Is mismanagement responsible for Africa's poor infrastructure?

Africa has long struggled with a lack of adequate infrastructure, hindering economic development and overall growth on the continent. In a recent interview at the Africa Finance Corporation Infrastructure Summit in Abuja, Raji Kulasingam, Senior Counsel at Dentons, shed light on some of the key issues contributing to Africa's infrastructure challenges. The discussion revolved around the role of mismanagement and underinvestment in Africa's infrastructure deficit. One of the primary factors highlighted by Kulasingam was the historical underinvestment in infrastructure across the continent. Over the years, many African nations have failed to allocate sufficient resources towards building and maintaining critical infrastructure such as power plants, roads, and ports. This underinvestment has created a domino effect, leading to inefficient systems that struggle to keep up with the pace of development. The lack of developed regulatory systems further compounds this issue, making it difficult to attract the necessary funding for infrastructure projects. Kulasingam pointed out that African countries are relatively young compared to other nations and are still in the early stages of development. As a result, they are playing catch-up in many areas, including infrastructure. The legacy of underinvestment is now becoming more apparent as the demand for infrastructure continues to grow. One of the key challenges facing governments in Africa is the political difficulty of increasing tariffs to cost-reflective rates. Kulasingam emphasized the importance of having cost-reflective tariffs to ensure the sustainability of infrastructure projects. Without such tariffs, projects become financially unsustainable, leading to doubts among developers and funders. While governments can opt for subsidies, the long-term viability of these projects depends on cost-reflective tariffs that accurately reflect the value of the services provided. The conversation then shifted to the importance of showcasing successful infrastructure projects as models for future investment. Kulasingam highlighted the need for African countries to demonstrate their ability to deliver bankable projects that are completed on time, within budget, and are financially sustainable. He cited the example of South Africa's successful solar projects as a case in point, where a series of well-executed projects helped attract further investment. Moreover, capacity development within the public sector was identified as a critical factor in negotiating infrastructure deals effectively. Kulasingam stressed the importance of governments enhancing their capacity to engage with developers and funders on an equal footing. Building a strong foundation of skills and knowledge within the government is essential for creating a conducive environment for infrastructure projects to thrive. It is crucial for governments to have the right incentives and structures in place to ensure project continuity and success. In conclusion, the conversation with Raji Kulasingam highlighted the multifaceted nature of Africa's infrastructure challenges. Addressing these issues will require a concerted effort from governments, developers, and funders to create sustainable and cost-effective infrastructure solutions that propel the continent towards economic growth and prosperity.