Trillions needed to support Africa’s ageing infrastructure

A growing infrastructure
gap threatens the long-term
development of emerging
and developed economies.
Due to a combination
of aging infrastructure,
years of under-investment
by governments, and
expanding populations,
it is estimated that $53
trillion in infrastructure
investments will be needed
through 2030 to support
global economic growth,
according to a new report
released by the Organisation
for Economic Cooperation
and Development (OECD),
written with support from
Oliver Wyman.
It estimates that countries
need to invest $53 trillion in
infrastructure over the next
20 years – the equivalent of
three times the European
Union’s $18 trillion GDP.
Over $11 trillion alone
will be required for ports,
airports, and key rail routes.
Strategic Transport
Infrastructure Needs to
2030 says that air passenger
traffic could double, air
freight could triple, and
port handling of maritime
containers worldwide could
quadruple by 2030.
According to the report,
most of the current gateway
and corridor infrastructure
cannot handle even a 50%
increase in demand.
Unfortunately, strained
public finances, weak debt
and equity markets, and
restrictive commercial
bank capital requirements
are limiting traditional
financing sources for
infrastructure projects, it
says.
By 2030, roads will
require $7.5 trillion in
investment, while electricity
will need $6 trillion.