Africa’s InfrastructureA Time for Transformation

Africa Infrastructure Country Diagnostic: A multi-

stakeholder effort

For more information visit: www.infrastructureafrica.o

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Key Messages (1)1

• Infrastructure critical to growth, but continent hampered by limited stocks and high costs

• Africa’s economic geography complicates infrastructure development

• Power is by far Africa’s largest infrastructure challenge

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Main Cause or TriggerNatural Causes (Droughts)Oil Price ShockSystem Disrupted by ConflictHigh Growth, Low

Investment/Structural Issues

100%

80%

60%

40%

20%

Funding gap $31

Efficiency gap $17

Increasingcost recovery $4.7Improving operational

efficiency $7.5

Spending budgetedresources $1.9

Prioritizingpublic spending $3.3

Existing spending $45

0%

Spending needs $93

All figures in US$ billion a year

How much to expect from private sector?

Private finance limited to certain nichesSignificant investment in ICT ($28bn), thermal power generation ($3bn) and ports ($3bn)Minimal appetite for power and water utilities, rails and roadsMakes significant contribution across country types

Private management helps narrow efficiency gap

Positive impact on railroads, power and water utilities

Key Message (2)

• Increased funding

• Enhanced efficiency

• Innovative approaches

• Technology adaptations

are all needed to redress Africa’s infrastructure deficit

Hydro power, developed responsibly and regionally, can have a big impact

Enables energy mix to be cleaner at reasonable cost.

Savings of US$2 billion a year (and 70 million tons of carbon) achievable from shifting to large scale hydro-power via regional trade

Requires extraordinary political and economic cooperation among countries

Geothermal Power Development

Kenya is scaling up, demonstrating that this can be doneCurrent geothermal capacity is 110 MW --projected to more than double in the next 5 yearsThe countries in the Rift Valley all have potential. Current efforts on to promote exploration and financing to realize the potential through private sector

Developing off-grid Solar Market • Sustainable Solar Market

Program is a delivery model that addresses African challenges • high initial cost • low affordability • limited access to credit • low population density and hence

high transaction costs.

• Packaging tools to meet these specific constraints so as to attract private sector.

• SSMP being tested in Tanzania, Zambia and Liberia.

Energy Efficient Lighting Programs

Rwanda: Distributed 400,000 CFL in exchange for incandescent

bulbs

Reduces peak demand by 7-10 MWBundled with access program – 250,000 households connected and given CFLs with connectionEnergy savings are captured in Rwanda’s first carbon finance transactionCFL exchange programs are also underway in Ethiopia and Uganda

Catalyzing Markets for Modern LightingThe Lighting Africa Initiative

Supports the private sector to develop, accelerate, and sustain the market for modern off-grid lighting technologies tailored to the needs of African consumers.Lighting Africa works closely with a range of key stakeholders along the supply chain and beyond, necessary for successful market formation

Public goods in the form of market research, consumer preferences, quality standards and retailing strategies are developed and disseminated to promote entrepreneurs. Check out: http://www.lightingafrica.org/