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Infrastructure key to economic growth

4th September 2015

  

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Physical infrastructure is one of the most frequently cited barriers to enter into and economic growth in Africa, notes multinational professional services network PwC, in its November 2014 report ‘Capital projects and infrastructure in East Africa, Southern Africa and West Africa’

Infrastructure plays a key role in economic growth, while the lack of infrastructure reduces productivity and hinders business competitiveness.

Taken as a whole, Africa’s infrastructure lags well behind that of the economically developed world with some 30% in a dilapidated condition and massive backlogs in almost every country across most infrastructure types.

Improving infrastructure will be critical to spurring Africa’s continued economic expansion and enhancing its standard of living and stability, reads the report.

Notable to foreign and intra-African investors is the World Economic Forum’s estimate that for every dollar spent on a capital project, such as utilities, energy, transport and waste management, an economic return of between 5% and 25% a year is generated.

Excavators are critical tools in African infrastructure development. Investing in the right heavy construction equipment is fundamental to ensuring that projects are completed on time and, importantly, on budget, states BAUMA CONEXPO AFRICA CEO Elaine Crewe.

BAUMA CONEXPO AFRICA provides construction industry stakeholders with a unique opportunity to meet, connect and expand their contribution to the African development story, Crewe enthuses.

The event is the largest trade fair for construction machinery, building material machines, mining machines and construction vehicles in Africa and the exhibition will host a number of new developments and technologies in construction equipment, she says.

“Sadly, we see that Africa is becoming a dumping ground for inferior products. Projects don’t get finished on time because equipment keeps breaking down,” comments heavy equipment manufacturer Bell Equipment sales and marketing director Terry Gillham.

Africa-focused and based Bell will be one of the companies exhibiting at BAUMA CONEXPO AFRICA this year.

Heavy equipment manufacturers are constantly working on ways to make these heavy-duty diggers and trucks leaner and lighter to improve performance, states Gillham.

With rail infrastructure still being developed in many parts of Africa, trucking remains the primary method of transportation in the continent. It is, therefore, positive to see the ongoing initiatives to develop smarter trucks, says Crewe.

Safety is another important factor in research and development for these manufacturers, notes Gillham. Today, the leading heavy equipment manufacturers spend an enormous amount of time and money on safety features for their equipment and researching ways to promote operator comfort and wellbeing, which, in turn, improves productivity, says Gillham.

BAUMA CONEXPO AFRICA is taking place from September 15 to 18 at the Johannesburg Expo Centre.

Edited by Samantha Herbst
Creamer Media Deputy Editor

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