The state of infrastructure in Sub-Saharan Africa Analysis of the impact of infrastructure on regional growth and development

Abstract

Infrastructure has a significant role in a nation's economic development. The primary objective of this master's thesis is to comprehend the existing levels of infrastructure quantity, measured by physical presence of structures and facilities, and quality, evaluated by rates of access to resources and services, in Sub-Saharan Africa. It will do this by comparing them to the rest of the globe and determining which countries have the greatest needs. Energy, water and sanitation, transportation, information and communication technology, education, and healthcare are the infrastructure sectors that will be considered. The literature will next be thoroughly examined in order to determine which infrastructure sector has contributed most to the region's expansion over the past decades. Finally, in order to find out whether the funds are being used in the appropriate industries, it will analyse current investment trends. The substantial infrastructure gap between Sub-Saharan Africa and the rest of the world is the basis for the analysis. Currently, nearly 50% of the Sub-Saharan Africa population (or 600 million people) do not have access to electricity, versus 8,6% of the global average, and only 19%, as opposed to the 71% global average, have access to clean cooking fuels. Just 32% of the population has access to services that are safely managed for drinking water, compared to 92% in Europe, and 25% has access to such services for sanitation, as opposed to 78% in Europe. It entails that 16% of people in Sub-Saharan Africa practise open defecation. Only 36% of people have internet connection, and only 0.6% have a fixed broadband subscription. 63% and 17% are the global averages, respectively. The proportion of paved roads and the road network are the lowest in the world. International trade is not favoured by the lack of ports and the poor quality of those that are already present. Government spending on health accounts for about 5% of GDP, compared to 11% internationally, and there aren't enough hospitals and other facilities for the number of people. In comparison to the global average of 66%, the SSA has the lowest school enrolment rates in the world, with just 35,58% of students attending secondary school. Every study that was examined identified a positive and statistically significant relationship between increasing the quantity and quality of infrastructure and the improvement of the economy and condition of the Sub-Saharan area. The transport infrastructure, followed by the water and sanitary infrastructure, has been the most crucial for the region's expansion in recent decades, according to the empirical literature analysis. ICT is surprisingly one of the least important, with energy and education being more crucial than it. The health infrastructure has had the least impact on growth, since better water management and sanitation, in particular, or clean cooking fuels, directly improve population health. The water and sanitation industry should receive more financing, according to investment patterns, and the transportation sector is correctly given the most funding. Especially for the countries with greater needs, such as the CAR, Chad, DRC, Ethiopia, Niger, and South Sudan, governments will need to show long-term policy stability, a solid regulatory environment, and increase private sector investments and public-private partnerships, which could prove to have great value in the future