Infrastructure spend in Sub-Saharan Africa to reach $180bn by 2025: PwC

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There will be a growth in various projects across the sub-Saharan as its estimated that by 2025 Infrastructure spends would grow from $70-billion in 2013 to $180-billion by 2025. This is according to the PwC capital projects and infrastructure Africa leader Jonathan Cawood. The statistics reveal that the infrastructures across Africa are growing up steadily.

PwC’s Capital Projects & Infrastructure report on East Africa, Southern Africa and West Africa, released in Johannesburg, and which involved interviewing 95 correspondents in the infrastructure sector, reveals that Africa will only spend 2% of the global $9-trillion expenditure in infrastructure during the same period.

Nigeria and South Africa were the biggest spenders at 68% of all the spend in the region in 2013. Kenya is third at 10%, then Ghana fourth at 8%, Ethiopia at 6%, Tanzania at 5%, and Mozambique at 3%. There have been news in September that South Africa will roll out infrastructure programs faster – the country was undertaking a massive US$847bn infrastructure programme – a project set to take 3 years. Kenya, on its part was undertaking rehabilitation/construction of a total of 10, 000km of roads, whose 3000km first phase set to start this month.

The PwC reports shows growth of electricity production and distribution to US$55-billion by 2025: it was US$15-billion in 2012.

The report reveals that poor transport and logistics infrastructure is responsible for increased costs of goods by 60% for landlocked countries in Africa. It also showed that sub-Saharan Africa countries had to wait for 20 days while waiting for cargo at ports compared with the global norm of three to four days.

It has however revealed that the region needs to realize more private capital as government budgets fail to meet need in infrastructure spending. Africa has to achieve other gains, according to the report, in areas such as on-time and within-budget procurement and economic growth expectation of over 5% in order to keep their dreams alive.