Trends and Challenges in Infrastructure Investment in Low-Income Developing Countries

By Daniel Gurara, Vladimir Klyuev, Nkunde Mwase, Andrea F Presbitero, Xin Cindy Xu, Geoffrey J Bannister

November 7, 2017

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Daniel Gurara, Vladimir Klyuev, Nkunde Mwase, Andrea F Presbitero, Xin Cindy Xu, and Geoffrey J Bannister. Trends and Challenges in Infrastructure Investment in Low-Income Developing Countries, (USA: International Monetary Fund, 2017) accessed September 19, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper examines trends in infrastructure investment and its financing in low-income developing countries (LIDCs). 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, while the complementary role of bank lending is still limited to a few countries. Bridging infrastructure gaps would require a broad set of actions to improve the efficiency of public spending, mobilize domestic resources and support from development partners, and crowd in the private sector.

Subject: Emerging and frontier financial markets, Expenditure, Financial institutions, Financial markets, Infrastructure, Multilateral development institutions, National accounts, Project loans, Public investment and public-private partnerships (PPP), Public investment spending, Transportation

Keywords: Africa, Appendix I. public investment scaling-up, Developing Countries, Emerging and frontier financial markets, Emerging market, Financing, GDP, Global, Infrastructure, Infrastructure investment, Investment, Investment efficiency, Investment project, Management institution, Project loans, Public Investment, Public investment and public-private partnerships (PPP), Public investment in infrastructure, Public investment in LIDCs, Public investment spending, Public-Private Partnerships, Saving-investment balance, Sub-Saharan Africa, Transportation, WP

Publication Details

Pages:

31
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2017/233
Stock No:

WPIEA2017233
ISBN:

9781484324837
ISSN:

1018-5941

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