Physical infrastructure as a constraint on agricultural growth: The case of sub‐Saharan Africa

The importance of agriculture in sub‐Saharan Africa, and the somewhat lagging development in other activities, suggests that particular significance attaches to the arrest of the drawn out crisis of agricultural production. Two opposing suggestions which are often made are that this is a matter either of price incentives, or of fundamental change designed to remove many infrastructural constraints and the lack of provision of other essential services. The issues are pursued, first, by an appraisal of the evidence relating to agricultural supply response. The long‐run response to price incentives is probably rather low, but it is suggested that it is very often constrained by non‐price factors. The paper then assesses the importance of infrastructural constraints, particularly in transport and communications. It is argued that the choices between improving price incentives and the need for infrastructure and other provision are not absolute since complementarities are important. Both, in effect, can also compete for public funds. The dilemma is particularly acute in sub‐Saharan Africa since low population densities and long distances result in the costs of transport and other essential services being comparatively high. It is therefore all the more necessary to seek cost‐effective ways of improving provision in order to maximize the impact on farm output. The paper suggests a number of ways in which this can be done, notably by better utilization of existing infrastructure.