Africa's Infrastructure : A Time for Transformation

The Africa Infrastructure Country Diagnostic is an unprecedented attempt to collect comprehensive data on the infrastructure sectors in Africa — covering power, transport, irrigation, water and sanitation, and information and communication technology (ICT) — and to provide an integrated analysis of the challenges they face. Based on extensive fieldwork across Africa, the following main findings have emerged:• Infrastructure has been responsible for more than half of Africa’s recent improved growth performance and has the potential to contribute even more in the future.• Africa’s infrastructure networks increasingly lag behind those of other developing countries and are characterized by missing regional links and stagnant household access.• Africa’s difficult economic geography presents a particular challenge for the region’s infrastructure development.• Africa’s infrastructure services are twice as expensive as elsewhere, reflecting both diseconomies of scale in production and high profit margins caused by lack of competition.• Power is by far Africa’s largest infrastructure challenge, with 30 countries facing regularpower shortages and many paying high premiums for emergency power.• The cost of addressing Africa’s infrastructure needs is around $93 billion a year, aboutone-third of which is for maintenance — more than twice the Commission for Africa’s (2005) estimate.• The infrastructure challenge varies greatly by country type—fragile states face animpossible burden and resource-rich countries lag despite their wealth.• A large share of Africa’s infrastructure is domestically financed, with the central governmentbudget being the main driver of infrastructure investment.• Even if major potential efficiency gains are captured, Africa would still face an infrastructurefunding gap of $31 billion a year, mainly in power