Craig Eisele on …..

December 6, 2007

Surprise: Africa Needs $43 Billion to Restore Road Network

Actually this should not be a surprise to anyone. DRC (Democratic Republic of Congo) which is the land mass size of ALL of Western Europe, is proported to have less than 500 Kilometers (300 miles) of PAVED Roads. Trans African Development Company (Not-For-Profit Company) has been attempting to establish a fund to raise 45 Billion US Dollars to rehabilitate the Sub-Saharan Trade Routes as a form of AID to Africa… This “Aid” is the type that Africa NEEDS to help sustain itself and the benefits are already well quantified!!

Craig Eisele

Here is the Article:

Continent Requires $43 Billion to Restore Road Network

Leadership (Abuja)

NEWS

3 November 2007

Posted to the web 5 November 2007

By Ofem Uket

African states, including Nigeria, will require about $43 billion to restore the state of roads in the region, considering the long neglect and low maintenance of the highways.Such roads will require immediate rehabilitation, and this restoration can be applied on such roads that are economically justifiable, and to prevent further deterioration, would require annual expenditure over the next 10 years of at least, one per cent of regional Gross Domestic Product (GDP).

The economics of cost of poor road maintenance are borne by road users. Refusing or differing road maintenance increases the cost of road transport, and raises the net cost on the economy. Each naira differed or saved on road maintenance increases the vehicle operating cost.

One of the key concepts to reduce the low level of maintenance on roads is by commercialisation of roads, which of course, the federal government has embarked on through the bidding process on classified roads across the country to be given out on concession.

Another key element of surface transportation now and in the future, will be toll roads. That is, bringing roads into the market place, and putting them on a fee for service basis. That way, the government will spend less, and roads will be more attractive to use and will be restored to its lost glorious condition of the past.

For instance, Ghana installed an independent board to oversee the management of its road fund created in 1995, Tanzania in 1992, and Zambia in 1995, while Lesotho and Malawi are in the process of creating autonomous road funds and road boards.

Out of the 10.711 kilometres of road (motorway) networks in France, 7.186 kilometres are owned and operated by concessionaires for a toll of half a Franc per kilometer (6 cent/mile) , which is charged to cover the cost of financing, construction, operation, maintenance and general profit. And in other countries like Chile, Santiago and South America, they charge according to the distance covered, and the charges are structured in three levels.

Motorists in Nigeria are willing to pay for the use of roads, according to statistics on random sampling opinion, in so far as federal roads are put in a perfect motorable condition that will guarantee safety of lives and property, contrary to the death traps that exist on the highways presently.

There has to be a clear cut distinction on maintenance and rehabilitation of federal roads handled by government, and the ones managed by the private sector under the commercialisation exercise.

African Economy is Extreemly Attractive

Economy May Become Africa’s Most Attractive

Angola Press Agency (Luanda)
NEWS
26 November 2007
Posted to the web 27 November 2007
Luanda
The Angolan economy may become in coming years one of the most attractive in Africa south of Sahara, as it is scoring favourable developments, where transparency in business is concerned.

This was said Monday in Luanda by US consultant, Barney Rosemberg, who was speaking on Ethics and Global Trade, during a seminar organised by the Association of Angolan Economics Journalists (Ajeco).

According to him, this fact can attract world companies into the Angolan market, making the country economically stronger.

He said that in order for the country to reach this level, it should continue directing its transparency efforts towards aspects where ethics contribute to business growth.

He considered ethics in business as values and acts that have to do with, among other aspects, integrity, honesty and respect for people.

The expert stated that the new tendency in businesses indicates a growing movement of companies towards opening “Ethics and Conduct” or “Conformity” offices. The idea in setting up such departments is to push forward solutions to the companies’ internal problems.

According to Barney Rosemberg, a programme of ethics for companies permits to improve businesses, save money for shareholders and employees, rather than for fines and penalties.

Organised by Ajeco in partnership with the US Embassy to Angola, the event received contributions from journalists, business people, students and guests.

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