Ethiopia’s Infrastructure : A Continental Perspective
Infrastructure contributed 0.6 percentage points to Ethiopia's annual per capita GDP growth over the last decade. Raising the country's infrastructure endowment to that of the region's middle-income countries could add an additional...
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_20110317130811 http://hdl.handle.net/10986/3364 |
Summary: | Infrastructure contributed 0.6
percentage points to Ethiopia's annual per capita GDP
growth over the last decade. Raising the country's
infrastructure endowment to that of the region's
middle-income countries could add an additional 3 percentage
points to infrastructure's contribution to growth.
Ethiopia's infrastructure successes include developing
Ethiopia Airlines, a leading regional carrier; upgrading its
network of trunk roads; and rapidly expanding access to
water and sanitation.The country's greatest
infrastructure challenge lies in the power sector, where a
further 8,700 megawatts of generating plant are needed over
the next decade, implying a doubling of current capacity.
The transport sector faces the challenges of low levels of
rural accessibility and inadequate road maintenance.
Ethiopia s ICT sector currently suffers from a poor
institutional and regulatory framework. Addressing
Ethiopia's infrastructure deficit will require a
sustained annual expenditure of $5.1 billion over the next
decade. The power sector alone requires $3.3 billion
annually, with $1 billion needed to facilitate regional
power trading. That level of spending represents 40 percent
of the country's GDP and a tripling of the $1.3 billion
spent annually in the mid-2000s. As of 2006, there was an
annual funding gap of $3.5 billion. Improving road
maintenance, removing inefficiencies in power (notably
underpricing), and privatizing ICT services could shrink the
gap. But Ethiopia needs a significant increase in its
already proportionally high infrastructure funding and
careful handling of public and private investments if it is
to reach its infrastructure targets within a reasonable time. |
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