Infrastructure contributed 1.2percentage points to the annual per capita growth ofMalawi's gross domestic product (GDP) over the pastdecade, thanks mainly to the revolution in information andcommunication technology (ICT). Raising the country'sinfrastructure endowment to that of the region'smiddle-income countries could further boost annual growth by3.5 percentage points per capita. Today, Malawi's basicinfrastructure indicators look relatively good when comparedwith other low-income countries in Africa, although theperformance of that infrastructure could be significantlyimproved. Malawi is one of the few African countries to havealready reached the Millennium Development Goals (MDGs) forwater, almost a decade ahead of the target. The privatesector has made Global Management System (GSM) telephonesignals widely available without public subsidy. Asubstantial road investment program has raised the averagecondition of the country's road network, and afoundation for institutional reform has been laid in theICT, power, and road transport sectors. Even if thoseinefficiencies could be eliminated, Malawi will still facean infrastructure funding gap of almost $300 million a year.This could be lessened to $100 million by engaging inregional trade of electricity, using lower-cost supplymodalities in water supply and sanitation, and adoptingappropriate technologies for road sector development. Aslong as efficiency gains are captured and spending sustainedat the levels of the recent past, the country'sinfrastructure targets could be reached within 16 years.
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