Which financing models to meet Africa’s infrastructure needs?
Attracting a growing number of investors, infrastructure development is one of the conditions for Africa’s growth. According to African Development Bank estimations, Africa’s infrastructure needs are between $130 billion and $170 billion per year.
However, the continent is struggling to meet its financing needs and traditional economic models are not keeping pace with population growth and urbanisation.
With their capacities limited by economic and budgetary constraints, national governments, which are the primary providers of these investments, are calling on sources of financing from outside the continent (foreign countries, foreign public funds, institutional investors). They must therefore rethink the deployment of these projects by resorting to innovative modes of financing, particularly involving the private sector, in order to achieve the development objectives set out in the African Union’s Agenda 2063.