Sub-Saharan Africa to get “greatest” infrastructure investment in next two decades – Report
Investment into sub-Sahara Africa’s infrastructural sector is expected to be highest in the next 20 years among the regions in developing world, a new report said May 16, 2013.
“The region will have the greatest infrastructure investment needs over the next two decades (relative to GDP),” the World Bank said in its Global Development Horizons (GDH) report which explores patterns of investment, savings and capital flows as they are likely to evolve over the next two decades.
It further stated “At the same time, there will likely be a shift in infrastructure investment financing toward greater participation by the private sector, and substantial increases in private capital inflows, particularly from other developing regions.”
The report noted that the region’s investment rate will be steadily fueled by robust labour force growth.
“It will be the only region to not see a decrease in its saving rate in a scenario of moderate financial market development, since aging will not be a significant factor,” the report said on sub-Sahara Africa.
Titled “Capital for the Future: Saving and Investment in an Interdependent World”, the report projected that developing nations will hold $158 trillion of the world’s investment by 2030.
The report highlighted the increasing role developing countries will play in the global economy.
“Developing countries share in global investment is projected to triple by 2030 to three-fifths, from one-fifth in 2000,” said the report.
Countries in East Asia and Latin America are expected to account for the largest shares of the stock reach which will reside in developing world.
With world population set to rise from seven billion in 2010 to 8.5 billion 2030 and rapid aging in the advanced countries, the report indicated that “demographic changes will profoundly influence these structural shifts”.
Maurizio Bussolo, Lead Economist and lead author of the report advised policy makers in developing countries to play a central role in boosting private saving through policies that raise human capital, especially for the poor.
By Ekow Quandzie