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Africa Economic Brief - Closing Africa’s Infrastructure Gap: Innovative Financing and Risks
Africa’s underdeveloped infrastructure has been a major obstacle for the continent’s development and its efforts to achieve a strong, sustained and in rural and marginalized areas also shared growth (Figure 1, and Figure 1, Annex). Africa, especially sub-Saharan Africa (SSA), ranks consistently on the bottom of developing regions in access to infrastructure services (Table 1 and Table 1, Annex). According to Africa Infrastructure Country Diagnostic (AICD) estimates, Africa’s total infrastructure financing needs amounted to $93 billion a year in 2008, with only $45 billion financed. Even if all inefficiencies such as inefficient management, poorly targeted subsidies or tariffs were eliminated, a $31 billion a year gap would remain. Closing it will require innovative financing resources.