Abuja — The World Bank said yesterday that the amount needed to fix infrastructure in Africa is twice what was previously estimated. It put the new figure at $93 billion half of which, it noted, should go into boosting power supply.
A joint study just released by the bank from Washington cited examples of infrastructural challenges in the continent. African consumers pay twice as much for basic services as people elsewhere in the world.
A monthly basket of prepaid mobile telephone services costs $12 in Africa but only $2 in South Asia.
Resource-rich countries like Nigeria and Zambia can manage funding gap of four percent of GDP. For much of the rest of the continent, the task ahead is daunting.
The poor state of infrastructure in Sub-Saharan Africa cuts back national economic growth by two percentage points every year. Bank study team which assessed the state of infrastructure in 24 countries across the continent also discovered that poor electricity, water, roads and information and communications technology (ICT) reduces productivity by as much as 40 percent.
A separate statement from the bank in Midrand, South Africa, said the study, is "one of the most detailed ever undertaken on the African continent." It was jointly conducted by the African Union Commission, African Development Bank, Development Bank of Southern Africa, Infrastructure Consortium for Africa, the New Partnership for Africa's Development, and the World Bank. Besides relevant ministries, the study surveyed 16 rail operators, 20 road entities, 30 power utilities, 30 ports, 60 airports, 80 water utilities, and over 100 ICT operators, as well as the relevant ministries in 24 countries.
Results were derived from detailed analysis of spending needs and fiscal costs as well as sector performance benchmarks.
In other words, the study relied on based on country-level microeconomic models and covered operational and financial aspects as well as the country's institutional framework.
"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 and former Nigerian minister, who spoke from South Africa. "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."
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