This Policy Brief concentrates on assessing the state of transport, communications and energy infrastructure and the regulatory environment, and highlights their impact on intra-African trade. Issues of financing its development and the relevant policy implications and responses are also considered. It further provides key messages and recommendations for intervention to move the infrastructural development agenda in Africa.
Symbiosis exists between infrastructure and economic growth. Good infrastructure spurs growth; conversely, increased growth results in a demand for more infrastructure (Eustace and Fay, 2007). Transportation systems play a key role in moving factors of production which are foundational to the cost of trade, the global competitiveness of each country and its development prospects.
A better interconnected Africa, internally and with the rest of the world, would create larger markets and facilitate the achievement of the millennium development goals (MDGs) and other internationally agreed upon benchmarks. In this respect, African countries aspire to have a well-developed and coordinated, efficient and safe and cost-effective infrastructure. To achieve this, its countries have attempted a coherent programme of activities in energy, transport and communications as well as water and sanitation, in accordance with priorities established in the New Partnership for Africa’s Development (NEPAD) and the mandates of the African Union (AU) and the Regional Economic Communities (RECs) and their relevant technical sector organizations.