Analysis of Strategic Issues Underpinning the Innovative Financing of Infrastructure within Developing Countries

Abstract

Infrastructure deficit is inextricably linked to funding availability, especially in developing countries. Innovative financing (IF) can be beneficial in helping combat such deficit. Strategic issues underpinning IF of Ghanaian infrastructure projects are identified and analyzed. The study’s empirical aspect employs structured interviews and a questionnaire survey to accrue data from project implementation agencies relating to infrastructure IF. Factor analysis establishes those variables from among the large number studied that measure similar underlying dimensions. Three strategic IF issues are identified and explained: (1) appropriateness of the financing method, (2) pricing and management of the financing method, and (3) sustainability of the financing method. Infrastructure development stakeholders in developing countries may benefit from the findings through greater appreciation of IF sources and techniques. Suggested future research includes detailed exploration of IF barriers and comparative critical appraisal of similar research studies at the international level.