To fast-track high-level private sector investment in Africa’s regional infrastructure, top global and African CEOs launched the Continental Business Network (CBN) – an exclusive infrastructure investment advisory platform for African heads of State – earlier this month, reports risk, social and environmental consulting firm Environmental Resources Management (ERM).
The CBN comprises leading African and global business and finance bodies, as well as regional and international organisations, with the acknowledgement that cross-border, shared infrastructure is a requirement for business growth and investment, explains ERM partner and head of the Impact Assessment and Planning Practice for sub-Saharan Africa Max Clark.
With infrastructure deficits impacting significantly on Africa’s competitiveness in the global market, Clark believes that it makes sense for Africa to promote shared infrastructure, in particular transport infrastructure, including rail.
He notes that, with the launch of the CBN, strategic issues such as policy, project structuring, investment risks and existing constraints to the implementation of shared infrastructure will have to be analysed in depth.
Sustainable Model
Successful capital projects are achieved when the integration of sustainability forms part of the business model, from concept to completion, asserts Clark.
“Importantly, planning a network of shared infrastructure that will incorporate various forms of transport across countries requires a more strategic framework.”
Clark explains that, by ensuring that strategic environmental frameworks provide the context of an infrastructure development project from a social, economic and ecological viewpoint, stakeholders can use the information as a road map to navigate potential constraints and opportunities in such a way as to maximise benefits for the surrounding area affected by the infrastructure development.
Constraints might include human settlements, endangered species or heritage; resource constraints related to power and/or water to the site; and access constraints hindering construction.
Clark notes that environmental and social issues are key factors in all large-scale infrastructure projects, and are best addressed very early on in the strategic planning of shared infrastructure.
“To promote and drive sustainable development, major infrastructure programmes should be first addressed in a broad context using tools like strategic environmental assessments, which would facilitate planning and minimise constraints and risks before project-level environmental-impact assessments (EIAs) are undertaken,” he says.
Planning Shared Infrastructure
Clark warns that planning shared infrastructure, including transport infrastructure, often suffers owing to a lack of coordination between neighbouring jurisdictions.
He adds that responsibilities between neighbouring jurisdictions sometimes get blurred, which could impede investment and negatively impact on the delivery of the infrastructure.
Cross-regional communication is complex and trying to ensure that there is coordination among all stakeholders and that a project complies with all the participating countries’ laws could hinder project timelines, Clark stresses.
“A policy planning framework, such as the Programme for Infrastructure Development in Africa, which launched the CBN, is therefore vital to create coherence,” he states.
Clark asserts that the sustainability and growth of the continent’s envisaged shared transport infrastructure must be the cornerstone of the planning, particularly if governments aim to incorporate private-enterprise funding or participation.
Working between the government sector and the private-enterprise sector activates State policy and business regulations long before project-level planning can be considered, he adds.
Studies on the impacts of the shared transport infrastructure will have to include all forms of transportation and their specific impact on local communities, agricultural and privately owned land, as well as the use of railway lines and roads.
Resettling communities and providing compensation for loss of livelihood for communities, as well as game and commercial farmers will also require extensive and skilled communication and knowledge of all regulations and permits required by each country involved.
Clark notes that, while Africa has not had many large shared transport infrastructure projects, it appears as if the CBN members are “steering their thought process in this direction”.
“If it will enhance livelihoods and services by offering revenue-generating opportunities to countries and their citizens, it might be what Africa needs to better participate in world markets,” he concludes.