In it for the long haul? Investing in Africa's transport infrastructure
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In the last instalment of Fieldfisher's Africa Week 2024 podcast series, the spotlight is firmly placed on the future of transport infrastructure in Africa, with a keen focus on the rail sector. Hosted by Cecily Davis, this enriching dialogue features Tony Burkson, the CEO of VAOB Infrastructure Group. Known for his forward-thinking approach, Tony shares his experiences and insights on the significant role rail infrastructure plays in the development of Sub-Saharan Africa.
This episode highlights the dichotomy between West and East Africa when it comes to rail infrastructure. While East and Southern Africa boast well-maintained rail networks that facilitate the seamless movement of goods, West Africa remains in a catch-up phase, hindered by costly and underdeveloped rail systems. Tony outlines how historical legacies, primarily the remnants of colonial railways, have resulted in these regional disparities. Countries such as Tanzania and Angola are leading the way with robust rail systems aiding economic activities. In contrast, places like Ghana and Nigeria are just beginning to build the costly infrastructure necessary to connect key economic regions.
The episode does not shy away from geopolitical discussions, touching upon the burgeoning interests of global powers in Africa's critical mineral resources. The conversation reveals how the strategic moves of countries like China, and the consequent involvement of others such as the United States in regional projects, are directly influencing infrastructure developments. This episode delves into how Angola's Lobito Corridor Project is drawing significant investment from international players.
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Subscribe nowA significant portion of the dialogue is devoted to exploring how development banks and financial institutions can catalyse infrastructure growth without becoming ensnared in sovereign debt traps. Tony makes a compelling case for private sector-led projects that can create sustainable infrastructure, bypassing the complications often associated with government-run projects.
Closing the discussion, Tony expresses both the challenges and the hope concerning the postponed potentials within the Ghanaian infrastructure realm, while also emphasising his optimism for future engagements in more developed markets like East Africa.
This Africa Week 2024 episode offers critical perspectives for investors and stakeholders viewing Africa's rail infrastructure as both a challenge and an opportunity for substantial economic growth across the continent.
