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  4. “Africa needs $31b a year for transformation”

This topic has no replies. This topic was posted on 16-11-2009 10:22.

“Africa needs $31b a year for transformation”

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  1. Posted on Monday 16 November 2009 - 09:25
    Dolphyne
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    Joseph Appiah-Dolphyne, AfricaNews editor in Accra, Ghana
    New study shows that transforming African infrastructure will require an additional $31 billion a year and huge efficiency gains. A study conducted in 24 African countries shows that the poor state of infrastructure in Sub Saharan Africa - its electricity, water, roads, and ICT - cuts national economic growth by 2 percentage points every year.
    africa map
    This reduces business productivity by as much as 40 percent, the study stated.

    “Africa’s Infrastructure: A Time for Transformation” finds that Africa has the weakest infrastructure in the world, but ironically Africans in some countries pay twice as much for basic services as people elsewhere.

    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 estimates that US$93 billion are needed annually over the next decade, more than twice what was previously thought. Almost half of this amount is needed to address the continent’s current power supply crisis that is hindering Africa’s growth.

    The new estimate amounts to roughly 15 percent of the continent’s gross domestic product (GDP), comparable to what China invested in infrastructure over the last decade.

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