PPC calls for African govts to look inwards to accelerate infrastructure development

The need for quality infrastructure in Africa has been a longstanding issue, with discussions around the importance of infrastructure that serves the economies of African nations rather than colonial-era infrastructure designed to extract resources. In Cape Town, a high-level business meeting is currently underway to address the urgency of accelerating infrastructure development. PPC South Africa Managing Director, Njombo Lekula, joined CNBC Africa to provide insights into the discussions at the meeting. Lekula emphasized the critical role of infrastructure in driving economic growth and job creation, particularly in the context of challenges faced by South Africa due to the ongoing pandemic. He stressed the importance of expediting infrastructure projects that have been in the pipeline. However, a key concern remains the funding required for accelerating infrastructure development. While the government plays a significant role in infrastructure investment, Lekula highlighted the need for collaboration between the private sector and the government to explore various funding mechanisms. He underscored the importance of supporting local industries and reducing dependence on imports, advocating for a more self-reliant approach to infrastructure development. One of the key topics of discussion at the meeting was the establishment of a unit within the government to streamline project approvals and address corruption concerns. Lekula expressed optimism about the potential impact of this unit in expediting infrastructure projects and ensuring transparency and efficiency in the process. Addressing the Africa Continental Free Trade Area (AFCFTA), Lekula acknowledged the significant opportunities it presents for the cement industry and other sectors. However, he noted a lack of substantial progress in infrastructure investment over the past year, with limited civil infrastructure projects compared to consumer-driven initiatives. Despite this, he highlighted positive developments in private sector investment in power generation, signaling potential for growth in infrastructure projects. Lekula encouraged investors to consider the long-term prospects of companies like PPC, emphasizing the vital role of cement and electricity in driving infrastructure development. With Africa's growing population and vast resources, there is immense potential for infrastructure development, albeit with a substantial funding gap. Collaborative efforts between the public and private sectors, focused on local industry support and innovative funding solutions, are crucial in addressing the infrastructure challenges in Africa. As Africa prepares to leverage its demographic and natural advantages for economic growth, stakeholders are urged to prioritize infrastructure investment as a catalyst for development and job creation. By embracing a more self-sufficient approach and nurturing partnerships between government and businesses, Africa can pave the way for sustainable infrastructure development and economic prosperity.