With Nigeria and 27 African countries doubling their population in the past 30 years amid an estimated annual infrastructure deficit of $170 billion, there is a need for African leaders to scale up interest in critical infrastructure and harmonise policies to facilitate trade, connect Africa to the rest of the world and establish the continent as a major investment hub.
Indeed, Africa’s total population has increased significantly and currently stands at over 1.4 billion with the figure expected to be near 2.5 billion by 2050, according to the United Nations.
In 2023, the continent had around 1.36 billion inhabitants, with Nigeria, Ethiopia and Egypt as the most populous countries. However, African governments are currently faced with a huge debt burden, which has continued to limit sovereign spending on infrastructure across the continent.
As at 2020, many sub-Saharan African countries’ debt-to-GDP ratio exceeded 50 per cent. For instance, Mozambique’s debt-to-GDP stood at 133 per cent; Angola was 103 per cent while Mauritius was 101 per cent. With rising debt constraining budgetary allocation, funding has continued to constitute a key challenge for infrastructure projects, which have typically been financed by African governments.
Infrastructure stock is thus extremely low. In Nigeria, the infrastructure deficit amounts to 30 per cent of its GDP, falling short of the international benchmark of 70 per cent set by the World Bank. Nigeria needs between $100 billion and $150 billion annually over the next 30 years to close its infrastructure deficit.
It is against this backdrop that stakeholders that gathered at the just concluded 31st African Export-Import Bank’s (Afreximbank) yearly general meeting and third AfriCaribbean Investment Forum held in Nassau, The Bahamas, called for a deliberate action that would aid the speedy implementation of modern infrastructure projects, as well as harmonise existing policies that may impede rapid development in the continent.
Afreximbank Vice President, Global Trade Bank Africa, Haytham El Maayergi, said inadequate infrastructure remains a major factor militating against sustainable economic growth in Nigeria and the entire continent.
He pointed out that traditional funding sources like budgets and bank loans could no longer meet the growing demand for infrastructure investment.
According to him, African governments must accept the obligation of eliminating barriers to trade and investment to boost the continent’s four percent share in trade in the global market.
In addition, he said policy harmonisation across the continent would go a long way toward strengthening cooperation and accelerating the implementation of infrastructure projects across the continent.
“There is a need for free movement of persons in the sub-region and the local market. We need basic infrastructure to be available in Africa. We still lack power. No transformation can happen with continued power outages.
“It is achievable; it can be done by the government in collaboration with the private sector. Government and the private sector must sit together and dialogue to solve these issues so that we can export among ourselves.
“All the countries must move in unison with this objective. There must be adequate infrastructure, eliminating inefficiencies and building infrastructure, in addition to enabling the environment will boost investment in Africa.”
Former Group Chairman of Ecobank Group, Arnold Ekpe, said Africa must eliminate policies that constitute a barrier to trade especially at the government level.
“Government and its institutions should not allow their policies to interfere with private sector projects. The gap we have in Africa is in action. We must turn our talk into action and give project implementation priority,” he said.
AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals, Ambassador Albert Muchanga, said there is a need to harmonise policies, as well as eliminate barriers to boost trade ties in the continent.
