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Sub-Saharan Africa has perhaps the world’s least sufficient infrastructure. In addition to being sparse, it is much more expensive than in other regions of the world.
Investment, including that from the continent itself, may change this picture significantly over the next few years if African governments plan wisely and invest in infrastructure development.
South Africa has no option but to invest billions of rand in reviving and expanding its infrastructure as a continuation of the World Cup sustainable infrastructure development commitments.
In his State of the Nation address, President Jacob Zuma highlighted the importance of infrastructure development to South Africa’s economic growth.
This is the reason South Africa’s Infrastructure Development Cluster group of ministers, chaired by Transport Minister S’bu Ndebele, has to put words into action in the next few years, to make sure implementation of key projects in energy, transport, information and communication technology, water, public works and other areas is achieved.
Ageing infrastructure in power stations, railway lines, pipelines, ports, airports and roads is a recipe for disaster and South Africa cannot afford to be a failing economy.
Picture: Tiro Ramatlhatse
Tiro Ramatlhatse
Fewer than 30 percent of African roads are paved. In fact, according to the World Bank, in 1992 about 17 percent of sub-Saharan African roads were paved, but by 1998, the percentage had dropped to 12 percent.
At about that time, Africa below the Sahara (apart from South Africa) had 18 percent fewer paved roads than Poland.
South Africa must sustain its commitment to infrastructure development to stimulate Africa’s efforts to push for economic growth.
There is great concern over the decline in Africa’s share of world exports, and while World Bank studies cite non-competitive prices as responsible for about a quarter of the decline, the rest is due to non-price factors such as poor infrastructure and information services.
Those studies also show that a 10 percent decrease in transportation costs could mean as much as a 25 percent increase in African trade.
In her assessment of African infrastructure, World Bank vice-president for sustainable development Katherine Sierra told the 4th annual US-Africa Infrastructure conference in April that:
l Every $1 of delayed road maintenance costs $4 in restoring the existing road.
l Only 20 percent of Africa’s population has access to electricity or modern forms of energy, compared with 50 percent in south Asia and 80 percent in Latin America.
l The entire capacity for electric power in sub-Saharan Africa’s 48 countries, with more than 800 million people, is no more than Spain’s, with about 40 million people.
l The cost of infrastructure services in sub-Saharan Africa is at least double that of south Asia, and in some areas is five times as high because of a lack of large-scale economies, the high cost of electrical power and a lack of competition.
l Railways in sub-Saharan Africa have declined in significance, partly because of poor maintenance and other adverse economic and infrastructural factors.
l The volume of cargo in African ports has tripled in a decade, normally a hopeful sign of expanding economies, but hope is frustrated by the low level of containerisation and weak transport linkages.
The World Bank assessment of African infrastructure is not all gloom and doom, however.
Sierra noted the great progress made in telecommunications. She said that, in 1999, only 5 percent of Africa’s population lived within range of a cellphone signal, whereas today it is 60 percent and could rise to 90 percent soon, if there is deregulation and greater competition.
Increased access to information about prices and markets has boosted the prospects of African producers.
More good news is that African countries are responding to the infrastructure challenges they face. In light of statistics indicating that passengers flying in Africa are 75 times more likely to die in a crash than passengers in North America, African countries are joining regionally to establish common aviation regulation bodies, such as the Banjul Accord Group in West Africa.
They are also striving to meet international flying safety standards. Better co-ordination of safety efforts should reduce risk and increase efficiency significantly.
Given the dearth of international development funding due largely to the current global economic downturn, the key to financing African infrastructure projects will be attracting private funds for infrastructure development.
This will include multinational corporate investment, but also local companies and the growing possibilities for remittances.
The development and integration of rail, road, water, energy and information and communication technology infrastructure is central to the country’s growth initiatives.
South Africa seeks to work on efficient movement of goods and economic integration through a Durban-Free State-Gauteng logistics and industrial corridor.
This is intended to connect the major economic centres of Gauteng and Durban and, at the same time, connect these centres with improved export capacity through our sea-ports.
The government is committed to building a modern and sustainable transport system – one that connects our communities, supports our economy and protects our environment.
The Department of Transport, through the SA Roads Agency and provincial departments of transport, is making sure national and provincial roads get the necessary attention to address the backlog in road construction and maintenance.
Through the S’hamba Sonke Roads Programme launched last April, the government makes a clear commitment to a targeted capital investment programme on roads, particularly in the rural areas.
Through the programme, the Department of Transport has created more than 13 280 jobs and spent more than R1.7bn since its launch.
During the 2011/12 financial year the programme created 68 000 full-time employment opportunities, and between 2012 and 2014, 50 000 are envisaged.
Water infrastructure also contributes to the strength and backbone of our economy.
South Africa and Lesotho concluded a bilateral co-operation agreement for the construction of the Lesotho Highlands Water Project 2, which is set to augment water supply to the Vaal River system.
The area supplied by the Vaal River system stretches far beyond the catchment boundaries of the Vaal and includes most of Gauteng, Eskom’s power stations and Sasol’s petro-chemical plants on the Mpumalanga Highveld, the North-West and Free State goldfields around Klerksdorp and Welkom, iron and manganese mines in the Northern Cape, the city of Kimberley, a number of small towns along the main course of the river, as well as several large irrigation schemes.
The Vaal River system also meets the water resource needs of 60 percent of the national economy and serves 45 percent, or 20 million, of the people in the country.
Reliable power supply underpins a thriving economy which brings employment opportunities and a better quality of life for our people. The water supply from this project will also provide additional water security for Sasol and Eskom.
The market demand strategy, on which Transnet’s R300bn capex is based, will result in the creation of more than 150 000 jobs.
It is only through sustainable infrastructure development that South Africa can remain a major economic role player in the SADC region.
l Gozhi works for the Department of Transport and writes in his personal capacity.
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