Infrastructure challenges create beneficiation opportunities

Africa stands to benefit significantly from the huge increase in projects on the continent, according to Lorenz Pimpfinger, project manager Africa for Spedag Interfreight. With no indication of projects slowing down, investments keep pouring in, he says. Africa is now one of the world’s most miningprospective areas with major oil and gas finds on the East and West Coast another focus. “Africa’s biggest challenge in terms of projects is the lack of infrastructure, but therein lies the biggest opportunity for beneficiation,” said Pimpfinger. “To extract resources and export them, infrastructure has to be improved or in many cases built. In this way Africa will see long-lasting effects of the many projects as companies are investing heavily in the infrastructure.” Business is also taking the time to address socio-economic issues in Africa and many clinics, schools and hospitals have come about due to their involvement. According to Pimpfinger, the growth on the continent is also evident in the improving economies. “Nigeria is set to equal South Africa’s GDP as soon as 2014. When one looks at the projects under way, there is still a very definite upward trend and capital investment is happening from the south to the north.” And the project interest is not only in the mineral and energy sector. “We are seeing much happening in other fields,” he told FTW. “There are several breweries going up while water supply, hydro power and wind farms are other areas where there is a lot of work happening.” Another interesting development is the return to the continent of the younger generation Africans who left to educate themselves abroad and seek top financial positions in the UK and USA, he added. “It bodes very well for the continent when one sees these financial wizards return to their home countries,” said Pimpfinger. While projects in Africa are without doubt more challenging from a logistical perspective due to its lack of road, port and rail infrastructure, much is happening to improve this. Ports from Durban to Mombasa are upgrading their facilities, while corridor development and border integration systems are high on the agendas of many governments. “Africa remains a special continent that requires much strategy and skill when it comes to the project arena,” said Pimpfinger. “But it is a continent that will benefit from the projects on its shores.”