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. Manage agricultural use better through reduced water demand and improved water-use efficiency… However this situation is set to change with the launch of the continent’s first infrastructure performance index. Africa suffers about one-quarter of the world’s burden of disease yet has barely three percent of its health workers. PERCEPTIONS OF CRISIS DETER TOURISM. Covid-19 has further worsened the already fragile foundation of Africa’s health services and caused sharp decline in the provision of … North African countries ranked higher, particularly Tunisia with Egypt and Morocco improving their scores. 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. 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 … 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. 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. Projects to Improve Energy Infrastructure in West Africa. 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. Inclusive policies are an absolute pre-requisite for political stability. Domestic finance in many countries during the same period benefitted from the growth and high prices of natural resources. Improving infrastructure investment in Africa According to the African Development Bank, the shortfall in infrastructure financing is $107.5bn a year. Before you leave, we’d love to get your feedback on your experience while you were here. The entire installed generation capacity of 48 Sub Saharan African countries is 68 gigawatts, no more than Spain’s. Beyond the seemingly unlimited resources from the public The lack of modern infrastructure in Africa costs the continent “at … The 51 projects require an estimated $68 billion for their implementation to 2020 whilst an additional $300 billion is envisaged as requirement for the PIDA projects to be implemented through to 2040. 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. In order to boost intra-African trade, we need to improve infrastructure. The study finds that regional power trade could save Africa US$2 billion per year in energy costs. Foreign investment, however, is helping fill in some of the gaps. These are examples of Africa’s infrastructure challenges. 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. Only one in three rural Africans has access to an all-season road; more than 20 percent of the population in Cameroon, Ghana, Mauritania, Niger, and Tanzania must travel more than two kilometers to their primary water supply; African consumers pay twice as much for basic services as people elsewhere in the world; and a monthly basket of prepaid mobile telephone services costs $12 in Africa but only $2 in South Asia. Access to medical care is not always easy in sub-Saharan Africa. For example, selected projects shall contribute to regional socioeconomic development, intra-African trade, Agenda 2063 and the Sustainable Development Goals. Akinwumi Adesina, the president of the African Development Bank Group (AfDB), warns of a “disaster triangle” that is haunting his … Foreign investment, however, is helping fill in some of the gaps. Discussions have taken place involving the African Development Bank (AfDB) and other Nairobi Framework (NF) partners. 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 good thing about PIDA is that it was designed from the bottom up. Improving infrastructure and opportunities in rural areas is key to eradicating hunger and poverty. Dr. Ibrahim Mayaki is the chief executive officer of NEPAD. 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. Taking advantage of mobile-friendly infrastructure in Nigeria. Africa has often seen constrained investment into its infrastructure because of the lack of a benchmark. Financing will develop from public-private partnerships. 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. Thank you for participating in this survey! It’s time to change this, explains Souleymane Coulibaly . 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. Going forward, African countries should consider digital health solutions as a critical component of national strategies for improving the resilience of health systems. 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. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. The study is one of the most detailed ever undertaken on the African continent. To drive the implementation of PIDA, African leaders 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. This means that they must improve their business climates, prepare sound sectoral policies, and write and enforce the types of regulations that attract investors. Tunisia is an interesting model that failed. In East Africa, these mega infrastructure projects have multiplied as well. To close the funding gap a wide combination of resources will be needed, including public budgets, resource rents, local capital markets, private sector and non-OECD finance, as well as traditional donor assistance. The government has courted foreign direct investment to lure investors into areas that need infrastructure, and foreign companies often build, own an… You have clicked on a link to a page that is not part of the beta version of the new worldbank.org. Access to energy is critical for economic growth and poverty alleviation; no country in the world has developed its economy without abundant energy supplies. 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. 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. Apr 10, 2019. 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. In order to boost intra-African trade, we need to improve infrastructure. Over 50 percent of Africa’s population lived in range of a GSM mobile phone signal in 2006. Africa’s infrastructure has been lagging behind others in developing world. 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. 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. Africa 50 is a pan-African investment platform. Learn how the World Bank Group is helping countries with COVID-19 (coronavirus). However, the current global financial crisis is likely to arrest that growth, reducing the funds available for infrastructure and checking the demand for infrastructure services. “At 18 cents per kilowatt-hour on average, Africa’s power is very expensive to produce by global standards,” says Briceno-Garmendia. Presently, less than 90 percent of charges billed to customers are actually collected by utilities, compared with 100 percent for a well-run utility. 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. While there were a variety of pressures on resources, … 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. Firms in many African countries indicate that the largest obstacle to doing business is the power constraint. Government must improve the way it makes infrastructure decisions 6th February 2018 Published today by the Institute for Government, How to transform infrastructure decision making in the UK says that Great Western cost overruns and delays to South East airport expansion show the current process isn’t keeping up with the demands of a modern economy. Africa faces significant challenges in improving health care — the current Ebola outbreak among them — but even small advances can make a big difference. The Africa Renewal information programme provides up-to-date information and analysis of the major economic and development challenges facing Africa today. Africa's people face the longest distances to nearest large markets. So, inclusiveness is very fundamental. This is a big achievement. But new technologies are helping to breakdown the barriers preventing medicines from reaching remote populations. 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. Poor infrastructure has been identified as one of the major barriers to agricultural trade within and outside Nigeria. Infrastructure systems are often not maintained which puts at risk the potential for sustainable development. Energy infrastructure in Africa may benefit from plans to promote clean development mechanism (CDM) activities. Your feedback is very helpful to us as we work to improve the site functionality on worldbank.org. While infrastructure can be poor, the number of mobile internet users in sub-Saharan Africa is growing rapidly. Investment in infrastructure accounts for over half of the recent improvement in Greater demand for health care, in turn, creates more opportunities for successful and timely treatments that boost demand still further. 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. 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.. 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. 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. WASHINGTON, November 12, 2009—Over the last few years, Africa has benefitted from some significant improvements in infrastructure. Find Out. Live chat: how can governments improve energy infrastructure in Africa? 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. 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. Fundamentally, the majority of the population did not perceive the level of inclusion of the youth as satisfactory. Efficient use of existing resources can release an additional $17.4 billion in finance for infrastructure every year. In a growing number of African nations, the catastrophic rate of new adult HIV infections appears to be falling: according to the UNAIDS (the Joint U… This legal framework was being strengthened to ensure access and resourcing for quality. In addition, the existing capacity also needs refurbishment because, as it stands today, a quarter of Africa’s installed power generation capacity is not operational. The equation of the most unequal yet youngest continent is one that could explode. Infrastructure development is a key driver for progress across the African continent and a critical enabler for productivity and sustainable economic growth. The legislative framework for school resourcing provided a strong basis to achieve adequacy and equity and improve learning outcomes and quality. In Burkina Faso, Ghana, Niger, or Uganda–-to name a few–-uncollected power bills are as high as a whole percent of the GDP. We have picked 16 out of 51 largely programme-based PIDA projects that were discussed at the Summit. Improving the operating efficiency of power utilities through reforms at the institutional level would save Africa $2.7 billion a year—a significant contribution. Despite the gains registered in improving regional infrastructure connectivity across the continent since the establishment of the African Union along with NEPAD, Africa still faces serious infrastructure shortcomings across all sectors, both in terms of access and quality. Projects to Improve Energy Infrastructure in West Africa. 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. 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. According to GSMA , the mobile industry's trade … Will you take two minutes to complete a brief survey that will help us to improve our website? Thank you for agreeing to provide feedback on the new version of worldbank.org; your response will help us to improve our website. For this reason the expansion and maintenance of critical tourism infrastructure in South Africa is of high importance. The economic costs of Africa’s insufficient stock and poor quality of infrastructure are as big for the continent as the size of the potential impacts of resolving the problem. Working closely with the private sector, the summit produced tangible outputs that will, over time, contribute to regional transformation. 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. 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. The New Partnership for Africa’s Development (NEPAD) is happy to be part of this upward transformation process, through the implementation of its programmes. Infrastructure funding is largely provided by South Africa’s national government. Many African countries, particularly fragile states, have taken longer to catch up on infrastructure and have considered lower-cost technologies. It works with the media in Africa and beyond to promote the work of the United Nations, Africa and the international community to bring peace and development to Africa. The World Bank Group works in every major area of development. Africa is already spending $45 billion a year on infrastructure. Africa’s Infrastructure: A Time for Transformation highlights the results of the Africa Infrastructure Country Diagnostic (AICD), a study conducted by a partnership of institutions including the African Union Commission, African Development Bank, Development Bank of Southern Africa, Infrastructure Consortium for Africa, the New Partnership for Africa’s Development, and the World Bank. The need for infrastructure is enhanced by the willingness of citizens to live decently through an increased access to electricity, water, roads and education. 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. Improve the enabling environment for investment in sustainable water-related infrastructure and services in order to at least double current investment levels. 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. 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. 09-mai-2013. We face big challenges to help the world’s poorest people and ensure that everyone sees benefits from economic growth. 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. Democratic governance has been strengthened over the past five decades, enabling a platform for stable growth and prosperity in most parts of the continent. 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 … Improving efficiency could facilitate improvements in maintenance or increases in investments for infrastructure. The report concludes that many countries may have to consider other ways of aligning infrastructure targets with the available resource envelope. Parastatal companies also undertake infrastructure development in some sectors, while other initiatives include the government’s Expanded Public Works Programme, and public-private partnerships. ADMS and substation upgrade to increase energy reliability and efficiency. These systems allow for more efficient production and transportation of goods, allowing for increased economic output. Today, chronic power shortages plague 30 African countries and only one in four Africans has access to electricity. The World Bank Group aims to address some of the gaps and constraints in the communications infrastructure through policy and catalytic investments. It could also potentially lower the cost of investment needed to improve infrastructure and enhance progress towards universal health coverage. 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. 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. All of this leads to healthier populations and saves lives. 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. 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. These efforts have produced important results. 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. The essential role of infrastructure is being rediscovered worldwide as a key component of a comprehensive development strategy. 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. Access to information technology: Africa in the world rankings. Establish a national water-resources infrastructure agency to manage large regional investments. Improved school infrastructure for SA’s learners. Vertiv partners with Fajoba Group to improve IT infrastructure in Africa Print Email Details Created: Thursday, 10 September 2020 16:24 . Projected needs in Africa are around 5.9 per cent of regional GDP in 2016-2040, more than the current 4.3 per cent. 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 poor health of so many people in sub-Saharan Africa has been widely known for years. The story of Africa’s development is changing. Africa's poor infrastructure is slowing its economic development, says a recent UN report. AFRICA’S 3 INFRASTRUCTURE: GREAT POTENTIAL BUT LITTLE IMPACT ON INCLUSIVE GROWTH KEY MESSAGES A frica must industrialize to end poverty and to generate employment for the 12 million young people who join its labor force every year. 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. African utilities are unable to collect some $2.4 billion a year of services billed. 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. This cycle is broken across much of … Poor internet connections, transport and power networks are keeping Africa in the dark. 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. Global data and statistics, research and publications, and topics in poverty and development. Africa has the lowest internet penetration rate in the world (see Figure 2). Improving this will require improved targeting of local infrastructure, increased efficiency and higher levels of funding. 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. The high cost of transactions in Africa highlights the urgency to upgrade infrastructure, support … Outdated infrastructure in Africa continues to be a major hindrance to its development the report notes. 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. The main source of the increase was the return of Chinese financing. The results were derived from detailed analysis of spending needs (based on country-level microeconomic models), fiscal costs (which involved collecting and analysis of new data) and sector performance benchmarks (covering operational and financial aspects as well as the country’s institutional framework). 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. Written by Noluthando Mkhize and Samona Naidu. About 20 years ago, the sight of children sitting in classrooms built from mud with no electricity, water or sanitation was all too common. As things stand, less than two per cent of all CDM registered projects currently take place within the continent. The significant outcomes of the summit, which was a nouvelle approach to tackling the changing landscape of Africa’s shifting development paradigm, will be an opportunity for NEPAD to be key point for investment in Africa.
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