Sub-Saharan Africa has 48 countries, most with small populations. More than 20 countries have a population of fewer than five million. Economies are also very small: 20 countries have a gross domestic product of less than $5 billion. Small scale makes it difficult for governments to fund the large fixed costs associated with infrastructure development. In addition, borders further complicate infrastructure development: Africa’s 15 landlocked countries depend on their neighbors for access to global markets; 60 African river basins are shared by more than one country, and half of these cross three or more national jurisdictions.
Infrastructure sharing addresses the problems of small scale and adverse location, increasing the scale of infrastructure construction, operation, and maintenance—particularly important in the information and communication technology (ICT) and power sectors. Joint provision reduces costs, pools scarce technical and managerial capacity, and creates a larger market. Airports and seaports that are organized as regional hubs can become large enough to attract airline and shipping services from beyond the continent.
Some regional infrastructure investments, such as many types of transport investments, provide public goods or facilitate access to a common pooled resource, as with water resource management for irrigation and other uses. Coordinated management and investment allows countries to get the most out of such multi-country infrastructure systems.