Maravi

‘Transformation of African infrastructure requires $31bn’

‘Transformation of African infrastructure requires $31bn’
By Florence Bupe and Kabanda Chulu
Fri 13 Nov. 2009, 04:00 CAT

THE World Bank has observed that the transformation of African infrastructure will require an additional US $31 billion per year and huge efficiency gains.

According to a report titled ‘Africa’s Infrastructure: A Time for Transformation’, a study carried out in 24 Africa countries, the poor state of infrastructure in sub- Saharan Africa was still a major impediment to economic growth and required massive investment.

“The poor state of infrastructure cuts national economic growth by two percentage points every year and reduces business productivity by as much as 40 per cent,” the report stated.

The report further revealed that Africa had the weakest infrastructure in the world, but that in some countries, service beneficiaries paid twice as much for basic services as people elsewhere.

The World Bank advised countries in the region to improve infrastructure efficiencies and curb waste as a means of attaining higher growth rates.

“This study argues that well functioning infrastructure is essential to Africa’s economic performance and that improving inefficiencies and reducing waste could result in major improvements in African’s lives,” the report stated.

The report estimates that US $93 billion was required annually over the next decade, more than twice what was previously expected.

Of the total requirement, almost half would have to be directed towards addressing the continent’s current power supply shortage that was hindering enhanced growth.

The new estimate amounts to roughly 15 per cent of the continent’s gross domestic product (GDP).

Labels: INFRASTRUCTURE, World Bank

posted by MrK @ 3:56 PM