The Africa’s public infrastructure deficit is widely recognized by economic literature and policy discourse. The 2018 African Economic Outlook published by the African Development Bank estimated the Africa’s road infrastructure needs in $130-170 billion per year, with a financing gap in the range of $68-108 billion. In August this year, the Bank revised this estimation, noting that such needs have now reached levels between $181 and $221 billion per year. But Large gaps also remain in other areas, like electricity, internet, and basic sanitation services. If on one side these deficits reveal a development path in Africa that is still long to be traveled, on the other hand also suggest that public infrastructure investments in Africa are an opportunity for high returns for economic activity and wealth generation. But at one condition: that the development of infrastructure projects is correctly planned so to become attractive for investors. Nobody invests in transport infrastructure, electricity or water supply projects whose operational efficiency, cost-effectiveness, and overall competitiveness have not been carefully evaluated. Infrastructure needs to be located where its economic effects are mostly felt, that’s the point.

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A paper from the Morocco-based Policy Centre for the New South explores which development model Africa should adopt to enhance its economic growth and catch up with industrialized nations. The author suggests that Africa can learn from countries that have recently modernized their economies. But the question remains: which development model would be most appropriate? Should Africa follow the manufacturing-for-export model used by the East Asian Tigers (South Korea, Taiwan, Singapore, and Hong Kong) and China? Or would a service-based model, like India’s – starting with global call centers and expanding to software development and back-office services such as research and development (R&D), accounting, and HR – be more suitable?

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