By Kofi Ahovi
Experts at the just ended African Investment Forum in Accra have called for the need for African countries to invest more in the infrastructural sector.
Speaking in turns on the topic “The challenges to enhance investment and growth in Africa in the 21st century” The Rt. Hon. Paul Boateng D.L, Non Executive Director of Accepting and Embracing of Gender Identity and Sexuality (AEGIS) and Richard Gush, Chief Executive‐Corporate & Investment Banking, Standard Bank argued strongly for more investment in infrastructure on the continent.
Hon Boateng noted that in efforts to develop African countries must develop new market locally and key to that was the improvement of infrastructure in the various countries, adding these has been a major failure in policy with third world countries.
He called for the need to strengthen the various ports to improve revenue collections adding “the objective of Customs Excise and Preventive Services officials is to improve trade not otherwise”.
Richard Gush observed that African countries must invest more in infrastructure to attract more foreign direct investments, adding investment most often turn to go to countries that have improved infrastructure.
“Due to its poor infrastructure, Africa has the highest transport costs in the world, more than double the world average,” he stated.
The World Bank estimates that infrastructure has been responsible for more than half of Africa’s recent improved growth performance, and has the ability to contribute more.
It also estimates that Africa needs a total of about US$93.4 billion to solve its infrastructural gap.
Africa’s power deficit has reduced per capita growth as a whole by 0.11 percentage points in recent decades.
Gush added that the impacts of poor policy have shown to account for between one-quarter and one-half of the difference in predicted growth between African and non-African developing nations.
According to him, much work needs to be done to de-risk African investment by improving political and institutional stability.
African economies remain heavily imbalanced towards extractive industries and the low-yielding agricultural sector.
The Standard Bank boss observed that successful negotiation of these challenges will reinvent Africa’s global economic and political identity in the 21st century, adding that the interlinked nature of the challenges means that addressing one will have significant spill-over effects for the others.
However, the pitfalls of failing to adequately manage these challenges are many.
“How African countries are able to mobilize funds to adapt to and counter these rising challenges will be a crucial determinant of their growth trajectory in the 21st century,” he stressed.
“Africa needs to chart its own course, realising a reform agenda which embraces its unique developmental needs,” Gush stated.
Experts at the just ended African Investment Forum in Accra have called for the need for African countries to invest more in the infrastructural sector.
Speaking in turns on the topic “The challenges to enhance investment and growth in Africa in the 21st century” The Rt. Hon. Paul Boateng D.L, Non Executive Director of Accepting and Embracing of Gender Identity and Sexuality (AEGIS) and Richard Gush, Chief Executive‐Corporate & Investment Banking, Standard Bank argued strongly for more investment in infrastructure on the continent.
Hon Boateng noted that in efforts to develop African countries must develop new market locally and key to that was the improvement of infrastructure in the various countries, adding these has been a major failure in policy with third world countries.
He called for the need to strengthen the various ports to improve revenue collections adding “the objective of Customs Excise and Preventive Services officials is to improve trade not otherwise”.
Richard Gush observed that African countries must invest more in infrastructure to attract more foreign direct investments, adding investment most often turn to go to countries that have improved infrastructure.
“Due to its poor infrastructure, Africa has the highest transport costs in the world, more than double the world average,” he stated.
The World Bank estimates that infrastructure has been responsible for more than half of Africa’s recent improved growth performance, and has the ability to contribute more.
It also estimates that Africa needs a total of about US$93.4 billion to solve its infrastructural gap.
Africa’s power deficit has reduced per capita growth as a whole by 0.11 percentage points in recent decades.
Gush added that the impacts of poor policy have shown to account for between one-quarter and one-half of the difference in predicted growth between African and non-African developing nations.
According to him, much work needs to be done to de-risk African investment by improving political and institutional stability.
African economies remain heavily imbalanced towards extractive industries and the low-yielding agricultural sector.
The Standard Bank boss observed that successful negotiation of these challenges will reinvent Africa’s global economic and political identity in the 21st century, adding that the interlinked nature of the challenges means that addressing one will have significant spill-over effects for the others.
However, the pitfalls of failing to adequately manage these challenges are many.
“How African countries are able to mobilize funds to adapt to and counter these rising challenges will be a crucial determinant of their growth trajectory in the 21st century,” he stressed.
“Africa needs to chart its own course, realising a reform agenda which embraces its unique developmental needs,” Gush stated.
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