Recent Economic Development in Infrastructure

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  • Publication
    Cameroon's Infrastructure: A Continental Perspective
    (World Bank, Washington, DC, 2011-06) Dominguez-Torres, Carolina; Foster, Vivien
    Better access to improved infrastructure services is an important engine for economic growth. The poor state of infrastructure is a key bottleneck to growth in African countries, and Cameroon is no exception. Between 2000 and 2005, improvements in information and communication technologies boosted Cameroon's growth performance by 1.26 percentage points per capita, while deficient power infrastructure held growth back by 0.28 percentage points. If Cameroon could improve its infrastructure to the level of the middle-income countries of Africa, the growth effect could be on the order of 3.3 percentage points. Cameroon has made significant progress in many aspects of infrastructure. Across a broad range of sectors, the country has made serious efforts to implement institutional reforms with a view to attracting private sector investment. Private sector concessions have been awarded for the Port of Douala, the CAMRAIL railway, the national power utility, and the national water utility (CDE). These arrangements have generally led to performance improvements and attracted significant volumes of finance. Power supply remains expensive and unreliable. Cameroon needs to accelerate the development of some of its prime hydropower sites, which would greatly improve the domestic power situation and potentially allow Cameroon to play its natural role as hydropower exporter to the Central African Power Pool. Cameroon's information and communication technology (ICT) reform remains frozen at an early stage. The telecom incumbent, CAMTEL, remains state-owned and receives substantial public subsidy. The mobile sector is relatively uncompetitive, operating as a duopoly. Moreover, while Cameroon enjoys access to a submarine cable, CAMTEL's monopoly control over the international gateway has prevented consumers from benefiting.
  • Publication
    Niger's Infrastructure: A Continental Perspective
    (World Bank, Washington, DC, 2011-05-01) Domínguez-Torres, Carolina; Foster, Vivien
    Between 2000 and 2005 infrastructure made a net contribution of only 0.3 percentage points to the improved per capita growth performance of Niger, one of the lowest in Sub-Saharan Africa. Raising the country's infrastructure endowment to that of the region's middle-income countries (MICs) could boost annual growth by about 4.5 percentage points, mainly by improving the condition of the road network. Niger has made significant progress in some areas of its infrastructure. Important reforms liberalizing the water supply and information and communication technology (ICT) sectors have boosted performance. In particular, reforms in urban water are among the most promising on the continent. Increased competition in the ICT market has contributed to the rapid expansion of mobile services. NIGELEC, the national power utility, has enhanced its performance. The Nigerien portions of regional corridors are in relatively good or fair condition. Air transport connectivity has improved. Niger has the potential to close this funding gap by tapping alternate sources of financing or adopting lower-cost technologies. There is plenty of room for private sector participation in Niger's infrastructure sectors, in particular ICT. Meanwhile, the adoption of alternate lower-cost technologies in the water supply, power, and road sectors would reduce the financing gap by almost a half ($219 million).
  • Publication
    Ethiopia's Infrastructure: A Continental Perspective
    (World Bank, Washington, DC, 2010-03) Foster, Vivien; Morella, Elvira
    Infrastructure contributed 0.6 percentage points to Ethiopia's annual per capita gross domestic product (GDP) growth over the last decade. Raising the country's infrastructure endowment level to that of the region's middle-income countries could lift annual growth by an additional 3 percentage points. This will represent a significant boost over the growth performance of the mid-2000s, which averaged around 5 percent. The Africa Infrastructure Country Diagnostic (AICD) has collected and analyzed extensive infrastructure data for more than 40 Sub-Saharan countries, including Ethiopia. The results are presented in reports on various infrastructure sectors Information and Communication Technologies (ICT), irrigation, power, transport, water and sanitation and policy areas, including investment needs, fiscal costs, and sector performance. This country report presents the key AICD findings for Ethiopia. This will allow its infrastructure situation to be benchmarked against that of other African nations that, like Ethiopia, are low-income countries, with particular emphasis on immediate regional neighbors in East Africa. Several methodological issues should be borne in mind. First, the cross country nature of the data collection creates an inevitable time lag. The period covered by the AICD runs from 2001 to 2006. Most technical data are presented for 2006 (or the most recent year available), while financial data typically are averaged over the available period to smooth out the effect of short term fluctuations. Second, cross country comparisons require standardization of the indicators and the analysis to ensure consistency. Therefore, some of the indicators may be slightly different from those that are routinely reported and discussed at the country level. During the 2000s, Ethiopia's annual economic growth has averaged 4.8 percent, compared with only 0.5 percent in the previous decade. Notwithstanding this improvement, current annual growth levels still fall short of the sustained 7 percent needed to meet the Millennium Development Goals. Improved structural and stabilization policies generated an estimated 4.2 percent of Ethiopia's improved per capita growth performance during the 2000s, and improvements in the country's infrastructure platform over that period contributed up to 0.6 percentage points to growth. This was due almost entirely to the introduction of mobile telephony in Ethiopia. Simulations suggest that if Ethiopia's infrastructure platform could be improved to the level of the African leader, Mauritius, annual per capita growth rates could increase by 3.8 percent. This potential impact would come equally from improvements to transport, power, and ICT infrastructure.
  • Publication
    Liberia's Infrastructure: A Continental Perspective
    (World Bank, Washington, DC, 2010-03) Pushak, Nataliya; Foster, Vivien
    Liberia's 14-year civil war left much of the country's infrastructure shambles. The country's 170 megawatt power generation capacity and national grid were completely destroyed. In Monrovia, just 0.1 percent of households had access to electricity. According to the 2008 National Census, access to piped water fell from 15 percent of the population in 1986 to less than 3 percent in 2008. The national road network was left in severe disrepair. Peace brought many positive developments. The Freeport of Monrovia is now privately managed and has resumed normal operations. Essential rehabilitation work has been carried out, and the port's performance now matches that of neighboring ports along the West African coast. Liberia has also successfully liberalized its mobile telephone markets, with access surging to 40 percent in 2009, at some of the lowest prices in Africa. Despite the potential for private investment, Liberia will likely need more than a decade to reach the illustrative infrastructure targets outlined in this report. Under business-as-usual assumptions for spending and efficiency, it would take at least 40 years for Liberia to reach these goals. Yet with a combination of increased finance, improved efficiency, and cost-reducing innovations, it should be possible to significantly reduce that time.
  • Publication
    Zambia's Infrastructure: A Continental Perspective
    (World Bank, Washington, DC, 2010-03) Dominguez, Carolina; Foster, Vivien
    Infrastructure improvements contributed 0.6 percentage points to the annual per capita growth of Zambia's gross domestic product (GDP) over the past decade, mostly because of the exponential growth of information and communication technology (ICT) services. Poor performance of the power sector reduced the per capita growth rate by 0.1 percentage point. Simulations suggest that if Zambia's infrastructure platform could be improved to the level of the African leader, Mauritius, per capita growth rates could increase by two percentage points per year. Zambia's high generation capacity and relatively high power consumption are accompanied by fewer power outages than its neighbors. But Zambia's power sector is primarily oriented toward the mining industry, while household electrification, at 20 percent, is about half that in other resource-rich countries. Zambia's power tariffs are among the lowest in Africa and are less than half the level needed to accelerate electrification and keep pace with mining sector demands. Meeting future power demands and raising electrification rates will be difficult without increasing power tariffs. Zambia's infrastructure situation is more hopeful than that of many other African countries. Infrastructure spending needs, though large, are not beyond the realm of possibility, and Zambia's resource wealth and relatively well-off population provide a more solid financing basis than is available to many other countries. Zambia's infrastructure funding gap, though substantial, can be dramatically reduced through measures to stem inefficiencies and lower costs.