A comparison of infrastructure in Africa with that of the fast-growing BRIC nations (Brazil, Russia, India and China) gives a stark reminder of the large infrastructural deficit in the former, which effectively stunts the continent’s economic development.
In Africa, the average kilowatt-hours of electricity produced per person is 682. This compares with 1627 (2.4 times higher) in the BRICs. Road density (kilometres of road per 1000 square kilometres) in Africa is only eight, while it is 39 (4.9 times higher) in the BRICs. Rail density, moreover, is 3.2 in Africa versus 7.4 for the BRICs. The size of the gap is significantly larger if South Africa – which accounts for a disproportionate share of African infrastructure – is excluded.
Many parts of the West, especially Europe, are connected by sophisticated infrastructure networks that include roads, railways and water. It is therefore easy to facilitate exchanges of persons, goods and services in a way that creates economies of scale, price competitiveness and efficiency. Regrettably, it is still a Herculean task to find the same connectivity of roads, railways or water in any part of Africa.
The cost of this deficit is manifested in the difficulty of the production process, uncompetitive pricing, frequent use of expensive modes of transportation such as aviation, and loss of time and efficiency.
Poor infrastructure, slow progress
This has a devastating impact on high-output sectors such as agriculture, where a sizeable quantity of African goods perish in the transportation process. And the absence of critical skills as a result of the deficit in education infrastructure means that the benefits of products such as cash crops and minerals cannot be fully harnessed. Produce such as timber, cocoa and crude oil are sometimes extracted by Europeans and sometimes by Africans, but the latter participate in insufficient numbers to create high employment.
Perhaps more worrisome is that African participation in the value-added development of these resources – such as converting cocoa to chocolate; crude oil to petrol, diesel, aviation fuel, paraffin or plastics; and timber to finished wood – is almost non-existent. This is because they are exported to the West, only for Africa to re-import the finished products.
In spite of these deficits, I am convinced that the future of our entire planet and its sustainability for at least the next 100 years depends largely on what happens on the African continent in this decade.
The losses and missed opportunities and the comparative potential profits and opportunities are the most compelling and rational justifications for an aggressive pursuit of infrastructural renewal by African leaders.
A boost for democracy
Africa has several critical challenges – not least developing human capital, improving governance and strengthening democracy. But clearly the need to upgrade infrastructure is pressing, and is perhaps intertwined with the others. If we develop water, health and education-related infrastructure, the quality of human capital will be improved. Stronger governance and democracy will follow and certainly result in higher investment and an even better quality of infrastructure.
Africa must build better schools and hospitals, invest in power and telecommunications. It must build better roads, rail systems, airports, seaports and water transportation systems. And we must invest in clean water distribution.
I believe the store of assets and wealth that lie untapped within Africa far exceed what it has received or will ever receive by way of foreign aid and, indeed, foreign investment. Africa must harness its own wealth by adding value to its assets.
In Lagos State, Nigeria, every annual budget of the state since my election as governor in May 2007 has been formulated around boosting infrastructure to drive economic growth and eradicate poverty. The 2008 budget had a 60:40 capital-to-recurrent expenditure ratio. In 2009 it was 61:39, in 2010 it was 57:43 and in 2011, 56:44. The gradual reductions in capital expenditure are dictated by the rising recurrent cost of maintaining and staffing infrastructure that has been provided, along with the need to respond to recent national wage increases.
The Lagos example
Our vision of turning Lagos into 'Africa’s model mega-city' and all our progress within the state have centred on developing world-class infrastructure to cope with the demands of managing a mega-city. That is why we are renovating and equipping schools as well as building new, modern classrooms and school buildings. It also explains our investments in the health sector, our modernisation of hospitals and primary healthcare centres, and our transformation of the state university teaching hospital into a centre of excellence for tertiary healthcare delivery.
Our progress in transport infrastructure has been well-received by Lagosians, especially because we have developed and are extending Africa’s first 'bus rapid transit' system. We are transforming our roads, bridges and expressways, building a new intra-city rail network, introducing regulated water transportation services, and embarking on new international airport and seaport projects. We have created a metropolitan transport agency with support from international partners to coordinate transportation planning, design and regulation.
We are also developing industrial infrastructure, including a new free-trade zone in partnership with foreign investors, industrial estates and new enterprise zones for small businesses and artisans. We are also investing in water, sanitation and waste management systems.
In Lagos State, we recognise that the resources of government are insufficient to bridge our infrastructure gap. So we have set up a one-stop office to harness the potential for local and international public private partnerships.
Global partners
Lagos State, and indeed the whole of Africa, needs the support of stakeholders around the world. Africa has resources and markets that the rest of the world needs. And Africa needs the knowledge and skills that many parts of the world already have.
The continent is experiencing a positive and sustained democratic transition. Governance is improving in many parts. A new generation of committed leaders is emerging across Africa; the region’s prospects as an investment destination and trade partner are improving.
Africa’s contemporary political leadership, the spread of freedoms and the quest for them alongside demands for constitutional democracy, are strong signs that the giant is being roused from its slumber. But it will not be fully roused without better infrastructure.
Babatunde Fashola is the governor of Lagos State, Nigeria
