Price Waterhouse and Coopers (PWC) have released a report titled ‘Capital Projects & infrastructure in East Africa, Southern Africa and West Africa: Trends, Challenges and Future Outlook’ which claims that infrastructure spends in the region will reach $180 billion by 2025.
The report states that sectors including transport, water, logistics, energy, mining, telecoms and real estate. PWC claims that investment amounted to $70 billion in 2014 and forecasts year on year growth, reaching $180 billion per year by 2025. The report was compiled following a survey of donor funds, governments, financiers and private companies across sub-Saharan Africa and represents a comprehensive study of the issue.
Resolving these identified challenges quickly and creatively will not only positively affect the outcome of current projects, but more importantly, will attract other project developers, owners and investors to enter the African market
Despite the challenges facing Africa’s infrastructure, the firm is bullish about the prospects for growth, claiming that there is strong belief in the continent’s prospects due to a growing consumer market and widespread opportunities for infrastructure investment.
South Africa and Nigeria lead the field in terms of development and account for approximately 60% of the overall spend across the sub-Saharan region. While this growth is remarkable, the report also noted that up to 30% of Africa’s infrastructure is dilapidated and will require substantial efforts to rehabilitate it.
PWC Africa’s CP&I West Market Leader, Mr. Ian Aruofor, highlighted the need to address the sorry state of African infrastructure and to push through difficulties, mentioning issues such as challenges in realizing capital projects, a lack of funding, limited regulations and a governmental instability.Related article Enormous gas field discovered off Egyptian coast