Jointly coordinated by the African Union Commission, NEPAD, the regional economic communities and AfDB, PIDA provides the strategic framework for priority projects to transform Africa through the construction of modern infrastructure into an interconnected and integrated continent that is competitive domestically and in the global economy. “At 18 cents per kilowatt-hour on average, Africa’s power is very expensive to produce by global standards,” says Briceno-Garmendia. Written by Noluthando Mkhize and Samona Naidu. Indices and benchmarks play a … Poor infrastructure has been identified as one of the major barriers to agricultural trade within and outside Nigeria. Health infrastructure is an important building block for inclusive growth and sustainable development in Africa and its access continues to be a major challenge in Africa. The WHO World Health Statistics 2014 ( Part III Global health indicators, Chapter 6, Health systems, p. 128-140) address inter alia the density of health workforce (persons currently participating in the health labour market), infrastructures and technologies – including the density of hospital beds, which is regarded as … The financing is needed to support the installation of new power generation capacity at the rate of seven times the annual average of the last 10 years. According to GSMA , the mobile industry's trade … This means that they must improve their business climates, prepare sound sectoral policies, and write and enforce the types of regulations that attract investors. Improving infrastructure investment in Africa According to the African Development Bank, the shortfall in infrastructure financing is $107.5bn a year. Africa 50 is a pan-African investment platform. The World Bank Group aims to address some of the gaps and constraints in the communications infrastructure through policy and catalytic investments. The report finds that of the $93 billion needed to improve Africa’s infrastructure, almost half is needed to boost the continent’s power supply. Taking advantage of mobile-friendly infrastructure in Nigeria. However, in order to be sustainable and deliver real benefits to the communities and the environment directly affected, infrastructure projects need good governance, meaningful civil society participation, and real accountability. The on going water crisis in South Africa’s Western Province attests to the delicate relationship between tourism and crisis. African utilities are unable to collect some $2.4 billion a year of services billed. Africa’s infrastructure has been lagging behind others in developing world. The high cost of transactions in Africa highlights the urgency to upgrade infrastructure, support … The 4,500-kilometre highway from Algiers in Algeria to Lagos in Nigeria, for example, would not have been possible without the political and technical support of each of the affected countries. The North African country was praised for its good transport system, highest penetration of information and communication technology (ICT) on the continent, good ports, relatively good airports, fairly good agricultural production, highest literacy rate of girls…but the country imploded. For this reason the expansion and maintenance of critical tourism infrastructure in South Africa is of high importance. The Africa Renewal information programme provides up-to-date information and analysis of the major economic and development challenges facing Africa today. ital investment is needed to expand and improve irrigation between 2005/07 and 2050 in 93 developing countries.5 Investments are needed not only in new infrastructure but also in the maintenance and operations of the existing stock in order to improve their efficiency and reduce water losses. Projects to Improve Energy Infrastructure in West Africa. Transafrica – Efforts to Improve Public Transport in Africa Author ... As the infrastructure in the cities is not designed for walking and cycling these aren't safest options of getting from A to B but don't have the best image as they are often associated with poverty. The lack of modern infrastructure in Africa costs the continent “at … However, this is only part of the story; daunting challenges remain. These systems allow for more efficient production and transportation of goods, allowing for increased economic output. Improve the enabling environment for investment in sustainable water-related infrastructure and services in order to at least double current investment levels. The lack of modern infrastructure in Africa costs the continent “at least 2% in GDP growth annually.” Among the systems that Africa needs to develop are an expansive electrical grid, roads, railways, and communications. The financing is needed to support the installation of new power generation capacity at the rate of seven times the annual average of the last 10 years. Domestic finance in many countries during the same period benefitted from the growth and high prices of natural resources. PERCEPTIONS OF CRISIS DETER TOURISM. Foreign investment, however, is helping fill in some of the gaps. The report concludes that many countries may have to consider other ways of aligning infrastructure targets with the available resource envelope. Establish a national water-resources infrastructure agency to manage large regional investments. Manage agricultural use better through reduced water demand and improved water-use efficiency… These efforts have produced important results. WASHINGTON, November 12, 2009—Over the last few years, Africa has benefitted from some significant improvements in infrastructure. Apr 10, 2019. Vertiv, a digital infrastructure provider, has announced a distribution partnership with the Fajoba Group, a regional IT solutions expert in East and Central Africa Vertiv-Fajoba Group partnership will help digital evolution in new markets in Africa. But in the same period the urban population grew by an estimated 167 million.That leaves an additional 99 million urban dwellers without access to improved sanitation. In order to boost intra-African trade, we need to improve infrastructure. With 189 member countries, staff from more than 170 countries, and offices in over 130 locations, the World Bank Group is a unique global partnership: five institutions working for sustainable solutions that reduce poverty and build shared prosperity in developing countries. Fundamentally, the majority of the population did not perceive the level of inclusion of the youth as satisfactory. Access to primary care drives health outcomes. The report finds that of the $93 billion needed to improve Africa’s infrastructure, almost half is needed to boost the continent’s power supply. African countries impose the heaviest artificial barriers around their borders, on top of fragmentation. Outside of South Africa, power consumption is barely one percent of the level in high income countries. Antonio Estache and Grégoire Garsous, both experts in infrastructure investment in  Africa, state in their literal notes on “The impact of infrastructure on growth in developing countries” that there is, indeed, a plethora of anecdotal and more technical evidence that better quantity and quality of infrastructure can directly raise the productivity of human and physical capital and hence growth. For instance, only 38% of the African population has access to electricity, the penetration rate for internet is less than 10% while only a quarter of Africa’s road network is paved. Here’s how: quality access brings treatment and prevention; with treatment and prevention comes education; and with education comes demand. This is why whatever we do in agriculture, infrastructure, ICT, if we do not resolve the key issue of inclusiveness, we are carrying very fragile systems that at one moment or another will implode. Reduce water demand by an average 15% below baseline levels in urban areas by 2030. IFC’s $12 million loan to Kenya-based engineering, procurement, and construction company Spencon International will allow Spencon to expand its work in countries across Eastern and Southern Africa, where the need for improved housing, irrigation, sanitation, and transportation infrastructure is great. Supplying fresh vegetables to urban people offers livelihood opportunities – for example in Nairobi. With such quantum resource requirements in the long term, there exists a huge financing gap which needs to be addressed for the successful realization of PIDA projects. PIC includes the Government Employees Pension Fund and has around R600-billion in assets under management, making this the largest fund-management initiative in the country. Improving infrastructure and opportunities in rural areas is key to eradicating hunger and poverty. Infrastructure development is a key driver for progress across the African continent and a critical enabler for productivity and sustainable economic growth. Ten years ago a private sector operator who wanted to discuss a regional project with two governments would be lacking a rational framework. Outdated infrastructure in Africa continues to be a major hindrance to its development the report notes. For example, transport access can improve education and markets for farmers’ outputs and others by cutting costs, facilitating private investment, improving jobs and income levels for many. To drive the implementation of PIDA, African leaders The conundrum is that countries with the greatest infrastructure needs are often the countries that are least attractive to investors. Africa's people face the longest distances to nearest large markets. Infrastructure investment needs have been estimated at 6.2 per cent against actual spending of 3.2 per cent of the GDP of Latin America and the Caribbean in 2015. Democratic governance has been strengthened over the past five decades, enabling a platform for stable growth and prosperity in most parts of the continent. Access to information technology: Africa in the world rankings. A bulk of this infrastructure spending comes from domestic sources. create an infrastructure strategy for the entire country improve the way it uses cost benefit analysis and develop evidence for finance options establish a Commission for Public Engagement to involve local communities in major projects give the National Infrastructure Commission greater independence. Africa's poor infrastructure is slowing its economic development, says a recent UN report. Furthermore, a recent World Bank study found that the poor state of infrastructure in many parts of Africa reduced national economic growth by two percentage points every year and cut business productivity by as much as 40%, making Africa – in spite of its enormous mineral and other natural resources – the region with the lowest productivity levels in the world. UNIDO worked together with the European Union in Central Africa to improve the region’s products quality in view of boosting access to international markets. ADMS and substation upgrade to increase energy reliability and efficiency. Projected needs in Africa are around 5.9 per cent of regional GDP in 2016-2040, more than the current 4.3 per cent. Investment in infrastructure accounts for over half of the recent improvement in The goal is to improve the quality and delivery of ICT across the region, improving the daily lives of the people of Africa and helping to support industry and economic development. Infrastructure funding is largely provided by South Africa’s national government. Over 50 percent of Africa’s population lived in range of a GSM mobile phone signal in 2006. Compared with other regions, African countries have a low stock of infrastructure, particularly in energy and transportation, and the potential for information and communication technologies (ICTs) has not been fully harnessed. Global data and statistics, research and publications, and topics in poverty and development. As things stand, less than two per cent of all CDM registered projects currently take place within the continent. In 2015, Latin America received over $34 billion in private investment in infrastructure. Six of the world’s fastest growing economies are in Africa! However, infrastructure providers waste $8 billion a year on excessive staffing, distribution losses, undercollecting revenue and inadequate maintenance. Vertiv partners with Fajoba Group to improve IT infrastructure in Africa Print Email Details Created: Thursday, 10 September 2020 16:24 . The study team conducted an in-depth assessment of the state of infrastructure in 24 countries across the continent. However, even after the full potential of efficiency gains are realized, a substantial funding gap of US$31 billion will remain, particularly for water and power infrastructure in fragile states. The Lamu Port-South Sudan Ethiopia Transport Corridor (LAPSSET) is a complex initiative that combines many elements: the development of a new port at Lamu, Kenya; an oil pipeline from Lamu to South Sudan; and road and railway links to the western part of Ethiopia. IFC is breaking new ground with its first investment in a construction company in Africa, helping the continent meet its growing needs for improved infrastructure to generate social and economic development. External finance for Africa’s infrastructure was buoyant in the years leading up to the global financial crisis, swelling from $4 billion in 2002 to $20 billion in 2007. For instance, growth of GDP per capita for the region would increase by an estimated 1.7 percentage points per year if it were to close the gap with the median of the rest of the developing world. The government has courted foreign direct investment to lure investors into areas that need infrastructure, and foreign companies often build, own an… It’s time to change this, explains Souleymane Coulibaly . This estimate is still short of what China allocated to infrastructure during the last 20 years, which only in terms of capital investment was the equivalent to 15 percent of its GDP. Nonetheless in the capital of the Senegal, Dakar 71% of the trips are covered by foot. Live chat: how can governments improve energy infrastructure in Africa? Working closely with the private sector, the summit produced tangible outputs that will, over time, contribute to regional transformation. In order to boost intra-African trade, we need to improve infrastructure. Africa, on the other hand, received only $8 billion, less than 25% of that. The study finds that regional power trade could save Africa US$2 billion per year in energy costs. Surveys were conducted among 16 rail operators, 20 road entities, 30 power utilities, 30 ports, 60 airports, 80 water utilities, and over 100 ICT operators, as well as the relevant ministries in 24 countries. If we look at the GINI coefficients, an index which measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution, Africa is the most unequal continent in the world. The entire installed generation capacity of 48 Sub Saharan African countries is 68 gigawatts, no more than Spain’s. Access to medical care is not always easy in sub-Saharan Africa. This growing youth population, most of which has access to modern and rapid communications systems, and requires instant results, could impact adversely on the African countries if social inequality and the current systems of government are not revised. Africa's rural infrastructure is inadequate by almost any measure and its road network is particularly underdeveloped. This estimate is more than double what was originally thought. Despite sustained economic growth since 2005, rural poverty in Mozambique persists. Beyond the seemingly unlimited resources from the public But new technologies are helping to breakdown the barriers preventing medicines from reaching remote populations. Africa suffers about one-quarter of the world’s burden of disease yet has barely three percent of its health workers. This cycle is broken across much of … Infrastructure systems are often not maintained which puts at risk the potential for sustainable development. That’s why we designed PIDA (Programme for Infrastructure Development in Africa), a 30-year strategy by NEPAD, the African Union and African Development Bank (AfDB), focusing on regional trans-boundary projects. The study is one of the most detailed ever undertaken on the African continent. Your feedback is very helpful to us as we work to improve the site functionality on worldbank.org. We provide a wide array of financial products and technical assistance, and we help countries share and apply innovative knowledge and solutions to the challenges they face. Even though progress has been made for the past decade to improve the country’s ICT infrastructure, its digital economy is still lagging behind mainly because of poor connectivity, he said. The World Bank just announced in its study, Africa’s Infrastructure: A Time for Transformation, that the poor state of infrastructure in Sub-Saharan Africa—its electricity, water, roads and information and communications technology (ICT)—cuts national economic growth by two percentage points every year and reduces productivity by as much as 40 percent. Foreign investment, however, is helping fill in some of the gaps. Infrastructure investment is necessary, but hardly sufficient to enable developing countries to transform their economies to achieve sustainable prosperity, according to this year’s UNCTAD Trade and Development Report: Power, Platforms and the Free Trade Delusion (TDR 2018), released in late September. Improved school infrastructure for SA’s learners. To close the infrastructure gap with other parts of the world, meet the Millennium Development Goals, and achieve national development targets in Africa within 10 years, an annual spending of $93 billion would be required. Many African countries, particularly fragile states, have taken longer to catch up on infrastructure and have considered lower-cost technologies. Before you leave, we’d love to get your feedback on your experience while you were here. Efficient use of existing resources can release an additional $17.4 billion in finance for infrastructure every year. The New Partnership for Africa’s Development (NEPAD) is happy to be part of this upward transformation process, through the implementation of its programmes. When high level politicians, business entrepreneurs, industry experts and researchers met in Dakar, it was not be just another talk-shop on Africa’s development. The World Bank Group works in every major area of development. Africa bears one-quarter of the global disease burden, yet has only 2% of the world’s doctors. Entrepreneurship and job creation depend on a facilitating environment. Africa faces significant challenges in improving health care — the current Ebola outbreak among them — but even small advances can make a big difference. It contributes significantly to human development, poverty reduction, and the attainment of the Millennium Development Goals (MDGs). A growing amount of information about Ebola is being spread through social media, which has picked up in Africa due to the rapid increase in cell phone use. PIDA also forms the basis for the Dakar Financing Summit for Africa’s Infrastructure, which took place in Senegal in June 2014. Most countries have poor health infrastructure and weak health systems that are unable to provide quality care to patients. In Burkina Faso, Ghana, Niger, or Uganda–-to name a few–-uncollected power bills are as high as a whole percent of the GDP. The good thing about PIDA is that it was designed from the bottom up. Dr. Ibrahim Mayaki is the chief executive officer of NEPAD. Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). Apr 10, 2019. The equation of the most unequal yet youngest continent is one that could explode. “The good news is that no one can doubt that investments in maintenance yield solid returns—we found that every $1 invested in upkeep of roads returns $4 in asset longevity and service.”. Improving this will require improved targeting of local infrastructure, increased efficiency and higher levels of funding. The essential role of infrastructure is being rediscovered worldwide as a key component of a comprehensive development strategy. These are examples of Africa’s infrastructure challenges. ICA’s Areas of Focus: The ICA’s mission is to support and promote increased investment in Africa’s infrastructure. In 2006, South Africa’s Public Investment Commission (PIC) announced plans to create a continent-wide, 25-year equity fund to mobilise local and international investment for infrastructure development in Africa. The need for infrastructure is enhanced by the willingness of citizens to live decently through an increased access to electricity, water, roads and education. Dakar summit highlighted the need to scale-up Africa’s domestic financial resource mobilisation and provided a unique high-level platform to convene and engage African leaders, business-persons, regulators and policy makers on specific aspects that have hampered the roll out of transformative regional projects across the   continent. However this situation is set to change with the launch of the continent’s first infrastructure performance index. Improving the operating efficiency of power utilities through reforms at the institutional level would save Africa $2.7 billion a year—a significant contribution. The main source of the increase was the return of Chinese financing. Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). Two energy systems will be built in Benin and three substations upgraded in Cote d’Ivoire as a part of energy infrastructure upgrade across West Africa. While there were a variety of pressures on resources, … 09-mai-2013. Improving efficiency could facilitate improvements in maintenance or increases in investments for infrastructure. So, inclusiveness is very fundamental. But for real development in every sphere to happen, we need to improve our infrastructure. Transafrica – Efforts to Improve Public Transport in Africa Author ... As the infrastructure in the cities is not designed for walking and cycling these aren't safest options of getting from A to B but don't have the best image as they are often associated with poverty. Africa's poor infrastructure is slowing its economic development, says a recent UN report. Environmental and Social Policies for Projects, A new report, Africa’s Infrastructure: A Time for Transformation, highlights the results of an in-depth assessment of the continent’s infrastructure, Of the $93 billion needed to improve Africa’s infrastructure, almost half is needed to boost the continent’s power supply, The global financial crisis is likely to arrest growth and reduce the funds available for infrastructure. But while we boast of having some of the fastest growing economies, what we don’t generally say is that we also have seven of the ten most unequal economies in the world. To improve the delivery of healthcare, the continent needs to leverage digital technologies, improve knowledge, skills and resources, and create channels for collaboration and consensus among key stakeholders. By ‘inclusive’ I mean creating jobs for the youth and facilitating access to public services. While improving maintenance of power is key for increasing access for Africans, regional trade is another important piece in the puzzle of lowering costs for African consumers. Will you take two minutes to complete a brief survey that will help us to improve our website? Studies have shown that poor road, rail and port facilities add 30% to 40% to the costs of goods traded among African countries, thus adversely affecting the private sector development and the flow of foreign direct investment (FDI). Develop a critical infrastructure. Open access fibre infrastructure deployment and availability play a critical role in enabling service providers to deliver a range high speed of fixed and wireless internet access technologies and services to their consumer and business markets. About 20 years ago, the sight of children sitting in classrooms built from mud with no electricity, water or sanitation was all too common. This legal framework was being strengthened to ensure access and resourcing for quality. As stated by the WHO , today more than one billion people cannot obtain the health services they need, because those services are either inaccessible, unavailable, unaffordable or of poor quality. This is a big achievement. GIZ advises on the coordination and technical review process to select Africa’s priority regional infrastructure projects that will improve access to transport corridors, water & energy supply and internet connectivity. The summit was about producing results in terms of new approaches to project preparation that will lead to an increased level of funding being directed to PIDA projects within a shorter timeframe. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. Urgent action is needed, the report argues, and the global financial crisis further underscores the need for a massive effort to overhaul Africa’s infrastructure. PIDA is that rational framework. Projects to Improve Energy Infrastructure in West Africa. FINANCING AFRICA’S INFRASTRUCTURE DEVELOPMENT Policy Brief 2015 ... and Africa’s share of global trade to increase to 12% by 2063. All of this leads to healthier populations and saves lives. Open Access Fibre Infrastructure: Can Help South Africa to Bridge the Digital Divide. The poor health of so many people in sub-Saharan Africa has been widely known for years. ADMS and substation upgrade to increase energy reliability and efficiency. Parastatal companies also undertake infrastructure development in some sectors, while other initiatives include the government’s Expanded Public Works Programme, and public-private partnerships. This article is published in collaboration with The Conversation.. Over the last 15 years, 68 million people gained access to improved sanitation in urban areas in sub-Saharan Africa. Energy infrastructure in Africa may benefit from plans to promote clean development mechanism (CDM) activities. Access to energy is critical for economic growth and poverty alleviation; no country in the world has developed its economy without abundant energy supplies. In East Africa, these mega infrastructure projects have multiplied as well. South Africa and Mauritius led the Sub-Saharan rankings. Tunisia is an interesting model that failed. Today, chronic power shortages plague 30 African countries and only one in four Africans has access to electricity. Greater demand for health care, in turn, creates more opportunities for successful and timely treatments that boost demand still further. Given our global context, some of the minimal conditions for structural economic transformation require a less top-down approach in our planning processes. “African countries face daunting challenges in increasing investment and improving maintenance and upkeep of their infrastructure stock,” says Foster. Similar efforts are being implemented in Nigeria, one of the most mobile-friendly countries in Africa, where traveling to clinics and the cost of medical services also limits access to care. Hosted by President Macky Sall, who is also  Chairperson of the NEPAD Heads of State and Government Orientation Committee, the summit’s aim was to accelerate the mobilisation of both domestic and international financial support for the implementation of the high impact regional infrastructure projects in Africa. The legislative framework for school resourcing provided a strong basis to achieve adequacy and equity and improve learning outcomes and quality. T he latest KPMG Report shows that improved infrastructure in Africa, technological readiness better health systems and primary education will help the continent become more competitive and create more job opportunities for its increasing young population.. While infrastructure can be poor, the number of mobile internet users in sub-Saharan Africa is growing rapidly. Thank you for participating in this survey! Research by the World Bank states that per capital GDP growth could increase by 1.7 percentage points per year if Africa could find ways to brings its infrastructure in … Rwanda invests in cycling, helps boost clean air and jobs, AfCFTA: Africa readying for free trade come January 2021, How men are redefining masculinity in Mozambique, Mario Mendes: What I learned from my fish farming in rural Angola, Protecting Africa’s children from child labour, The Secretary-General’s Message on Africa Industrialization Day, The Office of the Special Adviser on Africa (OSAA), New Partnership for Africa's Development (AUDA-NEPAD), United Nations Economic Commission for Africa (ECA). To eradicating hunger and poverty least attractive to investors statistics, research and publications, and the attainment of continent... These are examples of Africa ’ s time to change with the available resource envelope these examples! These are examples of Africa ’ s areas of Focus: the ICA Secretariat ’ national. 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