Business
Transport infrastructure needed in Africa before development
The AfDB recently announced plans to launch a pan-African infrastructure bond totalling about $22 billion. Part of this money will be ploughed into rail and roads projects, most of them in East and Central Africa. There have been suggestions that governments and the private sector could develop infrastructure in partnership.
Examples of successful public-private partnerships are the Citadel Capital of Egypt, the largest investment company in Africa, and the Transcentury of Kenya, a company that is involved in infrastructure projects. These efforts are supported by African banks, which are coming up with innovative products, such as syndicated loans, that provide the necessary financial support.
The banks are also bringing on board development finance institutions such as the German Investment Corporation, Netherland Development Finance Company, Industrial Development Corporation of South Africa, as well as trans-national finance institutions such as European Investment Bank, International Finance Corporation, and the AfDB.
Ongoing rail and road projects will help accelerate Africa’s industrialization efforts, says Mayaki. Experts add that there has to be a transfer of knowledge to local managers, local experts, and local workers. This means that when the expatriates leave, locals can continue to maintain the infrastructure. The urgent task now is to commit more resources to improving Africa’s rail and roads networks. Without good roads and railways, industrialization is impossible.
Nirit Ben-Ari writes for United Nations Africa Renewal Magazine
