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.