Addressing Africa’s Infrastructure Challenges

Perspectives

Addressing Africa’s Infrastructure Challenges

Inadequate infrastructure remains a major obstacle towards Africa achieving its full economic growth potential.

With Africa seen as one of the world’s fastest growing economic hubs, meeting the demand for key infrastructure has been identified as a priority.

With Africa seen as one of the world’s fastest growing economic hubs, meeting the demand for key infrastructure has been identified as a priority. This translates into exciting opportunities for global investors who need to look past the traditional Western view of Africa as a homogeneous block, and undertake the detailed research required to understand the nuances and unique opportunities of each region and each individual country.

Adequate Infrastructure is crucial to Africa’s longterm growth

One of sub-Saharan Africa’s top developmental challenges continues to be the shortage of physical infrastructure. Greater economic activity, enhanced efficiency and increased competitiveness are hampered by inadequate transport, communication, water and power infrastructure. The world is eager to do business with Africa, but finds it difficult to access African markets, especially in the interior, due to poor infrastructure.

Physical infrastructure covering transportation, power and communication through its backward and forward linkages facilitates growth; while social infrastructure including water supply, sanitation, sewage disposal, education and health, which are in the nature of primary services, has a direct impact on the quality of life.

Without this infrastructure, Africa will not achieve the growth levels expected or required. Infrastructure planning and investment are therefore critical if Africa’s huge economic and developmental potential are to be realised. Key in helping the continent realise its economic potential, is the careful construction of a sustainable infrastructure that can assist to turn the situation around.

Africa’s economic growth and development are intrinsically linked to infrastructure development, but it is the push-pull relationship with commodities that has become the driving force for infrastructure development in the region.

Addressing Africa's Infrastructure Challenges