- Africa Needs $170 Billion Annually to Bridge Infrastructure Gap – AfDB
African Development Bank Group (AfDB) has estimated that Africa needs between US$130 billion to US$170 billion annually to bridge its infrastructure gap.
The bank disclosed this at the eight edition of the Rand Merchant Bank’s (RMB) where to invest in Africa.
RMB’s where to invest in Africa focuses on the need for efficient infrastructure across the continent. The report came up with rankings for the 54 economies on the continent based on the quality of their infrastructure.
“The report encapsulates a wide range of investment opportunities on the continent. It highlights opportunities in Nigeria with a specific focus on infrastructure as a catalyst of economic development”, Michael Larbie, CEO RMB Nigeria, said.
Infrastructures were classified into hard – electricity, Information and Communication Technology (ICT), and water and sanitation, while soft infrastructures include health and education.
Nigeria’s infrastructural spending is currently less than 1 percent of the GDP, while Angola, Mauritania, Togo, Gabon, and Cote d’Ivoire are spending above 5 percent of their GDP on infrastructure.
Experts believed the low involvement of the private sector is responsible for the huge infrastructural gap across the continent. Therefore, private sector participation is imperative.
However, Celeste Fauconnier and Neville Mandimika, co-authors of the report said: “The good news is that this shortfall represents an opportunity for businesses involved in the development or financing of infrastructure projects.”