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
Creamer Media Senior Researcher and Deputy Editor Online
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Construction News
Updated 5 hours ago Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Article contains comments
Most infrastructure investments on the African continent are in the energy sector, but power plants and transmission lines across Africa presently operate at a fraction of installed capacity due to insufficient maintenance and lack of modernisation.
Updated 7 minutes ago Anglo American CEO Mark Cutifani expected 2016 to be the most challenging year for the mining industry, stressing in a copy of a speech delivered at the Investing in Africa Mining Indaba, in Cape Town, on Monday, that things could get worse before getting better. He...
Updated 50 minutes ago Gold-mining company Acacia Mining is looking to go beyond Tanzania into Kenya and West Africa. Acacia CEO Brad Gordon told the Investing in African Mining Indaba that the company’s growth had stemmed from a focus on business fundamentals, people and relationships.
Updated 2 hours 8 minutes ago The 50 MW Khi Solar One concentrated solar power plant near Upington in the Northern Cape has started commercial operation. The plant is operated and maintained by Spanish technology group Abengoa, which owns 51% of the project, with the Industrial Development...
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
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...
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...