Understanding West Africa’s Infrastructure Potential

Lagos, Nigeria (Capital Markets in Africa) — West Africa is increasingly identified as an attractive destination for investors across all economic sectors. Its growing population of over 300 million and abundant resources continue to drive steady economic growth, as seen by a 6% average annual growth rate over the past decade. In addition, improved governance and political stability, institutional reforms, declining trade barriers, adoption of technology, and a re-emerging middle class attributable to an increasingly empowered and mobile workforce continue to contribute to the pace of development of the region.

Against the backdrop of continued economic growth in the region, the need for enabling infrastructure is clearly evident. Although requirements vary from country to country, a huge gap currently exists across key infrastructure areas such as Power, Transport, Water and Healthcare both within and across the countries in the region.

In 2014, PwC conducted a survey of key players in the infrastructure sector, including donor funds, financiers, government organisations and private companies across sub Saharan Africa. The report, titled Trends, Challenges and Future Outlook: Capital Projects & Infrastructure in East, South & West Africa indicates an opportunity-filled future for infrastructure development in sub-Saharan Africa. Infrastructure spend in the region is estimated to reach US$180 billion per annum by 2025.

While Africa’s infrastructure lags well behind that of the rest of the world, with over 30% in dilapidated conditions, there appears to be a renewed enthusiasm among leaders and civil society on the continent to improve the situation. There is widespread recognition of Africa as a growing consumer market, a future skills and innovation pool as well as an owner of abundant natural resources. This combination of factors is driving interests in infrastructure investment and development for both local and foreign players.

Please read more at: http://www.pwc.com/en_NG/ng/assets/pdf/understanding-was-infrastructure-potential.pdf