However, a lack of modern infrastructure is a major challenge to Africa’s economic development and constitutes a significant impediment to the achievement of sustainable development goals.

The PPP Model: A Challenging Step.

Facing the dearth of infrastructure funding, an increasing number of countries, notably emerging markets and developing economies a need arises to make an impactful attempt to Public-Private Partnerships (PPPs) in order to tap private capital.

PPPs in Africa remain a very small market, with projects concentrated in only a few countries, namely, South Africa, Nigeria, Kenya, and Uganda. We recognize that some African countries are hesitant to embark on PPPs as a result of prior bad experiences with ill-prepared PPPs or even with less-than competent PPP project sponsors.

It is broadly understood that public-private partnerships (PPP) are a procurement tool that encompass design, financing, construction and long-term operation of a public infrastructure by the private sector. They can be cost-effective thanks to adequate risk transfer and performance criteria, and help bridge Africa’s large infrastructure gap in many sectors.

The only question that strikes the mind is “What can African Government do have an effective PPP”?

Classifying potential PPP projects from the outset using the three criteria outlined above could help not only focus on the specific legal and institutional issues that are most relevant to the projects, but also on the viability issues that are critical to attracting private investors—which could include required government funding, the creditworthiness of national utilities or the financial capacity of users.

Many African countries could create precedent and bring in private capital to address their infrastructure needs. A PPP proverb by world bank strikes the issue “ Little drops of water via small projects makes an ocean of PPP projects in due course”

In order to have a successful PPP Model what is actually needed to be implemented is as follows:

Political Commitment: The Government should be effective enough to have a strong hold and control over implementation of the model.

Stakeholder Engagement: Steps shall be taken to increase stakeholder engagement by involving them with seminars, discussions etc. There shall be a proper one to one coordination between the government and the stakeholders to stay on one uniform road.

Strong involvement of development institutions (Both Public & Private): A strike of balance has to be maintained between both the institutions to let the model flourish in exact terms. Uniformity in decision making is the ultimate step that is needed.

Clear and Visible Benefits: the achievement through the initiative must be lucid enough to set a goal to achieve and the implications must be beneficial in order to support the infrastructural goals.

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Natural gas is like a child with the silver spoon of the energy world, promising great future. Africa at present occupies a very small chunk of Natural Gas production but is expected to lead the world in next few decades. over the last few decades series of major gas reserve discoveries in Mozambique and Tanzania have a relight the interest in the expansion of continent’s gas reserves. It is worth noting that these regions were previously not notable for their contribution to oil and gas industry. Africa’s main gas producers are Algeria, Nigeria and Egypt. these countries account for 90% of continent’s gas production. Regionally North Africa holds the lion share in the gas production and consumption. With Algeria,Egypt and Libya having the largest gas reserves. Over the years, East Africa has become most attractive gas exploration hot spot. Mozambique and Tanzania’s substantial offshore gas reserves offer the potential to become prominent LNG( Liquefied Natural Gas) exporters in the coming decades. The East Africa Gas market is expected to attract investment worth 10 billion$ in coming decades. Notably, the government is taking steps to create incentives for energy companies to explore specifically the natural gas segment. Africa Financial Corporation has commissioned to disburse an initial investment of 75 million US$ in NewAge Ltd- a privately held oil and gas exploration company, to enable it to develop projects in Nigeria, Republic of Congo and similar other African countries. And the corporation is also taking initiatives to mobilize around 2bn$ of investment as a sponsor, advisor or lender to natural resource projects. Similarly steadily rising offshore exploration is giving an indication that the continent is becoming and attractive natural resource investment destination among the international companies. African government who are well managing their regulatory and business environment are expected to attract more of such investment in near future.

Oil refining is another segment where investments are seen to be floating. Being the among the biggest oil reserve countries, Africa’s refining capacity is limited. Investments in this segment is seen to be floating across construction of new refineries and refurbishment of the existing one. African government has promised to revive four major state-owned refineries and also to increase their capacity in the coming decades. These things point towards bigger opportunities for construction of oil refineries in countries like Angola and Nigeria. Many of the private companies are stepping in to build and operate their own private refineries. Dangote- an oil refining company has received an investment of 99.7 million US$ to increase the domestic capacity of the refineries in Nigeria. The company has also signed a loan agreement with both Local and International banks to tune in 3.3bn $ for construction of biggest Petroleum oil refinery and Petrochemicals and Fertilizer plants in Nigeria. Similarly many oil refineries construction tenders are floated by the government from time to time reflecting opportunities for high-tech capital intensive projects that may give competitive edge to the foreign companies looking to tap the market.

The sources of Oil and Gas are evolving and will continue to. The countries leading the oil and Gas production should continue to offer both National and International companies attractive investment opportunities which may help foster competition, efficiency and capabilities. Government must also find new ways to leverage its resource sector to capitalize on GDP growth.

Africagateway helps you find the latest and live procurement opportunities in Oil and Gas industry of Africa.

To find more details click on the link below:

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Tourism in Algeria:

Algeria’s tourism industry contributes only about 1 percent of GDP and receives about 200,000 tourists and visitors annually. Ethnic Algerian French citizens represent the largest group of tourists, followed by Tunisians. Various hotel operators are planning to build hotels, particularly along the Mediterranean coast. Another potential opportunity involves adventure holidays in the south. The Algerian government along with other funding agencies has set the goal of boosting the number of foreign visitors, including tourists to 1.2 million in the coming years. Along with the investment of government for the boost, various online tenders are regularly floated in Algeria’s developing economy.

Sectors which play an important role for the development of Algerian Economy:

The Algerian economy is reliant on petroleum, which has been an OPEC member since 1969. Its crude oil production stands at around 1.1 million barrels/day, but it is also a major gas producer and exporter, with important links to Europe. Thus, the major source of income comes from Oil and Gas which is the booming sector of Algeria.

Transport in Algeria:

The Algerian road network is the densest in Africa. Its length is estimated at 180,000 km of highways with more than 3,756 structures and a paving rate of 85%. This network will be complemented by the East-West Highway, a major infrastructure project currently under construction. Algeria is also crossed by the Trans-Sahara H

The Algerian economy is reliant on petroleum, which has been an OPEC member since 1969. Its crude oil production stands at around 1.1 million barrels/day, but it is also a major gas producer and exporter, with important links to Europe. Thus, the major source of income comes from Oil and Gas tenders which is the booming sector of Algeria.

Transport in Algeria:

The Algerian road network is the densest in Africa. Its length is estimated at 180,000 km of highways with more than 3,756 structures and a paving rate of 85%. This network will be complemented by the East-West Highway, a major infrastructure project currently under construction. Algeria is also crossed by the Trans-Sahara Highway, which is now completely paved. This road is supported by the Algerian government to increase trade between the six countries crossed: Algeria, Mali, Niger, Nigeria, Chad and Tunisia. Such government efforts are encouraging other countries to invest in the Algerian economy through tenders, projects and much more.

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