Featured

The African Union’s (AU) 5% Agenda campaign has been launched. The 5% Agenda campaign is intended to facilitate public-private partnerships in infrastructure development.

AU launches campaign for infrastructure developmentThe launch took place five years after a January 2012 African Union Summit adopted the Programme for Infrastructure Development in Africa (PIDA) which sets out 51 cross-border infrastructure programmes and more than 400 actionable projects in four sectors. The 5% Agenda campaign highlights that only a collaborative public-private approach can efficiently tackle the issues facing infrastructure development on the continent and calls for allocations of institutional investors to African infrastructure to be increased to 5%.

The According to the World Bank, the continent needs to spend $93 billion annually (44% for energy; 23% for water and sanitation; 20% for transport; 10% for ICTs; and 3% for irrigation) until 2020 to bridge its infrastructure gap, which is currently removing an estimated 2% of GDP growth every year. On the other hand, Africa only managed to close 158 project finance deals with debt totalling $59 billion over the decade 2004-2013, which represents only 5% of infrastructure investment needs and 12% of actual financial flows.

According to a 2016 McKinsey report, institutional investors and banks have $120 trillion in assets that could partially support infrastructure projects. As banks face additional regulatory challenges and as governments have limited fiscal space, it is becoming increasingly urgent to unlock additional flows from long-term institutional investors such as insurers, pension funds, and sovereign wealth funds, the AU says.

However, for pension and sovereign wealth funds to be able to invest in large-scale infrastructure projects in Africa, a variety of issues need to be addressed. Chief among these is the need to reform national and regional regulatory frameworks that guide institutional investment in Africa. Likewise, new capital market products need to be developed that can effectively de-risk credit and allow African asset owners to allocate finance to African infrastructure as an investable asset class to their portfolio.

All of these issues are at the heart of the 5% Agenda roadmap, which is the backbone of NEPAD’s campaign, the AU said in a statement. The 5% Agenda campaign is trying to unlock notable and measurable pools of needed capital to implement regional and domestic infrastructure projects on the continent; broaden African capital markets, while contributing significantly to regional integration and job creation; promote the development of innovative capital market products that are specific to the continent’s challenges and potential in regards to infrastructure development; and raise the investment interest of other institutional and non-institutional financiers that so far have been hesitant to include African infrastructure projects.

“Infrastructure plays a leading role in supporting growth on the continent. At the same time, it can represent an innovative and attractive asset class for institutional investors with long-term liabilities. By launching the 5% campaign in New York today, we invite investors to take advantage of the wide-ranging opportunities Africa has to offer and to move forward with what can only be a win-win partnership,” says Ibrahim Assane Mayaki, NEPAD Chief Executive Officer.

Image credit: http://www.un.org/africarenewal/africa-nepad-week-2014/programme-of-events-aw2014

Magazines

African Fusion

AfricanFusionAfrican Fusion, the official publication of the Southern African Institute of Welding (SAIW), aims to provide up-to-date insight into welding technology and the welding industry.

Capital Equipment News

Capital Equipment News is dedicated to the application of equipment and modes of transport that are used in the mining, construction, quarrying, and transport industries.

Construction World

ConstructionWorldConstruction World was first published in 1982 and has grown to become a leader in its field, offering a unique mix of editorial coverage to satisfy the diverse needs of its readers.

Electricity + Control

ElectricityandControlE + C publishes innovative, technical articles that provide solutions to engineering challenges in measurement, automation, control, and energy management.

Lighting in Design

LightingandDesignLighting in Design is a glossy, upmarket publication aimed at lighting professionals. It is the only B2B magazine in SA that is dedicated solely to the subject of lighting.

MechChem Africa

MechChemJanuary2017cover MechChem Africa supports African engineering and technical managers across the full spectrum of chemical and mechanical disciplines.

Modern Mining

ModernMiningEstablished in 2005, Modern Mining is one of SA's leading monthly mining magazines, noted for the quality and accuracy of its writing and the breadth of its coverage.

Modern Quarrying

ModernQuarryingModern Quarrying is firmly entrenched as a leading industry-specific magazine. It focuses on promoting the science and practice of quarrying and processing in southern Africa.

Sparks Electrical News

SparksElectricalNewsReadable and informative, Sparks Electrical News is the newspaper for those involved in installing and maintaining electrical supplies and equipment.

 
Full Name*
Invalid Input

Company Name*
Invalid Input

Your Email*
Invalid Input

Phone*
Invalid Input

Postal Address 1*
Invalid Input

Postal Address 2*
Invalid Input

Postal Code*
Invalid Input

Street Address 1
Invalid Input

Street Address 2
Invalid Input

Postal Code
Invalid Input

Town / City*
Invalid Input

Country*
Invalid Input

Magazine

Invalid Input

Invalid Input