Trends and Challenges in Infrastructure Investment in Low-Income Developing Countries
IMF Working Papers, November 7, 2017
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Bibliographic details
- Authors: Daniel Gurara, Vladimir Klyuev, Nkunde Mwase, Andrea F Presbitero, Geoffrey J Bannister
- Published: November 7, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484324837.001
Key findings on investment trends and financing
- Following an acceleration of public investment over the last 15 years, the stock of infrastructure assets increased in LIDCs, even though large gaps remain compared to emerging markets.
- Infrastructure in LIDCs is largely provided by the public sector; private participation is mostly channeled through Public-Private Partnerships.
- Grants and concessional loans are an essential source of infrastructure funding in LIDCs.
- The complementary role of bank lending is still limited to a few countries.
Analysis of gaps and constraints
- Large infrastructure gaps persist in LIDCs relative to emerging markets despite increases in the stock of infrastructure assets.
- Public-sector dominance in infrastructure provision constrains the scale and efficiency of investments where private participation is limited.
- Reliance on grants and concessional financing reflects limited domestic and commercial financing capacity in many LIDCs.
Policy recommendations and actions to bridge gaps
- Improve the efficiency of public spending on infrastructure to maximize returns from available resources.
- Mobilize domestic resources to increase the funding base for infrastructure investment.
- Secure and coordinate support from development partners to supplement domestic efforts and concessional financing.
- Crowd in the private sector, including through Public-Private Partnerships, to expand financing sources and leverage private expertise.
Publication and document metadata
- Authors: Daniel Gurara, Vladimir Klyuev, Nkunde Mwase, Andrea F Presbitero, Geoffrey J Bannister
- Date: November 7, 2017
- Series: IMF Working Papers, Working Paper No. 2017/233
- Pages: 31
- DOI: https://doi.org/10.5089/9781484324837.001
Source: Trends and Challenges in Infrastructure Investment in Low-Income Developing Countries, IMF Working Paper No. 2017/233 (Daniel Gurara et al.), November 7, 2017.