‘Africa needs infrastructure balance sheets’

Countries in Africa need infrastructure balance sheets not only to improve planning and spending on projects but to get a clear idea of the deficit that exists, according to Herbert Pohl, a director and global leader of McKinsey’s infrastructure portfolio. “Infrastructure country balance sheets are needed for two reasons,” he told FTW. “The first is to establish what the infrastructure need and budgets are and also to get a clear picture of the deficit.” He said it would give countries a much better idea of what they were dealing with and ultimately would ensure that countries addressed their infrastructure needs holistically while at the same time harmonising efforts across borders. “These balance sheets do not have to be complex – you have the asset or lack thereof on one side and on the other the funding of it.” Infrastructure experts like Pohl maintain that by developing balance sheets countries will be forced to take longer-term views of their infrastructure needs and spend. “One of the big challenges in the infrastructure sphere in Africa remains the conflict in releasing a project in five years that has to have a lifespan of more than 30,” he said. “Through this process countries will be able to answer some crucial questions much more easily, including where the infrastructure is needed, what the impact will be, who is going to fund it and what role it will play. It will force us to look at the quality of infrastructure we are putting in place in Africa.” CAPTION Bridging the gaps ... Infrastructure balance sheets will correlate needs and budgets.