by Developed Africa 7. May 2014 09:00

From a number of reports recently, it has been made clear than an important step in the development of a nation's economy is being overlooked by many countries in Africa.

Roads and railways across Africa are in desperate need of investment, but even the ones that are already in place are significantly less than the proportion in developed nations, thus:

transport costs alone are 63 percent higher in Africa than in developed counties, hampering its competitiveness in the international and local markets."

So without sound transportation infrastructure there will be a lot of complications further down the line, such as access for businesses and transportation of goods, on top of the restrictions it places upon people.

But there is encouraging news that the construction industry is seeing an increase in projects, which can be seen to be due to increased consumer spending. 

previously much of Group Fiver's Nigerian work was focused on power generation, the company is now doing projects in housing, shopping centres, and toll roads"

This is evidence of the rise in construction work, and the inclusion of roads in that work load is an encouraging move. And it is interesting to learn that whilst many of the roads that have been built across the continent were often built by Chinese companies, often using their own workers, but that might all change as the quality is now being questioned. Group Five CEO Mike Upton has noted that:

there is a push-back, based on a couple of things: one is the quality, and two is the culture of the contracts- it's not empowering for the local economy."


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