Jun 19, 2009
China responding positively to Africa’s desire for infrastructureBack
Gauteng|London|Maputo|Port|Africa|Cable|Cement|PROJECT|Projects|Resources|Roads|Water|Africa|China|Democratic Republic Of Congo|DRC|South Africa|Spain|Zambia|USD|Inga Dam|Building|Energy|Oil Storage Tanks|Power Infrastructure|Transport|Infrastructure|John Rocha|Power|Rail|Water|Cable|West Coast|Communication Technology
© Reuse this
“Because of the huge upfront costs, the private sector has shied away from investing in the sector but, in many cases, African governments cannot afford to foot the bill themselves,” he said.
While international response to Nepad infrastructure had been initially lukewarm, it, nevertheless, improved in the latter part of the decade, Rocha said.
There were at least 20 bankable projects in Africa, and China, in particular, had
responded to the opportunities and had
invested more than $10-billion.
Rocha pointed out that, in the Maputo Development Corridor, there had been an opportunity for an aluminium smelter, which had resulted in a highway being built between Gauteng and Maputo, at a cost of $5-billion.
Two corridors are currently in the pipeline – the central corridor, which would soon go out to tender and would comprise a refinery and oil storage tanks in a plan to upgrade the Dar-es-Salaam port – and the $1,6-billion north–south development corridor, in Zambia.
Rocha said there were four key priorities to Africa’s infrastructure development: energy, informationa and communication technology (ICT) and transport, and water and sanitation.
However, Rocha said the submarine cable running up the west coast of the continent would connect African countries directly with their destinations and thus help reduce business costs.
ICT companies had, however, invested in the continent while there were serious constraints in other sectors.
Transport was also a huge cost to business and it was sometimes cheaper to fly to London than to other African countries, Rocha said.
High transport costs added to the cost of building materials, making it nearly impossible to build roads in the DRC, with a bag of cement, for example, costing $4 in South Africa, compared with $25 in some other African countries.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other News This Week News
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...