“2015 could be the year when forward-thinking investors step up their interest in selected opportunities in emerging market infrastructure projects.
A region to watch will be East Africa. The fundamentals of strong population growth, vast untapped natural resources and improved governance are providing the foundation for the demand and capability to pay for infrastructure in a way that could become appealing for global investors.
There has already been a great deal of inward investment into power and transport projects in the region, and while non-multilateral supported project finance activity has been slow to date, the necessary conditions for its emergence in some nations are not far off.
As oil production levels increase from recent discoveries, governments will have greater levels of funding to support infrastructure projects. Combined with World Bank funding and support for the development of PPP units to drive project development, the opportunities look to be significant. The five-nation East African Community is working together to make cross-border infrastructure plans more attractive to international investors and improve the integration of the regional economy.”
Matt Hallissey is technical director at Los Angeles-headquartered engineering firm AECOM.