The Effect of Infrastructure Development on African Economics

13 Pages Posted: 12 Jan 2023

Date Written: January 12, 2023


Infrastructure development is crucial to achieving growth, poverty reduction, and larger development goals. Academics and policymakers have long seen an appropriate supply of infrastructure services as a critical component of economic growth.

Sub-Saharan Africa typically ranks towards the bottom of all emerging areas in terms of infrastructure performance, and a growing number of analysts see inadequate infrastructure as a key impediment to regional progress and poverty reduction.

This paper reviews the literature on the relationship between infrastructure investment and economic development, analyzes the significance of infrastructure in participating in global value chains and enabling economic improvements, identifies the issues that LDCs confront, and makes policy suggestions. with a particular emphasis on Sub-Saharan Africa.

The study utilizes a comparative cross-regional approach to situate Africa's experience within the world framework.

It implies that eliminating infrastructure constraints is an essential prerequisite for providing a window of opportunity for an economy to flourish based on its comparative advantage. With the correct conditions, effective infrastructure may help an economy, especially a developing country, enjoy the advantages of global value chains and update its economic structure. The estimates demonstrate the potential contribution of infrastructure development to African growth and equity.

Keywords: Infrastructure, Growth, Income Inequality, Africa

JEL Classification: A, J, H

Suggested Citation

Alameddine, Hoda, The Effect of Infrastructure Development on African Economics (January 12, 2023). Available at SSRN:

Hoda Alameddine (Contact Author)

Beirut Arab University ( email )

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