Infrastructure development in Africa (East African Transport)

Abstract

In the article, the authors analyze the current state and prospects for the development of the transport infrastructure in the countries of East Africa. They provide latest data on projects in pipeline. Today, Africa is a dynamically developing continent with powerful economic, demographic and resource potential that will have a tangible impact on world development in the 21st century. The large-scale transformations that are taking place on the continent require an outstripping pace of infrastructure development, which, despite the success achieved, still does not meet its needs. While total capital investment in infrastructure projects in African countries in 2018 reached record level, the lack of funding remains one of the key obstacles for the development of African infrastructure. The COVID-19 pandemic that swept the world in 2020 will further exacerbate the existing gap between investment needed and investment required. The economic potential of many infrastructure projects will decline. However, according to the authors, the negative impact will not be so large-scale due to the long-term nature of the contracts, as well as the socio-economic significance of the projects. The authors of the article come to the conclusion that in the context of an epidemiological crisis, both national and foreign investors who invest in the development of regional infrastructure seek to share their risks by attracting new financial partners. This situation opens up additional opportunities for Russian companies and enterprises to enter long-term and capital-intensive infrastructure projects in East Africa, which can become a solid basis for building Russian-African economic relations.