SA construction firm eyes Zim
SOUTH African-based construction and engineering firm, Khato Civils, has announced its intention to expand across the continent including Zimbabwe, taking advantage of the African Continental Free Trade Area (AfCFTA).
Khato already has an office in Zimbabwe. The AfCFTA, the world’s largest free trade area, came into effect in January 2021. It is expected to increase levels of intra-Africa trade by over 50 percent by 2030 and offers the opportunity for increased collaboration in major infrastructure projects.
One of its major focus investment area would be water and sanitation.
Khato Civils chairman Simbi Phiri ,put forward an ambitious vision for African development facilitated by Infrastructure Development Bank.
“Problems like food shortages are not occasioned by a lack of food on the continent necessarily, it’s about our underdeveloped land and waterways. If we can step up infrastructure development, we will solve a lot of other problems as well,” said Phiri.
“AfCFTA gives us a chance to have a business without borders.
“We will now be able to go into places like Zimbabwe, Zambia and other countries to compete. It also gives us a chance to compete with multinationals from India and China in other African countries. The agreement will lay to rest some of the restrictions that were imposed by colonial legacies of the past.”
As the world becomes more populous, increased urbanisation, climate change and changes in food production are driving water demand at a rate that outpaces supply.
The United Nations warns that the world could face a 40 percent shortfall in water supply by 2030, with Africa — which already suffers from greater levels of water stress than other regions — likely to bear the brunt.
The economic impact of the shortfall in water infrastructure and supply is already severe.
Sub-Saharan Africa currently loses an estimated 5 percent of its annual gross domestic product (GDP) due to poor access to clean drinking water and sanitation, 5 to 25 percent of its GDP to droughts and floods in affected countries, and 40 billion hours of otherwise productive time annually, collecting water.
As the world faces a severe water shortage by 2030, Africa is likely to bear the brunt — as exacerbated by the impact of climate change.
“If you look at big cities like Accra, their biggest issue is water and sanitation,” said Phiri, “The same applies to other cities like Lagos and Kinshasa with power and roads coming a close second,”
“Water and sanitation is without a doubt the main area that will boom in Africa in the short-term future.”
Zimbabwe needs as much as US$3,7 billion investment in water and sanitation in the next 10 years, according to Africa Development Bank.
About half of the investment is for improving the supply and delivery of water for agricultural and industrial use and for urban and rural water and sanitation services.
In order to unleash these economic benefits, Khato Civils chief executive Mongezi Mnyani calls on governments to accelerate infrastructure development and foster public-private partnerships.
“Political will is at the centre of it all,” says Mnyani.
“Infrastructure initiatives must be government-driven because that’s where the agenda is set and major decisions are made. Governments must work collaboratively and also develop strategies that entice the private sector so that firms like ours have an easier time carrying out projects.”
The Water Sector in Sub-Saharan Africa Requires an Annual Investment of US$35 billion, the African Development Bank’s Acting Vice President for Agriculture, Human and Social Development, Wambui Gichuri said recently.