AfDB releases Zim infrastructure report

infrastructure.
The Infrastructure and Growth in Zimbabwe report provides a detailed assessment of the state of infrastructure and services in all key areas including transport, power, information technology, and water and sanitation.
The establishment of the flagship infrastructure report was instigated by the Zimbabwean Government in January last year when it requested the AfDB to prepare an assessment of the state of infrastructure in the country.
Some of the report’s main findings in respect of Zimbabwe’s critical infrastructure are as follows:
l Of the country’s total road network of nearly 90 000 kilometres, the proportion in fair to good condition has declined from 73 percent in 1995 to only 60 percent. An additional 12 800 kilometres was re-classified to ‘poor condition’, requiring complete rehabilitation at a cost of about US$1,1 billion.
l By 2009, the amount of freight carried on Zimbabwe’s railways had declined to 2,7 million tonnes – barely 15 percent of the original network capacity. The available locomotive and rolling stock capacity is now well below what is required to meet demand.
l Zimbabwe’s service coverage for water and sanitation has declined. In the eight years since 2000, access to improved sanitation fell from 68 percent to 41 percent of the population.
l Zimbabwe now has less power generation capacity than it did at any time in the last 30 years. The country’s energy availability is around 1 000 megawatts of electricity, less than half of previous capacity.
l Zimbabwe has fallen behind its regional counterparts in terms of information communication technology service and broadband penetration.
AfDB president Mr Donald Kaberuka has since said Zimbabwe requires at least US$14.2 billion over the next 10 years for infrastructure rehabilitation.
Meanwhile, the AfDB has been assigned the management of a US$68,89 million multi-donor trust fund for the country (Zim-Fund). Countries including Australia, Denmark, Germany, Norway, Sweden and the United Kingdom have pledged US$68,89 million to the fund and have to date poured in US$51,5 million.
The multi-donor trust fund is currently focusing on providing initial critical investments for the power and water sectors. Economists contend that the present state of infrastructure in the country, which has declined due to limited investment and lack of maintenance, is one of the most significant constraints to set economic growth targets.
Poor infrastructure has largely precluded foreign direct investment flows into Zimbabwe, especially as it drives up the cost of doing business.
According to World Bank figures, Zimbabwe stands at number 157 out of 183 countries in the world on the cost of doing business rankings.
This raises concern in view of a noted decline in FDI flows in the sub-Saharan African region.
According to a United Nations Conference on Trade and Development Global Investment Trends Monitor on global and regional FDI trends in 2010, FDI inflows for sub Saharan Africa fell by 14 percent to US$50 billion last year. Foreign investment to Southern African declined substantially last year by over 75 percent to barely a quarter of 2009 levels.
Mr Kaberuka said if Zimbabwe is to emerge out of the present economic state, the “rehabilitation of key infrastructure must be a primary goal.”
“The report sets out an action plan combining policy reforms and capital investments. We hope that it provides, among other things, a platform for dialogue between the Government, and the business community,” he said.