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8 - Achieving Long-Term Financial Sustainability in African Infrastructure Projects

from Part I - Mitigating Institutional Voids by Design

Published online by Cambridge University Press:  14 November 2019

By
Anne Stafford ,
Pamela Stapleton  and
Cletus Agyemin-Boateng
Edited by
Nuno Gil ,
Anne Stafford  and
Innocent Musonda
Nuno Gil
Affiliation:
University of Manchester
Anne Stafford
Affiliation:
University of Manchester
Innocent Musonda
Affiliation:
University of Johannesburg
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Summary

In this chapter we set out to consider what is needed to ensure that Africa’s infrastructure remains financially sustainable throughout its life cycle. Managing the operational phase is at least, if not more, crucial than ensuring a project is constructed in the first place, but evaluation, particularly in relation to affordability, is weak even at the global level. We identify that in Africa there are frequently weak systems of governance, fragile and risky political institutions and lack of financial management capacity. We empirically examine five Ghanaian projects in electricity generation, water desalination, and the use of private finance to deliver and operate university buildings, to demonstrate financial and accountability shortcomings. We identify four methods that could improve financial sustainability for African infrastructure projects: namely, the establishment of independent infrastructure agencies; training and salary support of competent government technical staff; a move to more transparent decision-making; and the introduction of project monitoring and contingency planning.

Keywords

Financial sustainabilityaffordabilityproject evaluationproject choicecontract specificationperformance monitoringgovernanceaccountabilityutilitiesuniversity facilities
Type
Chapter
Information
Duality by Design
The Global Race to Build Africa's Infrastructure
 , pp. 227 - 253
Publisher: Cambridge University Press
Print publication year: 2019

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