A legacy of underinvestment and regional fragmentation
Infrastructure is a critical enabler of economic growth. At the same time, lack of infrastructure undermines productivity, raises production and transaction costs, and hinders growth by reducing the competitiveness of businesses as well as the ability of governments to pursue economic and social development policies. A substantial percentage of CEOs in our Africa survey say that inadequate infrastructure is a threat to growth. In the Congo-Brazzaville, the Democratic Republic of the Congo, Ghana, Mozambique, Tanzania and Zimbabwe, 80% or more of CEOs say that inadequate infrastructure is a threat to growth.
The far-reaching effects of Africa’s infrastructure backlogs include:
These factors contribute to African countries being among the least competitive in the world. This is a problem that requires continental and regional collaboration, planning, solutions, funding, partnerships and implementation.