Unit 4: Economics Development - Africa and infrastructure funding

An ancient bus crawls along a dirt track, luggage piled dangerously high on its roof. The sight is so typical of Africa that tourists have come to expect it. But for Africans, poor roads are yet another poverty trap.


Highway networkThrough African Union countries. Cost unknown. A 100,000-kilometre expansion of the continent’s highway system is planned by the African Union. It is to comprise nine motorways, pass through 41 cities and connect about 500 million people. It is still at the concept stage.

Ethiopia-Kenya road linkCost US$326 million. The finishing touches are being put on plans for a road to link Ethiopia and Kenya, with the Kenya leg terminating at the port of Mombasa. It is projected to boost annual trade between the countries from $35m to $175m and help to make Kenya a medium-income nation within 20 years.

South Africa and Swaziland railroadCost 16 billion rand (Dh7.66bn). South Africa is to build a railway corridor passing through tiny Swaziland and linking coalfields in the interior with Richards Bay. The link would allow annual coal exports to India and China to increase by 20 million tons.

Democratic Republic of Congo road-rail linkCost $5bn. China has agreed to lend the mineral-rich Democratic Republic of Congo (DRC) the money to build nearly 2,000km of roads and railways. The system is to link the DRC’s interior with the coast as well as neighbouring countries.

With few cross-continent railroads or waterways, most goods must move by land. But getting a container from one country to another means surviving potholed roads, flooded bridges and even landmines. Along the way, there are officials, policemen and soldiers demanding bribes to allow the goods to continue on their way.

A study by the US department of commerce shows that transporting a tonne of wheat over the 1,000 kilometres from Mombasa in Kenya to Kampala in Uganda costs more than to ship it from Mombasa to Chicago - ten times the distance.

Questions for discussion:

How can Africa fund the improvements in infrastructure?
What are the advantages & disadvantages of external funding/internal funding?