SUMMARY AND WAY FORWARD

1.0 INTRODUCTION

The SADC Regional Infrastructure Investment Conference was held at Joachim Chissano International Conference Center, in Maputo Mozambique on 27th June 2013. The Conference was held under the theme: “Accelerating Investment in SADC Infrastructure through Sustainable and Innovative Financing”.

The key objectives of the event was to (i) present the SADC RIDMP, in particular the Short Term Action Plan to all the potential investors, funders of infrastructure and key international cooperating partners; (ii) raise awareness and brief the investment community of the scale and range of some potential priority infrastructure projects across the Region; and (iii) facilitate direct consultations between potential investors and national project promoters.

The Conference noted that the Master Plan is based on Vision 2027 which will be implemented in three phases, the short term (2013-2017), the medium term (2017-2022), and the long term (2022-2027) and is aligned to the Programme for Infrastructure Development in Africa (PIDA), as well as the COMESA-EAC-SADC Inter-Regional Infrastructure Master Plan.

2.0 HIGHLIGHTS OF THE CONFERENCE

The Conference was organised and hosted by the Government of Mozambique, with the coordination and facilitation of the SADC Secretariat and support of Trademark Southern Africa. The Conference was officially opened by His Excellency, Armando Emilio Guebuza, President of Mozambique, and Chairperson of SADC and was attended by Ministers and Senior Officials from SADC Member States (Infrastructure and Finance), Heads of Continental and Regional Organisations, International Cooperating Partners, business organisations, investors, and business people with an interest in Southern Africa.

Dr Tomaz Augusto Salomão gave introductory remarks whilst Hon. Paulo Zucula, Minister of Transport and Communications of Mozambique and Chairperson of the SADC Infrastructure Cluster gave a background on the SADC Regional Infrastructure Development Master Plan. The SADC Secretariat presented the Short-Term Action Programme of the Master Plan.

In his official opening remarks, His Excellency President Guebuza indicated that the SADC Region has ring fenced “infrastructure development” as one of its key priority interventions in recognition of the pivotal role of infrastructure in deepening regional integration, facilitating poverty reduction and catalysing economic development. He added that infrastructure development is the main stimulant to economic growth and remains a key vehicle for addressing prevailing supply side constraints as well as reducing the cost of doing business in our region. He invited financiers and investors to forge a partnership with SADC Member States, and all pertinent stakeholders in infrastructure development, in order to successfully implement priority projects in the Region’s Infrastructure Development Master Plan through public sector initiatives, Private Public Partnerships (PPPs) as well as other policy options.

The Conference was organised into two main sessions. First, a High Level Round Table (comprising a panel of Ministers, the Secretariat, representatives of Private Sector and Business as well as Development Finance Institutions); country round tables; and Ministerial and Investors breakout sessions on different infrastructure sectors. The high level round table discussed the following thematic issues:

(i) Private Sector Perspective on Investment in Power, Railways and Highways;
(ii) Development of Efficient, Seamless Corridors and Border Post Operations;
(iii) Addressing Poverty through Scaling up Water Infrastructure Investment; and
(iv) The SADC Enabling Environment and Financing of Infrastructure Projects including the Role of Development Finance Institutions in Infrastructure Financing.

The Ministerial and investors breakout sessions discussed specific projects in the following sectors:
(a) Energy and Water;
(b) Surface Transport;
(c) Water; and
(d) ICT, Meteorology and Tourism.

3.0 KEY OBSERVATIONS

The Conference noted with interest and appreciation that the SADC Region:
i. Has built consensus on projects that should be implemented as regional priority projects, as elaborated by the Master Plan, which was developed through a broad based stakeholder consultative process;

ii. Is willing and prepared to engage with the private sector, regional and international financiers, investors and cooperating partners, and that there is clarity in terms of which projects the region has agreed to jointly resource mobilise for and implement;

iii. Has agreed that implementation of regional infrastructure priority projects shall be based on the agreed five-year Short Term Action Plan of the Master Plan, in the areas of Energy, Transport Corridors, Water, ICT, Meteorology and Tourism, with an estimated cost of USD 65 billion;

iv. Recognizes the need to facilitate the creation of an appropriate enabling environment, in order to create an amenable framework for investment. This process is accomplished through the provisions of the relevant protocols signed during the 1990s and the process was taken further through the relevant annexes to the protocols that facilitated the harmonisation and domestication of policies, regulatory and legislative frameworks and relevant procedures to underpin investment by the private sector and other financiers;

v. Expects to build quality infrastructure which will have sustainable lifespans in line with internationally adopted standards and will ensure that adequate capacity is developed in the region to ensure that proper supervision and subsequent operations and maintenance of the infrastructure is realized.

The partners and investors also noted with appreciation the demonstrated commitment at the highest level in SADC to the implementation of the Projects as contained in the Master Plan and the willingness of SADC to contribute own resources to implement the various initiatives.

4.0 WAY FORWARD

i. SADC Member States, supported accordingly by the Secretariat, to follow-up with potential financiers, investors and partners for the financing of the projects presented during the Conference;

ii.The Secretariat should continue to raise awareness on the Master Plan and the portfolio of projects;

iii. SADC, with the support of partners, should facilitate capacity building at national and regional level to ensure that projects are adequately prepared and packaged to bankability

iv. Member States and partners should work together in developing financing modalities for the delivery of the priority projects in the Short Term Action Plan;

v. SADC and partners should develop integrated solutions and establish institutions to implement the identified projects;

vi. The outcome of the event will be presented to the SADC Summit to be held in Malawi in August 2013 for their information and further guidance;

vii. A follow-up mechanism should be developed and incorporated into the annual planning cycle of the SADC Secretariat to monitor and report on progress on the STAP

The Conference was held in a frank, cordial and open atmosphere, which provided for fruitful discussions and reinforced the sense of partnership between the SADC Region and partners for the implementation of infrastructure projects in the region.

MAPUTO
MOZAMBIQUE
27 June 2013
Source: www.sadc.int

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