Africa spends 12 % GDP on infrastructure – Sanusi

London – CBN Governor, Sanusi Lamido Sanusi, said on Monday that African countries spent nearly 12 per cent of its Gross Domestic Product (GDP) on infrastructure.

Sanusi said this in a paper he presented at the West Africa Global Trade and Investment Forum organised by Business In Africa Events in London.

Represented by one of his deputies, Dr Sarah Adeola, Sanusi  said  the continent’s infrastructural services were more expensive when compared to anywhere across the globe.

“Unmet funding needs are also very evident,’’ the Europe Correspondent of the News Agency of Nigeria (NAN) quotes Sanusi as saying.

He explained further that required spending on infrastructure was estimated at nearly 93.3 billion dollars, adding that currently spending deficit for Sub-Sahara Africa was about 45 billion dollars.

Sanusi, while advocating for a regional solution, noted that there was need to create a conducive environment, improve the capacity of the local market and improve on legal framework.

“We need transparent concession processes, strong political legal and regulatory framework , well cut out mutually agreed concession, PPP arrangement and strong public sector support for projects,’’ he said.

He said  private finance alone could not address the infrastructural challenges and government must look at other sources of funding such as pensions  and loans from multilateral agencies and bodies.

“In Nigeria, presently our infrastructure is largely financed by government through its capital project which is inadequate; We are now looking at the Pension funds,’’ he said.

He explained further that because of some restrictive policies, CBN has not been able to channel the funds into infrastructural development.

“Our view is that the fund cannot just stay there, they are funds we can use to develop infrastructure,’’ Sanusi said.

Also, Mr Phil Baines, Chief Operating Officer HSBC Bank Plc commended the federal government for  establishing the Sovereign Wealth Fund (SWF).

He explained that it was heart warming to know that the fund would pave way for the country as the biggest oil exporter to improve its management of windfall crude oil earnings.

Also speaking, Mr Roger Brown, Head of Oil, Gas Renewables, Standard Bank, noted that the challenge facing Africa was its continuous drive for investment rather than building its local market.

“Africa needs to step away from the direct investment option and support local businesses to run themselves,’’ Brown said. (NAN)