Apr 11, 2012
Africa to spend $72bn a year on infrastructure, but shortfall persistsBack
Port|Sun City|Africa|PROJECT|Projects|rail|Road|Tripartite Free Trade|Water|Africa|South Africa|USD|Manufacturing|Product|Services|Transportation|Infrastructure|Jacob Zuma|Power
© Reuse this
He told delegates at the International Trade and Investment Conference hosted by the Department of Trade and Industry at Sun City, in the North West, that additional funding was required, particularly in water, power and transportation, and that much scope existed for private participation and investment.
“Should Africa continue to narrow its infrastructure gap, economic growth could be boosted by as much as 2 percentage points a year,” Zuma noted.
He commended initiatives geared towards promoting the African economy, such as the African Union’s (AU’s) Presidential Infrastructure Championship Initiative, a continental committee of eight New Partnership for Africa's Development heads of State and government, to champion high-level infrastructure projects.
The President also pointed out that South Africa chaired the North-South Road and Rail Corridor project that cuts across eight countries in eastern and southern Africa and aims to facilitate trade by upgrading road, rail, power and port facilities, as well as simplifying cross-border regulatory procedures.
“This will enable producers and traders to access regional and international markets more easily,” Zuma said.
The projects had passed the feasibility studies phase and were expected to reach the implementation stage by 2016.
Zuma stated the domestic infrastructure development programme, which he announced in his State of the Nation address, in February, would improve access to basic services, while boosting job creation and the competitiveness of the South African economy.
He also commended the AU’s decision to integrate and to promote intra-African trade, particularly through the Tripartite Free Trade area that unites the Common Market for Eastern and Southern Africa, the Southern African Development Community and the East African Community to create larger regional markets and increase specialisation, competition and manufacturing.
Zuma said the impact of an increased focus on major projects was evident, with International Monetary Fund figures showing that region-wide gross domestic product growth has averaged 5.5% from 2000 to 2010, more than double the rate during the 1980s and 1990s.
However, he pointed out that companies have been slow to enter Africa, with some questioning whether the continent’s rise was merely the result of a short-lived boost by the global commodities boom.
“We need Africans to stop being pessimistic about their continent, and to be the leading spokespersons and ambassadors.
“I challenge all Africans today, to accept the fact that their continent is changing. They must release themselves from the shackles of self-doubt and celebrate these new developments.”
Further, Zuma pointed out that Africa's demographic composition was bound to fuel long-term growth, as the continent will have the world's largest workforce of 1.2-billion by 2050.
“What is left for the business sector is to grab the opportunity and reap the rewards of this growth, in a manner that promotes inclusive growth and that creates decent work for the African people,” the president said.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Researcher and Deputy Editor Online
Other Construction News
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 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 infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
Additive manufacturing, better known as 3D printing, has the potential to completely change the relationships between individual consumers, professional designers and manufacturers. So argued Loughborough University Reader in Computer Aided Product Design Dr Ian...
Airbus Defence and Space: Military Aircraft has highlighted that its A330 Multirole Tanker Transport (MRTT) has significant commonalities with the Airbus A330-200 commercial airliner, upon which it is based. The South African Air Force (SAAF) once operated a fleet of...
Financial services provider Nedbank launched the second edition of its Carbon Footprinting Guide earlier this month, which is aimed at demystifying carbon footprint approaches and help readers grasp the main concepts of carbon measuring, monitoring, reporting and...
This year marks the thirtieth anniversary of Caterpillar’s first backhoe loader. This also coincides with the worldwide release of its latest-generation F2 series backhoe loader, which was launched at supply chain services company Barloworld Logistics’ Big Dig Day in...
A shortage of software engineers is leading to fewer information technology (IT) projects in private and public sector organisations. This also places a dampener on the economy, as IT is an integral part of business and civil service, says University of Witwatersrand...