Business and Finance

Africa Needs $360 Billion Infrastructure, Development Bank Says

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Africa requires $360 billion of infrastructure investment in the next 30 years to spur industrial growth, said Donald Kaberuka, president of Africa Development Bank.

Improvements in energy, transport and information technology would reduce the continent’s reliance on agriculture, Kaberuka said yesterday in Kampala, Uganda’s capital. The Program for Infrastructure Development in Africa projects energy demand to grow sixfold, maritime traffic as much as eightfold and demand for IT 20-fold in the period, he said.

Private capital, mobilized through infrastructure bonds, can provide financing for an economic transformation, Kaberuka said. Kenya, Ghana, Nigeria and Zambia are already using the instruments, he said.

“Infrastructure bonds have become important for the mobilization of infrastructure financing and the development of domestic capital markets,” he said in a speech sent by e-mail today by Uganda’s central bank.

Oil discoveries in Sudan, South Sudan, Uganda and Kenya as well as gas in Tanzania and Mozambique and other natural resources will enhance the transformation if well managed, he said. Intra-African and regional trade must also be developed, Kaberuka said.

To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.

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