AmCham Trade Committee meeting Business in Africa A fundamental building block for positioning the continent as a key role player for international trade and investment Lynette Chen CEO, NEPAD Business Foundation 6 February 2014 “Unlocking African Potential”
Presentation Outline NEPAD Business Foundation Overview Importance of Trade in Africa Role of the PICI in Trade and Infrastructure Development Role of PIDA in Trade and Infrastructure Development Role of the Afri-ID in Trade and Infrastructure Development Q&A/Open discussion
NEPAD Business Foundation Overview Role of the NEPAD Business Foundation Who we are… What makes us unique…. • Non Profit Organisation formed to African based NPO with cross border mandate achieve the New Partnership for Neutral Multi-stakeholder party Africa’s Developments’ (NEPAD) Relationships with key African Gvt’s vision Signed MOUs with SADC PPP and the • Patrons: Graca Machel and NEPAD Agency Nkosana Moyo Physical presence in multiple African countries Public Sector Private Sector DFI’s Implementation Donors GVT’s Bankability Feasibility Inception GAP SADC PIDA PPP PICI
NEPAD Business Foundation Overview NBF Interactions With Key Stakeholders The NBF facilitates private sector investment as a mechanism to achieve social and economic development AU/NEPAD Structures External Stakeholders Assembly of the African Regional Economic Union (AU) Communities (RECs) NBG/Continental NEPAD HSGOC chambers of commerce NEPAD Steering Development agencies/ DFIs / Donor agencies Committee NEPAD Planning and African governments Coordinating Agency Private sector companies that inform the strategy and function of the NBF The NEPAD Business Foundation (NBF) is a private sector funded, Independent Non Profit Organisation (NPO) geared towards supporting NEPAD Agency goals by mobilising private sector
NBF Board NAME & SURNAME DESIGNATION ORGANIZATION NBF Board NBF OPSCO NBF ARC Deputy CEO, Southern Mr. Stanley Subramoney NBF Chairman OPSCO Member - Africa Senior Partner, NBF Vice- Ms. Futhi Mtoba OPSCO Member ARC Member Southern Africa Chairperson Dr. Reuel Khoza Chairman Board Member OPSCO Member - Head: Government Chairman of Mr. Geoff Rothschild and International Board Member - OPSCO Affairs Senior Financial Mr. Patrick Kabuya Management Non- Director - Chairman of ARC Specialist Prof. Wiseman Nkuhlu - Board member - - Mr. Cas Coovadia Managing Director Board member ARC Member Mr. Mark Williams - Board Member OPSCO Member - Business Development Mr. Roelof van Tonder Board Member - - Manager Ms. Khanyisile Kweyama Executive Director Board Member - - Divisional Manager: Mr. Sean Murphy Board Member - - Sub-Saharan Africa Ms. Lynette Chen CEO Executive Director OPSCO Member ARC Member Notes: OPSCO - Operations Committee , ARC: Audit & Risk Committee, NBF: NEPAD Business Foundation
NEPAD Business Foundation Overview NBF Programme Focus Areas Strategic Water Partnership Network South Africa
Importance of Trade in Africa Competing with the World We live in an increasingly globalised world, where African countries need to reap the benefits of economies of scale Lower Cost of Production Increased Competitiveness Stronger Negotiating Power Increased Exports Bringing the world to Africa and taking Africa to the world at the lowest cost can be achieved through increased regional integration
Role of PIDA in Trade and Infrastructure Development Infrastructure Challenges in Africa Infrastructure Challenges INFRASTRUCTURE • Inter-regional trade of less than 10% • COST 30 out of Africa's 55 countries endure regular power outages “ $93 Billion p/a” • Low access to water and basic sanitation services across the continent Funding Poor and under-developed Difficult and uncertain regulatory environments in deficit – transportation, energy, water African countries impede development and social infrastructure “ $31 Regulatory policies and standards are inconsistent from country to country, and/or Billion Regulatory policies are non-existent altogether in p/a” some instances Capacity Constraints Poorly developed projects - shortage of bankable projects paradox Delays/blockages – e.g. at borders, project contracting conclusion, etc. A myriad of infrastructure challenges currently hamper growth in inter-regional trade and economic development across the African continent
NEPAD Programme for Infrastructure Development for Africa (PIDA) PICI low-hanging projects underpinned by a political process NGR: Nigeria-Algeria Gas Pipeline Project SEN: Dakar-Bamako-Niamey- Ndjamena-Djibouti Multi-modal Egypt: Establishment of Navigational corridor Route: LV to Mediterranean sea along the Nile River Dakar-Bamako Rail ALG: Algeria-Nigeria Optic Fibre Project; Missing Links of the TSH along the optic fibre project RW: ICT BB: Unblocking of bottlenecks at regional and continental levels RC: Kinshasa-Brazzaville Road- Rail Bridge SA: North-South Multi-modal Sources: NEPAD Agency, Corridor African Union
Role of PIDA in Trade and Infrastructure Development Why PIDA? STAP MLTSF AAP PICI PIDA PIDA PAP NEPAD infrastructure programme Sources: NEPAD Agency, African Union
Role of PIDA in Trade and Infrastructure Development What is PIDA? PICI PIDA PAP PIDA=NEPAD=PIDA Sources: NEPAD Agency, African Union
Role of PIDA in Trade and Infrastructure Development PIDA Energy Projects Energy 15 items USD 40 bn The energy infrastructure program focuses on major hydroelectric projects and interconnects the power pools to meet the forecast increase in demand. One regional petroleum products pipeline is also included. Sources: NEPAD Agency, African Union
Role of PIDA in Trade and Infrastructure Development PIDA Transport Projects Transport 24 items USD 25 bn The transport program links the major production and consumption centers, provides connectivity among the major cities, defines the best hub ports and railway routes, and opens the land-locked countries to improved regional and continental Sources: NEPAD Agency, trade. African Union
Role of PIDA in Trade and Infrastructure Development PIDA Water Projects Water, 9 items USD 2 bn The transboundary water program targets the development of multipurpose dams and builds the capacity of Africa’s lake and river basin organizations so that they can plan and develop hydraulic infrastructure. The program would also help address the looming food deficit. Sources: NEPAD Agency, African Union
Role of the Afri-ID in Trade and Infrastructure Development Afri-ID Vision, Mission and Outcomes Vision An African continent that is enabled by high quality infrastructure that promotes regional integration, intra-Africa and international trade and development Mission Establish a multi-stakeholder platform where private sector and public sector partners cooperate in the development of regionally integrated infrastructure in Africa Outcomes Accelerate infrastructure development and implementation of projects through focused research, relationship linkages and a methodical facilitation process with private sector The aim of the Afri-ID is to accelerate the development of investment and commercial infrastructure opportunities through private sector engagement
Role of the Afri-ID in Trade and Infrastructure Development Afri-ID Project Selection Process Project list screening and forum outcomes (27 August 2013) Transversal African’ project list: PIDA Criteria: 665 projects Tripartite SADC 3 PPP • Political support • Private sector involvement • Project readiness Sectorial criteria: 126 Projects • Cross border impact Rail, Port, Pipeline …. 22 projects North South Corridor + Forum Outcomes Current Afri-ID Funding Members Final Selection Afri-ID 5 projects Steering committee
Afri-ID Projects 4 2 Revitalization of the Tanzania - Revitalization of the Zambia- South Africa Rail Corridor link South Africa Rail link in order to increase cargo in order to increase cargo moving on the North South moving on the North South 5 corridor Development of the port of Corridor Dar es Salaam to enable increased and more efficient handling of cargo moving onto and off the North - South corridor Development of the 3 Mtwara port and EDZ in order to ease congestion 1 on Dar es Salaam port and Establishment of a regional rolling due to abundant coal and stock leasing pool to allow operators gas resources on either on the North - South corridor access to side of the Mtwara Rail corridor much needed locomotives and wagons corridor Key to move more cargo on the rail network
Your Contacts http://NEPADbusinessfoundation.org Kudzanayi Bangure Lynette Chen Project Manager - Africa Infrastructure Desk CEO- NEPAD Business Foundation Tel: +27 87 310 1888 Tel: +27 87 310 1888 Fax: +27 87 310 1889 Fax: +27 87 310 1889 E mail: Kudzanayi.bangure@thenbf.co.za E mail: Lynette.chen@thenbf.co.za Laetitia Habchi Programme Manager – Africa Infrastructure Desk Tel: +27 87 310 1888 Fax: +27 87 310 1889 E mail: Laetitia.habchi@thenbf.co.za
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