|December 17, 2010
Zuma calls for action on infrastructure
President Jacob Zuma emphasized that the time had come for "concrete action" to develop Africa's infrastructure. "We have done enough planning in the continent ... it's either we (leave) things as they are and let Africa trail behind forever or we do something about our infrastructure in order to develop like others," Zuma said. He noted that for almost two centuries, Africa's development has been dominated by extractive industries specialising in taking the continent's minerals and commodities to foreign markets.
According to a recent study, intra-Africa trade is around 10 percent of exports, whereas other regions such as Asia are closer to the 70 percent mark. Also, African transport costs are said to be around 12.6 percent of the cost of the goods, more than double that of the world average.
Zuma also said that raising the level of intra-African trade remained a critical task. "In Africa, only seven percent of our trade is with other countries on the continent, on the other hand in Asia, almost 60 percent of an individual country's trade is with their regional neighbours." It was important for Africa to improve regional trade because greater regional integration would help lower transport costs, while at the same time, grow the market.
Minister in the Presidency responsible for the National Planning Commission, Trevor Manuel, also noted that Africa lagged far behind other regions in the world in respect of economic integration. "So not only is our trade in Africa so low as it is, we also expect poor Africa consumers to pay so much more for the privilege of acquiring goods made in a neighboring state, as opposed to those imported from across oceans," he said. "The challenge quit simply is to work tirelessly to turn the effects of colonialisation that stemmed from the decisions taken in Berlin about us in 1885...want we want is to change the face of the continent's economy," he added.