Jul 20, 2012
Africa needs $360bn basic infrastructure investment over 25 yearsBack
Construction|Africa|Development Bank|Ports|Projects|Water|Africa|USD|Energy|Gross Domestic Product|Maintenance|Power Generation|Power-generation|Transport|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)
Other News This Week News
Article contains comments
Updated 2 hours 16 minutes ago The National Ports Authority (NPA) has taken steps to ensure the Ebola virus disease does not enter South Africa through one of its main harbours, Public Enterprises Minister Lynne Brown revealed on Thursday. "As of September 23, all vessels [from certain countries]...
Updated 3 hours ago AltX-Listed Huge Group on Thursday said it had secured a loan agreement that would enable the funding of the company’s significant growth. In a statement to shareholders, Huge Group said that, following a “high level of interest” from debt finance providers, wholly...
Updated 4 hours ago A high-standard technical paper, titled ‘Laser metal deposition microstructure of modified low-C martensitic stainless steel’, has secured two Council for Scientific and Industrial Research (CSIR) metallurgists and a University of Pretoria (UP) professor the...
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
This Week's Magazine
Integrated energy and chemical company Sasol has partnered with Unisa Graduate School of Business Leadership (SBL) professor and founder and CEO of PanAvest Partnership Dr Douglas Boateng to publish a series of books on executive supply chain management aimed at...
The World Wide Fund for Nature’s (WWF’s) 2014 Living Planet Index (LPI) indicates that there has been a 52% decline in vertebrate species since 1970. The Index tracked the trends of 10 000 discrete populations of over 3000 vertebrate species between 1970 and 2010.
Rwanda has joined a number of East African countries seeking to import electricity from Ethiopia as its demand grows. After it became apparent several generation project it is implementing will not come on stream early enough, now plans to import 400 MW from Ethiopia...
Metrorail’s first new passenger train will arrive in November next year, says Passenger Rail Agency of South Africa (PRASA) CEO Lucky Montana. “Next year we will be able to put our hands around the infrastructure and equipment we have been talking about for so long.”
The Competition Commission has launched an investigation into what it says are “price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components to original equipment manufacturers” (OEMs, or vehicle...