African countries accelerating infrastructure construction

In recent years, Chinese enterprises have made positive contributions to improving Africa's infrastructure level, accelerating connectivity and integration processes, promoting local economic and social development, and improving people's livelihoods. The picture shows the COCODI cable-stayed bridge project in Abidjan, Ivory Coast, undertaken by China Road and Bridge Engineering Co

In recent years, Chinese enterprises have made positive contributions to improving Africa's infrastructure level, accelerating connectivity and integration processes, promoting local economic and social development, and improving people's livelihoods. The picture shows the COCODI cable-stayed bridge project in Abidjan, Ivory Coast, undertaken by China Road and Bridge Engineering Co., Ltd.

Photographed by Zhang Pengfei

The cornerstone of economic development urgently needs to be improved

In recent years, the level of infrastructure construction in African countries has been continuously improving, but the overall level is still relatively backward. According to a report released by the African Development Bank, there are still about 600 million people in Africa who do not have access to electricity; The total railway mileage on the African continent is about 84000 kilometers, and it is more concentrated in northern and southern Africa; More than half of Africa's roads are non hardened, with road traffic responsible for 80% of cargo transportation and 90% of passenger transportation; The internet penetration rate in Africa is 46.8%, far below the global average. The report also points out that infrastructure construction in Africa has enormous investment potential, especially in areas such as electricity, transportation, and digitization.

The Chairman of the African Union Commission, Moussa Faki, stated that infrastructure construction is the cornerstone of Africa's development. Promoting economic structural transformation, accelerating the integration of the African continent, improving economic competitiveness, increasing intra-African trade flows, improving industrial and agricultural productivity, and reducing inequality all require modern and high-quality infrastructure.

A recent study released by the African Infrastructure Federation shows that inadequate infrastructure such as roads, railways, and ports has increased the cost of commodity transactions between African countries by 30% to 40%. For example, the Chairman of the Nigerian Traders Association, Koha, said that transporting a container from Hamburg Port in Germany to Lagos, Nigeria requires less than $1000, but transferring from Lagos to Ghana requires more than $1500. We lack corresponding cross-border railways, as well as roads in good condition. Some companies even have to build their own roads to factories, which greatly weakens our competitiveness, "Koha said.

The United Nations Economic Commission for Africa believes that infrastructure development is a key driving force for the progress of the entire African continent, as well as a key driver for improving productivity and promoting sustainable economic growth. With the increasing level of urbanization in Africa, emerging populations will need more reliable electricity, affordable housing, and transportation infrastructure, and these industries will also create new job opportunities.

Farhana Paruk, head of the Gordon Institute for Business Sciences at the University of Pretoria in South Africa, believes that for the African continent, there is a huge demand for infrastructure construction, and improving infrastructure is currently a priority that African countries should consider, especially accelerating the development of digital and green infrastructure.

Increase capital investment to implement infrastructure projects

In recent years, despite the impact of the COVID-19 epidemic, African countries are still orderly promoting some large-scale infrastructure construction projects, and have achieved phased results.

The new Suez Canal construction project, completed in 2015, has significantly increased Egypt's trade and shipping revenue. The Suez Canal waterway upgrade and renovation project has also been implemented since 2021 and is expected to be completed within this year; The Dangote Refinery project in Nigeria was completed and put into use in May this year, and the opening of the refinery is expected to end Nigeria's long-standing dependence on imported refined oil products; The "Africa North South Economic Corridor" project, which connects 8 countries including South Africa, Tanzania, and Zambia, is currently under construction, including multiple sub projects such as the construction of power stations and ports; Kenya and other countries continue to promote the construction of a northern transportation corridor road network connecting landlocked countries in East Africa and the Mombasa port in Kenya, in order to enhance regional connectivity.

In order to improve the infrastructure situation, some African countries are increasing investment and constructing related projects. The Nigerian government is continuously increasing its fiscal budget to support infrastructure construction such as roads and bridges, which is expected to increase by 3.8% this year. The average annual growth rate from 2024 to 2027 is expected to be 3.7%. South African President Ramafusa has stated that the government will attract 2 trillion rand (approximately 2.7 rand) of investment from 2023 to 2028, mainly for infrastructure construction. Tanzania is exploring the development of projects such as iron ore and coal mines through cooperation between the government and social capital, with funds focused on major projects under construction, including the Standard Central Line Standard Gauge Railway, East Africa liquefied natural gas and crude oil pipelines.

Regional organizations and institutions such as the African Union and the African Development Bank also strongly support regional infrastructure construction. According to Adsina, the President of the African Development Bank, the bank has absorbed $6.6 billion in infrastructure investment through the "Africa 50" investment platform over the past six years, covering 22 countries and regions in Africa, covering multiple fields such as agriculture, transportation, and health. Adsina stated that the core of the African Development Bank's work is to help bridge the infrastructure financing gap of $68 billion to $108 billion annually in Africa.

In February of this year, the African Union Commission, in collaboration with relevant institutions, held the second African Infrastructure Financing Summit. The attending African Union and African leaders focused on discussing how to complete the 69 infrastructure projects worth $160 billion in the second phase of the 2021-2030 Priority Action Plan under the framework of the African Infrastructure Development Plan, calling for maintaining the momentum of infrastructure construction in Africa.

Expanding Cooperation between China and Africa to Boost Connectivity

China has been cooperating with African countries in various ways within its capabilities to help them improve their infrastructure, enhance their independent development capabilities, and achieve sustainable development. Under the mechanism of the Forum on China Africa Cooperation, Chinese enterprises have built over 10000 kilometers of railways, nearly 100000 kilometers of roads, nearly a thousand bridges, nearly a hundred ports, and a large number of hospitals and schools in Africa.

In Senegal, the Fangjiuni Bridge, constructed by China Railway Seventh Group Co., Ltd., was officially opened in 2022. The bridge, with a total length of 1600 meters, is the longest bridge in Senegal and has become one of the main roads connecting the north and south of the country. It is also an important transportation node to neighboring countries. Senegal's President Saleh stated that the Fangjuni Bridge has reduced the time and cost of traveling from Senegal to neighboring countries, which is a concrete manifestation of China's active implementation of the "Ten Major Cooperation Plans" between China and Africa.

In Ghana, China General Technology Group is involved in rural communication and digital network coverage projects. The Chinese side participated in the design, procurement, construction, and operation of 2016 communication towers, which can meet the communication needs of over 3 million people in rural areas.

According to statistics, as of now, Chinese state-owned enterprises have carried out over 1600 infrastructure projects in Africa, making positive contributions to improving Africa's infrastructure level, accelerating connectivity and integration processes, promoting local economic and social development, and improving people's livelihoods.

Paul Frimpong, Executive Director of the African China Policy Advisory Center, a Ghana think tank, said, "China has rich technology, funding, and experience, playing an unparalleled role in supporting infrastructure construction in Africa and has always been a trusted partner of African countries

(Johannesburg, October 10th)

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