Jul 20, 2012
Africa needs $360bn basic infrastructure investment over 25 yearsBack
Construction|Africa|Development Bank|Ports|Projects|Storage|Water|Africa|USD|Energy|Gross Domestic Product|Maintenance|Power Generation|Power-generation|Infrastructure|Power|Ralph Olaye|Water|Telecommunications Technologies
© Reuse this
The implementation of sufficient African infrastructure, considered 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 Infrastruc- ture 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-ton 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 achieved 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 believes that millions more will be created indirectly through the increased econo- mic activity generated through the projects.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Deputy Editor
Other News This Week News
Updated 4 hours ago Irish Foreign Affairs and Trade Minister Charles Flanagan told media on Thursday that Ireland was well positioned to play a greater role in Africa, particularly in the aviation, pharmaceuticals and agricultural industries. Flanagan was this week leading a high-level...
Updated 4 hours ago The Lesotho Highlands Development Authority (LHDA) has appointed three consultants for work packages as part of Phase 2 of the Lesotho Highlands Water Project (LHWP). The contracts, worth a collective M40-million, were awarded to the SMEC-FMA joint venture (JV);...
Updated 4 hours ago JSE-listed Huge Telecom continued to grow its distribution capabilities during the year ended February 28, with the number of business partners increasing by 136, or 47%. Huge Telecom’s connectivity services, which were distributed mainly to small and medium...
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
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...