Besides the problems of inadequate funds, projects are sometimes poorly designed.
A regional conference on financing infrastructure within the Economic Community of Central African State (ECCAS) has brought together great minds including senior policymakers, international experts and representatives from the private sector to seek alternative measures on financing infrastructure in the Sub-region.
It is no news that the development of infrastructure in most countries of the Sub-region is seriously hampered by inadequate finances, lack of public-private partnership and sometimes poorly designed projects.
Speaking during the conference jointly organised by the International Monetary Fund and the Cameroon Ministry of Finance, the Deputy Director for African Department of the International Monetary Fund, Anne-Marie Gulde-Wolf intimated that well-designed and well-targeted investment in infrastructure can raise the region’s growth potentials and maintain momentum towards attaining the Millennium Development Goals.
She stated that ECCAS economic potential backed by oil revenue still faces developmental challenges like poverty, income inequality, underemployment and most especially insufficient infrastructure facilities. Building infrastructure is a capital-intensive process that involves large initial investment.
To this respect, the traditional sources of finance among which are bilateral and multilateral assistance, and financial instruments like corporate bank loans, domestic and international sovereign bonds are not enough. Reason why Anne-Marie Gulde-Wolf insisted that private capital can play a bigger role in financing infrastructure.
“Private capital can lift budget constrains and raise efficiency by leveraging private sector expertise and innovations,” she said. Thus, there is need for public-private partnerships (PPPs). In his opening speech, Finance Minister, Alamine Ousmane Mey said according to studies by the World Bank, the cost of infrastructure in Africa is two times higher than elsewhere while over 30 African countries face energy challenges.
