Leveraging on cross-border infrastructure investments for growth

Creating wealth. Trucks at Ramatlabama border. More intra-Africa trade is expected to grow economies PIC MORERI SEJAKGOMO
Creating wealth. Trucks at Ramatlabama border. More intra-Africa trade is expected to grow economies PIC MORERI SEJAKGOMO

Infrastructure finance is one of the most resource-intensive, cross-cutting areas of investment demand in the developing world. The African Continental Free Trade Agreement (AfCFTA) and low levels of intra-African trade have thrust the conversation on regional integration, increased intra-regional trade and deepened cooperation into the spotlight.  The importance of trade as an engine for economic growth can never be overplayed.

A landlocked country like Botswana strives to use its geographic location as a transport and logistics hub to leverage growing regional trade and expand its portfolio as a land-linked pathway to the southern African market. This will require massive investments in road, air, and rail transport infrastructure to improve regional connectivity. It will also require innovative policymaking to prepare the domestic market for the coming opportunities.  What is clear is that Africa does not trade enough, especially with itself and this is attributed to the lack of sufficient infrastructure.

The African Development Bank (AfDB) has previously estimated that the infrastructure deficit in Africa amounts to between $130 and $170 billion a year; with an estimated financing gap of $68 to $108 billion.

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