Africa's transport and energy infrastructure 'needs investment'

16 March 2011

Africa needs to heavily invest in its transport and energy infrastructure if it is going to encourage economic growth.

J Kofi Bucknor, managing partner of private equity firm Kingdom Zephyr Africa Management, told Reuters there is a "big gap to be filled" in terms of bridges, roads and power stations.

He added the countries worst affected by the problem are those with the biggest populations.

According to the African Development Bank, some $22 billion (£13.6 billion) has to be invested yearly in infrastructure to sustain an annual growth rate of seven per cent.

"If infrastructure constraints, which are inherent in many of these markets, aren't aggressively dealt with, then ultimately the growth will stall," said John Green, head of global business development at Investec Asset Management.

Nigeria is already looking to enhance its energy capabilities, in an effort to end power shortages in the nation.

It comes after it was revealed $20 billion is needed to improve transport routes in the East African Community.

Categories: Transport, Energy

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