Factors affecting capital investment project benefits realization in African railway company

The purpose of this study is to identify factors that affect capital investment project benefits realization through analyzing African Railway post implementation review reports findings. The aim of post implementation review is to evaluate whether project/ program objective is met. The method used is both qualitative and quantitative to identify, analyze and describe contributing factors in order to achieve the objective of this paper. The Post Implementation Review (PIR) reports conducted for the last five years are analyzed starting from the year which the PIR is introduced financial year 2012/13 to financial year 2016/17.The findings indicate that African Railway’s capital projects benefits are not constantly realized. Out of 25 projects reviewed, 18 projects are rated as objective partially met, 4 projects as objective met and 3 projects as objective not met. The key findings that are contributing to project failure are original financial models not retained and hence comparison could not be made, anticipated market growth not been realized, operational performances not measurable and project not being completed timeously, primarily due to scope addition and insufficient up-front planning. It is recommended that Africa Railway Company strengthen its Benefits Realisation Management (BRM) functionality within the organization. Benefits Management includes processes to clarify a programme/project's intended benefits and anticipated outcomes, and contains processes for monitoring the programme's capability to deliver against these benefits and outcomes.