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Monday, April 2, 2012

Africa Needs Development Infrastructure Rather than Transit ones

African countries do not lack infrastructure, rather they lack what  i refer  as targeted production and trade development infrastructure. I know this might seem confusing but come to think of it, is there  any country without basic roads or without airports? I am yet to find one. All the countries i have visited do have at least basic infrastructure.

So then what is the problem? why is it that infrastructure remains part of the supply side constraints to most of the African countries. The problem is in the purpose and why the existing infrastructure was established in the first place.   Actually most of the roads are used for transit of persons from one end to another. They are not used as development infrastructure.

A development infrastructure to me, as that one which harnesses forward and backward linkages in the production process. In other-words, the roads should actually carry consignments of course together with the people. But the case in most of the African countries is a reverse. Most roads carry people without consignments. Where they carry consignments, it is one way, no return journeys are made with goods. To me such a road is not a development road, it is just a transit road.

A similar scenario pertains to other modes of transport, the rails, air and water transport. They are simply used for transit but not for development.

My call to all African Government is to think of utilizing infrastructure for development rather continuing to think we do not have relevant infrastructure. Just anchor at one end of the road a value addition project and at on other end a project that provides inputs to the one of value addition. Make sure that in between the road, there are other investment that enhances the projects either by supplying to them or by utilizing their outputs. This way the concept of development infrastructure will be meaningful. This way we will even be able to estimate the benefits of the road we intend to construct. By the way, how do the planners estimate the benefits of the roads constructed due to political pressures rather than an economic demand ?
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