SADC’S INFRASTRUCTURE: A REGIONAL PERSPECTIVE

||Western|Eastern|Southern|Central|
|---|---|---|---|---|
|Internet density|2|2|4|1|
|Generation capacity|31|16|176|47|
|Electricity coverage|18|6|24|21|
|Improved water|63|71|68|53|
|Improved sanitation|35|42|46|28|
|_Source:_AICD.|||||

**Table 1.2 Progress of and challenges to regional integration in the SADC**

|Sector|Achievements|Challenges|Promise of regional integration|
|---|---|---|---|
|Road transport|Several major international<br>gateways in southern Africa<br>that facilitate trade within the<br>region and with East Africa.|Lengthy delays due to trade facilitation<br>issues. Portions of major international<br>corridors are in disrepair.||
|Railways|Seven interconnected<br>national railway networks<br>form an extensive and well-<br>developed railway network in<br>southern Africa, spanning<br>half a dozen countries and<br>extending from the<br>Democratic Republic of<br>Congo all the way to Durban<br>in South Africa. Compatible<br>gauges.|Low levels of passenger and freight<br>traffic, poor operational performance of<br>railways outside South Africa. Railways<br>face stiff competition from other modes<br>of transport. Huge challenges to the<br>interconnection of services and lengthy<br>delays.|Reducing costs and delays associated with<br>surface transport of goods within the region.|
|Ports|Burgeoning container and<br>general-cargo traffic. Has a<br>strong transshipment hub in<br>Durban (highly efficient) and<br>in Dar es Salam (moderately<br>efficient).|Port capacity is stretched by traffic.<br>Handling charges are very high. Ports<br>in the western area of southern Africa<br>are not very competitive. Extensive<br>delays at ports hinder movement of<br>freight to landlocked countries.||
|Air transport|Best regional connectivity.<br>Steady growth in air traffic.<br>Strong hub-and-spoke<br>structure centered on<br>Johannesburg. Fleet has<br>been upgraded.|Very low level of progress toward<br>liberalization of the sector. Air safety<br>standards across the region are highly<br>variable.|Collaborating on improvement of safety record<br>and making progress toward achieving<br>liberalization of the sector.|
|Power|High level of existing<br>capacity. Demand is<br>generally being met. High<br>electrification rates.<br>Principles of regional trade<br>already well established.|Cost recovery relatively low among<br>utilities. Low levels of access.|Deepening regional integration would save the<br>SAPP area $1.1 billion in annual energy costs,<br>and annual savings in carbon emissions of<br>some 40 million tonnes. Long-run marginal cost<br>of power in the SAPP would fall by $0.01 per<br>kilowatt-hour. Overall rate of return on regional<br>integration investments is 167%.|
|ICT|Access to ICT services<br>among the highest in Africa.<br>Significantly cheaper to call<br>on a landline within the<br>SADC than outside the<br>region.|Countries pay high prices for critical<br>ICT services. Landlocked countries<br>and Namibia along the coast are not<br>connected to the submarine cable.<br>Roaming arrangements are not as<br>advanced as in other regions.|Achieving regional integration of ICT will cost<br>only $139 million and bring benefits of $204<br>million annually. Benefits derive primarily from<br>lower prices inducing higher rates of<br>subscription to broadband services. The overall<br>rate of return on regional integration<br>investments is over 168%.|

_Source:_ AICD.

_Note:_ SAPP = Southern African Power Pool; ICT = information and communication technology.

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