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Development Research Briefs - Infrastructure Investment in Africa
The African Development Bank has long recognized that infrastructure investment has a central role in the development agenda and is critical for supporting economic growth, poverty reduction and the achievement of the millennium development goals (MDGs). Infrastructure affects growth through two channels: directly through physical capital accumulation and indirectly through improvement in productivity. The relationship between investment and infrastructure is also bi-directional. Countries with high growth rates invest more in infrastructure which subsequently feeds back into the growth process.