V. B. African Demand for Infrastructure: AID VS. COMMERCE: FACTORS INFLUENCING THE GROWING TIES
V. B. African Demand for Infrastructure: AID VS. COMMERCE: FACTORS INFLUENCING THE GROWING TIES
transportation are among the main bottlenecks to productivity growth and competitiveness.
According to a study prepared by the staffs of the World Economic Forum, the World Bank,
and the AfDB, African firms lose as much as 8 percent of sales due to power outages, and
transportation delays can account for as much as 3 percent of lost sales (World Economic
Forum, 2007). Poor infrastructure also holds back commercial agriculture. Improving
infrastructure thus is critical if Africa, particularly SSA, is to diversify exports, move up the
value chain, and achieve sustained growth.
There is thus a large unmet demand; upgrading infrastructure requires financing and
technical expertise, both lacking in many African countries. Moreover, traditional donors,
bilateral and multilateral, tend to allocate only a relatively small proportion of their funding
to infrastructure (Table 4), and for the private sector, investing in infrastructure in poor
countries is a high-risk business.
Chinese enterprises have nevertheless been active in Africa’s infrastructure market. They are
not newcomers—Chinese engineers and workers have been building large projects such as
the Tanzania-Zambia railway since the 1960s. They have also gained experience in
modernizing China’s own infrastructure. Their technology may be less capital-intensive and
their labor and material costs tend to be lower than competitors in industrial countries, which
gives them an edge in pricing and risk taking. Finally, access to substantial, long-term
financing in China reinforces their competitive position. It is therefore not surprising that
IMF Working Paper
African Department
What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang
October 2007
V B African Demand for Infrastructure AID VS COMMERCE FACTORS INFLUENCING THE GROWING TIES - To learn more about this author, visit International Monetary Fund's Website.
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Inadequate infrastructure is one of the top constraints to business in Africa, where energy and
transportation are among the main bottlenecks to productivity growth and competitiveness.
According to a study prepared by the staffs of the World Economic Forum, the World Bank,
and the AfDB, African firms lose as much as 8 percent of sales due to power outages, and
transportation delays can account for as much as 3 percent of lost sales (World Economic
Forum, 2007). Poor infrastructure also holds back commercial agriculture. Improving
infrastructure thus is critical if Africa, particularly SSA, is to diversify exports, move up the
value chain, and achieve sustained growth.
There is thus a large unmet demand; upgrading infrastructure requires financing and
technical expertise, both lacking in many African countries. Moreover, traditional donors,
bilateral and multilateral, tend to allocate only a relatively small proportion of their funding
to infrastructure (Table 4), and for the private sector, investing in infrastructure in poor
countries is a high-risk business.
Chinese enterprises have nevertheless been active in Africa’s infrastructure market. They are
not newcomers—Chinese engineers and workers have been building large projects such as
the Tanzania-Zambia railway since the 1960s. They have also gained experience in
modernizing China’s own infrastructure. Their technology may be less capital-intensive and
their labor and material costs tend to be lower than competitors in industrial countries, which
gives them an edge in pricing and risk taking. Finally, access to substantial, long-term
financing in China reinforces their competitive position. It is therefore not surprising that
IMF Working Paper
African Department
What Drives China’s Growing Role in Africa?
Prepared by Jian-Ye Wang
October 2007
V B African Demand for Infrastructure AID VS COMMERCE FACTORS INFLUENCING THE GROWING TIES - To learn more about this author, visit International Monetary Fund's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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