Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- List of boxes
- Notes on contributors
- Acknowledgements
- Foreword
- Introduction: Infrastructure in African development
- Part 1 Spatial and demographic contexts
- Part 2 Sector-specific issues
- Part 3 Regional issues
- Part 4 Financing issues
- Part 5 Concluding remarks
- Index
sixteen - Infrastructure, political economy and Africa’s transformational agenda
Published online by Cambridge University Press: 05 April 2022
- Frontmatter
- Contents
- List of figures
- List of tables
- List of boxes
- Notes on contributors
- Acknowledgements
- Foreword
- Introduction: Infrastructure in African development
- Part 1 Spatial and demographic contexts
- Part 2 Sector-specific issues
- Part 3 Regional issues
- Part 4 Financing issues
- Part 5 Concluding remarks
- Index
Summary
Introduction
Infrastructure has been highlighted by many commentators as a major constraint on Africa's transformation (Ayogu, 2007; AfDB, 2010a, 2010b, 2010c; Lin, 2012; IMF, 2014). Two argumentations come to the fore: good infrastructure and connectivity, which is critical for spurring supply responses and economic growth; and enhancing diversification and structural transformation by speeding up intersectoral linkages and the transitioning of economies from low to high productivity thresholds (Banerjee et al, 2009; IMF, 2014). Output from infrastructure is both a final good, providing services directly to consumers (such as power for television sets), and an intermediate input that enters into the production of other sectors, in turn raising their productivity (for example, power as an input into manufacturing), as well as a mechanism that may define institutional and governance arrangements (Herbst, 2000). The availability of an efficient infrastructure network/framework can stimulate new investment in other sectors or even strengthen state legitimacy, as infrastructural services are seen as fulfilment of the social contract. Conversely, shortage of infrastructure or its over-expansion in certain areas can raise costs and create disincentives to investment, as well as socio-political disharmony.
As national income grows, the share of infrastructure investments in gross domestic product (GDP) rises, although beyond a certain point the relative importance of particular types of infrastructure declines. Ndulu et al (2005, pp 103-4) argued that during “… the ratio of investment to GDP in sub-Saharan Africa (in 1985 international prices) averaged 9.5 percent of GDP compared to nearly 15.6 percent in other developing countries….African countries have also largely underinvested in infrastructure against the wisdom that countries which typically manage to invest more, do so particularly in infrastructure sectors.” This chapter seeks to analyse the role of infrastructure in accelerating Africa's development. This requires policymakers to take tangible measures to address issues of infrastructural development for socioeconomic transformation. How should African countries deal with their infrastructure deficiencies? What are some of the practical actions that need to be taken to build both physical and soft (financial) infrastructure?
Infrastructure involves both the public and private sectors. Examples of infrastructure are: water supply, sanitation, transportation, electricity, telecommunications, irrigation dams and banks. Agricultural infrastructure includes all of the basic services, facilities, equipment, and institutions needed for the economic growth and efficient functioning of the food and broader agricultural markets.
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- Infrastructure in AfricaLessons for Future Development, pp. 643 - 672Publisher: Bristol University PressPrint publication year: 2017