Infrastructure development in sub-Saharan Africa needs $93-billion a year over the next decade, with half to target the continent’s power supply crisis, the World Bank said on Thursday.
A study in 24 states estimates that spending needs to double — to about 15% of Africa’s gross domestic product — on poor infrastructure which it said cuts annual national economic growth by two points and productivity by up to 40%.
”Modern infrastructure is the backbone of an economy and the lack of it inhibits economic growth,” says Obiageli Ezekwesili, World Bank Vice-President for the Africa Region.
”This report shows that investing more funds without tackling inefficiencies would be like pouring water into a leaking bucket. Africa can plug those leaks through reforms and policy improvements which will serve as a signal to investors that Africa is ready for business.”
Despite higher-than expected current spending of $45-billion annually, the study showed ”considerable wastage” with efficiency measures potentially worth $17-billion.
The report Africa’s Infrastructure: A Time for Transformation recommended addressing the efficiency shortfalls and closing a remaining the $31-billion funding gap to boost annual spending to $93-billion.
Chief areas for improvement were power supply with inadequate access to energy seen as the single largest impediment to economic growth, along with water, transport and information and communication technologies.
”Prioritising these sectors, increasing investments, and improving efficiency can help African countries avert the worsening impacts of the financial crisis and begin laying the foundations for future growth as the global economy rebounds,” the bank said. — Sapa-AFP