One of the magical turnarounds to road infrastructure in Uganda was the Entebbe-Expressway. This 51-kilometre road averages about USD 9m in annual toll collections. The cost of construction for this road was USD 476 million. Without factoring in costs, and time value of money, this road will take 52 years to pay back to the investors (assuming all of it was contributed by private capital).

Yet, this quantitative measurement shouldn’t blind us to the qualitative outcomes from such a road. This could be measured in terms of the productivity enhancements because of this road and the swifter connection to Uganda’s main gateway to the world (Entebbe Airport).

A review of Africa’s main economies such as Egypt, South Africa, Nigeria and Morocco reveals that toll roads could be the future of spurring road infrastructure in emerging African economies. The difference made by the 51 kilometre stretch in Uganda could be further amplified if the learnings are extrapolated into a similar project for the Kampala-Jinja expressway. It’s a crucial connection to Uganda’s main trade partner, Kenya.

Another learning from such projects is the skill of project preparation which eludes and delays many African road projects. It’s evident that private financing of African infrastructure provides better returns for pension/retirement funds in Europe/America, better returns than similar investment in projects across the other parts of the world. Yet, African projects also still attract punitive ratings by the risk-rating agencies, thus attracting higher interest rates. At Africa Nxt Gen, we exist to light the fire that kicks off these crucial conversations that will define the future of Africa.

Infrastructure Financing in Africa is one of those crucial conversations. With the learnings acquired from Kenya, Uganda, Morocco, Egypt and South Africa, it’s evident that the rest of Africa is ready to make the leap into the world of toll roads. The global investment community should be canvassed and mobilized for the opportunities in the infrastructure financing environment.

Toll Roads in Various African Countries

1. N1 Highway (South Africa) – Approximately 1,937 kilometers
2. N3 Highway (South Africa) – Approximately 415 kilometers
3. N4 Highway (South Africa) – Approximately 1,600 kilometers
4. N5 Highway (South Africa) – Approximately 340 kilometers
5. N6 Highway (South Africa) – Approximately 960 kilometers
6. N7 Highway (South Africa) – Approximately 300 kilometers
7. N12 Highway (South Africa) – Approximately 714 kilometers
8. N17 Highway (South Africa) – Approximately 270 kilometers
9. N2 Highway (South Africa) – Approximately 2,255 kilometers
10. Gauteng Freeway Improvement Project (GFIP) (South Africa) – Varies by section
11. Western Bypass (N1/N4) (South Africa) – Approximately 60 kilometers
12. Northern Bypass (N4/N12) (South Africa) – Approximately 160 kilometers
13. Abuja-Kaduna-Kano Expressway (Nigeria) – Approximately 375 kilometers
14. Lekki-Epe Expressway (Nigeria) – Approximately 49 kilometers
15. Lagos-Ibadan Expressway (Nigeria) – Approximately 127 kilometers
16. Benin-Ore-Sagamu Expressway (Nigeria) – Approximately 326 kilometers
17. East-West Road (Nigeria) – Approximately 337 kilometers
18. Mombasa-Nairobi Highway (Kenya) – Approximately 485 kilometers
19. Thika Superhighway (Kenya) – Approximately 50 kilometers
20. Kampala-Entebbe Expressway (Uganda) – Approximately 51 kilometers
21. Cairo-Alexandria Desert Road (Egypt) – Approximately 220 kilometers
22. Algeria Highway 1 (Algeria) – Approximately 1,200 kilometers
23. R207 Highway (Morocco) – Approximately 50 kilometers
24. R202 Highway (Morocco) – Approximately 15 kilometers
25. Tanger-Med Port Highway (Morocco) – Approximately 45 kilometers
26. R511 Highway (Morocco) – Approximately 35 kilometers
27. R313 Highway (Morocco) – Approximately 45 kilometers
28. Cape Town Tollways (South Africa) – Varies by section
29. Durban Freeways (South Africa) – Varies by section
30. Cairo Ring Road (Egypt) – Approximately 100 kilometers
31. Alexandria Desert Road (Egypt) – Approximately 200 kilometers
32. Alexandria-Matruh Highway (Egypt) – Approximately 250 kilometers
33. Cairo-Suez Road (Egypt) – Approximately 140 kilometers
34. Cairo-Ismailia Road (Egypt) – Approximately 120 kilometers
35. Sharm El Sheikh Road (Egypt) – Approximately 20 kilometers
36. Abidjan-Lagos Corridor (Côte d’Ivoire, Ghana, Togo, Benin, Nigeria) – Varies across countries; part of it is toll-based
37. Dakar-Diamniadio Toll Highway (Senegal) – Approximately 55 kilometers
38. Blaise Diagne International Airport Highway (Senegal) – Approximately 30 kilometers
39. Autoroute A1 (Rabat-Casablanca-Tangier) (Morocco) – Approximately 270 kilometers
40. Autoroute A2 (Casablanca-Fes-Oujda) (Morocco) – Approximately 220 kilometers
41. Autoroute A3 (Rabat-Tangier) (Morocco) – Approximately 200 kilometers
42. Autoroute A4 (Casablanca-Marrakech-Agadir) (Morocco) – Approximately 580 kilometers
43. Autoroute A5 (Casablanca-Settat-Marrakech) (Morocco) – Approximately 190 kilometers
44. Autoroute A6 (Marrakech-Agadir) (Morocco) – Approximately 250 kilometers
45. Autoroute A7 (Fes-Oujda) (Morocco) – Approximately 320 kilometers
46. Autoroute A9 (Rabat-Safi-Marrakech) (Morocco) – Approximately 220 kilometers
47. Autoroute A10 (Rabat-Casablanca) (Morocco) – Approximately 100 kilometers

Below is a brief by the Ortega Group on Infrastructure Financing in Uganda.