Reform, Private Capital Needed to Develop Infrastructure in Africa : Problems and Prospects for Private Participation

Abstract

In Sub-Saharan Africa, the overwhelming need for infrastructure has motivated regional economic organizations to push for an ambitious agenda of private participation. But to begin solving Africa's infrastructure investment problems will also require broad institutional reform along with greater financial commitments by governments and donors. The private sector appears capable of supplying only a fraction of the estimated US$5-12 billion a year in additional infrastructure finance that Africa needs to meet its Millennium Development Goals for infrastructure. Meeting Africa's infrastructure development challenges will require substantial increases in government budgetary allocations and official development assistance.