To alleviate the current very low marginal representation of infrastructure, at 1% of Ghana’s GDP, the African Development Bank (AfDB) recommends tackling the niche head-on in tandem with current gains the rest of the economy is making.
The AfDB’s Resident Representative in the country Mrs. Marie-Laure Akin-Olugbade says that the lagging behind of the infrastructural mandate has posed a challenge to the competitiveness of the larger economy which is dependent on oil and gold resources.
She was speaking in Accra at the end of January, at the Canada Trade Mission where she focused on the sector and the stakes for its improvement.
Ghana Infrastructure in brief
The World Bank attributes the contribution of infrastructure to the Gross Domestic Product since the turn of the millennium to average around 1%, which is a major reason for Ghanaians to start thinking outside the box.
The global banker says that the country could up its economical stakes by 2.7% should it improve on its infrastructural dispensation. Indeed, the report shows that this is easy to realize, as the above parameter is a reflection of the average potential for sub-Saharan African low-income economies, whereas that of Ghana, as reflected by its policies, is on a higher par.
Currently, passable roads stand at 41 percent, a reason for the perpetual heavy traffic in densely populated cities like Accra and Kumasi.
To leverage the large infrastructure milieu, of which power and water are big players, the country has to hike its total spending to $2.3B, $1.1B more than the reigning budget of $1.2B, which in total grosses around 7.5% of the economy.
Besides this, the World Bank cautions of the 1.1 US Dollar losses in the sector that occur as a result of inefficient service delivery, besides the notable underestimation of energy resource prices.
Of the total financing chasm of $400m p.a. that faces Ghana’s infrastructure, water and power resources account for the highest inefficiencies.