Infrastructure financing in Africa in 2018 increased by 24 percent and surpassed US$100 billion, a new report by The Infrastructure Consortium for Africa (ICA) has revealed.
The report dubbed ICA’s Infrastructure Financing Trends in Africa 2018 shows that financing of infrastructure in Africa reached a new high of US$100.8 billion in 2018, a jump of about a quarter on 2017 and 38% up on the 2015-2017 average.
“Over the years the Infrastructure Financing Trends in Africa report has become an important document for presenting, in a consistent manner, how funding is being mobilised to develop the continent. While the increase in financial commitments in 2018 is very welcome, the report also serves to highlight the size of Africa’s infrastructure financing,” Mike Salawou, ICA’s Coordinator and Manager of Infrastructure Partnerships, at the African Development Bank commented on the report which was released at the recently concluded African Investment Forum.
Among the key findings of the report was an increase in financing commitments across all sectors, with a notable increase in the energy sector, which attracted financing commitments worth US$43.8 billion, an all-time high and a 67% increase on the 2015-2017 average. The ICT sector also saw record commitments in 2018 of US$7.1 billion, mostly from the private sector.
Even with the significant increase in commitments in 2018, there remains a total financing gap of US$52 billion to US$92 billion per year. Yearly estimates of Africa’s financing requirements range from US$130 billion to US$170 billion. Water and sanitation has the largest financing gap of all the sectors, based on annual financing needs of US$56-US$66 billion and a 2016-2018 average commitment of US$13 billion.
The Africa Investment Forum took place from 11 to 13 November 2019 in Johannesburg, South Africa, and offered a platform for sourcing funding for bankable African projects and providing innovative financial solutions.