Frequent power outages, restricting access to electricity to a third of Africa’s
population, reducing its productivity by as much as 40%, and curtailing its
annual economic growth by about 2% (
PIDA, 2014)
Only 30% of African countries have access to electricity relative to 70%-90% of other developing countries
Motivation
Infrastructure & Growth
Well-designed infrastructure investments (Energy, transport, digital communications, waste disposal networks, and water and sanitation facilities) have long-term economic benefits
Infrastructure raise productivity, decrease transportation and communication costs, increase land values, improve health
Cause significant positive spillovers.
Motivation (cont’d.)
Infrastructure & Growth
However, investing wisely in infrastructure is critically important
Over-investment can lead to inefficiency and low marginal returns
Link between Infrastructure and Growth
Channels through which infrastructure impacts growth
direct input into the production process
complement to other inputs into the production process
stimulant to factor accumulation by providing facilities for human development