Today's Edition
ABU DHABI (ALETIHAD)
Researchers and experts at a TRENDS symposium underlined the importance of strengthening environmental and business governance in Africa, describing it as the key to attracting the investments needed to build robust and sustainable infrastructure across the continent.
They also highlighted the significant role of think tanks and research institutions in providing a deeper understanding of challenges and how to address them.
In the symposium, organised by TRENDS Research & Advisory, as the Diamond Sponsor of the Brazil-Africa Forum 2024, in collaboration with Aletihad News Center, the media partner, entitled Sustainable Prosperity: A Governance Approach to Boosting Investment in African Infrastructure, the speakers discussed various issues related to governance and infrastructure investment.
These issues included the importance of transparency and accountability, institutional capacity-building, legislation development, and enhancement of public-private partnerships.
The speakers underscored the importance of investing in renewable energy and digital infrastructure as drivers of economic growth in Africa.
The speakers commended the central role played by the UAE in supporting investment in African infrastructure.
They pointed out that the UAE has presented a successful public-private partnership model and can contribute valuable expertise to help African countries’ efforts in this area.
In its recommendations, the symposium called for enhanced cooperation between African countries and international institutions to provide the necessary financial and technological support for implementing infrastructure projects.
It also emphasised the importance of sharing knowledge and experiences between African countries and learning from successful global models.
Moreover, the symposium highlighted the need to strengthen public-private partnerships, create regulatory environments that minimise bureaucratic hurdles, promote transparency and accountability, and combat corruption.
Governance and Investment
CEO of TRENDS Research & Advisory, Dr. Mohammed Abdullah Al-Ali, explained that TRENDS’ current tour in Africa aims to explore prospects of research cooperation with think tanks and academic institutions in this vital region.
He added that investment in African infrastructure is one of the most pressing challenges facing Africa and developing countries.
He explained that infrastructure development is a crucial economic growth and social development driver.
Dr. Al-Ali emphasised that this progress cannot be achieved in isolation from another fundamental issue—governance.
The relationship between governance and investment is one of mutual reinforcement: effective governance provides the foundation for sustainable development and investment, while investment, in turn, drives infrastructure projects that unlock economic potential, he explained.
He said that estimates suggest Africa’s infrastructure deficit requires an annual investment of $130 to $170 billion, with a $68 to $108 billion financing gap.
Bridging this gap requires financial resources and a collaborative approach involving governments, the private sector, and international partners.
“For African countries to attract the necessary investments, governance structures must be adaptable and resilient, capable of withstanding a range of challenges—economic, security, or political,” Dr. Al-Ali said.
He pointed out that this requires policies that support private sector participation and the development of regulatory frameworks to minimise bureaucratic obstacles.
The CEO of TRENDS emphasised the importance of public-private partnerships and explained that the UAE and Brazil, given their significant interests and investments in Africa – especially considering their new partnership within the BRICS framework – are well-positioned to contribute to enhancing governance and infrastructure investment in Africa.
Together, they can collaborate with African governments to develop regulatory systems that ensure transparency in contracts, agreements, and investment projects, he said.
Moreover, the UAE and Brazil can introduce successful models of public-private partnerships in Africa by sharing their expertise in building sustainable projects in the energy, transportation, and water management sectors, thereby strengthening the long-term sustainability and financing of projects across the continent, Dr. Al-Ali added.
Cybersecurity
In his keynote speech, Dr. Mohamed Hamad Al-Kuwaiti, Chairman of the UAE Cybersecurity Council, explained that the symposium theme highlights the urgent need to develop infrastructure based on a comprehensive and sustainable approach to addressing today’s needs and anticipates future challenges and opportunities.
He said that, especially in the context of climate change, pandemics, the Fourth Industrial Revolution, cybersecurity challenges, and other emerging issues.
Dr. Al-Kuwaiti said that the UAE has shown significant interest and made tangible strides to promote investment in developing Africa’s digital infrastructure.
While recognising the economic challenges and risks associated with investing in sustainable digital infrastructure in Africa, the UAE looks forward to working with its BRICS partners, particularly Brazil, to promote sustainable prosperity in African countries, he said.
He emphasised the importance of developing sustainable infrastructure in Africa, focusing on digital infrastructure, a crucial driver of economic growth and comprehensive development.
Dr. Al-Kuwaiti also called for a comprehensive approach to infrastructure development that considers future challenges, such as climate change and cybersecurity.
He underlined the critical role of digital infrastructure in transforming African countries into digital economies, enhancing trade and investment, and driving regional integration.
He said that several critical successes in African digital infrastructure investments can already be observed, including the increase in mobile phone penetration, the emergence and growth of digital payments and e-commerce, and the flourishing of digital entrepreneurship, with projections that Africa’s digital economy could reach $712 billion by 2050.
Dr. Al-Kuwaiti also pointed out challenges like the digital divide and lack of funding but also stressed the vast opportunities for progress.
He called for stronger cooperation between governments, the private sector, and civil society at regional and continental levels and between African countries and international partners.
Dr. Al-Kuwaiti further emphasised the need to protect technological infrastructure by strengthening cybersecurity, investing in digital infrastructure in Africa, and adopting good governance practices to ensure sustainability and efficiency.
Infrastructure and the future of the continent
CEO of Aletihad News Center, Dr. Hamad Al-Kaabi, said that “infrastructure investment in Africa is the key to achieving sustainable development and prosperity on the continent.”
Despite Africa’s enormous potential, he added that the infrastructure sector still faces a significant lack of funding due to political instability, lack of accurate data, and the risks associated with investing in emerging markets.
Dr. Al-Kaabi explained that maximising the benefits of infrastructure investments requires creating an investment-friendly environment characterized by transparency and fairness.
He called on African governments to strengthen good governance, combat corruption, and adopt international standards in public procurement.
Additionally, he stressed the importance of focusing on infrastructure projects that directly contribute to sustainable development goals, such as renewable energy, sustainable transportation, water management, and sanitation systems.
Dr. Al-Kaabi pointed out that to attract foreign direct investment, African countries should collaborate with the private sector, offer incentives to investors, and establish a clear legal framework that protects intellectual property rights.
He also emphasised that international financial institutions should be more prominent in funding African infrastructure projects and provide technical and technological support for African countries.
He noted that climate challenges pose a major threat to African infrastructure and that African countries should take urgent measures to adapt to the effects of climate change and invest in sustainable infrastructure projects capable of withstanding climate shocks.
Dr. Al-Kaabi affirmed that investing in African infrastructure is an investment in the continent’s future.
He added that by strengthening governance, building partnerships, and benefiting from international expertise, Africa can achieve its development ambitions and become a global economic powerhouse.
Governance and resilience
Director of the Media Department at TRENDS, Elyazia Jasim AlHosani, opened the symposium proceedings.
Professor Otaviano Canuto, former Vice President and Executive Director at the World Bank Group, delivered a research paper on governance and enhancing economic resilience in African countries.
Prof. Canuto highlighted the importance of improving governance standards in African countries because governance is critical in determining whether the continent’s massive natural resources become a blessing or a curse.
He explained that good governance is fundamental in attracting private investment to Africa’s infrastructure, which drives economic and social development.
Prof. Canuto’s research paper tackled various aspects of governance, including the importance of transparency, accountability, and anti-corruption efforts and the role of strong institutions in building resilient economies capable of addressing global challenges.
He also proposed practical steps to improve governance in African countries, focusing on partnerships between the public and private sectors and civil society.
Prof. Canuto stressed the need for concerted national, regional, and international efforts to support African countries in improving governance, asserting that investing in governance is an investment in the continent’s future.
Strategic Partnership
Deputy Head of Research Sector at TRENDS, Researcher Abdulaziz Al-Shehhi, emphasised the deep strategic partnership between the UAE and Africa, noting that this cooperation goes beyond trade relations to include a shared commitment to sustainable development.
In his remarks on Foreign Investment and Infrastructure Financing, Al-Shehhi highlighted the pivotal role played by the UAE in supporting Africa’s infrastructure, as it ranks fourth globally in this area.
He attributed the success of this partnership to the UAE’s transparent approach to dealings with African countries, which is based on mutual respect and constructive cooperation.
Al-Shehhi also explained that the UAE’s commitment to Africa is commercial and an investment in the continent’s future.
The UAE has significantly contributed to developing Africa’s infrastructure, helping unlock the continent’s enormous potential, he noted.
He stressed the importance of enhancing bilateral trade through free trade agreements and focusing on sectors of mutual benefit, such as renewable energy and agriculture, while supporting peace and security in Africa and fostering cultural and educational exchanges between the two sides.
Al-Shehhi concluded that the UAE-Africa partnership is strategic and built on solid foundations and that the future holds promising opportunities for further cooperation and shared prosperity.
Challenges and Opportunities
The symposium concluded with a research paper, From Governance to Sustainability, presented by Paulo Gomes, Chairman of the Board of the Africa-Southeast Asia Chamber of Commerce.
In this paper, he warned about the challenges facing achieving sustainable development goals in the region, such as climate change and water scarcity.
Gomes emphasised that these challenges also represent significant opportunities for innovation and investment.
He called on governments and the private sector to develop innovative solutions that contribute to sustainable development, focusing mainly on investments in renewable energy, smart agriculture, and sustainable waste management.
Gomes underlined the private sector’s vital role in achieving these goals and urged companies to adopt sustainable business practices, such as reducing carbon emissions and improving resource efficiency.
He also stressed the importance of international cooperation in addressing environmental and social challenges.
He called on governments and international organisations to strengthen partnerships and build alliances to finance and implement sustainable regional projects.
