The CMS Infrastructure Index is designed to help investors understand the environment they may encounter in 50 different jurisdictions, highlighting potential advantages and opportunities that may lead to successful project implementation. Data from the 50 jurisdictions was analysed against nine key criteria to create a guide to the most attractive destinations for infrastructure investment.
The 2023 Index also analyses investment trends by continent, and features interviews with leading industry figures from Africa, South America and Europe on the themes they are seeing on both a local and global level. These key trends include the net zero transition, a global shift towards protectionism, the rapid expansion of digital platforms, and the risks and opportunities of AI playing a greater role in critical infrastructure.
“The 2023 CMS Infrastructure Index clearly lays out the challenges and opportunities facing the sector,” explained Kristy Duane Co-Head of the CMS Infrastructure & Projects Group. “As we approach COP28, we’re reminded that the transition to net zero is progressing, but not fast enough. Clean energy investment has grown by 24% (according to the IEA), outpacing fossil fuels at 15%, but renewables still account for a small share of global energy. To speed up the transition, we must invest in new technologies and climate adaptation.”
South Africa, Morocco, Kenya, Egypt, Angola and Mozambique all rank in the bottom ten of the 50 jurisdictions overall, but ranked much higher in some of the specific criteria. Egypt ranked 18th for market size, Angola ranked 19th for tax environment, South Africa ranked 23rd for market size, Morocco ranked 26th for private participation, Kenya ranked 28th for tax environment, and Mozambique ranked 25th for protectionism.
“There is progress in some areas of digital development, particularly in mobile payments and other fintech, but Africa still lacks basic communications infrastructure,” Duane noted. “Some countries have worked to strengthen their frameworks for investment, with Kenya and Mozambique notable examples. Energy projects are a key focus for many countries, with a mixture of oil and gas alongside wind and solar.”
With the rapid advancement of digital infrastructure and AI, and the notable way these technologies transform industries and economies, Elena Aguilar, Co-Head of the CMS Infrastructure & Projects Group pointed out that security concerns must be addressed and the digital divide between developed and developing nations needs to be bridged.
"In 2024, amidst global disruptions and challenges, as highlighted in this year's Index, the urgency for trillions in investments to tackle net zero, digitalization, and infrastructure issues has intensified, emphasising the need for collaborative efforts to overcome regulatory barriers and close the infrastructure investment gap,” commented Jon Phillips, CEO of the Global Infrastructure Investor Alliance. "The more we can avoid a wildly varying global patchwork of regulations and requirements around infrastructure investment, the more we can accelerate change."
One of the interviews for the report was with Alex Traube-Childs, General Counsel & Head of Business Integrity, InfraCo Africa, which mobilises investment for infrastructure projects in Sub-Saharan Africa, investing directly into early-stage projects and providing development leadership.
Traube-Childs highlighted a number of the widely varied projects InfraCo Africa is involved in, including energy transformation, expansion of green technologies and digital access. Transport and logistics is another of their focal points – particularly expanding electric mobility and marine transport designed to reduce emissions and open up regional trade.
“We are working to develop the whole ecosystem for EV to thrive, developing optimised business models, new charging infrastructure, systems for battery refurbishment and recycling and training initiatives for drivers as well as building businesses with strong business integrity and health, safety, environment and security practices,” Traube-Childs said.
Read the full 2023 CMS Infrastructure Index here.
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