Africa’s investors Challenged to invest in infrastructure to drive growth and prosperity agenda

Cape Town, 7May, 2013: Ahead of the World Economic Forum billed to run from 8 – 10 May, 2013, in Cape Town, South Africa, African Investors have been challenged to convert continental constraints into opportunities for growth and prosperity. In a keynote address to open the 6th Africa Investor CEO Summit and Awards,the African Union Commission (AUC) Chairperson, Dr. Nkosazana Dlamini Zuma, called on private investors to increase their investment in infrastructural development. The lack of infrastructure is a constraint against growth. Investing to fill this infrastructural gap will unleash the potentials for future growth on the continent.

The Chairperson noted that while 65% of Africa’s infrastructural funding comes from public investments by governments, only a quarter (25%) comes from private investor, according to World Bank statistics. Investment from non-EOCD countries, including China, amounts to 6%, while that of multi-lateral development assistance remains at 4%. In a vivid comparison to illustrate the level of deficit, the Chairperson drew the investors’ attention to the fact that Africa’s total electricity generation equals that of Spain, even though we have twenty times the population.

“Large-scale scale investment in energy, including hydro, coal, geothermo and solar power over the next decade will therefore be critical to Africa’s transformation, both in the economic and social spheres.” She said.

Extending appreciation to Dr. DlaminiZuma for what he described as an informative and inspirational keynote address, and a visionary leadership in promoting African private sector participation in infrastructure development,” Hubert Danso, CEO and Vice Chairman of Africa, welcomed the collaborative partnership of the African Union. He noted that with the leadership of Dr. DlaminiZuma, as AUC Chairperson, Africa can increase its intra-Africa investment to 40%, from the current 5%, which is extremely low, especially when compared to the intra-regional average of 12-15%.

The 6th Africa Investor Summit was organized with the aim of bringing infrastructure project developers together, and to facilitate increased private capital and private investment flows into infrastructure projects in Africa.

The Commissioners for Infrastructure and Energy; Trade and Industry and other officials were also in attendance at the Africa Investor summit. They are expected to also attend the upcoming World Economic Forum.