THE LINKAGE BETWEEN ACCESS TO INFRASTRUCTURE SERVICES AND INCOME INEQUALITY IN AFRICA
Keywords:
Inclusivity, income inequality, infrastructure services, sustainable developmentAbstract
The importance of infrastructure services for Africa is emphasised in the United Nations Sustainable Development Goals and the African Union Agenda 2063. However, limited research has been conducted on the impact of access to infrastructure services on income inequality in Africa. The study investigated the linkage between access to infrastructure services (such as electricity, the Internet, transport, water, and sanitation) and income inequality in sub-Saharan Africa. The study employed random effects, fixed
effects, and sub-set regression analyses using panel data from the 2002 to 2020 World Development Indicators for 48 African countries. The results showed that, during that period, access to electricity, the Internet, transport, and water services negatively and significantly correlated with income inequality. The study therefore provided insight into which infrastructure services should be targeted for investment by government and private funders to ensure a significant reduction in income inequality. The study recommended that African countries’ private and government sectors could substantially contribute to reducing income inequality by channeling investments into improving access to electricity, the Internet, transport, and water services. In addition, regional disparities in infrastructure access should be considered when designing inclusive investment strategies, as rural and underserved areas often
experience the highest levels of inequality. Multilateral development institutions and regional bodies such as the African Development Bank and the African Union could play a catalytic role in mobilising resources and coordinating efforts to scale up infrastructure development. By aligning infrastructure investments with equity-focused policies, African countries can accelerate progress toward inclusive and sustainable development.
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