Thesis (MDF (Development Finance))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: Infrastructure and related services are crucial for facilitating economic activities, creating
employment opportunities and generating economic growth. The African continent has a
huge infrastructure gap estimated by the World Bank at US$75 billion per annum.
However, the current levels of public sector resources and foreign capital inflows in Africa
are insufficient to fund this infrastructure gap. Africa, therefore, needs to explore new
sources of funding to finance its infrastructure backlog. It is then natural that Africa should
encourage the private sector to invest in the infrastructure sector.
According to the Organisation for Economic Cooperation and Development (OECD), the
worldwide funded pensions market is about US$24.6 trillion of which US$16.2 trillion is
held by pension funds (Inderst, 2009). Infrastructure investments provide important
benefits including long-term and inflation-hedged cash revenues which are compatible with pension fund interests. Pension funds around the world have been already investing in infrastructure assets, for example in Latin America, Australia, Canada and the United
States of America (US) amongst others. However, such experiences of pension fund
participation in infrastructure financing in Africa are very rare. Anecdotal evidence
suggests that African pension funds currently manage assets of about US$300 billion. If a
small portion of the pension fund assets could be invested in infrastructure projects in Africa, the continent’s infrastructure gap could be partly addressed.
The New Partnership for Africa’s Development (NEPAD), a programme of the African
Union, seeks to address the infrastructure gap and mobilise the necessary resources
domestically and from outside the continent. NEPAD, together with the African
Development Bank (AfDB) and the regional economic communities, has developed an
Infrastructure Plan for Africa. This study explores the possibility of utilising some of the
Africa pension fund assets for infrastructure investments especially in the NEPAD
infrastructure projects. The global trends in pension fund investments in infrastructure are
reviewed to propose a model for infrastructure investments by African pension funds and
some recommendations are put forward on how to increase such investments. AFRIKAANSE OPSOMMING: Infrastruktuur en verwante dienste is krities vir die fasilitering van ekonomiese aktiwiteite,
die skep van werksgeleenthede en om ekonomiese groei te genereer. Die Afrika-kontinent
het ’n groot infrastruktuur-gaping wat deur die Wêreldbank op US$75 biljoen per jaar
beraam word. Die huidige vlakke van openbare-sektor hulpbronne en buitelandse
kapitaalinvloei is egter onvoldoende om hierdie infrastruktuur-gaping te befonds. Afrika moet daarom nuwe bronne vir befondsing ondersoek om sy infrastruktuur agterstand te
befonds. Dit is dan natuurlik dat Afrika die privaatsektor sal aanmoedig om in die
infrastruktuur-sektor te belê.
Volgens die Organisasie vir Ekonomiese Samewerking en Ontwikkeling (OECD), is die
wêreldwye pensioenmark omtrent US$24.6 triljoen waarvan US$16.2 triljoen deur
pensioenfondse gehou word (Inderst, 2009). Infrastruktuur-beleggings bied belangrike
voordele insluitend langtermyn- en inflasie-verskanste kontantinkomstes wat versoenbaar
is met pensioenfonds belange. Pensioenfondse regoor die wêreld het alreeds begin om in
infrastruktuurbates te belê, byvoorbeeld in Latyns-Amerika, Australië, Kanada en in die
Verenigde State van Amerika. Sulke gevalle van pensioenfonds deelname aan
infrastruktuur-finansiering in Afrika is egter seldsaam. Daar word gespekuleer dat Afrika se
pensioenfondse tans bates bestuur van ongeveer US$300 biljoen. As ’n klein gedeelte van
die pensioenfondsbates in infrastruktuur-projekte in Afrika belê kon word, sou die kontinent
se infrastruktuur-gaping gedeeltelik aangespreek word.
Die nuwe vennootskap vir Afrika se ontwikkeling (New Partnership for Africa’s
Development, NEPAD), ‘n program van die Afrika Unie, streef daarna om die infrastruktuur
gaping aan te spreek en die nodige hulpbronne binnelands en van buite die kontinent te
mobiliseer. NEPAD, tesame met die Afrika Ontwikkelingsbank (AfDB) en die streek se
ekonomiese gemeenskappe, het ’n infrastruktuur-plan vir Afrika ontwikkel. Hierdie studie
ondersoek die moontlikheid om ’n gedeelte van Afrika se pensioenfondsbates vir
infrastruktuur-beleggings aan te wend, veral in die NEPAD infrastruktuur-projekte. Die
wêreldwye neigings in pensioenfondsbeleggings in infrastruktuur word ondersoek om ’n
model voor te stel vir infrastruktuur-beleggings deur Afrika pensioenfondse en ’n paar aanbevelings word gemaak om sodanige beleggings te verhoog.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/917 |
| Date | 03 1900 |
| Creators | Chuckun, Vedvyas Sharma |
| Contributors | Jahed, Mohammed, Rapudi, Dikgang, University of Stellenbosch. Faculty of Economic and Management Sciences. Graduate School of Business. |
| Publisher | Stellenbosch : University of Stellenbosch |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | Unknown |
| Type | Thesis |
| Format | 112 p. : ill. (some col.) |
| Rights | University of Stellenbosch |
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