Infrastructure: From foreign loans to domestic capital [Business Africa]
Africa needs between $100 to $150 billion per year to close its infrastructure gap. Economic growth on the continent over the years has fueled demand for even more infrastructure.
Africa needs between $100 to $150 billion per year to close its infrastructure gap. Economic growth on the continent over the years has fueled demand for even more infrastructure.
Most of Africa’s critical infrastructure sectors – electricity, roads, internet, and water - remain relatively underdeveloped. The World Bank estimates that closing the continent’s infrastructure gap could increase growth rates by up to 2% per year.
African governments have mostly relied on debt and aid to fund infrastructure. But with lenders and donors fatigued, attention is turning to underutilized domestic capital.
According to the Africa Finance Corporation (AFC), Africa has $4 trillion in domestic capital that can be channeled into infrastructure, with pension, insurance and sovereign wealth funds holding over $1.1 trillion alone.
With this information, African leaders, policymakers, financiers and investors gathered in Luanda, Angola this week for the III Financing Summit for Africa’s Infrastructure Development.
Africa needs between $100 to $150 billion per year to close its infrastructure gap.
Trevor Lwere , an economist at Development Reimagined joins the show to discuss where African countries can look to turn domestic capital into actual transport corridors and energy grids.
South Africa eyes ASEAN's $3.5 trillion market
The 30% levy slapped on South African exports by the U.S. is the highest in sub-Saharan Africa. To try and offset the impact, President Cyril Ramaphosa headed to Indonesia, Vietnam and Malaysia in search of alternative markets.
South Africa's central bank has warned that the U.S. tariff could cost as many as 100,000 jobs.
Real estate: Egyptian youth squeezed out of homeownership
Facing high land prices and expensive bank loans, developers in Egypt are pricing their properties beyond the reach of many. Young workers have especially been affected. With their entry-level salaries, they are unable to raise the down payments required to buy houses.
As a result, more than 10 million housing units remain vacant.
Based on reporting by Africanews.
