Investing in infrastructure is essential for the development and growth of a society. For example, by connecting farmers with local and regional markets, and providing access to school and health care facilities, infrastructure enables communities to prosper. However, a recent World Bank report, Africa’s Infrastructure: a Time for Transformation revealed that although Africa has made significant progress in developing infrastructure, additional efforts are still needed.

The study, which was conducted in 24 countries across the continent, found that inadequate infrastructure, including poor electricity, water, roads, and information and communications technology (ICT), can shrink national economic growth by two percent every year and can decrease productivity by up to 40 percent.

In the report, the World Bank estimates that Africa will need to spend $93 billion annually to elevate African infrastructure to the level of other countries, meet the Millennium Development Goals, and achieve national development goals within 10 years. This figure doubles earlier estimates.

According to the report, Africa is already spending $45 billion a year on infrastructure. The report suggests that using this money and other existing resources more efficiently would free up $17.4 billion in annual spending for infrastructure every year. The report notes, however, that even with this additional spending, African countries would still be $31 billion short of the estimated need of $93 billion. The report urged the international community to invest to help fill the $31 billion infrastructure gap, underscoring the significance of infrastructure development for long-term economic growth and poverty alleviation:

“Modern infrastructure is the backbone of an economy and the lack of it inhibits economic growth,” said Obiageli Ezekwesili, President for the Africa Region at the World Bank. “This report shows that investing more funds without tackling inefficiencies would be like pouring water into a leaking bucket. Africa can plug those leaks through reforms and policy improvements which will serve as a signal to investors that Africa is ready for business.”