Regional infrastructure development, particularly in the areas of transport, communications and energy infrastructure and services, is crucial for economic growth and sustainable development. Despite efforts to put in place a coherent programme of activities in these areas, Africa remains one of the continents with weak infrastructure networks. These weak networks contribute significantly to higher production and transaction costs, and they undermine business competitiveness.

Recent diagnostic studies in Africa show that infrastructure is responsible for more than half of Africa's recent improved growth performance and has the potential to contribute even more in the future. Africa's infrastructure networks increasingly lag behind those of other developing countries and are characterised by missing regional links and stagnant household access (World Bank, 2010). These same findings for Africa indicate that the infrastructure needs are around USD 93 billion per year for the coming ten years. After capturing efficiency gains and considering domestic and external spending projections, a financing gap of around USD 31 billion per year, mostly in the power sector, would still prevail.

With the delivery of the much-needed infrastructure and its services alone, economic growth will not happen. Therefore, investing in infrastructure and services would have to be accompanied with support to sector governance and regulatory reforms, trade facilitation measures etc. so that reduced costs and time savings can be transmitted to the end-users.

Continental infrastructure development initiatives

The importance of accessible and efficient infrastructure as a tool for achieving regional integration for sustained economic development has been on the minds of African leaders since the 1970s. The years 1978 to 2000 were devoted to the programme of the United Nations Transport and Communications Decade in Africa (UNTACDA), supplemented by the sub‑Saharan Africa Transport Policy Programme (SSATP), for the development of these sectors. These programmes were added to by other recent initiatives, including the NEPAD Medium to Long Term Strategic Framework (MLTSF) and the Programme for Infrastructure Development in Africa (PIDA).

In an effort to accelerate the continent’s infrastructure development, the African Union, the African Development Bank, the New Partnership for Africa’s Development (NEPAD is a programme), as well as the Regional Economic Communities, are currently in the process of formulating PIDA. The objectives of PIDA are to promote socio-economic development and poverty reduction in Africa through improved access to integrated regional and continental infrastructure networks and services.

The current status of infrastructure developments in Africa remains mixed. Some sectors have recorded significant progress compared to others. The current situation is by and large unsatisfactory, characterised by insufficient and low-quality infrastructure on the one hand, and inefficient and expensive services on the other. For example, the total length of classified road networks in Africa is estimated to be about 2.3 million kilometres, of which 20% is paved. In contrast, the required or desired level of social and economic development is estimated at an average of 7.6 kilometres per 100 square kilometres. Other road infrastructure developments include Trans‑African Highway 1 (TAH1); Trans‑African Highway 5 (TAH5), and Trans‑African Highway 7 (TAH7).

Compared with that of roads, the picture in the railway network is not very satisfactory. Africa’s railway network consists of about 89 000 kilometres for an area of about 29.6 million square kilometres, representing a density of about 2.5 kilometres per 1 000 square kilometres. This is much lower compared with 40 kilometres per 1 000 square kilometres for Europe. Fourteen of the mainland countries in Africa do not have railway lines or sections of international lines. In addition, the railway network in Africa is generally old and technically outdated. The poor railway network has resulted in a low share of rail freight in intra-African trade. More investments need to be made to improve the situation.

Africa's global share of air transport remains modest. However, this modest share relies on only three major hubs, namely, Johannesburg, Nairobi and Addis Ababa. South African Airways, Kenya Airways and Ethiopian Airlines remain the three major airlines in Africa. In 2004 Africa’s share of world passenger traffic stood at about 5.2% and its share of world freight traffic at approximately 3.6%. During the same year, the sector generated 470 000 jobs on the continent, resulting in an income estimated at USD 11.3 billion (1.7% share in the African gross domestic product). In addition to job opportunities, air freight plays a growing role in the competitiveness of goods in world markets for high-value, time-sensitive cargo (such as horticultural and floricultural products), particularly to landlocked countries.