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Infrastructure Development in Africa: Engine of Growth

Join Anthony Ross, PhD, and Donald Gordon as they delve into the importance of infrastructure in Africa's economic growth. Explore trade patterns, challenges of landlocked countries, missing linkages in infrastructure, and the benefits of investment in roads, power, and ICT connectivity.

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Infrastructure Development in Africa: Engine of Growth

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  1. Doing Business in Africa The 8th Biennial IB InstituteJune 2009

  2. Infrastructure: the Engine of Growth in Africa Anthony Ross, PhD Associate Prof. SCM Michigan State University Donald Gordon International Scholar, University of Capetown, South Africa

  3. Agenda: Doing Business in Africa • Overview of the African Continent • Trade Patterns in African Nations • Infrastructure and Doing Business • The Missing Linkages • The Cost of Catching-up • Infrastructure Spending • Closing Remarks

  4. Overview of African Continent- Major Cities

  5. Overview Facts • 71 Countries • Each with 3-12 Tribal languages on average • 48 / 71 countries experience rising per capita income • Only 10/48 exceed 5% since 2004 • Poverty reduction requires 7% • 1990- 2005 Infrastructure contributed 1% to per capita income growth • Catching-up to South Korea’s level of development means 2.6% income growth • African countries lag behind their peer LICs around the world (paved roads, ICT, power generation, water)

  6. Overview of Trade Patterns in Africa (USD mil)

  7. Trade Flows Between Countries & Cities

  8. Current Network Trade Flows (2008)

  9. Where the Rubber Meets the Road

  10. Issues of Being A Landlocked Country

  11. What are the Missing Linkages? • Infrastructure networks are highly fragmented (due to sovereignty) • Inability to share transboundary commons • Under-developed hydro and thermal energy resources concentrated in remote areas (low demand or to poor to invest) • ICT connectivity lacking: satellite vs submarine cable • Power generation investment of USD 500 million / yr through 2015 is required • Road Investment and Maintenance are poor. (sea corridors into LLCs is the current focus. But effective speed is only 10km/hr due to borders and ports

  12. Africa’s ICT and INLAND WATER SOURCES

  13. Africa’s Road Network and Power Generation

  14. The Infrastructure Gap

  15. Connecting Population Centers

  16. Proposed Trans-African Travel Corridors

  17. Projected Benefits to Trade from Improvements

  18. The Cost of Catching up- some benchmarks

  19. Current Public Spending on Infrastructure

  20. Getting More Out of Public Spending

  21. Trade Improvements from Better Infrastructure

  22. Who Benefits from a focus on Infrastructure? THE PEOPLE!

  23. THANK YOU!!! Acknowledgements: V. Foster D. Wheeler H. Parker Sources: World Bank, Africa Development Bank

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