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Report: Bad roads slow Africa’s growth to a crawl
Road construction on the Narok-Maai Mahiu road in Kenya. A new report says Africa has the weakest infrastructure in the world but, ironically, Africans in some countries pay twice as much for basic services as people elsewhere. Photo/FILE
Posted Monday, November 16 2009 at 00:00
“Modern infrastructure is the backbone of an economy and the lack of it inhibits economic growth,” says Obiageli Ezekwesili, World Bank Vice-President for the Africa Region. “This report shows that investing more funds without tackling inefficiencies would be like pouring water into a leaking bucket. Africa can plug those leaks through reforms and policy improvements which will serve as a signal to investors that Africa is ready for business.”
Closing the efficiency gap requires improving management of utilities, ensuring adequate maintenance, promoting regional integration, recovering costs while recasting subsidies to enable broader access, and improving allocation and spending of public resources.
To close the funding gap a wide range of sources will be needed, including public budgets, resource rents, local capital markets, private sector and non-OECD finance, as well as traditional donor assistance.
The report recommends action in four crucial sectors – energy, water, transport and ICT – that underpin national economies and are critical for reducing poverty in Africa.
Countries with the greatest infrastructure needs are often the least attractive to investors.
Many of the countries in Africa will probably take longer than a decade to catch up on infrastructure and will probably have to use lower cost technologies.
But action is needed urgently, the report argues, and the global financial crisis is underscoring the need for a massive effort to overhaul Africa’s infrastructure.
“Africa’s Infrastructure: A Time for Transformation” recommends action in four crucial sectors – energy, water, transport, and ICT – that underpin national economies and are critical for reducing poverty in Africa.
The report says that prioritizing these sectors, increasing investments, and improving efficiency can help African countries avert the worsening impacts of the financial crisis and begin laying the foundations for future growth as the global economy rebounds.
The report’s findings were based on surveys conducted among 16 rail operators, 20 road entities, 30 power utilities, 30 ports, 60 airports, 80 water utilities, and over 100 ICT operators, as well as the relevant ministries in 24 countries.
The results were derived from detailed analysis of spending needs (based on country-level microeconomic models), fiscal costs (which involved collecting and analysis of new data) and sector performance benchmarks (covering operational and financial aspects as well as the country’s institutional framework).
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