Infrastructure development in Africa
10 April 2014
The competitiveness of African countries in international and local markets is severely hampered by transport costs, said to be 63% higher than in developed countries. According to the African Development Bank (AfDB), transport costs on the continent represent between 30% and 50% of total export value.
Expenses are higher in landlocked countries such as South Sudan, Mali, Burkina Faso, Niger, Uganda, Malawi, Rwanda, Burundi, Zambia and Zimbabwe, where the cost of moving goods can constitute three-quarters of total export value.
Intra-African trade is said to be about 11% of total trade, compared with nearly 40% among the countries of south-east Asia. To deal with this situation, the Programme for Infrastructure Development in Africa (PIDA) was established in July 2010.
An initiative of the AfDB, New Partnership for Africa's Development (NEPAD), and the African Union, PIDA aims to "bridge Africa´s massive infrastructure gap" by upgrading rail and road throughout the continent.