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.
