Search Climate Insights Directory

The case study examines SADC's efforts to address infrastructure deficits through the Regional Infrastructure Development Master Plan (RIDMP) Vision 2027, which targets six priority sectors. It highlights the shift from donor-led projects to a bottom-up, member-state-driven approach to ensure regional ownership. The document identifies critical barriers, including financing gaps, conflicts between national and regional priorities, and a lack of regulatory frameworks. It also analyzes the roles of traditional Western donors versus emerging partners like China and India, and South Africa's position as a regional champion for infrastructure investment.

The study utilized IWRM models for Bukoba, Masaka, and Kisii to evaluate water resource sustainability. Findings indicate that all three towns are currently infrastructure-limited, with varying degrees of urgency for investment and different long-term supply outlooks based on local conditions.

Institutional investors manage approximately $71 trillion in OECD assets, but their ability to fund renewable energy is constrained by liquidity needs, fund size, and policy barriers. While they could potentially cover all corporate equity and debt needs for renewables, their capacity for direct project investment is limited to roughly 24% of equity and 49% of debt requirements. The report suggests five steps to unlock this potential: fixing policy barriers, improving investor practices, modifying regulatory constraints, developing better pooled investment vehicles, and encouraging corporate investors.

The document examines the internal and external financial sustainability of public-private partnerships (PPPs), emphasizing the role of Special Purpose Vehicles (SPVs), project finance, and risk allocation. It argues that while PPPs can address infrastructure deficits, they require rigorous contracts and governance to ensure value for money. The briefing also suggests that PPPs can be used to promote green jobs, energy efficiency, and social equity through thoughtful design and political will.

The Ilembe Siza Water Concession, established in 1999, transitioned from an initial period of non-profitability and poor service delivery to a profitable and effective public-private partnership (PPP). Early barriers included a legacy of underinvestment in infrastructure, public sector capacity constraints, and poor data collection. Siza Water overcame these by building a close relationship with the Ilembe District Municipality, taking more responsibility for consumer communication, and implementing a negotiated expansion strategy to ensure a sustainable consumer base. While systemic issues like high public sector staff turnover and reliance on Umgeni Water for bulk supply remain, the PPP is currently viewed as successful by both the private partner and shareholders.

Since resuming official ties in 2006, China has become a significant economic partner for Chad, primarily through the $1 billion Rônier oil project. While this partnership has provided President Idriss Déby with political and economic leverage, it has also faced tensions over petroleum pricing and relies on a security framework led by France.

Since resuming diplomatic ties in August 2006, China has significantly expanded its presence in Chad, primarily through the China National Petroleum Corporation's (CNPC) Rônier project. This venture, which includes a refinery and pipeline, represents a shift from previous Western-led oil projects by integrating upstream and downstream production to enhance Chad's domestic energy capacity. Beyond oil, China is funding infrastructure such as a cement factory, an international airport, and a railway network. However, the relationship faces tensions over the economic viability of the refinery versus President Idriss Déby's social promises of affordable fuel. Additionally, China's engagement is entangled in regional security dynamics involving Sudan and Darfur, while relying on French military presence for stability.

The report analyzes public-private partnerships (PPPs) as a tool for sustainable development, arguing that while PPPs can mobilize private capital and innovation for public goods, they often prioritize short-term financial value over long-term environmental and social stewardship. Through global context and case studies from Australia, Sweden, Ireland, Canada, and Morocco, the document highlights the necessity of strong public sector capacity, detailed contractual specifications, and a shift toward 'whole of life' value assessments to ensure PPPs contribute to sustainability rather than merely serving as off-balance sheet financing tools.

The document examines the transition of Chinese finance in Africa from peripheral concessional lending to a more central, diverse role involving commercial banking and strategic investments. It details the internal reforms of the Chinese banking system that enabled international expansion and uses case studies of South Africa, Nigeria, and Mozambique to illustrate different engagement strategies. The analysis highlights a shift toward joint ventures and partnerships with local banks to mitigate risk and gain market knowledge, while also noting the growing influence of the renminbi in trade settlements.

The document argues that achieving an annual improvement of nearly 2 percentage points in water and sanitation access across Africa would significantly reduce child malnutrition and infant mortality, increase GDP, and lower the probability of state failure. It identifies that such progress requires an additional public investment of nearly US $35 billion over 40 years, primarily targeting sanitation. The analysis highlights that success in this sector is driven by public policy, institutional management, and finance rather than technology, citing examples from Burkina Faso and Ethiopia.

The paper examines infrastructure funding in Mali, specifically comparing 'traditional' donors (World Bank, European Commission) with 'non-traditional' donors (China). Using the third Bamako bridge as a case study, it argues that recipient governments evaluate aid through an investment model that balances capital costs, transaction costs, and risk profiles. The author finds that while Chinese aid is often perceived as 'tied' and carries higher long-term uncertainty, it is attractive due to low short-term risk and a 'South-South partner' identity. The study concludes that in a stable, resource-poor country like Mali, Chinese aid complements rather than substitutes for OECD aid, meaning it is less likely to undermine established good governance conditions.

The text presents a debate over whether South Africa should intervene to weaken its currency to support manufacturing and employment or maintain a stronger currency to lower inflation and financing costs. It notes that a government task team is evaluating the efficacy of managed floating versus flexible exchange rate systems and their impacts on trade and industrial policies.

The report examines the evolution of public utility regulation, contrasting legal-based regulation with contract-based concessions. It argues that contract-based systems, particularly in water and sanitation, are prone to opportunistic bidding, under-investment, and frequent renegotiations. The author advocates for the application of common principles of law—including efficiency, good faith, and the ability to implement ex-post regulation—to protect public interests and ensure service sustainability, noting a significant gap between these national regulatory standards and the decisions of international investment arbitration courts.

The document analyzes the failure of 'oil for infrastructure' deals in Nigeria, where Chinese companies secured oil blocs in exchange for projects like the Lagos–Kano railway and Mambilla power station. These projects were stalled after the 2007 transition to President Yar’Adua's administration, which preferred cash payments over infrastructure. Consequently, Chinese firms have shifted toward direct acquisitions of oil assets for cash, exemplified by Sinopec's $7.2 billion purchase of Addax Petroleum in 2009.

The report examines the complexities of agricultural development in Southern Africa, highlighting the need for increased investment in infrastructure and the potential role of genetically modified organisms and supermarket cold chains. It notes the possibility of investment relocation driven by global climate mitigation policies, while warning of climate protectionism and the direct impacts of climate change. The document also emphasizes the need for transparent terms for foreign land access and the potential of Malawi's input subsidy model.

The author critiques the push for 'buy local' conditions in South Africa's R787 billion infrastructure programme, arguing that import substitution is unsuitable for a modern economy with integrated supply chains. The text highlights that local suppliers often lack the necessary scale, skills, and technological know-how, meaning that preferential procurement could lead to higher prices and lower quality. While noting that South Africa is not a signatory to the WTO's Government Procurement Agreement, the author contends that the government should instead focus on industrial diversification and exports to ensure long-term competitiveness.

The report evaluates China's duty-free treatment of 440 products from 30 African LDCs, comparing it to US and EU preference schemes. It finds that while the preferences are well-tailored to existing export capacities, their overall economic impact is modest due to severe supply-side constraints and the exclusion of key products like raw cotton.

The document draws a parallel between the U.S. military's success in the Gulf War and Japan's success in high-technology trade, attributing both to 'time-based competitive strategy'. It explains Colonel John Boyd's OODA loop (Observe, Orient, Decide, Act) as the theoretical framework for this approach, which emphasizes speed, flexibility, and the reduction of 'friction'. The author contends that while the U.S. military successfully transitioned from attrition-based to maneuver-based warfare, U.S. industry remains mired in rigid, top-heavy bureaucracies and mass production. This disparity has led to a critical dependence on Japanese components for U.S. weapons systems and a decline in American economic security. The report recommends federal investment in advanced manufacturing R&D, worker retraining, and infrastructure to revitalize the U.S. industrial base.

The Infrastructure Investments and Jobs Act (IIJA) allocates $12.1 billion toward carbon management, representing the largest single investment in the sector since 1997. The funding is distributed across four primary areas: carbon capture, utilization & storage (CCUS) research, development, and demonstration (RD&D); carbon transport and storage infrastructure and permitting; carbon utilization market development; and carbon removal priorities. Key allocations include $3.5 billion for four regional direct air capture (DAC) hubs and $2.5 billion for the CO2 Storage Commercialization Program. The document notes that IIJA provides the necessary RD&D and infrastructure, while the proposed Build Back Better Act (BBBA) was intended to provide the market incentives via 45Q tax credit enhancements.

The Clean Air Task Force argues that new infrastructure investments in the U.S. must prioritize clean diesel technology to reduce severe health risks and climate impacts. Diesel pollution is linked to 21,000 premature deaths annually in the U.S., and construction equipment accounts for over 37 percent of land-based particulate matter. The document proposes that combining diesel particulate filters with ultra-low sulfur diesel fuel can eliminate over 90 percent of particulate pollution, offering a high return on investment where every dollar spent avoids $12 in health damages.