Construction World August 2018

COMMENT

The report, ‘Global Infrastructure Outlook: Infrastructure Investment Need in the Compact with Africa Countries’ finds that USD2,4-trillion of investment is required in these 10 African countries by 2040 if they hope to keep pace with global economic growth and close infrastructure gaps. This is the first time that the scale of infrastructure investment needs, current investment trends and the investment gaps are reported for these countries. Of the USD1-trillion investment gap, USD415-billion is required by 2030 if these countries are to meet the UN Sustainable Development Goals. The good news is that 37% of infrastructure investors invest in emerging markets – up from 20% in 2016. Of those already investing in emerging markets, 82% wants to increase their investment. This is according to the Annual Global Infrastructure Investor Survey 2017 and the EDHEC Infrastructure Institute-Singapore. Although the desire of investors may exist to invest in the infrastructure of developing countries, these countries (and Africa in general) need to create the right environment with which to encourage investors to make their willingness to invest, a reality. Such an environment will only be achieved by creating a climate of good governance, and positive regulatory and institutional frameworks. The report singles out Morocco and Rwanda as examples of countries where the improvement in the regulatory quality, rule of law and positive investment and competition frameworks have had a positive effect on infrastructure investment. The infrastructure investment gap in South Africa may not be as vast as elsewhere in Africa, but it is significant if the country hopes to achieve sustained positive growth. The same applies for the country as what applies for the 10 African countries in the A staggering USD1-trillion infrastructure investment gap exists in 10 African countries over the next 22 years. According to a report by the Global Infrastructure Hub, a G20 initiative, this massive gap exists in 10 countries: Ethiopia, Egypt, Morocco, Côte d’Ivoire, Ghana, Senegal, Benin, Rwanda, Guinea and Tunisia. This represents a 42% investment gap – one of the largest regional gaps in the world.

report: sustained growth will only happen with good governance, and impeccable regulatory and institutional frameworks. *The two reports were researched and developed over a six-month period in partnership with Oxford Economics (Outlook) and KPMG (InfraCompass). Covering the world of construction You may have noticed that we have a new pay-off line on the cover: ‘Covering the world of construction’. Construction World is the only business-to-business magazine in South Africa that covers both civils and building. As such, the pay-off line now represents this encompassing nature. In addition, the magazine covers steel, concrete and wood, further proof that it is indeed covering the entire world of construction.

Wilhelm du Plessis Editor

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CONSTRUCTION WORLD AUGUST 2018