URBANIZATION AND INDUSTRIALIZATION

190
ECONOMIC REPORT ON AFRICA 2017
The 30-year concession allocates responsibility for
financing, design, construction, rehabilitation and
operation and maintenance to a private consortium,
with reversion to government control in 2027.
Despite payment risks, including competing lower
quality transport routes and slower than expected
economic growth in Mozambique, traffic volumes
have been enough to ensure financial solvency,
and payments from the South African portion have
cross-subsidized the Mozambican portion of the
road. Criticisms of the project include the exclusion
of lower income road users, particularly small
enterprises along the corridor (PPIAF, 2009; Farlam,
2005).
In Côte d’Ivoire, private participation in the financing
of national development planning has been a
success factor in the country’s post-2011 economic
resurgence. The private share of investments shot
up from 30 per cent in 2005 to nearly 70 per cent
in 2015, even as total investments increased. One
facilitating factor was the promotion in 2014 of
public–private enterprises and the involvement of
the private sector in a newly established code of
investment. The 2016–2020 National Development
Plan has slated 60 per cent of the $60 billion overall
cost of implementation for private finance. A
large part of the investments will be in upgrading
and innovating infrastructure: water, roads and
electricity production (AfDB, OECD and UNDP,
2016). Already, bond issuances for projects under
the National Development Plan have been widely
oversubscribed by development partners.
TO SUMMARIZE …
The core components of successful implementation
include:
ҋҋ
Coordination among implementing
agencies, especially those managing
industrial development and those managing
urban development, as well as between
national and local levels, including a
mechanism to institutionalize it.
ҋҋ
Subnational government capacity (human,
technical and financial) to implement
policy mandates at this level.
ҋҋ
Finance and financial management,
including policy-based budgeting,
decentralized financial management
and land-based revenue generation.
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Private participation in finance (including
through public–private partnerships)
and coordinated implementation.
Finally, even with the broad base of research
on agglomeration economies and industrial
development, empirical evidence for the
effectiveness of policies, especially in Africa, is
patchy. As countries develop and implement their
policies, they should also monitor and evaluate such
impacts, allowing them to adapt policy in near-real
time and to develop a knowledge base of African
good practices.
As countries develop and
implement their policies, they
should monitor and evaluate
such impacts, allowing them to
adapt policy in near-real time
and to develop a knowledge
base of African good practices.