Transport Infrastructure Development and International Trade in Africa

Abstract Trade and economic growth in Africa are constantly stalled by inadequate and poor infrastructure. The authors sought to address this issue by investigating the impacts of the quantities and qualities of transport infrastructure on trade in Africa. Therefore, sustainable infrastructure investment will ensure the success of global efforts to attain the Sustainable Development Goals (SDGs). While some countries have improved their infrastructure, many areas remain underdeveloped, leading to significant gaps in connectivity. The landscape of post-colonial African transport infrastructure is primarily designed to extract resources and connect them to ports for export. National integration wasn’t always the primary goal, leaving fragmented networks and significant gaps in connectivity. In an attempt to give a practical implication on the effect of transport infrastructure on trade, the chapter utilised the Worldwide trade and logistic indicators dataset from the World Bank dataset. The gravity model of trade and logistic indicators in a panel data regression used infrastructure indicators. Railway and port infrastructure is the gateway for most international trade, and improvements in port efficiency, capacity and connectivity to inland transport networks directly reduce trade costs and transit times, making African goods more competitive globally. The positive influence of GDP and population increases trade and consistent with theory. It aligns with the gravity model, where larger economies with greater production capacity and consumption demand tend to trade more. As African economies grow, their capacity to produce a wider variety of goods and services increases, leading to greater trade potential.