NAIROBI (Xinhua) --
Transport projects are taking the bulk of
investments in new infrastructure development across Africa as
countries develop new trade routes, a new report by consulting
firm Deloitte shows.
The report, “Africa
Construction Trends Report 2017,” released in Nairobi on Tuesday
said the number of projects valuing over 50 million U.S. dollars
increased by 5.9 percent compared to 2016, an indication of
growing infrastructure investments across Africa.
“The reason why
transport projects are more than others and of high value is
because countries want to increase connectivity within and
across the borders,” said J.P Labuschagne, head of
Infrastructure and Capital Projects Advisory in Deloitte.
He said African
countries are making a change from the colonial legacy whose
structure was to develop roads and railway for purposes of
exporting raw materials to Europe.
now want to build transport capacity which enables them to trade
more within and across the borders,” Labuschagne said.
“This is helping to
boast regional trade and making it easier to do business in
Africa,” said Labuschagne.
development of roads, railways and ports is partly attributed to
the growth of trade within the Common Market for Eastern and
Southern Africa (COMESA) from 1.5 billion dollars in 2000 to
about 10 billion dollars in 2016, it said.
But COMESA trade
ministers meeting in Uganda last year noted that high transport
costs remain one of the biggest hindrance to the intra-region
trade and agreed to develop a shipping line to serve members,
including the land-locked ones.
The Deloitte report
finds that China is the biggest funder of the transport projects
among Africa’s development partners.
Chinese firms built
the standard gauge railway in Kenya and the Ethiopia-Djibouti
railway and is set to develop Uganda’s railway, according to the
The report reveals
that countries like Ethiopia are using about 40 percent of their
gross domestic product (GDP) to finance infrastructure projects
while others like Kenya are using 20 percent, in a show of
intensity of project development across Africa.
The big spenders
across the continent are the governments, owning 57 percent to
90 percent of the projects depending on the strength of the
private sector, said the report.