Creating an attractive environment for investors in infrastructure is no easy task. Politics and policy can make or break private participation and the flow of investment. Something that has never been clearer than in the CMS Infrastructure Index that ranks 40 jurisdictions in order of infrastructure investment attractiveness.
This supplement to the Infrastructure Index examines the opportunities in Africa. A tremendously exciting continent, Africa has grand ambitions to develop its infrastructure in health, schools, energy and roads. It experienced double-digit revenue growth for utilities, transport and healthcare over the last decade and its population is shifting towards urban areas, generating an increased need for reliable infrastructure of all types.
The Index highlights the importance of local governments prioritising and championing infrastructure as private sector finance waits to be invested. If Africa is to benefit, it must provide a clear, deliverable pipeline of projects and some assurances of successful project completions.
Morocco ranks 33rd in the index and is home to the ambitious EUR2.2bn Noor PC project. Solar power and other forms of clean energy are evident all over the continent as it seeks to use its natural solar resources to future-proof its energy supply.
A number of countries are receiving strong support from private investors. Nigeria’s recent Eurobonds are eight times oversubscribed and Mozambique’s recent US$7bn floating LNG project led by Eni has now reached financial close. Kenya is benefitting from Chinese investment as it develops its transport infrastructure in its major cities.
The Index provides a realistic picture for Africa. There are opportunities for private keen to be involved in transforming the continent.
