Jul 10, 2012
Africa needs $360bn basic infrastructure investment over 25 yearsBack
Construction|Africa|Development Bank|Ports|Projects|Storage|Water|Africa|USD|Basic Regional Backbone Infrastructure|Energy|Gross Domestic Product|Maintenance|Power Generation|Power-generation|Infrastructure|Power|Ralph Olaye|Water|Telecommunications Technologies
© Reuse this
The implementation of sufficient African infrastructure, which was previously stated to be the least developed in the world, would increase the continent’s lagging competiveness in the global economy and lower the cost of doing business.
Speaking at the New Partnership for Africa’s Development (Nepad) inaugural Infrastructure Africa conference, in Sandton, he said that the current infrastructure deficit was costing the continent about 2% gross domestic product (GDP) growth a year, as well as limiting intra-African trade, which currently stood at 12%.
The 2012 to 2040 Programme for Infrastructure Development in Africa (Pida), a multibillion-dollar initiative led by the AfDB, the African Union and Nepad, aimed to develop a web of 37 200 km of highways, 30 200 km of railways and 16 500 km of interconnected power lines.
It also planned to add 20 101 hm3 to Africa’s current water storage capacity, 54 150 MW of hydroelectric power generation capacity and an extra 1.3-billion tons capacity at the ports.
This excluded the multibillion-dollar investments required to develop the national infrastructure linked to the basic regional backbone, to ensure full infrastructure coverage throughout Africa.
The investment would be funded through, besides others, domestic revenues or tax and revenues under an affordable user pays model.
Pida was the successor of Nepad’s medium- to long-term strategic framework, which ended in 2012, and focused on short-, medium- and long-term, current and future regional and continental infrastructure projects in transport, energy, information and telecommunications technologies.
The programme’s short-term priority action plan, to deal with more immediate infrastructure needs, comprised 51 regional and continental infrastructure projects to be implemented by 2020.
Pita also set medium-term aims, to be achieved by 2030, and long-term aims to be complete by 2040.
Olaye commented that over the next 30 years, infrastructure investment would need to accelerate and increase if it was to meet the expected 6.2% GDP growth.
Further, Africa’s population was expected to double by 2040 to two-billion, and Pida hoped to create about 15-million jobs through construction, operation and maintenance of the projects. Olaye believed that millions more would be created indirectly through the increased economic activity generated through the projects.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Roads News
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
This Week's Magazine
Forest products group Sappi has confirmed the selection of its 25 MW biomass-to-power project, to be erected at its Ngodwana mill, in Mpumalanga, as a preferred bidder under the South African government’s Renewable Energy Independent Power Producer Procurement...
Information and communications technology (ICT) distributor DCC is making Windows- and Android-operating systems tablets available through retailers and education equipment suppliers to provide school children with affordable, high-performance education tools. The...
Another cement manufacturer is set to enter the Ugandan market, raising hopes that prices will come down and spur growth in the construction industry. National Cement, a Kenyan manufacturer, has unveiled plans to invest $195-million in a new manufacturing plant in...
With growth rates exceeding that in the developed world – at an average of between 4% and 5% between 2002 and 2014 – African countries provide investors with ample reason to tap into booming consumer demand says Manufacturing Circle executive director Coenraad...
The South African Chamber of Commerce and Industry’s (Sacci’s) Business Confidence Index (BCI) decreased by 3.7 index points month-on-month to 89.1 in March.