The $17 billion of the $93 billion infrastructure financing deficit in Africa is due to lack of efficiency, according to a leading expert.
Speaking on the Infrastructure and Logistics panel during the #GrowthCrossings series of events organised by The Economist, Qalaa Holding Managing Director in charge of Transport and Logistics, Mr Karim Sadek (pictured, above) called on African governments to explore the option of investing in maintenance and upgrades of existing infrastructure to make strides towards intra-Africa trade.
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He pointed out that with 54 countries, 54 borders and 54 policies it is inevitable that the trade environment in Africa continues to face avoidable boundaries. “China has clear teeth; The European Union has teeth but also restrictions, America continues to be strong but when you come to our region, Africa has very little teeth within the trade environment.”
Mr Sadek added that the absence of infrastructure, coupled with the low level of financial deepening caused certain zones in Africa had better advantage than the others when it came to trade.
“If we look at the power sector, how much policy is about building rather than maintaining? If you look at the media, stories about building new capacity is a hot topic; no one wants to hear about maintaining what is already there. This is a Cairo to Cape problem. Africa needs to focus on the quality and not just the availability of connection,” he said.
Qalaa Holdings (CCAP.CA on the Egyptian Stock Exchange) is an African leader in infrastructure and industry. Formerly known as Citadel Capital, Qalaa Holdings controls subsidiaries in core industries including energy, cement, transportation & logistics as well as mining.
Qalaa Holdings owns 85% of Rift Valley Railways where it has to date spent $320 million in phase one of the turnaround programme. The Kenya Uganda Railways is under a 25% concession.
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See also: Qalaa Holdings in its way to profitability
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