Over the next 10 to 20 years
expenditure to address
Africa’s infrastructure
shortages is expected to
amount to $174 billion.
This is a clear indication that the
continent realises that to benefit
from increased interest from abroad
infrastructure upgrades will have to
be increased.
“Currently there are 26 rail and
61 road projects on the go valued at
a combined total of $15 billion,” says
James Fungai Maposa, consulting
manager industrial for research
house Frost
& Sullivan.
“Improving
the continent’s
transport
infrastructure is
ideally a function
of Africa’s
economic
building blocks.
A majority of the
African economy
is accounted
for by natural
resources
extraction, followed by agriculture.
Both of these industries require the
production and transportation of
bulk commodities.”
With a large portion of these
goods sold to export markets in
Asia, Europe and North and South
America it becomes clear that it
is important for Africa to have an
efficient transport system that
moves goods to export ports and
terminals at a low cost.
“In addition, intra-regional trade
is also expected to rise during
the medium- and longer-term.
The transportation of mineral
commodities,
agricultural
and retail
goods across
the continent
also warrants
investment
in transport
infrastructure,”
says Maposa.
According
to Paul Runge,
managing
director of
Africa Project
Access, there is a definite focus on
infrastructure across the continent.
“We are seeing projects go up all
the time. Not only in the transport
sector but also when it comes to
power and water there is much work
being done.”
Runge and Maposa are in
agreement that Southern Africa
is leading the transport
infrastructure investment.
“The discovery of expansive
mineral commodities within the
region (Mozambique, Botswana
and Zimbabwe) has resulted in
government
partnering
with the private
sector to invest
in the necessary
infrastructure
to transport the
mined goods
to export ports in Mozambique
and South Africa,” says Maposa.
“East Africa has also committed
to upgrading its transport
infrastructure, driven by recent
oil, gas and other natural resource
discoveries in Kenya, Uganda and
Tanzania.”
When compared to Southern
and East Africa, West and North
Africa will lag behind in corridor
development and implementation
with most of the announced projects
expected to be commissioned
during the 2030s, he says.
While countries have realised the
value of investing in infrastructure,
there has also been a realisation that
political stability is a must.
“Most African nations are
committed to becoming more
politically stable over the next few
years,” says Maposa. “Potential
rewards such
as sustained
economic
growth
are factors
that have
compelled
ruling parties
to maintain political stability.
But despite these commitments,
political stability is threatened
by wealth inequity, which often
results in civil unrest within
countries where there is a sizeable
wealth differential. This implies
that, although most nations are
committed to political stability, a
key issue that needs to be addressed
is reducing the wealth gap through
investment in education and
up-skilling the populace within
respective nations.”
Maposa predicts that if the
continent’s wealth gap is not
addressed, the risk of civil unrest
will always prevail.
INSERT & CAPTION
The discovery of expansive
mineral commodities has
resulted in government
partnering with the private
sector to invest in the
necessary infrastructure.
– Paul Runge
INSERT
$174bn Predicted expenditure to address Africa’s
infrastructure shortages over the next 10-20 years.
