Building Opportunities: Addressing Africa’s Lack of Infrastructure

I n late 2012, Kenya announced a plan to spend $25 billion on various infrastructure projects. These projects include a 2,000-kilometer pipeline from South Sudan to the northern Kenyan town of Lamu and related improvements to Lamu’s port. President Jacob Zuma of South Africa also recently announced that the country will spend $97 billion on infrastructure investments (McGroarty & Maylie, 2012). These funds are to be used specifically to improve and upgrade roads, transportation networks and ports. Like Kenya, South Africa plans to borrow the money for this ambitious investment plan. The international credit rating community is likely to view these ambitious investments with a pinch of skepticism because of the economic and political challenges associated with such public investments (Juma, 2012). In most African countries, where corruption in the public sector remains a serious challenge for governments, the efficient management of public finances must be a top public policy priority. Yet, as these countries struggle to reduce corruption in the public sector, they must seek ways to invest in the provision of basic infrastructure, which is the foundation for sustainable economic growth and development. African governments must recognize the critical role they have to play in the provision of a solid foundation for national economic transformation. They must also provide the social capital to anchor sustainable economic growth and enhance human development. Of course, each government must work closely with the private sector to mobilize the resources required to provide the infrastructure needed to meet the deficit.