Infrastructure contributed just over one percentage point to Ghana's improved per capita growth performance during the 2000s, though unreliable power supplies held growth back by 0.5 percentage points. Raising the country's infrastructure endowment to that of the region's middle-income countries could boost annual growth by more than 2.7 percentage points. Today, Ghana has a very advanced infrastructure platform when compared with other low-income countries in Africa. But as the country approaches the middle-income threshold, it will need to focus on upgrading its infrastructure indicators in line with this benchmark. The Africa Infrastructure Country Diagnostic (AICD) has gathered and analyzed extensive data on infrastructure in more than 40 Sub-Saharan countries, including Ghana. The results have been presented in reports covering different areas of infrastructure, including ICT, irrigation, power, transport, water, and sanitation, and different policy areas, including investment needs, fiscal costs, and sector performance. This report presents the key AICD findings for Ghana and allows the country's infrastructure situation to be benchmarked against its African peers. Given that Ghana is a relatively well-off low-income country well on its way to reaching middle-income status, two sets of African benchmarks will be used to evaluate Ghana's situation. Detailed comparisons will also be made with immediate regional neighbors in the Economic Community of West African States (ECOWAS). As on the rest of the continent, West Africa's growth performance improved markedly in the 2000s. The overall improvement in per capita growth rates has been estimated at around 2 percent, of which 1.1 percent is attributable to better structural policies and 0.9 percent to improved infrastructure. During the five years from 2003 to 2007, Ghana's economy grew at an average annual rate of 5.6 percent, which accelerated to 7.3 percent in 2009. Ghana's infrastructure improvements added just over one percentage point to the per capita growth rate for the period 2003 to 2007.

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Published on 01/01/2010

Volume 2010, 2010
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