African Infrastructure
Leveraging the
African market
AECOM continues to secure contracts in East Africa, as well as further afield in Southern Africa. The strategic focus across the board includes transportation, water and power projects.
O
ne of AECOM’s major advantages is the group’s ability to leverage its international expertise and experience to secure projects. “There is not a single project delivered in Kenya, for example, that does not deploy at least three different teams,” points out Boni Chileshe, managing director: East Africa, AECOM. These include ongoing contracts for the Kenya Electricity Generating Company, which involves AECOM collaboration between Kenya, New Zealand and the US, with local support from South Africa. East Africa has an estimated population of 280 million people, less than 27% of whom have access to a reliable electricity supply, so this presents major opportunities for investment. The megaprojects involved are some of the biggest in the world, with examples including the 1 743 km long transmission line from Zambia to Kenya, where the feasibility study was carried out by AECOM. Alongside the power sector, the transportation segment is another priority. “We are collaborating to secure the commission of a 400 km, six-lane Mombasa-Nairobi motorway, in conjunction with our transport team,” says Chileshe, commenting on current initiatives. Other transport-related pursuits include the design of the Likoni Cable mass-transit system, running from Mombasa Island to the mainland. “Infrastructure such as roads, airports and railways is the one area where the bulk of the
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governments in East Africa are directing their capex spend. A lot of gravel roads need to be upgraded, while at least three airports a year are being developed at present. Hence, this is a significant focus area,” says Chileshe.
Chinese funding Commenting on funding models for infrastructure development in Africa, Chileshe says these have been predominantly based on aid from financial institutions such as the African Development Bank and the World Bank. However, a quarter of all funding is still derived from China, along with a mix of other international players. “The fact that such funding is often tied to sovereign guarantees and national debt means that, ultimately, it is unsustainable, as a lot of countries have now built up such a high debt burden that they cannot afford to borrow more,” Chileshe stresses. This has resulted in a shift towards alternative funding, particularly publicprivate partnerships. There is also a move towards engineering, procurement, and construction contracts. AECOM is now aligning itself with suitably qualified and experienced contractors capable of undertaking these complex and integrated projects.
Zambia In Zambia, AECOM has been appointed by the Department for International Development (DFID) to deliver its Cities and Infrastructure for Growth in Zambia (CIGZ) project.
Developing Africa’s transportation infrastructure is a critical factor in stimulating inter-country trade and socioeconomic prosperity across the continent
CIGZ will provide demand-led technical assistance to national and local government in areas such as urban planning, infrastructure service delivery and energy access. It also aims to improve the quality of projects, while promoting investment opportunities that drive economic transformation and job creation. The DFID will work closely with the Zambian government to implement its 7th National Development Plan, which looks to diversify the economy, reduce poverty, create jobs, and set Zambia on a path to becoming a middleincome country. “We are proud to be supporting the DFID in this hugely positive initiative. With an urbanisation rate of 4.2% a year, Zambia is one of the fastest urbanising economies in Africa,” comments Simone Anzboeck, associate director: International Development at AECOM. “For its cities to keep up with the pace of this change, CIGZ has come at the right time. AECOM is looking forward to supporting the Zambian government in addressing the constraints of urban infrastructure service delivery.” The project further enhances AECOM’s longterm strategic partnership with the DFID, having secured a contract last year to manage its Trade and Investment Advocacy Fund (TAF2 Plus), in collaboration with Saana Consulting.