1. African Infrastructure Development
David Winter
Business Unit Leader Infrastructure - Africa
We Accelerate Growth
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2. Why should African infrastructure development
interest you and your business?

3. Africa – Key Infrastructure Statistics
$810 billion $363 billion 56% 35%
% of
Total spending Is the current % of
investment in
needed over the next spending on investment in
Sub-Saharan
five years to upgrade, infrastructure Sub-Saharan
Africa on
rehabilitate and development in Sub- Africa on
energy and
expand Africa’s Saharan Africa transport
power
infrastructure infrastructure
infrastructure
30 $145 50 years
Is the It will take 50
number of billion years for most
countries in South Africa is countries in
Africa which currently Africa to reach
have regular investing $145 universal access
power billion in to modern
outages infrastructure infrastructure
50% 70%
Infrastructure In land-locked
development has countries, transport
been responsible accounts for 70%
for more than of the value
half of Africa’s of exported
improved goods
economic
performance
Source: World Bank and Frost and
Sullivan analysis
*based on active projects in 2011

4. Infrastructure Africa: Market Outlook
Infrastructure Development in Sub-Saharan Africa
Transport Energy
Total investment $161 billion $127 billion
amounts to
$363 billion
Legend:
Investment ($ billion)
< 0.5
0.5 – 1.0
Number of high value 1.0 – 5.0
projects, many valued 5.0 – 10.0
>$1 billion 0.0 – 15.0
15.0
Water Social Telecoms
$15 billion $43 billion $17 billion
Most projects
valued < $100
million
Source: Frost and Sullivan analysis
*based on active projects in 2011
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5. Infrastructure Africa: Market Outlook
$363 billion is being invested in infrastructure development in Sub-
Saharan Africa
South Africa is the leader in infrastructure development on the continent,
investing $145 billion
Nigeria and Mozambique
(Includes housing, hospital account for 10.8% and
and school construction)
9.4% of infrastructure
investment
$288 billion will be invested in the
transport and energy and power sectors
Source: Frost and Sullivan analysis
*based on active projects in 2011
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6. Infrastructure Africa: Market Outlook
What impacts infrastructure development on the continent?
Drivers
Challenges Millennium
Development
Goal targets
Project funds have to be secured from the private Increasing Expansion of
sector / donors as African countries do not have private sector the mining
participation industry
sufficient funds to support infrastructure development
Skills shortage on the continent results in
engineers and other skilled labour being imported for
projects, increasing costs Restraints
Corruption and Reliance on
Political Instability in the long term increases mal- private sector /
the risk of future projects. This challenge is administration donor funding
particularly pertinent in a country like Nigeria.
Poor power
supply capacity,
restricting the
growth of economies
Source: Frost and Sullivan analysis
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7. Infrastructure Africa: Market Outlook
$28 billion will be invested in transport corridor development in Sub-
Saharan Africa
Current state of transport infrastructure:
Roads in good condition Freight transport by rail
Western 72% Western 11%
Central 49% Central 2%
Eastern 82% Eastern 2%
Southern 100% Southern 85%
Container dwell times
10 transport corridors
(International standard: 7 days)
Western 11-30
days are being developed
Eastern 5-28 days across the region
Southern 4-8 days
Road $9.2 billion Creation of 9 Trans-African Highways
Rail $14.8 billion Rail networks to receive bulk of investment
Ports $3.5 billion Ports development to decrease bottlenecks
Source: World Bank and Frost and Sullivan analysis
*based on active projects in 2011
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8. Infrastructure Africa: Market Outlook
Rail infrastructure is the fastest growing segment of transport
infrastructure
Morocco
African
$14.67B 2 Active rail projects amount Planned
1 governments are
to $48 billion Ongoing
trying hard to
reduce the burden
Ethiopia on road
$3.70B infrastructure
5 1
7
1 3
7
Ghana
This will reduce
Kenya
$6.40B 3 transport costs and
1
$405.5M
Nigeria help open up land-
Zambia
$6.40B locked economies
$93.8 M 3
Tanzania
Namibia $5.37B
$2.68B 2
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2 1 Mozambique $4.8 billion to be
Multi-Country Mega Projects 1
3 $3.66B invested in public
Botswana-Mozambique- transport
$7.0B
Zimbabwe
infrastructure:
Isaka-Keza-Kigali
$1.9B
Botswana
(Tanzania-Rwanda) Lagos, Abuja, Maputo, Addis
$1.40B
Namibia-Botswana $1.3B Source: Frost and Sullivan analysis
*based on active projects in 2011
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9. Infrastructure Africa: Market Outlook
$94 billion will be invested in the energy sector in Sub-Saharan
Africa
Sub-Saharan Africa generation capacity is 68 GW - equal to Spain in
Europe – South Africa produces 40 GW alone…
Mining industry drives growth in installed capacity
5.0 GW 18.0 GW
Will continue to be the major
2.0 GW
3.6 GW energy source to 2020
2.0 GW
3.3 GW
0.4 GW 0.5 GW
4.2 GW $57.7 billion (12 GW) to be
6.3 GW developed in renewable
2009 52.6 GW energies by 2020 across Africa
2020 111.6 GW 1.7 GW
2.0 GW
5.2 GW
1.1 GW Governments to encourage
0.7 GW
involvement of private
0.1 GW 2.2 GW sector
0.4 GW
65.4 GW
2009
2020 10,000 km of transmission
lines will be used to exploit
40.0 GW
larger scale, cheaper energy
Source: Frost and Sullivan analysis
*based on active projects in 2011
sources
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10. Infrastructure Africa: Market Outlook
$15 billion will be invested in water and wastewater infrastructure in
Sub-Saharan Africa
Water projects greatly outnumber wastewater projects in Africa
Access to modern infrastructure:
1/0 Piped water Flushing toilet
20/0
Urban 39% Urban 25%
7/2 15/7 Rural 5% Rural 2%
10/1
12/6
Legend
Number of WT/
projects WWT 13/0 Large number of projects,
6/2 10/0
valued at less than $100 million
% of Greenfield projects
<20%
9/3 4/2
20%-40%
40%-60%
Millennium Development Goals
60%-70%
are key driver
66/13
Number of projects
>70%
Majority of funding is donor
Rehabilitation, upgrading and sourced
improvement projects characterise
development
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11. Infrastructure Africa: Market Outlook
Snapshot of Mega-Infrastructure Projects across the
Continent
$6.3 billion
2,000 MW Wind and $6 billion
2,000 MW Solar Power Plan Development of a
new deep sea port
$7 billion
Rehabilitation of
60,000km of urban
and rural roads
$10 billion
200,000 low
cost houses
$2.5 billion
$1.2 billion 1600 MW
1,500 km railway line linking hydropower station
Namibia to Botswana
$14.5 billion
World’s 3rd $7 billion
largest 1,100 km railway linking
supercritical Botswana to Mozambique
Source: Frost and Sullivan analysis coal fired plant via Zimbabwe
*based on active projects in 2011
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