{{The inaugural BUILD (Brazzaville Unites Infrastructure Leaders for Developments) Africa Forum held in Congo Brazzaville was a remarkable success winding up with resolutions and actions for infrastructure development in Africa.}}
The debate led to recommendations for immediate action from both public and private sector players that include regional integration.
According to a press release by the secretariat, it was noted that regional integration is not a choice, but a necessity for African economies to compete in a globalized world.
“African countries must not compete but rather work to complement each other, as economic and physical boundaries do not necessarily match.
This can apply to all sectors from transport, to trade and telecommunications.” stated the release. Public Private Partnerships (PPPs) were also cited as key to Africa’s development especially in closing Africa’s infrastructure gap, as well as to generate new profits for African economies.
“Despite large discrepancies between countries that have managed to put up successful PPPs in Africa and those that have failed, PPPs have proven to work, provided they are based on a legal framework, with a fair allocation of risks and benefits between parties.” stated the recommendation.
This requires local capacity building on PPPs, long term planning and phasing, strong political will, as well as transparent coordination between public and private players.
The continent will also be required to increase the number of bankable projects is mandatory to boost infrastructure in Africa; however bankability should not only be pegged on generating profits.
Projects must be understood in the financial, legal, environmental, as well as social and economic terms, to reduce long-term risks.
Feasibility studies are key to cope with investors’ aversion to risk. The recommendations urge African governments to help increase the level of bankability of some projects, while it’s important to manage the country’s public debt.
It underscores the need for: “African economies to establish their own development strategy.
Development plans must create sustainable value locally, both in terms of taxation revenues and job creation.”
This is because empirical evidence shows that joint ventures with local players are far more profitable in the long run than mere foreign direct investments, with repatriation of profits. Above all, Human capital is the most critical infrastructure since solving infrastructure deficit is only a short-term solution.
“Ultimately, infrastructure must serve development and stakeholders must work to further develop human capital in the long run through education, training and capacity building.” affirms the resolve.
During the BUILD Africa forum that is more than a forum for discussion and platform for business several agreements were signed to boost infrastructure in Africa including the creation of $100 million (Sh8billion) investment fund, committed to developing businesses in the value chain across the agro-business sector.
The forum was attended by 849 participants representing 49 countries comprising of 85 speakers from five continents including 10 ministers from across the continent.
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