Jul 20, 2012
Africa needs $360bn basic infrastructure investment over 25 yearsBack
Construction|Africa|Development Bank|Energy|Ports|Projects|Water|Africa|USD|Energy|Gross Domestic Product|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
Other News This Week News
Recent Research Reports
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.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...