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Urban Development

6 Tips for plugging Africa’s infrastructure gap through public-private partnerships

Christopher Olobo's picture



Editor's Note: This article originally appeared in the August 2016 edition of Into Africa (PDF), a publication of Capital Markets in Africa. An abbreviated version is reprinted here with their permission.
 
Africa is widely acknowledged as being the ‘preeminent emerging markets investment destination’ attracting global investors across all sectors. Investors seeking relatively higher risk-adjusted returns are appraising opportunities across the consumer sector, services and infrastructure.
 
However, one of the key constraints to economic growth in Africa is the lack of adequate and well-maintained infrastructure. Various studies on the infrastructure deficit have been carried out by multi-lateral agencies, most notably a World Bank study which revealed that the annual financial requirement for infrastructure in Sub-Saharan Africa (SSA) is about US$93 billion a year for both capital expenditures and maintenance. To finance this, only US$45 billion is being mobilized, two-thirds paid for by African governments and citizens, 8% by multilateral and bilateral donors and the rest by the private sector in emerging economies. There is therefore an estimated funding gap of US$50 billion a year.

Ahead of the next Habitat conference, the urban world we want

Sameh Wahba's picture


There is no better way to mark this year’s World Cities Day than reflecting on the adoption of the New Urban Agenda at the recent Habitat III conference in Quito. The agenda reaffirms the political commitment to sustainable urbanization and provides a framework to guide global urban development over the next 20 years, based on a shared vision of cities that are inclusive, safe, resilient and sustainable.

In an era of rapid urbanization and climate change, managing urban growth sustainably and building cities that work is indeed one of our most pressing development challenges.

Already, more than half of the global population — nearly 4 billion people — live in urban areas. Two decades from now, that number will grow to 5.5 billion — more than 60 percent of the world’s population. At the same time, the total built-up area of the world’s cities is expected to be double by 2030 what it is today, if not more.

Because urban-planning decisions lock cities in for generations, what policymakers decide in these two decades will make or break cities’ sustainable future for the rest of this century. With that in mind, one may ask: What will the world look like when Habitat IV takes place in 20 years?

I can imagine two opposite ends of the spectrum.

Planting healthy air: a natural solution to address pollution and heat in cities

Robert McDonald's picture


Can nature help cities address the twin problems of air that is too dirty or too hot? Based on a new report released by The Nature Conservancy – in collaboration with C40 Cities Climate Leadership Group - the answer appears to be a qualified “yes.”
 
The Planting Healthy Air report identifies the potential return on investment from tree planting in 245 global cities, which currently house about a quarter of the world’s urban population. By collecting and analyzing geospatial information on forest and land cover, particulate matter, and population density and leveraging existing literature, the study estimates the scope of current and future street trees to make urban air healthier. The benefits that trees could afford to cities will be even more crucial in the future, the study finds, as a quarter million people could die each year because of urban heat by 2050, unless cities take proactive steps to adapt to global warming.

Targeting urban sanitation: Looking behind aggregated city-level data

Peter Hawkins's picture
Also available in: Español

In our previous blogs: Fecal Sludge Management: the invisible elephant in urban sanitation,  5 lessons to manage fecal sludge better, and A tale of two cities: how cities can improve fecal sludge management, we outlined the neglect of Fecal Sludge Management (FSM) and presented new tools for diagnosing urban sanitation challenges and how they can be used. Today, on World Cities Day, we are looking more deeply into a city — Lima, Peru, to shed light on how cities around the world can meet opportunities and address challenges of urbanization including providing improved sanitation for a rapidly growing number of urban residents.

Chart: 25 Years of Growth in The World's Largest Cities

Tariq Khokhar's picture

By 2030, two thirds of the world will live in cities. The world's 12 largest city areas are each home to over 15 million people, and over the last 25 years, cities such as Delhi, Shanghai and Beijing have tripled in size.

Taking a tour of a ‘Competitive City’

Megha Mukim's picture

Do you want to take a walk through a competitive city? Since today, October 31, has been designated as World Cities Day by the United Nations, today is an especially good day to explore that idea. 

Have you ever noticed how mayors and city leaders experience life alongside their citizens? It forces them to be more focused on the local manifestations of their policy decisions. They connect with what their citizens see and experience on a day-to-day basis. Numbers are crucial, because policies need to be supported by evidence – but what if the numbers and experiences could be brought to life? What does a 5 percent annual GDP growth rate look like? For that matter, what does a “competitive city” look like?

Members of the Competitive Cities team at the World Bank Group traveled to Bucaramanga, Colombia to find out. Here, amid the city’s famously rugged topography – with no ports or railroads nearby, and almost 10 hours away from the nation’s capital, Bogota – economic development seemed to be a tough proposal. Bucaramanga, however, managed to reinvent itself and become a globally competitive city – with the fastest rates of GDP growth and job growth in Colombia, and one of the fastest growth rates in the Western Hemisphere. As part of the Competitive Cities for Jobs and Growth initiative, we had already looked at Bucaramanga’s success in numbers and had analyzed qualitatively how they managed to get things done. Now we wanted others to experience how it felt to walk through a secondary city that blossomed into a dynamic economic center.

Thanks to a donated helicopter, the use of hobbyist drone technology, a motorcycle and a hugely enthusiastic local chamber of commerce, the team captured images and videos of the places that were central to Bucaramanga’s growth story. Bucaramanga’s transformation began with the creation of a regional competitiveness commission, a public- private alliance spearheaded by the private sector. As you’ll see in the accompanying video, one single block within the city hosts the chamber, an industrial university, the enterprise center, the commerce association and important regional banks.



In Bucaramanga, Colombia, Erick Ramos Murillo (left) and Rómulo Cabeza (right) prepare to fly a 3-D camera rigged to a drone. 

Implementing the New Urban Agenda needs financially strong cities

Ede Ijjasz-Vasquez's picture
Cities around the world face increasingly complex challenges such as rapid urbanization and climate change. Meanwhile, many cities facing the most pressing problems lack sufficient funding to meet local needs. This is especially the case for developing countries, where cities require significant infrastructure investment to provide basic services to growing populations and expanding urban areas.
 
How can cities access, leverage, and manage the fiscal and financial resources required to implement the New Urban Agenda and meet the growing needs of local populations?
 
To explore this issue, World Bank Senior Director Ede Ijjasz-Vasquez discussed the UN Habitat III policy paper on municipal finance and local fiscal systems with Mac McCarthy, President and CEO of the Lincoln Institute of Land Policy.
 

Powering Sub-Saharan Africa – A fresh take on an old problem

Masami Kojima's picture
Man looking at electricity meters in Bamako, Mali 
Pic: Aarthi Sivaraman/World Bank

“If there is one thing that could really help my business, it would be reliable power supply,” said David, a small business owner in Lagos, on my recent trip to Nigeria.
“I agree. If only …,” echoed another.

And not without reason.

Africa lags every other region in the world when it comes to electricity access for its people. Only one in three Sub-Saharan Africans has access to electricity. That’s less than half of the rate of access in South Asia, the region with the second-lowest access rate. If we were to measure access to “reliable” electricity, then those numbers would be even more dismal.

Worryingly, the rate of access has been increasing at a mere 5 percentage points every decade, against population growth of 29 percent. If something is not done to dramatically change this trend, Africa will not see universal access to electricity in the 21st century. This is a seriously worrying prospect as the world races toward a 2030 deadline of universal access to electricity.

The target of achieving universal access by 2030 by the U.N.’s Sustainable Energy for All initiative and the billions of dollars committed by the U.S. government’s Power Africa plan underline the urgency of the situation. As a reminder, more than 1 billion people around the world still live without access to electricity and 600 million of those live in Africa.

So, are Africa’s utilities financially equipped to respond to this call?

Investing in resilient cities can help the urban poor

Ede Ijjasz-Vasquez's picture
By 2030, without efforts to boost urban resilience, climate change may push up to 77 million urban residents into poverty.
 
The good news is that the world has a brief window of opportunity to make cities more resilient to climate change, natural disasters, and other stresses, as almost 60% of the urban area that will be built by 2030 is yet to be developed.


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