R/€ = 15.11Change: 0.14
R/$ = 13.45Change: 0.10
Au 1149.14 $/ozChange: 2.69
Pt 940.50 $/ozChange: 6.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

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 Letters 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

© 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
Updated 2 minutes ago Allied Electronics (Altron) has dipped into the red in the six months ended August 31, as the JSE-listed firm continued to experience “adverse” challenges weighing on its Powertech Transformers, Altech Multimedia, Altech Autopage and Altech Node business units. The...
Updated 33 minutes ago Global brewer Anheuser-Busch InBev (AB InBev) has announced a revised merger offer to British–South African multinational brewing and beverage company SABMiller in its bid to combine the two firms and form a global beer conglomerate with yearly revenues of...
Updated 50 minutes ago US private equity firm KKR & Co LP is considering investing around $100-million in Africa within a year, a senior executive said on Tuesday. KKR is looking at the agriculture and food business, the energy industry and infrastructure projects, Dominique Lafont, a...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Sphere Holdings CEO Itumeleng Kgaboesele
Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy to become a leading black industrial enterprise, which could ultimately seek a listing on the JSE.
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
Alert Close
Embed Code Close
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
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96