Malawi’s Infrastructure : A Continental Perspective
Infrastructure contributed 1.2 percentage points to Malawi's annual per capital GDP growth over the past decade. Raising the country's infrastructure endowment to that of the region s middle-income countries could increase that contributi...
Main Authors: | , |
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Format: | Policy Research Working Paper |
Language: | English |
Published: |
2012
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Subjects: | |
Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110317135225 http://hdl.handle.net/10986/3363 |
Summary: | Infrastructure contributed 1.2
percentage points to Malawi's annual per capital GDP
growth over the past decade. Raising the country's
infrastructure endowment to that of the region s
middle-income countries could increase that contribution by
3.5 percentage points. Malawi's successes in
infrastructure development include reaching the Millennium
Development Goals for water and making GSM telephone signals
widely available without public subsidy. Challenges include
improving the reliability and sustainability of the power
sector, raising funding for road maintenance, preventing
overengineering of roads, enhancing market access in
agricultural areas, and lowering the cost of information and
communications services. The latter goal may be achievable
by securing competitive access to the new submarine
infrastructure on the East African coast.Addressing
Malawi's infrastructure deficit would require sustained
expenditures of almost $600 million per year over the decade
2006-15. During the mid-2000s, the country spent close to
$200 million per year, about half of which went to the
transport sector. Because of widespread inefficiencies --
underpricing of power, improperly maintained roads, and
utility distribution losses --about $200 million is wasted
each year. But even if those inefficiencies were eliminated,
Malawi would still face an annual infrastructure funding gap
of almost $300 million. That gap could be cut to $100
million by engaging in regional trade of electricity, using
lower-cost technologies in water and sanitation, and
adopting less-ambitious road-building technologies. If
inefficiencies were eliminated and recent spending levels
sustained, Malawi could reach its infrastructure targets
within 16 years. |
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