    DP World Sultan Ahmed bin Sulayem
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email
    Previous ArticleIRENA makes new funds available for renewable energy projects
    Next Article ‘Africa is beyond commodities’, says Dubai Chamber CEO

    Related Posts

    Business & Trade Innovation

    CYNK – Africa’s first verifiable carbon market launches in Kenya

    September 22, 2023
    Business & Trade Energy Metals & minerals

    Ionic Rare Earths engages DRA Global to advance Makuutu Development

    September 20, 2023
    Business & Trade

    Turkey Exporters Assembly plans Saudi-Turkish trade summit

    September 18, 2023
    Add A Comment

    Comments are closed.

    LATEST STORIES

    CYNK – Africa’s first verifiable carbon market launches in Kenya

    September 22, 2023

    Ionic Rare Earths engages DRA Global to advance Makuutu Development

    September 20, 2023

    Turkey Exporters Assembly plans Saudi-Turkish trade summit

    September 18, 2023

    Ugandan agritech startup Emata secures USD 2.4 million in seed funding

    September 15, 2023

    India reveals expansive rail and ports corridor for Middle East and South Asia

    September 13, 2023
    • Business
      • Agri-Business
      • Entrepreneurship
      • FDI
      • Legislative
      • MEA
      • Properties
      • Telecoms
    • Infrastructure
      • Airport
      • Hospitality
      • Ports
      • Power
      • Rail
      • Roads
      • Transport
    • Finance
      • Banking
      • Islamic finance
    • Commodities
      • Agri commodities
      • Metals & minerals
      • Precious metals
    • Culture & Society
      • Education
      • Energy
    GAR logo
    © GulfAfricaReview.com 2014-2022, All Rights Reserved.

    Gulf Africa Review is a trade news and future networking platform for businesses leaders and trade organisations, established to first inform and secondly assist in facilitating the ongoing business and trade relations between the Gulf Cooperation Council countries and Sub-Saharan Africa. We aim to provide an apolitical voice for this channel of economic activity in a way that benefits both geographies by improving the availability of information about market events, developments and opportunities, while publicising the successes achieved by this ever-broadening regional relationship.

      Subscribe to our newsletter

      Type above and press Enter to search. Press Esc to cancel.