US$1.5 trillion needed to plug Africa’s infrastructure gap

Africa needs to spend US $1.5 trillion to plug the continent’s infrastructure gap.

“Africa has a US$100 billion-a-year infrastructure gap. In other words, it needs to spend US$1.5 trillion on infrastructure in the next 15 years if it is to provide the electricity, roads, water and sanitation and rail that are necessary for economic growth,” said former British prime minister and chairperson of the World Economic Forum (WEF) Global Strategic Infrastructure Initiative,  Gordon Brown.

Cited by Zambian daily newspaper, The Post, Brown reportedly added that that with this investment, Africa could be on par with China and India as a major global economic player.

To ensure continued infrastructure investments, African governments should ensure that the hedging mechanism used in contracting concessional loans for infrastructure development is well managed so that the commercial viability of infrastructure projects is maintained in the face of continued currency volatility and imminent debt repayments, he said.