All across Sub-Saharan Africa, there is a huge dearth when it comes to investing in infrastructure such as roads, telecommunications, bridges, dams and related utilities. Billions of dollars in investment are needed not just to build new infrastructure but also to refurbish existing ones.
The roads, in Africa are in especially terrible shape. Save for a few countries like Namibia, a majority of African countries in Southern Africa have their roads in a state of disrepair. Sadly Botswana is fast joining the swelling ranks where public infrastructure needs an overhaul. This at a time when public finances are terribly suppressed. Until such that that the investment deficit is tackled, it will not be possible for Africa to fulfill its aspirations to fully integrate into the world economy. Over the years a lot of headway has been made in human resources development. A lot still needs to be done. But it is in the area of infrastructure where we are really lagging behind. As Southern Africa and Botswana in particular we have a clear advantage to move beyond this hurdle. Already in place is the existence of Southern African Customs Union.
There is an ongoing debate not just about the formula for revenue sharing but also just what the money accrued should be used for. We find ourselves in the camp of those who argue that the money should not be used to support national budgets in member countries where they are used to pay salaries for public servants. We are of the view that the money should be used to develop a network of infrastructure across the region as a way of stimulating economic development and fast tracking economic integration. If you take power alone, the amount of under investment in that sector is mind boggling. A study commissioned by Africa Progress Panel, a group of prominent individuals chaired by Kofi Annan, the former UN Secretary General found that “the waste of scarce resources in Africa’s energy systems remains stark and disturbing.”
The study said Africa is losing the energy race so badly that the continent was well on course to being the only region in the world where the number of people without access to electricity is growing.
“About 600m sub-Saharan Africans lack access to electricity, a number that will grow by 45m over the next 15 years,” according to the report that also highlighted the crumbling and mismanaged state of the energy infrastructure. According to the same report, the total electricity generating capacity of sub-Saharan Africa is about 90 gigawatts, of which almost half is in South Africa. “This is less than the entire generating capacity of South Korea.” Sadly the same applies to water. And given the glaring economic realities, no country on its own will be able to catch up. The upshot of it all is that it retards all efforts to industrialise and grow economies. Poorly developed infrastructure is a major disincentive for investors who are willing to put money into Africa. South Africa, to her credit is doing relatively well to develop roads, ports, harbours, airports and telecommunications.
But all those will not mean much if other African countries do not do the same. Erecting such infrastructure will galvanise the already existing investors and unleash the continent’s potential a good amount of which remains locked down by the very absence of infrastructure. We call on our leaders to seriously consider setting up an Infrastructure Fund that would be shared proportionally, according to both one’s needs and one’s contribution.
