More than $23 billion of transport projects in Southern Africa
Written by ABiQ Analysts
Republished from ABiQ.
Ageing infrastructure and growing populations are driving Southern African countries to invest in building new or improving existing transport infrastructure. Without an efficient transport infrastructure, international investors are reluctant to invest in emerging markets.
The population in Southern African countries is growing by more than 11.6 per cent and will reach 75 million by 2030. This growth, coupled with an ageing asset base, is increasing the pressure on the regions transport infrastructure. The COVID-19 pandemic has negatively affected the global economy, reducing the availability of liquidity in countries that depends on foreign direct investments and loans to keep their economies functioning. This increased competition for the same limited funding will force African countries to rethink their investment policies. Governments across Africa will have to adapt their investment policies to make their respective countries relevant in this competitive landscape.
Without efficient transport infrastructure, foreign investors will look at placing funding where their investments will have the best probability of success. Southern Africa was for long the leader with the best transport infrastructure in Africa. However, years of mismanagement and neglect have rendered it ineffective with other regions catching up.
With $23 billion of active transport projects, Southern Africa is in fourth place after West Africa, leading only Central Africa with $16 billion in active transport projects. Of the $23 billion, slightly more than $12 billion is under construction with a further $1.4 billion in the tendering phase.
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