Industry Partnership Meeting for Infrastructure & Urban Development
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Industry Agenda Industry Partnership Meeting for Infrastructure & Urban Development Industries African Strategic Infrastructure Initiative Abuja, Nigeria 7-9 May 2014 May 2014 High-level Meeting on the African Strategic Infrastructure Initiative Contents 4 High-level Meeting on the African © World Economic Forum Strategic Infrastructure Initiative 2014 - All rights reserved. 6 Private Session “Financing Africa’s The viewpoints expressed herein attempt to reflect the collective opinion of various individuals who have contributed to the research Infrastructure” and development of this report. They do not necessarily imply an agreed position among them or institutional endorsement by any participating company or organization involved in the work or mentioned in the report, or of the World Economic Forum. 9 List of Participants REF 300514 11 Contact Information 2 Industry Partnership Meeting for Infrastructure & Urban Development Industries 01 02 03 04 05 01: Arun Kumar, Senior Financial Associate, Philipp Roesler, Managing Director and Member Frontline Development Partners, United Arab of the Managing Board, World Economic Forum; Emirates; and Zhong Jianhua, Special Representative Mohan Vivekanandan, Group Executive, on African Affairs of the Chinese Government, Strategy, Development Bank of Southern Africa, People’s Republic of China South Africa; Carlos Lopes, Undersecretary-General and 02: Macky Sall, President of Senegal Executive Secretary, United Nations Economic Commission for Africa (UNECA), Addis Ababa; 03: Klaus Schwab, Founder and Executive Alex Wong, Senior Director, Head of the Centre Chairman, World Economic Forum; and for Global Industries and Head of Basic & Donald Kaberuka, President, African Infrastructure Industries, World Economic Forum; Development Bank (AfDB), Tunis Gordon Brown, Chair, World Economic Forum Global Strategic Infrastructure Initiative; 04: Jin-Yong Cai, Executive Vice-President and Klaus Schwab, Founder and Executive Chief Executive Officer, International Finance Chairman, World Economic Forum; Corporation (IFC), Washington DC; Donald Kaberuka, President, African Jakaya M. Kikwete, President of Tanzania; and Development Bank (AfDB), Tunis; Goodluck Ebele Jonathan, President of Nigeria Ibrahim Assane Mayaki, Chief Executive Officer, NEPAD Planning and Coordinating Agency, 05: Participants of the High-level Meeting on the Johannesburg; African Strategic Infrastructure Initiative African Strategic Infrastructure Initiative 3 Zhong Jianhua, Special Representative on African Affairs of the Chinese Government, People’s Republic of China Jakaya M. Kikwete, President of Tanzania; Goodluck Ebele Jonathan, President of Nigeria; and Macky Sall, President of Senegal Al Hassane Ba, Special Adviser to the Chairman, OCP Group, Morocco; Armin Lohr, Partner and Managing Director, The Boston Consulting Group, United Arab Emirates; Sean Bennett, Head, UBS Sub-Saharan Africa, South Africa; and Ngozi Okonjo-Iweala, Minister of Finance of Nigeria 4 Industry Partnership Meeting for Infrastructure & Urban Development Industries Session Description Co-Chaired by Synopsis At the 2012 World Economic Forum Donald Kaberuka, President, African In the year since the private meeting at in Africa, international and African Development Bank (AfDB), Tunis; World the World Economic Forum Meeting on business leaders endorsed the launch Economic Forum Foundation Board Africa 2013 in Cape Town, enormous of an African-focused, business-driven Member; Global Agenda Council on progress has been made, anchored initiative to accelerate the implementation Africa by the African Strategic Infrastructure of the Programme for Infrastructure Initiative. The initiative is led by the World Development in Africa (PIDA) Priority Carlos Lopes, Undersecretary-General Economic Forum in partnership with the Action Plan. The result was a joint and Executive Secretary, United Nations AfDB, and with the support and guidance initiative of the World Economic Forum Economic Commission for Africa of the African Union Commission and with the African Development Bank (UNECA), Addis Ababa the NEPAD Planning and Coordinating (AfDB), the Africa Union Commission Agency. (AUC) and the NEPAD Planning and Ibrahim Assane Mayaki, Chief Coordinating Agency. The initiative Executive Officer, NEPAD Planning and Since the meeting in Cape Town, the has been recognized by the African Coordinating Agency, Johannesburg African Strategic Infrastructure Initiative Union Commission as a key driver to has created guidelines on how to increase private sector involvement while Moderated by progress between now and 2020. Over accelerating the project preparation the next six years, Africa will need US$ process for delivering strategic Gordon Brown, Chair, World Economic 70 billion for infrastructure development. infrastructure assets. At the World Forum Global Strategic Infrastructure Economic Forum on Africa 2013 in Cape Initiative; UN Special Envoy for Global Resources are needed at the Secretariat Town, several Heads of State and other Education; Prime Minister of the United of the African Strategic Infrastructure high level stakeholders welcomed the Kingdom (2007-2010); Global Agenda Initiative. Participants agreed to give initiative and the progress made so far Council on Infrastructure the initiative’s Business Working Group and mandated the BWG to strive for a mandate to continue its work on the identification of pilots for the acceleration acceleration of the Central Corridor and concept. This meeting convened heads Key Points further pilots. of state and leaders from multilateral A three-track work programme organizations and the private sector −− Enormous progress has been to discuss the progress of the second made since the private meeting in Since the meeting in Cape Town, a three- phase of the initiative and to deliberate Cape Town – a three-track work track work programme is underway: next steps. programme is underway. −− Africa’s infrastructure deficit is not −− A report on the challenges and caused by a lack of political will, but best practices in transnational Special Guests by the lack of financial capacity to infrastructure programme undertake expensive projects that management has been published. require heavy investments. Thomas Boni Yayi, President of Benin −− A concept paper on a new model for early-stage project financing with , President of −− The African dilemma is the Goodluck Ebele Jonathan public-private cooperation has been Nigeria perception of risk. The gap between perception and reality is largest in developed. Africa. If that gap could be narrowed, Macky Sall, President of Senegal −− A concept for a replicable the flow of private capital would start acceleration process is being Jakaya M. Kikwete, President of to increase. developed and will be piloted in the Tanzania −− In the post-crisis environment and development of the Central Corridor, with regulations in place to reduce which has been identified as the Moussa Mara, Prime Minister of Mali risk, multilateral institutions have initiative’s first pilot. The potential an even more important role to next pilots have been identified: the , Prime Minister Daniel Kablan Duncan play in supporting infrastructure Beira Corridor and the West Africa of Côte d’Ivoire projects and in creating a climate of Hub, Port and Rail Programme. confidence for investors. Jin-Yong Cai, Executive Vice-President The selection of the Central Corridor and Chief Executive Officer, International −− The Africa50 Fund, which aims to as a pilot followed a well-defined Finance Corporation, Washington DC operate as a one-stop-shop across methodology. Next steps include a project’s life cycle, is up and securing resources and strong political Zhong Jianhua, Special Representative running and is “changing the game” commitment, as well as developing a on African Affairs of the Chinese for infrastructure in Africa. governance structure of the acceleration Government, People’s Republic of China −− Participants at this private meeting process, which should be aligned with agreed to give the initiative’s existing structures such as the Central Business Working Group a mandate Corridor Transit Transport Facilitation to continue the acceleration of the Agency (CCTTFA). The preparation of the Central Corridor and other pilots. first technical acceleration workshop is also in the works. African Strategic Infrastructure Initiative 5 Studies are complete for some but by the lack of financial capacity development and it is not inclusive. elements of the Central Corridor to undertake expensive projects Today, the market is not strong or programme, including a feasibility study that require heavy investments. capable enough to promote the financed by the AfDB. The Central economic diversification needed. Corridor is fed by a railway system −− Nigeria’s privatization of its oil, gas This will not change unless that was built by Germany almost 100 and electricity sectors has been governments and the private years ago. A construction adviser is driven by effective and coordinated sector invest in infrastructure. being contracted, and securing finance public-private partnerships (PPPs) −− Governments need to promote is the next step. and is largely viewed as a success story. Africa50 is another example infrastructure projects that require A private sector representative noted of how PPPs can work (see financing from the private sector, that the African Strategic Infrastructure below). However, more PPPs must but this will involve fostering