Introduction
Infrastructure development is a key driver for progress across the African continent and a critical enabler for productivity and sustainable economic growth. It contributes significantly to human development, poverty reduction, and the achievement of the Millennium Development Goals (MDGs). The Africa Infrastructure Country Diagnostic (AICD) results show that investment in infrastructure accounts for more than 50% of the recent improvement in economic growth in Africa, and that it has the potential to achieve even more.
In spite of its enormous mineral and other natural resources, Africa has the lowest productivity of any other region around the world, and this is largely attributable to serious infrastructural shortcomings across all the sub-sectors: energy, water, sanitation, transportation, and information and communications technology (ICT). The international community meeting during the G8 Summit of 2005 pledged significant support for the infrastructure sector. This was in recognition of the fact that Africa's weak physical infrastructure base was impeding the region's progress toward improved living standards, poverty reduction, domestic and international trade and investment, and socially inclusive gross domestic product (GDP) growth.
Recent research has also emphasized the catalytic effects of infrastructure development. The Commission on Growth and Development's Growth Report: Strategies for Sustained Growth and Inclusive Development (2008) highlighted infrastructure investment as crucial to both structural transformation and export diversification. Stern (1991) showed how adequate infrastructure is essential for productivity and growth, indicating that transport in particular is a driver of development. In the same vein, the findings of Anyanwu and Erhijakpor (2009) indicate that road infrastructure significantly reduces poverty in Africa. Recent studies by Canning and Pedroni (2008) and Égert et al (2009) also confirm the positive correlation between improved infrastructure and economic growth.
Despite robust economic growth rates of over 5% per annum in recent years, the World Economic Forum's Global Competitiveness Index 2012–2013 confirms that Africa remains the least competitive global region. Inadequate infrastructure is cited as the third most serious constraint on doing business in the continent, following two other criteria, namely access to finance and corruption. This demonstrates the close linkage between infrastructure and the region's competitiveness. Moreover, the Africa Progress Panel, composed of such distinguished members as Kofi Annan, Michel Camdessus and Peter Eigen, has ranked infrastructure development as a key priority for the advancement of the continent, and has urged the G20 leadership to continue to give it their highest support.