Infrastructure Challenges and Opportunities in Africa

An image showing African infrastructure projects and investments with the text

Posted By:Infrabazaar



An Overview:- According to the recent studies if African infrastructure could add 2% of GDP to the region growth then the productivity can be improved by 40%. According to the World Bank, infrastructure is the only responsible factor for more than half of the Africa’s improved economy. The growth rate has potential to contribute even more in the future. While 15% of the world’s population lives in Africa they are still considered as underdeveloped or developing nations. The young people of Africa are now ready to work, as it has great mineral reserves and uncultivated farmland.

Investment in the Region:- The African continent continues to attract the interest of global investors, developers and operators searching for further growth. There is huge opportunity for investors to invest in Africa as it has the potential to grow and produce substantial results. This sector is mainly focusing on economic infrastructure such as water, transport and logistics, mining, energy, property and telecommunication.

The need of infrastructure is to improve the economic development is undeniable. From the recent survey it makes clear that the availability of funding is a common and critical challenge. The need of infrastructure is viewed as an opportunity and to provide capital by investors remains a challenge. The few other challenges which are identified in the survey are policy, political risk, and regulatory clarity and availability of resources. Availability of skilled manpower also has remained a challenge, which needs to be properly addressed.

Economic growth:- South Africa and Nigeria have the most ambitious infrastructure programs and they make almost 60% of spend across the Sub-Saharan Africa. Kenya is the third largest nation which has planned infrastructure, utilities and transport which accounts to approximately of 70% of it’s spend in Southern Africa Region.



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