PPPs to deliver Africa infrastructure

Author: Ashley Lee | Published: 7 Jun 2013

KEY TAKEAWAYS

  • Africa's infrastructure investment needs are estimated to be $93 billion a year;
  • Governments and natural resources companies are establishing JVs or PPPs to finance large infrastructure projects, such as railways and private mineral terminals;
  • But the JV structure is difficult to set up because it is nearly impossible to settle deadlock matters;
  • Chinese investors in Africa are concerned about uncertain laws that result in guidelines applied on a case-by-case framework, and hope for a clearer and more universal legal framework.

To address Africa's enormous infrastructure needs, counsel are seeking new structures that encourage closer collaboration between the private sector and governments.

The World Bank estimates it will cost around $93 billion a year to address Africa's infrastructure needs, which are particularly important for the country's to capitalise on...