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Africa loses 4-5% of its GDP because of weak infrastructure – Akinwumi Adesina – BusinessDay (satire) (press release) (registration) (blog)

Whilst many countries in Africa are investing billions to improve their transportation, housing and energy needs, the continent remains far behind where it needs to be.

Experts estimate there is a $100 billion dollar infrastructure deficit in Africa. Economic growth in the continent has been damaged as a result of the shortfall.

“Africa loses roughly about 4 to 5 percent of its GDP because of weak infrastructure,” Akinwumi Adesina, president of the African Development Bank, tells host Eleni Giokos on last week’s ‘CNN Marketplace Africa’.

This is a serious problem for businesses trading in the continent.

“You can’t connect landlocked countries to the port; this means its takes a long time for your goods and services to actually get out to the global market, which is a huge disadvantage,” Adesina tells ‘Marketplace Africa’.

The programme hears how the African Development Bank has invested almost $2 billion in Africa’s power sector alone. Such investments are necessary in the continent as, according to Delloite, African governments fund less than 30 percent of major construction projects.

However, Adesina believes that it’s not just money that’s needed.

“I don’t believe that money is the problem. I believe that getting the right projects that are bankable – that is the real issue,” he explains.

Adesina suggests that attracting foreign investors is the way forward.

“There are pools of savings, pools of capital out there in the world. Roughly about $5 trillion of savings pool each year. If Africa is able to attract just one percent of that, it will close its infrastructure gap,” he tells ‘Marketplace Africa’.

Africa loses 4-5% of its GDP because of weak infrastructure – Akinwumi Adesina – BusinessDay (satire) (press release) (registration) (blog)

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