9 Infrastructure, Regional Integration and Growth in Sub-Saharan Africa

chieving higher economic growth is one of the major challenges for sub-Saharan Africa. Its long-term growth has been slow relative to other developing countries, experiencing less than half of the average growth and about half of average investment efficiency levels obtained in other developing countries. More recently, about half of the countries in sub-Saharan Africa have been growing at a somewhat higher rate of 4 percent per year or more.1 Yet, the policy response has not been sufficient to overcome nearly two decades of falling incomes per capita or to reverse other adverse legacies from the long period of economic decline – including deteriorated capacity, weakened institu-tions, and inadequate infrastructure. In explaining Africa’s slow long-term growth, one can make a distinc-tion between endowment variables and policy variables. Although many of the studies on growth have emphasised the influence of government policy on risk and barriers to competition, governments also have an important role in providing public goods, supporting the provision of infrastructure, and addressing market failures. The under-provision of public goods and services can significantly increase costs to firms and make potential opportunities unprofitable. Inadequate infrastructure is one of the key impediments to faster economic growth. 1 Sub-Saharan African countries with growth rates above 5 percent during 2001