Kenya-Africa Infrastructure

10 African countries face $1 trillion infrastructure funding deficit - Report

APA-Nairobi (Kenya)

A new report released on Wednesday by the Global Infrastructure Hub, a G20 initiative, has revealed that 10 African countries face an infrastructure investment gap of US$1 trillion.

This represents a 42 per cent investment gap, one of the largest regional gaps in the world.

The 10 countries are Morocco, Tunisia, Egypt, Ethiopia, Senegal, Guinea, Côte d’Ivoire, Ghana, Benin, Rwanda.

“Global Infrastructure Outlook: Infrastructure Investment Need in the Compact with Africa Countries,” finds that US$2.4 trillion of investment is required in the 10 countries by 2040, if they are to keep pace with economic growth and close infrastructure gaps. Only US$1.4 trillion is expected to be delivered based on current spending levels.

Furthermore, of the US$1 trillion investment gap, US$415 billion is required by 2030 if the countries are to meet the UN Sustainable Development Goals (SDGs) for universal access to drinking water, sanitation and electricity.

“These figures demonstrate a clear desire from investors to spend more in emerging markets. However, attracting private sector investment into African countries remains a major challenge,” global infrastructure Hub CEO Chris Heathcote said in a statement seen by APA.

“The key to addressing this is creating the right environment to encourage investors to turn their interest into action,” Heathcote added.

Heathcote said that partnering with the 10 countries to address these matters would build investor confidence and lead them to fulfil their economic growth potential.

“It’s now more important than ever that emerging markets continue to develop their infrastructure project pipelines, as well as continuing a track record of attracting public and private capital into well-identified, selected and prioritised projects,” Heathcote went on.

“As the investment environment in these 10 countries improves, there is a real opportunity for infrastructure investors to deliver impactful projects; providing access to essential services— roads and rail, airports and seaports, telecommunications, drinking water, sanitation and energy— for a large proportion of the population,” he added.


JK/afm/APA

React to this article