http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 18, 2008

Emerging markets' infrastructure spend to leap to $21,7tn over next decade - study

Back
MEXICO CITY|New York|Tokyo|Africa|Flow|Morgan Stanley|Ports|PROJECT|Resources|Water|Africa|Asia|Latin America|Brazil|China|India|Russia|South Africa|United Arab Emirates|USD|Building|Flow|Product|Services|Transport|United Nations|Infrastructure|Power|Rail|Water|New York|Eastern Europe|Middle East
|Africa|Flow|Ports|PROJECT|Resources|Water|Africa||||Building|Flow|Services|Transport||Infrastructure|Power|Rail|Water||
mexico-city|new-york|tokyo|africa-company|flow-company|morgan-stanley|ports|project|resources|water-company|africa|asia|latin-america|brazil|china|india|russia|south-africa|united-arab-emirates|usd|building|flow-industry-term|product|services|transport-industry-term|united-nations|infrastructure|power|rail|water|new-york-province-or-state|eastern-europe|middle-east
© Reuse this A report by Morgan Stanley Research has forecast an emerging markets' (EMs) infrastructure spend of $21,7-trillion over the next decade, with Asia responsible for 67% of this staggering figure.

Across the EMs of Africa, Asia, Eastern Europe, Latin America and the Middle East, a boom in infrastructure building was under way across all sectors including power, rail, water, property, ports and airports.

Both government and the private sector were "deploying unprecedented amounts of capital to upgrade the emerging world" and at the forefront of this cash injection were India and China, Morgan Stanley said in its report.

It stated that the two countries would dominate the spending, with China accounting for 43% (some $8,9-trillion) and India 13% (about $2,7-trillion) of the total forecast EM infrastructure spending for the next ten years, from 2008 to 2017, respectively.

Russia comprised 10% (about $2-trillion) of the total spend, Brazil 5% (about $1-trillion) the Middle East represented 4% of which the United Arab Emirates was expected to spend $210-billion and Saudi Arabia $489-billion, and South Africa accounted for 1% of the spend which equated to $293-billion.

Morgan Stanley explained that demand for infrastructure was increasingly driven by urbanisation, the move to the market economy and demand from the developed world for EM exports and additional capacity for their transportation.

The report indicated that the overwhelming majority of urban population growth in recent years had been in the emerging world.

In 1975, the United Nations estimated that only three cities had a population of more than ten-million people: Tokyo, New York and Mexico City. By 2005, this figure had risen to 20 and, by 2015, the organisation projected the total would be 22. Of these, 18 would be in the emerging world and only four in the developed world.

Morgan Stanley said that this notable growth in urban populations in the emerging world translated into continued and ever-increasing demand for basic infrastructure, basic services and transport.

And the EM countries stand in good stead to meet this demand, according to the report. It said that robust gross domestic product growth and supportive balance of payments positions had provided the funding to build infrastructure in most EM countries - taking into consideration varying delivery capabilities.

"Private funding, in conventional project finance form, as well as innovative dedicated infrastructure funds are heavily engaged. A surge in market listings of owners, operators and contractors to build EM infrastructure assets is also under way," Morgan Stanley stated.

It estimated that the number of listed EM infrastructure-related entities had risen from 87 to 152, which reflected a 75% increase, over the last five years, with a total market capitalisation rising from $87-billion to $502-billion.

"As this universe of investable EM assets continues to expand, we expect substantial private capital to flow to the sector. If we add resources from global and local development banks and other multilateral institutions to the mix, there is, in our view, a powerful combination of government, multilateral and private sector money coming together to fund this massive infrastructure transformation," Morgan Stanley declared.
Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Trade union Solidarity warned on Wednesday that ongoing restructuring and retrenchments in the information and communication technology (ICT) industry continued to put employees in the sector under “immense” pressure. This as the union claimed it had received...
Directors of investment holding company Combined Motor Holdings (CMH) say they are satisfied with the results achieved in the six months ended August 31, during which time the local economic environment continued to battle impediments to growth and national dealer...
In the Medium-Term Budget Policy Statement Finance Minister Nhlanhla Nene has outlined concrete plans to consolidate South Africa’s pubic finances and restore macroeconomic balances. The proposed adjustments – lower than planned spending and increased tax revenues -...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks