How does infrastructure development support economic development in fragile economies?

Sep 29, 2022

By katana, ABiQ

By katana, ABiQ

ABiQ outlines how infrastructure development supports economic development in fragile economies.


What is infrastructure development?

Infrastructure development includes the construction of basic necessities that an economy needs to thrive. Infrastructure development includes the construction of transportation systems, communication networks, sewage, water, education systems, and more.


Why is infrastructure development important for economic growth?

Infrastructure development is vital for economic growth. Effective, efficient transport, robust roads, and sustainable electricity and water supply are the backbone of a healthy economy. Without these, an economy cannot flourish. Something as simple as an internet connection, can give millions of people job opportunities. Infrastructure development contributes significantly to human development, poverty reduction, and overall economic growth.


Why is there such high demand for infrastructure development in developing countries

The simple answer is: population growth and the need for economic growth. ​Africa’s population is set to increase by 25 percent over the next 10 years. Africa’s population is expected to grow from 1.340 billion in 2020 to 1.617 billion by 2030, resulting in a growing demand for more infrastructure. 

Africa’s infrastructure funding needs are predicted by the African Development Bank to reach $170 billion annually by 2025. This population growth across Africa will further expand a huge market with many opportunities. 


Do public-private partnerships (PPP) work well to support economic development in fragile economies?

Public-private partnerships (PPPs) are especially important for economic development in fragile economies. PPPs combine the resources and experience of the two sectors to deliver infrastructure or services at a lower cost. Many African governments are turning to PPPs to fulfil infrastructure demands, while trying to recover from the COVID-19 Pandemic. 


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