Infrastructural development and technological innovation are both vital to Africa’s economic future. Policymakers are currently more focused on infrastructure; they should not forget its critical role in spurring innovation.
Infrastructure is both the backbone for the economy but also the
Infrastructural development and technological innovation are both vital to Africa’s economic future. Policymakers are currently more focused on infrastructure; they should not forget its critical role in spurring innovation.
Infrastructure is both the backbone for the economy but also the motherboard for technological innovation. Without adequate infrastructure, Africa’s economies cannot realise their full potential. The continent’s low economic performance and weak integration into the global economy is in part a result of inadequate infrastructure – mainly energy, transportation, telecommunications, water and sanitation, and irrigation.
Much of the policy concern over infrastructure focuses on issues such as rates of return on investment, impact on public finances, the formation of private-public partnerships, and identification of sources of funding. Other concerns, especially from civil society organisations, stress the environmental and social costs of large infrastructure projects.
While these concerns are legitimate and need to be addressed, they tend to overlook the role of infrastructure as a foundation for innovation. This point is clearly identified as key to the continent’s future in the 10-year Science, Technology and Innovation Strategy for Africa (STISA-2024).
Although they may differ on implementation strategy, policy makers understand infrastructure investment’s role in stimulating economic growth. What are less appreciated are the strategic connections between infrastructure investments and technological innovation.
Infrastructure projects are inherently technological in nature. They represent bundles of scientific and technical knowledge embodied in both equipment and human capabilities. Taking full advantage of infrastructure’s technological potential requires a more sophisticated approach to policy, procurement practices, and project design. The first step is recognising the magnitude of the challenge and the associated opportunities. The African Development Bank has estimated that Africa will need to invest $93 billion annually over the next decade to meet its infrastructure needs. The estimate for Nigeria is $15 billion a year. South Africa envisages investing nearly $462 billion from 2012 to 2027.
Agriculture illustrates the importance of infrastructure. Africa suffers from low agricultural productivity levels, partly as a result of inadequate rural infrastructure, especially roads, energy supply and irrigation.
Without rural roads, farmers are condemned to growing crops close to their homes – or just enough to carry home. They can hardly provide adequate food for themselves, let alone having surpluses for local trade. On average, 60% of the rural people in middle-income countries live within two kilometres of an all-season road. The figures in Africa are much lower. In Kenya, for example, only about 32% of the rural people have the same level of access. The statistics for Angola and Malawi are 31% and 26% respectively. For Tanzania, it is 24%, 18% for Mali and 11% for Ethiopia. Agricultural development in these countries is heavily influenced by access to rural infrastructure.
A large part of this investment will come from overseas. Indeed, Africa’s growing trade with China includes building infrastructure projects. Most of this has been in transport. The recent creation of the China-led Asian Infrastructure Investment Bank (AIIB) will strengthen the country’s role as a source of funding not only for Africa but also for many other regions of the world, including in the industria