African Governments Still Largest Developers of Region’s Infrastructure Projects
Governments remain the single largest developers of infrastructure projects – and own between 57% and 90% of tracked projects – across Africa, the 2017 edition of Deloitte’s ‘Africa Construction Trends’ report has found.
In total, these projects are worth $307-billion.
“Governments that invest in enabling infrastructure are seen as more proactive and tend to attract more investors, ultimately making them more likely to achieve economic and export diversification objectives,” said Deloitte Africainfrastructure and capital projects leader JP Labuschagne.
Globally, nine out of ten megaprojects, defined as having a value over $1-billion, run either over budget or over time, with emerging markets, marred by weaker governance institutions, leaning towards significant time and cost overruns.
“Government-owned projects are the worst offenders, with 83.3% of projects delayed. Three-quarters of privately owned projects are on time. This shows a consistent pattern of overruns compared with global projects,” he explained.
The report also showed that Southern Africa was home to the largest number of projects, at 93, while West Africa remained the region with the largest share of projects in terms of value, worth $98.3-billion.