From Ventures Africa

Africa’s rise has been described as meteoric, and rightfully so; the continent is revelling at being courted by virtually every other region for investment opportunities. Its blossoming image as one of the top destinations for investment globally is fostering an unprecedented level of FDI overflow and ushering in a new era of development, mostly noticed in its rising middle class and spending ability.

But this fairytale period is not void of challenges, the most prominent been urban migration. About 40 percent of the total African population currently reside in urban settlements. This figure is projected to rise to 58 percent over the next three and a half decades according to the UN‐Habitat. Huge investments and trading opportunities, coupled with rapid infrastructure development, will drive this change; but the question should be asked: Is Africa able to handle this growth and development without worsening current traffic congestion levels?

According to McKinsey & Co, five cities are poised to emerge the largest African markets in 2020; Alexandria, Cairo, Cape Town, Johannesburg and Lagos. At least three of these cities currently face challenging traffic congestions which directly hamper overall productivity and lead to some form of economic loss.

The World Bank, in a 2012 report, indicated that Cairo loses an estimated $8 billion annually to traffic congestions. These traffic congestions are driven primarily by increased population due to urbanization. A popular example would be Nigeria’s Lagos city – Africa’s second fastest growing economic city and most populated – which was home to just 762,000 people as at 1960. Currently, the local census authority has placed the population size at 21 million people, with an expected growth to 35 million by 2025.

Read more at Ventures Africa