Infrastructure projects in Africa are poised for a huge overhaul. Lessons taken from how projects have been approached in the past, will drive better implementation and more cooperation between invested parties. Over the next decade, Africa should see major changes to infrastructure as a result of increased investments from outside the continent, especially China.
Key to this is natural resources.
China remains an important partner, not only in the commercial extraction and refining of Africa’s vast mineral resources, but continues to be heavily involved in infrastructure projects on the continent.
The benefit to Africa is China’s enviable reputation in competitively designing and rolling out key infrastructure projects in Africa; within budget and on time.
At Standard Bank Group, we now see builders, financial service providers, governments, communities and especially commodity companies cooperating to ensure that projects benefit not just mining companies but also the developmental needs of the environment in which they operate.
There has been a rise in deals where China swops resources for infrastructure. Almost 60% of all capital expenditure on commodity projects is infrastructure related. This fact is reflected across the continent with more than 50 infrastructure projects ranging from rail to road and hospitals to telecoms currently under development.
The potential for investment on the continent remains substantial. Mining and infrastructure projects are key to the future economic development of Africa.
It is important to have strategic partners in order to make the investment not only work, but also connect and enrich surrounding communities. Standard Bank Group has a strong team based in China, along with on-the-ground presence in 18 African countries, making us an ideal partner, advisor and financier of the growing demand for mineral and infrastructure projects on the continent.