Publications

Funding into African infrastructure decreases 21% year-over-year
Research - OCTOBER 26, 2017

Funding into African infrastructure decreases 21% year-over-year

by Jody Barhanovich

Investments into African infrastructure reached $62.5 billion in 2016, a 21 percent decrease year-over-year from 2015 ($78.9 billion), according to Infrastructure Consortium for Africa’s (ICA) Infrastructure Financing Trends in Africa – 2016 report.

The funding came from African national governments ($26.3 billion); ICA members ($18.6 billion); China ($6.4 billion); Arab coordination groups ($5.5 billion); private sector ($2.6 billion); and other bilaterals/multilaterals ($3.1 billion).

The sectors that received the funding include transportation ($24.5 billion); water ($10.5 billion); energy ($20 billion); multi-sector ($2.6 billion); ICT ($1.6 billion); and other/unallocated ($3.2 billion). West Africa received the largest portion of the funding ($16.3 billion), while East Africa received the second largest ($13.1 billion). The other regions include North Africa ($12.9 billion), Southern Africa excluding RSA ($6.5 billion), Central Africa ($6.3 billion), RSA ($5.9 billion) and Pan-African ($1.4 billion).

The report stated that, “Pension funds and sovereign wealth funds (SWFs) could be big investors, but to attract this type of institutional investor will require reforms and new financial instruments in the countries where investable assets are located and reforms in the countries in which larger investors are regulated.”

You can find ICA’s Infrastructure Financing Trends in Africa – 2016 full report here.

Forgot your username or password?