Power and Roads: Africa's Infrastructure Gap

How shortages of electricity, roads and ports hold back African businesses, and the efforts to close the gap.

Infrastructure, meaning roads, railways, ports, power, water and communications, underpins every modern economy. Across much of Africa, gaps in infrastructure raise costs and hold back growth.

Electricity

Access to electricity is the largest gap. The International Energy Agency estimates that around 600 million people in Africa lack access to electricity, the large majority of the world’s population without power. Even where there is a grid connection, frequent power cuts force businesses to run costly diesel generators. Surveys of firms by the World Bank have found power outages to be among the biggest obstacles to doing business in many African countries.

Transport

Road density is low in many countries, and many roads are unpaved and become impassable in rainy seasons. Transport costs in Africa are among the highest in the world. Landlocked countries, of which Africa has 16, face extra costs to reach ports through neighbouring countries.

Why the gap exists

Low public budgets to fund large projects.
Maintenance neglect: existing infrastructure is often poorly maintained.
Small, scattered markets that make networks costly per user.
Weak utility finances: many state electricity companies charge less than their costs and struggle to invest.

Closing the gap

Several approaches are helping:

Off-grid solar: solar home systems, often paid for through mobile money in small instalments, have brought electricity to millions of households beyond the grid.
Regional projects, such as power pools that share electricity across borders.
Chinese investment: Chinese lenders and companies have financed and built many roads, railways and ports, such as the railway linking Mombasa and Nairobi in Kenya.
Private investment in power generation, telecommunications and ports.

Pay-as-you-go solar

A rural family without grid electricity buys a solar home system that powers lights, phone charging and a radio. Instead of paying the full price upfront, they pay a small amount each week using mobile money. If they miss payments, the system switches off remotely. After a year or two, they own it. This model has spread widely in East Africa.

Thinking infrastructure is only about building new projects

New projects attract attention, but maintaining existing roads and power networks and running utilities efficiently matter just as much. Poorly maintained infrastructure can quickly lose its value.

Key takeaways

Around 600 million Africans lack electricity, and power cuts burden businesses.
High transport costs and 16 landlocked countries raise trade costs.
Low budgets, poor maintenance and weak utility finances sustain the gap.
Off-grid solar, regional projects and new investment are helping close it.