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Catalysing regional integration in Africa: The role of infrastructure

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  • Chuku Chuku
  • Anthony Simpasa
  • Akpan Ekpo

Abstract

Now, more than ever, infrastructure integration in Africa has become critical to recalibrating Africa's growth strategy toward increased intraregional trade, especially in an era of global isolationism, protectionism and supply chain disruptions from COVID and the war in Ukraine. This paper investigates the extent to which infrastructure development and integration can act as a catalyst for trade, innovation and income improvements in Africa. Using panel data analysis, we show that the infrastructure sector with the strongest multiplier effect on economic activity is the information and communication technology (ICT) sector, followed by the transport sector, the electricity sector and, last, the water sector. This ranking of the catalytic role of infrastructure sectors should guide policy prioritisation on infrastructure investments to accelerate growth and unlock the potential of the AfCFTA. Benchmarking exercises on infrastructures' catalytic role in the regional economic communities (RECs) show that infrastructure has had the strongest impact on economic outcomes in the East African Community bloc, making the EAC a type of flying‐geese RECs for other regions to emulate.

Suggested Citation

  • Chuku Chuku & Anthony Simpasa & Akpan Ekpo, 2023. "Catalysing regional integration in Africa: The role of infrastructure," The World Economy, Wiley Blackwell, vol. 46(2), pages 472-495, February.
    • Handle: RePEc:bla:worlde:v:46:y:2023:i:2:p:472-495
    DOI: 10.1111/twec.13364
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    2. Benno J. Ndulu, 2006. "Infrastructure, Regional Integration and Growth in Sub-Saharan Africa: Dealing with the disadvantages of Geography and Sovereign Fragmentation," Journal of African Economies, Centre for the Study of African Economies, vol. 15(2), pages 212-244, December.
    3. Ekpo Akpan & Chuku Chuku, 2017. "Working Paper 291 - Regional Financial Integration and Economic Activity in Africa," Working Paper Series 2403, African Development Bank.
    4. Anders Isaksson, 2009. "The UNIDO World Productivity Database: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 18, pages 38-50, Spring.
    5. Akpan Ekpo & Chuku Chuku, 2017. "Regional Financial Integration and Economic Activity in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 26(suppl_2), pages 40-75.
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    Cited by:

    1. Debrah, Yaw A. & Olabode, Oluwaseun E. & Olan, Femi & Nyuur, Richard B., 2024. "The African Continental Free Trade Area (AfCFTA): Taking stock and looking ahead for international business research," Journal of International Management, Elsevier, vol. 30(2).
    2. Lim, King Yoong & Liu, Chunping, 2024. "Aid and developing regional integration," International Review of Economics & Finance, Elsevier, vol. 93(PB), pages 756-776.
    3. Adomako, Samuel & Shenkar, Oded & Liu, Xiaohui & Amankwah-Amoah, Joseph & Ahsan, Mujtaba, 2024. "Editorial on Doing business in Africa: Navigating opportunities and challenges in Africa's emerging markets," Journal of International Management, Elsevier, vol. 30(5).

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