Infrastructure

Infrastructure holds the key to development in Africa but there has been limited success in meeting the challenge. At Genesis Analytics we offer the tools and expertise to strengthen infrastructure planning, identify sources of finance and enable project development efficiently and effectively.

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Expertise Areas

Enabling environment

Our policy and sector analysis supports our work on public private partnerships, which are an alternative to traditional procurement processes for public investment.  PPPs are not a “one-size-fits-all” so various factors may impact on the delivery of a projects.

We also provide our clients with the research and analytics to inform their decision making. Our service includes the industry and regulatory environment, industry growth, economic contribution, capital expenditure and risk analysis as well as the competitive scenario and economic contribution. 

With specific expertise in PPPs at both a policy framework and project level, and across multiple sectors, our Infrastructure and PPP Advisory Practice provides financial, economic and PPP advisory services to both the public and private sectors on the enabling environment that could impact the implementation of a project. 

We have advised African governments on the development of effective PPP policies, the establishment of PPP units as well as the planning and implementation of PPP projects. Our team offers holistic solutions in terms of project preparation, management of public procurement, PPP transaction advisory services and capacitation of government officials.

Project preparation

We appraise the financial and economic viability of projects in order to provide our clients with a basis for data-driven decision-making.

Financial appraisal entails an assessment of the financial cash flows of a project by estimating the project-related revenues and costs. It only accounts for part of the impact of a project.

The appraisal of public and social projects is expanded to include impacts that have a broader impact than financial viability.

We therefore extend our analysis to include the socio-economic costs and benefits associated with project implementation.

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Transaction advisory (project finance)

Our project finance advisory service is geared towards assisting public institutions and private investors in the planning, procurement and implementation of large-scale transactions for infrastructure and related services. 

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Climate resilience

Climate change represents a significant obstacle to sustained economic growth and poverty eradication. In sub-Saharan Africa, poor people are disproportionately exposed and vulnerable to climate change shocks such as floods, droughts and heatwaves, which destroy livelihoods and assets. At Genesis, our agriculture and infrastructure teams work together to help increase the resiliency of individuals and communities to these climate shocks.

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Regulatory economics

Genesis is also a leading provider of regulatory economics advice, offering the full spectrum of expert economic and regulatory accounting services to governments, regulators and private firms. We have played a central role in critical policy and regulatory debates across numerous sectors.  

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Projects

Demand for storage facility to serve the Manu River Union

Project name:
Demand Study of an Inland Storage Distribution Facility Assessment in Liberia

Service:
Economic appraisal
Project finance advisory service

Sector:
Infrastructure
Urban and built environment

Area of Expertise:
Market analysis and positioning

Client:
Confidential

Date:
2019

Country:
Liberia


Liberia is a net importer of basic food items such as cereals (mainly rice), fast-moving consumer goods (FCMG), live animals and animal products. The reliance of the economy on imports implies a dependency on warehousing and logistics services to ensure imported commodities are safely stored pending distribution to final users and consumers.

The Inland Storage Distribution Facility (ISDF) was conceived as a strategic response to the limited storage, distribution and logistics infrastructure within the Manu River Union (MRU). As has been demonstrated in the previous market demand studies, there are limited formal storage options in Monrovia, the capital of Liberia.

The ISDF is an inland terminal that will consist of general warehousing, with some limited temperature-controlled ambient storage, and cold-storage facilities. The facilities will be dedicated to mainly import cargo being transported in, out and among the MRU countries of Liberia, Sierra Leone and Guinea.

The ISDF is intended to be open-access (often referred to as a “common user” facility) and under the management of a competent warehouse operator possessing recognised international qualifications for ambient and cold-chain management.

As part of the due diligence required to finalise the financing arrangements for the facility, a final technical assessment was commissioned. Genesis was contracted to undertake one component of this assessment which entailed a final demand study for the facility.

The demand study arose through an independent due diligence of the May 2019 updated market study, which recommended that a final round of on-the-ground research was required to:

  • Reaffirm market and product categories and value-added services;
  • Update the estimates for the facilities demand throughput;
  • Inform/confirm the previous affordability analysis.

Genesis undertook extensive stakeholder consultations with over 20 small, medium and large companies in Monrovia with support from SMEC South Africa, CPCS, and Kaizen Consult.

Based on the findings gathered through the stakeholder consultations, Genesis identified the appropriate target market; the commodity groups the target market imports; the optimal import volume quantity required for the ISDF minimum capacity utilisation; the temperature requirements for the target market’s commodity group; and the willingness to pay for the facility.

The findings from our work aided the technical partner to optimise the facility’s size.

Can investment in public sector infrastructure result in job creation?

Project name:
Impact Evaluation of Selected Jobs Fund Infrastructure Investment Projects

Service:
Monitoring and evaluation

Sector:
Infrastructure
Public and Social

Area of Expertise:
Economic impact assessment

Client:
Jobs Fund (National Treasury, South Africa)

Date:
2020

Country:
South Africa


Unemployment continues to be one of the major socio-economic challenges faced by South Africa, with severe consequences for its citizens including poor living standards.

In 2011, the National Treasury launched a R9 billion initiative, the Jobs Fund, to address the issue of unemployment through partnerships and by providing grant funding to public, private and civil society organisations. The fund operates under four distinct funding windows including enterprise development, institutional capacity building, support for work seekers and infrastructure investment. The infrastructure investment funding window co-financed light infrastructure projects with potential to lead to job creation in an economic sector or geographical area.

Genesis was appointed by the Jobs Fund within the Government Technical Advisory Centre (GTAC) – a repeat client – to conduct an impact evaluation on selected infrastructure investment projects.

The assignment included a comprehensive review of the overall infrastructure investment portfolio consisting of nine projects in total. The Genesis and the Jobs Fund teams selected four projects to be evaluated based on several characteristics including location, status (closed or in progress), sector, cost, performance, type of funding as well as the extent to which the project offered key learning areas for the Jobs Fund.

The evaluation adopted a Social Accounting Matrix (SAM) model to determine the impact of the infrastructure investment on GDP and employment. Findings showed that 4,380 direct jobs were created with 99% of these workers classified as previously disadvantaged individuals.

Overall, the infrastructure investment portfolio had a GDP multiplier of 1.1 with a total of 19,500 jobs (direct, indirect and induced) jobs. Approximately 57% of the workers were youth while 36% earned above the minimum wage of R3,500.

The project was a learning opportunity for the Jobs Fund because it had never done an evaluation on infrastructure investment projects. Findings and recommendations from the evaluation provided guidance on whether infrastructure is something that the Jobs Fund should invest in to create jobs.

The findings support the notion that light infrastructure alone does not lead to job creation. A large percentage of job creation impacts resulted from supporting activities including support for work seekers and enterprise development. The evaluation provided recommendations on how similar projects can be replicated in future and how impact can be measured in a holistic manner across all stages of project cycle – origination, appraisal and implementation.

Early flood forecasting system for Incomati Basin

Project name:
Lower Incomati Flood Risk Management

Service:
Project preparation

Sector:
Water and Sanitation
Infrastructure
Climate Change

Area of Expertise:
Climate resilience

Client:
Climate Resilience Infrastructure Development Facility (CRIDF), DFID

Date:
2013 – 2017

Country:
Mozambique


The Incomati River Basin comprises 46 000 km² spanning South Africa, Swaziland and Mozambique and is home to more than 500 000 people. 

The basin, particularly downstream in Mozambique, experiences frequent flooding. This results in considerable loss to the formal and informal economies. The impact of flooding is aggravated by a lack of resources to cope with disaster and a history of limited coordination in flood control and management.

As part of the Climate Resilient Infrastructure Development Facility (CRIDF), Genesis was engaged in the basin for three years to support holistic flood mitigation as the financial and economic adviser on the project. Specifically, our work in the final year was to evaluate various flood mitigation responses (FMRs) and recommend a way to proceed with the choice and financing of the infrastructure. Our work was integral in establishing the need for an early warning flood forecasting system (EWFFS) and its requirements for financial sustainability.

                                                                                                                                     © CRIDF

Genesis’s capping involvement on the project was a comprehensive economic analysis of the FMRs, which had emerged through a consultative process with stakeholders. These infrastructure interventions (dykes, bridges, etc.) involve the diversion of water away from key risk areas. As a result, some areas are better off, while others are worse off. An understanding of which areas are better and worse, as well as their associated economic values, is an important consideration in continuing with an intervention. 

Genesis carried out a cost-benefit analysis (CBA) to assess whether investing in infrastructure was justified from a social-welfare perspective and to understand the distribution of benefits to stakeholders, the output of which led to a discussion on potential financing for the chosen investments. Genesis designed, championed and carried out an innovative and rigorous approach to this work, which is unique to any CBA we have carried out before. 

As a first step, a thorough land-use map of the flood area was carried out. The land was categorised in formal and subsistence agriculture, residential areas and roads, among others. By comparing the flood-hazard rating, generated by the hydraulic model of the “do-nothing” scenario, with that under the FRM, a picture of the potential cost savings under various FMR strategies was established. Assigning an economic value to the potential cost savings for each land-type was then compared with the actual costs of the intervention to assess whether the FMR was an efficient use of funds. 

The EWFFS has gone live and is available online and in real-time as a resource for decision-makers. The key project stakeholders include local government, the impacted community, the water utility and key private sector companies who are located in the areas impacted by flooding. The project is a case study for successful public-private partnership and collaboration to reduce the negative impact of flooding. 

Genesis aided this value being unlocked through detailing the “value chain” (users and processes) of the system (from forecasting to mobilisation), understating its costs and demonstrating the expected tangible benefits that can be unlocked through providing decision-makers with an early warning system that can inform their disaster mitigation response. This galvanised stakeholder coordination and support for its operational costs

For more information on the project

TOP PHOTOGRAPH: The site on the lower Incomati that floods frequently and has been the focus of one of the project's flood mitigation strategies.

Genesis supports SADC water and infrastructure projects

Project name:
Climate Resilience Infrastructure Development Facility (CRIDF)

Service:
Project preparation
Project finance advisory service

Sector:
Climate Change
Infrastructure
Water and Sanitation

Area of Expertise:
Project preparation

Client:
A DFID-funded facility managed by Adam Smith International

Date:
2013 – 2017

Country:
Malawi
Mozambique
Namibia
Tanzania
Zambia
Zimbabwe


The Climate Resilient Infrastructure Development Facility (CRIDF) is a DFID-funded facility that prepares water and infrastructure projects across SADC. It focuses on projects that build climate resilience, are pro-poor and are located in one of the SADC region’s 13 transboundary water basins. Under the CRIDF, Genesis was involved in the design and delivery of water infrastructure that fosters sustainable development of the region’s water, food and energy security.

Our work focused on:    

Financial and economic appraisal of projects in order to assess a project’s impact, inform decision-making and to ensure financial, operational and social sustainability.

Leveraging and mobilising finance to support CRIDF in high-level engagement with donors and potential financiers to identify potential sources of financing, as well as in preparing projects for presentation and conducting the actual engagements.  

Genesis supported the programme across multiple individual water-preparation projects. For example, together with the African Development Bank, we assessed the commercial viability of a hydro-electric plant on the border of Malawi and Tanzania. The project aimed to develop an effective financing strategy and assess the potential for attracting private sector investors through public-private partnerships.

The Genesis project economist led the development of the financial and economic models, assessing the likely returns and benefits from the project and working to structure it in a way that is attractive to the private sector, while retaining important socio-economic development goals of the respective governments.

TOP and ABOVE: Building climate resilience in the Eastern Province, Zambia, through the construction of a dam and small-scale irrigation scheme.

TOP and ABOVE: Building climate resilience in the Eastern Province, Zambia, through the construction of a dam and small-scale irrigation scheme.

Securing water for Botswana

Project name:
Reconnaissance Study for the Chobe-Zambezi Water Transfer Scheme

Service:
Project preparation

Sector:
Infrastructure
Climate Change
Public and Social
Water and Sanitation

Client:
Botswanan Ministry of Minerals, Energy and Water Resources

Date:
2016 - 2017

Country:
Botswana


The Chobe-Zambezi water transfer project assesses the viability and costs of constructing a scheme that will transfer additional water from the Chobe and Zambezi rivers on the northern border of Botswana to the large demand centres in south-eastern Botswana.

It is estimated that by 2025, water supply in Botswana will be inadequate to meet demand. This shortfall will be further exacerbated by the impact of climate change on drought cycles in Botswana.

Genesis was the lead for the financial work stream for the project. The scope of work included a reconnaissance of work that has already been undertaken in pre-feasibility stage, financial modelling for the detailed costing of the project, transaction and project structuring as well as the development of a procurement strategy.

Facilitating LPG shipments to the Western Cape

Project name:
Avedia LPG storage facility licence application and related advice

Service:
Regulatory economics and accounting

Sector:
Infrastructure

Client:
Avedia Energy SA LTD

Date:
2014 – 2016

Country:
South Africa


Genesis was retained by Avedia Energy, a firm involved in a wide range of LPG handling, trading and bottling activities, to assist in its contested application to the National Energy Regulator of South Africa (NERSA) for a licence to construct and operate an LPG storage facility in Saldanha in the Western Cape. Central to the success of Avedia’s storage facility was to the ability to interconnect with the off-loading facility of a company in the area that was already licensed by NERSA, Sunrise Energy. 

Sunrise Energy objected to Avedia's application, arguing that it had an exclusive right to both off-loading and storage in the port, and that Avedia should be compelled to use its facilities as otherwise Sunrise's project would not be viable.

Drawing on our knowledge of the relevant legislation and regulations, our deep understanding of LPG markets, and evidence-based approach to our analysis, we provided expert economic analysis and testimony on this matter before NERSA.  The Genesis team found that access to, and interconnection with, the Sunrise Energy off-loading facility should be guaranteed to Avedia and other third parties, and that there was no basis for exclusivity in storage services with competition in storage being important for the growth of the industry and the viability of the off-loading facility.

Our analysis and independent testimony were key inputs into the regulatory process of NERSA and its ultimate decision was to grant a licence to Avedia and enforce the requirement for Sunrise Energy to provide interconnection.

Genesis has since provided ongoing assistance to Avedia Energy, including representations to NERSA regarding Sunrise’s tariff application, as well as in developing Avedia’s own tariff application in 2016.

National PPP policy for Seychelles

Project name:
Development of National PPP Policy and PPP Training

Service:
Project preparation

Sector:
Infrastructure
Public and Social

Area of Expertise:
Enabling environment

Client:
Government of Seychelles

Date:
2015 - 2016

Country:
Seychelles


The Government of Seychelles developed a legal and regulatory architecture to support PPPs in their country, assisted by the Investment Climate Facility for Africa. Genesis was commissioned to provide the government and ICF specialised advisory services.

These services included:

  •  An introduction to PPPs and assessment the application of different PPP models to infrastructure sub-sectors in Seychelles
  • Review of the legal and regulatory environment for PPPs
  • Review of previous PPP experience in Seychelles
  • Drafting of the National PPP Policy.

The policy was approved by the Cabinet and officially launched. Genesis has since provided basic PPP training for the government, with attendees from across public institutions.

In 2015 Genesis was retained to develop the draft PPP policy. The assignment involved a detailed needs assessment for PPPs in the country, key sectors where PPPs are most feasible and the development of a PPP policy for approval by the government.

The policy included the rationale for PPPs in Seychelles, key principles for implementing PPPs, and important PPP focus areas. Genesis was also responsible for proposing the institutional structure and appraisal guidelines required to effectively implement the PPP policy.


Genesis is lead in hostel plan for 35000 Kenyan students

Project name:
University hostels for Kenya

Service:
Transaction advisory
Project preparation
Project finance advisory service

Sector:
Infrastructure
Urban and built environment
Education

Client:
Kenya Ministry of Finance PPP Unit

Date:
2015 – 2018

Country:
Kenya


The Kenyan government made infrastructure development through public private partnerships (PPPs) a priority as a mechanism that can help in addressing the major infrastructure gaps in the country and has emphasised expanding access to education from basic to higher education.

To improve success to higher education, several public universities and constituent colleges have been instituted. The scarcity of bed capacities and accommodation within the campus dampens enrolment in the universities and colleges.

In line with the Strategic and Vision 2030, universities and colleges are obligated to meet the increasing demand for higher education as well as in improving the welfare of students.

The client, PPP Unit in the National Treasury of Kenya, sought out the transaction advisory services of the Genesis-led consortium to provide detailed financial, technical and legal work required by five separate universities across Kenya with a total bed capacity of 35,000.

The consortium's services extended from feasibility to procurement stage. As lead, Genesis coordinated and ensured delivery across the seven-firm consortium. The feasibility stage entailed the completion and approval of five full feasibility study that established the technical and environmental soundness, economic justification, PPP viability, commercial attractiveness and bankability of each hostel accommodation project.

The procurement stage entailed the production of project marketing documents including Project Information Memoranda and road show presentations; preparation of bid documents, including pre-qualification, Request for Proposal (RfP) and PPP draft agreement documentation; assistance with the selection and contracting of the preferred bidder.

The feasibility report was submitted in mid-September 2016 and requests for qualification went out at the end of 2017 for three of the five student hostel PPP projects.

A milestone was reached in April 2018 when five joint ventures and a Chinese firm were shortlisted for construction of 23,400 multi-billion Kenyan shilling hostel units at three universities.

Genesis leveraged its expertise in conducting appraisals of public projects, founded on data-driven analysis enabling our client to make a holistically informed decision.

Private investors to build 23,000-bed hostels in public varsities

University hostels to be built and maintained on a PPP

Three public varsities marked for new hostels project

Procurement of new office space for metrology institute

Project name:
Procurement of new office accommodation

Service:
Transaction advisory
Project finance advisory service

Sector:
Infrastructure
Urban and built environment

Client:
National Metrology Institute of South Africa (NMISA)

Date:
2014 – ongoing

Country:
South Africa


Genesis has been appointed by the National Metrology Institute of South Africa (NMISA) to undertake the function of project officer for the possible Public-Private Partnership (PPP) procurement of new office accommodation. 

The NMISA is part of the Department of Trade and Industry’s (the dti) family of Technical Infrastructure (TI) Institutes. Together the TI is responsible for the measurement standards and sciences, procedures and the regulations as well as accreditation that gives confidence in goods and products and allows for successful prosecution in cases of non-compliance.

Genesis’s role as project officer is to oversee and manage the entire PPP process, including appointment of the transaction advisers, management of their work and delivery against the timelines, also managing engagements with other stakeholders including the PPP unit at the National Treasury

Chevron objects to liquid-fuel import terminal

Project name:
Chevron objection to Burgan liquid fuel import terminal licence

Service:
Regulatory economics and accounting

Sector:
Infrastructure

Area of Expertise:
Licensing advisory and support
Sector strategy and regulatory frameworks

Client:
Chevron South Africa

Date:
2014

Country:
South Africa


Genesis was retained by Chevron SA to provide expert economic analysis and testimony to the National Energy Regulator of South Africa (NERSA) in terms of a licence application by Burgan Cape Terminals to build a liquid-fuel off-loading and storage facility in the port of Cape Town.

We used our specialist knowledge of petroleum pipelines regulation, the policy directives of government, as well as our keen understanding of the Western Cape market dynamics in submitting an assessment of the impact and appropriateness of granting the requested licence to Burgan Cape Terminals. Our analysis submitted to the regulator included strong policy and evidence-based arguments to differentiate between storage and off-loading services and to demonstrate the impact the granting of the licence would have on the sustainability of local refining capacity.

The licence was ultimately granted with conditions by the regulator, with the analysis of the Genesis team being an important input into the process and the decision by NERSA.

Plan for safe water in 12 Zambian border towns

Project name:
12 Border Towns Project

Service:
Project preparation

Sector:
Water and Sanitation
Climate Change
Infrastructure
Public and Social

Client:
A DFID-funded facility managed by Adam Smith International

Date:
2014 - 2016

Country:
Malawi
Zambia


Inadequate levels of water access and sanitation facilities can lead to the transmission of water-borne diseases across borders. This, in turn, stifles trade and other commercial and social activities within a sub-region and, at in extreme cases, can trigger cross-border conflict. 

The 12 Towns Project is an initiative aimed at providing a sustainable and equitable supply of safe water and appropriate sanitation to 12 border towns in Zambia, a country strategically and centrally located in the SADC region. 

Genesis was retained as the project economists for this suite of projects and carried out financial and economic appraisals for Kazungula, Chanida, Mwami, Chirundu and Siavonga border towns. Genesis provided recommendations of the appropriate allocation of the client's resources for the implementation for these projects.

By carrying out our project appraisal process, both the financial and economic justification of the separate projects was investigated. The particular focus of this project appraisal was in the project’s ability to provide climate-resilient infrastructure for the most vulnerable members of the border towns – with a particular focus on women and children. 

It also emphasised the project's ability to prevent transboundary conflict through better provisioning of infrastructure services. Input from our team resulted in the redesign of some of the projects to optimise their value for money and social impact in these strategic transboundary towns.

For more project information

TOP PHOTOGRAPH: Small traders at the Chirundu One-Stop Border Post. ABOVE: Trucks line up at the Chirundu One-Stop Border Post between Zambia and Zimbabwe

Meet the Team

Areas of Service Expertise

  • Enabling environment
  • Project preparation
  • Transaction advisory (project finance)
  • Climate resilience
  • Regulatory economics

Related Sectors

Introduction to our work

Projects

Project

Demand for storage facility to serve the Manu River Union

Genesis was contracted to undertake the final demand study for an inland storage distribution facility to serve the Manu River Union countries of Liberia, Sierra Leone and Guinea as part of the due diligence required to finalise the financing arrangements for the facility in Liberia.

View Project
Project

Can investment in public sector infrastructure result in job creation?

Genesis was appointed by the Jobs Fund within the Government Technical Advisory Centre (GTAC) – a repeat client – to conduct an impact evaluation on selected infrastructure investment projects. The assignment included a comprehensive review of the overall infrastructure investment portfolio consisting of nine projects in total.

View Project

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Leading the team

Richard Ketley

Director (Financial Services Strategy and Infrastructure)

Richard Ketley
Director (Financial Services Strategy and Infrastructure)
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​Joel Barnor

Principal

​Joel Barnor
Principal
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