Regional Economic Corridors and the Role of Resources

Leverage trunk infrastructure built for anchor projects

DC Logistics “Catchm

ent”

Source: BAGCSource: P.

Jourdan

Guinea corridor (link)

Timeline to develop a development corridor

Conceptualization: Potential

anchor & infrastructure

needs

Dimension of trunk

infrastructure and linkage

opportunities

Strengthen institutions &

feeder infrastructure

Identify & facilitate

investments and finance

SMME support & capacity building

Deepening of resource

sector through linkages

Not all mining projects present the same anchor opportunity

Source: World Bank

Source: SADC

Potential mineral anchor projects for regional corridors in the SADC region

Resource for infrastructure deals: another way to

leverage the EI to fill in the funding gap ?

An example of how it works

Non-ODA Chinese committed flows to Africa: US$5bn/year (2007-2009)

Source: Foster et al, 2008

Blessing or curse?

• Economic complementarities between China and Africa• Simplified transaction by delivering infrastructure quickly and cheaply without

conditionalities• Has the potential to decrease corruption as money does not flow through

government institutions• Has the potential to reduce wasteful spending of resource revenues

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• Lack of precedents and transparency of the deals• Lack of international tender process for infrastructure may lead to inflated cost and

lower quality• Lower tax revenues and less flexibility once committed• Additional debt burden may cause fiscal sustainability problems• Less linkages to the local economy

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