Kampala — AFRICAN governments should invest massively in infrastructure development to achieve sustainable growth, a top economist advised last week.

"Roughly half of sustainable growth will come from good infrastructure development. Good roads, rail network and reliable energy supply are essential for sustainable growth," Goolam Ballim, the Standard Bank Group chief economist, argued.

He was speaking at the Third Standard Bank Media Forum aimed at upskilling journalists across the continent. Ballim also mentioned the quality of leadership in Africa as one of the problems inhibiting the economic progress.

"The leadership element is a key problem in Africa. The poor leadership is embarrassing. Africa enters into manipulative foreign trade agreements without safety nets. We need to bargain more with China and India because that is where more growth will come from."

He also lamented at the weak calibre of experts who represent the continent on international trade negotiations.

"The way we bargain with the rest of the world is wanting.

"Africa does not have bargaining intellectual prowess because experts in these department are weak."

He said African leadership should start special local investment policies that support domestic investments through the provision of cheaper funding for manufacturing firms than commercial banks and allow bigger level of non-performing loans of up to 90%.

"Do governments around the African continent have these policies to promote industrialisation and allow local risks fly more easily?" Ballim asked.

He gave an example of China, which he said has cheap labour costs and skills, which bring about marginal costs because the prices of the products fall.

Ballim said this had made China the preferred destination for manufacturing organisations.

"African countries need to become smart by introducing self-sustaining systems."

The economist also touched on corruption, saying "If you smash it, the systems can be effective."

He discouraged political patronage through the introduction of proper public expenditure channels.

He cited the South African tax system where people earning less than 7,000 rands do not pay income tax but where for every four rands paid, a taxpayer gets one rand in benefits.