Share

AfDB urges investments in infrastructure

Geneva - Africa should prioritise infrastructure investment and inclusion, if it is to stop its growth from flattening, the president of the African Development Bank (AfDB) said on Monday.

The AfDB's President Donald Kaberuka said the body still projects growth of 5.8% this year for sub-Saharan Africa, far ahead of rates for the developed world, making it the second fastest growing region after Asia.

Its forecast has not been modified following the US Federal Reserve's talk of exiting its stimulus programme, he said, without ruling out a future downwards revision.

"At this stage our belief is that the big risks we face (to growth) are on the infrastructure side and the inclusion side," he told said on the sidelines of the World Trade Organization meeting in Geneva.

"The issue of inclusion is important because domestic demand has played a big role in the current growth of the continent. So the more you spread the benefits of growth the more sustainable it becomes," he added.

The World Bank said in a report in April that consumer spending accounted for more than 60% of Sub-Saharan Africa's buoyant economic growth as many Africans strive to exit poverty and become middle class.

But growth is being capped by frequent power cuts and insufficient transport facilities for industry, Kaberuka said.

AfDB members agreed in May to create a huge fund to finance infrastructure in Africa which could reach $50bn.

Kaberuka said he expected the fund, called "Africa 50", to be launched by the end of the year. He added that over the past five years the bank had committed $12bn to infrastructure projects.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.88
+0.3%
Rand - Pound
23.82
+0.4%
Rand - Euro
20.38
+0.3%
Rand - Aus dollar
12.30
+0.3%
Rand - Yen
0.12
+0.3%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders