The future for infrastructure deals in Africa

As the African continent continues to strive for economic growth and development, the critical need for infrastructure investment cannot be overlooked. The future of infrastructure deals in Africa holds the key to unlocking the continent's full potential. CNBC Africa sat down with Jurie Swart, CEO of African Infrastructure Investment Managers, to delve into the challenges and opportunities that lie ahead in bridging the infrastructure gap. Swart highlighted the pressing need for over $93 billion in infrastructure investment, particularly in West Africa, where the deficit is glaring. According to Swart, private sector involvement is crucial in addressing this gap, with a focus on financially viable projects to attract long-term investment. The staggering statistics paint a clear picture of the infrastructure challenges in Africa, from electricity supply shortages for millions to inadequate transport and energy systems. Swart emphasized that without a solid infrastructure foundation, Africa's economic development will be stifled, hindering its ability to compete in global markets and fully capitalize on its resources. While the power sector remains a focal point for many investors, Swart also underscored the importance of investing in transport and energy infrastructure to drive overall economic growth. In light of the complexities faced by the private sector in Nigeria's power sector, Swart called for disciplined project execution and policy clarity to foster investor confidence and ensure sustainable development. The debate around cost-reflective tariffs and conducive regulatory frameworks was highlighted as essential for creating a favorable investment climate in the sector. Swart's insights shed light on the need for collaboration between governments and the private sector to address the infrastructure challenges effectively. While regional partnerships offer a promising avenue for infrastructure development, Swart emphasized the importance of prioritizing in-country projects before embarking on cross-border initiatives. By taking incremental steps and focusing on tangible progress, Africa can slowly build its infrastructure network to enhance regional connectivity. The lengthy project gestation period in Africa, averaging seven years, was flagged as a bottleneck to infrastructure development. Swart called for streamlined processes, best practices, and regulatory frameworks to expedite project timelines and reduce inefficiencies. By learning from past experiences and embracing innovative models, Africa can accelerate infrastructure development and propel economic growth. Swart's vision for the future of infrastructure deals in Africa resonates with the continent's ambitions to transform its infrastructure landscape and pave the way for sustainable development and prosperity.