Africa needs $93bn to bridge infrastructure deficit –PenCom boss

The Director General, National Pension Commission (PENCOM), Mrs. Chinelo Anohu-Amazu has said that Africa would need about $93 billion annually to bridge her infrastructure deficit.

Anohu-Amazu who said this in Abuja at the 3rd edition of the world Pension Summit ‘Africa Special’, expressed optimism that the continent can surmount what she described as “huge challenge” through coordinated, multifaceted approach to development and the integration of domestic funding sources such as pension funds, and foreign institutional investors.

According to her, “The foregoing interplay of events,… to a great extent influenced the choice of this year’s theme, which I believe would resonate with delegates and is meant to provide a platform for the exchange of ideas and experiences on innovative practices in pensions and social security to advance the African agenda of addressing economic and social challenges.

“Then again, cutting-edge Infrastructure is critical for economic growth and social progress. Extant indices show that Africa’s infrastructure remains by far the most deficient and costly amongst developing countries.

“In many cities, the challenge of urbanization and the need for modern infrastructure is already evident. One-third of urban residents in Sub-Saharan Africa are located in 36 cities, each with more than one million inhabitants.

“The United Nations estimated that by 2025, the population in Lagos and Kinshasha would reach 18.9 million and 14.5 million, respectively. To put this in context, it would be the equivalent of combining the current populations of London, Berlin and Madrid, which stand at 15.42 million based on 2015 population figures,

“…Child mortality has dropped in most countries and infertility rates have reduced significantly for educated women living in urban areas. This has resulted in a rapidly growing population, with estimates showing that the region will become a much larger part of the global population with a projected 2.8 billion people by 2060.

“This exponential milestone is expected to translate to a population of healthy, educated and empowered labor force that would engender sustainable economic growth and poverty reduction.

“Africa would, therefore, need to address the issue of aging population that will emerge as the demographic transition comes to an end, by developing robust pension and social security systems to cater for old age income,” she added.