SADC’s Infrastructure: A Regional Perspective

2. SADC’s Infrastructure: A Regional Perspective

3. Africa Infrastructure Country Diagnostic:a multi-stakeholder effort

4. Methodology and approach • Methodology • Data collection by local/international consultants and Bank staff based on standardized methodology • Baseline year for data is 2006, does not reflect subsequent evolution • Approach • Focus on benchmarking SADC’s infrastructure against other African RECs and benchmarking SADC member countries with each other

5. Key Message #1 Infrastructure could be contributing much more to Southern Africa’s growth

6. Infrastructure contributed to over one percentage point to Southern Africa’s recent growth spurt

7. Catching-up on infrastructure could boost growth by three percentage points

8. Key Message #2 Southern Africa enjoys concentration of MICs and several (potentially) strong economies

9. A more hopeful economic geography • SADC faces all the standard challenges • 10 countries have economies <$10 billion • 6 countries have populations <10 million • 6 countries are landlocked • Multiple trans-boundary river basins • But also enjoys some advantages • 5 Middle Income Countries • Half a dozen large (or potentially large) economies • Strong gravitational pull of South Africa

10. Topographical profile of SADC countries

11. Spatial distribution of economic activity

12. Key Message #3 Road freight costs reasonably competitive but trade facilitation adds high margins

13. Road freight transport performance is best in Africa but still expensive by global standards

14. Corridors are almost entirely paved and in reasonable condition

15. Condition of main regional corridors

16. High levels of traffic concentrated mainly along the corridors that connect to Durban

17. Traffic flows along main regional corridors

18. Some alternatives to Durban apparently look quite interesting as export routes

19. Alternatives to Durban less attractive for imports

20. Delays at borders greatly slow down speed of road transit • Journey of 3,000 kilometers from Lusaka to Durban takes 8 days • 4 days of travel time • 4 days spent at border crossings. • Though trucks run at 50-60 kms/hr effective speed is no more than 12 kms/hr • Cost of delays for an eight axle interlink truck estimated at US$300/day (or US$50 mn/yr)

21. Key Message #4 Southern Africa’s regional road network generally very good, with only couple of exceptions

22. Network generally in reasonable condition except for stretches in DRC, Zambia

23. Traffic flows visibly concentrated on north-south axis with much less on east-west

24. Very strong performance on regional roads across SADC with few exceptions

25. Key Message #5 Southern Africa enjoys extensive regional rail network but border crossings remain problematic

26. Interconnection of seven national rail networks creates an extensive regional network

27. Southern African railways generally perform relatively well (with some notable exceptions)

28. Most railways outside South Africa and Zimbabwe are only lightly used

29. Tardy locomotive exchange at borders greatly slows down speed of rail transit • Journey of 3,000 kms from Kolwezi (DRC) to Durban (RSA) takes 38 days: • 9 days of travel time • 29 days associated with customs clearance and (primarily) loading and interchange • Though trains run at 25-30 kms/hr effective velocity is no more than 4 kms/hr • Cost of delays estimated at US$205 per day per freight wagon (or US$120mn/yr)

30. Key Message #6 Port of Durban plays a dominant role in regional trading patterns

31. Despite numerous ports traffic highly concentrated in Durban

32. Southern African ports though best in Africa lag global price and productivity benchmarks

33. Efficiency of ports in South Africa and Namibia far above rest but costs are high

34. Key Message #7 Relatively advanced air transport market despite slower market liberalization

35. Strong hub and spoke structure evident around Johannesburg

36. Southern Africa records high usage and air transport connectivity

37. Steady increase in air transport internal to SADC region

38. Southern Africa plays a dominant role in the top few air transport routes in Africa

39. Regional air traffic heavily concentrated on routes from South Africa to Zambia

40. All countries have relatively frequent connectivity with South Africa

41. Aircraft fleet has shifted towards mid-sized planes rather than smaller planes as elsewhere

42. Southern Africa has made very limited progress with air transport liberalization

43. South African Airlines has significantly lost market share to subsidiaries and other players

44. Air safety standards in Southern Africa vary substantially across countries

45. There has been a renewal of the aircraft fleet over the last few years

46. Key Message #8 Regional power trade could save SAPP area US$1 bn pa (and 40 million tons of CO2)

47. Regional power transmission network already relatively advanced in SAPP area

48. SADC has highest availability of power and is relatively efficient, despite which access is low

49. SAPP was doing relatively well at meeting power demand as of 2005

50. Deepening regional power trade saves SAPP $1.1 billion annually