Infrastructure financing key for Zim's economy

Infrastructure financing key for Zim's economy
Published: 19 July 2018
Infrastructure is the backbone of economies throughout the universe. An efficient and well-maintained infrastructure is critical in sustaining an economy.

Infrastructure is considered a key component of the investment climate as it reduces the costs of doing business by enabling people to access markets as it allows the easy flow of people and movement of goods. Even as we consider regional integration and therefore enlarged markets, infrastructure will determine what benefits will be realised from such integration.

The World Bank in 2008 acknowledged that a 10% increase in infrastructure development contributes 1% to the growth of gross domestic product in the long term. In Sub-Saharan Africa, infrastructure development has contributed about half of the recent acceleration in growth. Between 1990 and 2005, China invested approximately $600 billion in upgrades to its road system which connected all of its larger cities. Such infrastructure investments are some of the leading contributory factors to China becoming the largest economy in terms of the Purchasing Power Parity (PPP).

Poor or no infrastructure is a drawback, especially in Africa when it comes to economic growth and poverty is the order of the day. Increasing the stock of infrastru