Foreign Direct Investment in Infrastructure: The Challenge of Southern and Eastern Africa

This paper looks at some of the factors influencing the perception that the African continent is a relatively unattractive investment location as well as some of the real impediments faced by private entrepreneurs seeking entry into the infrastructure sector, and the steps that governments might take to establish a more attractive environment for private capital. The first part of the paper looks at the current state of infrastructure in the region and the extent of private involvement. The latter sections provide an overview of the principal impediments to greater private capital and expertise involvement. An annex reveals that most of the difficulties encountered in Southern and Eastern Africa are not at all unique, but tend to be problems with which developing countries worldwide are struggling.