Trade Infrastructure Financing in Africa: An Exploration of Geopolitical Funds for Private Sector Participation
Summary
The document examines the significant infrastructure financing gap in Africa and argues that the private sector can bridge this gap by accessing 'geopolitical funds' such as China's Belt and Road Initiative, the EU's Global Gateway Initiative, and the G7's Partnership for Global Infrastructure and Investment. It highlights that while these funds offer immense potential, the primary barrier is the 'bankability' of African projects, with 80% of projects failing at the feasibility stage. The brief recommends enhancing African agency and private sector involvement to ensure infrastructure development aligns with continental goals.
Key insights
- Africa faces a massive annual infrastructure financing deficit estimated between USD 68 billion and USD 108 billion, with total annual requirements ranging from USD 130 billion to USD 170 billion.
- Poor infrastructure has caused a 40% loss in productivity across African countries and has reduced annual national economic growth by up to 2 percentage points.
Cite the original document
- APA
- Tayo, T. T. (2024). Trade Infrastructure Financing in Africa: An Exploration of Geopolitical Funds for Private Sector Participation. Africa Policy Research Institute. https://afripoli.org/trade-infrastructure-financing-in-africa-an-exploration-of-geopolitical-funds-for-private-sector-participation
- Chicago
- Tayo, Teniola T. Trade Infrastructure Financing in Africa: An Exploration of Geopolitical Funds for Private Sector Participation. Africa Policy Research Institute, 2024. https://afripoli.org/trade-infrastructure-financing-in-africa-an-exploration-of-geopolitical-funds-for-private-sector-participation.
- Wikipedia
- {{cite report |last1=Tayo |first1=Teniola T. |title=Trade Infrastructure Financing in Africa: An Exploration of Geopolitical Funds for Private Sector Participation |publisher=Africa Policy Research Institute |date=6 November 2024 |url=https://afripoli.org/trade-infrastructure-financing-in-africa-an-exploration-of-geopolitical-funds-for-private-sector-participation |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{tayo2024trade, author = {Tayo, Teniola T.}, title = {{Trade Infrastructure Financing in Africa: An Exploration of Geopolitical Funds for Private Sector Participation}}, institution = {Africa Policy Research Institute}, year = {2024}, month = nov, url = {https://afripoli.org/trade-infrastructure-financing-in-africa-an-exploration-of-geopolitical-funds-for-private-sector-participation}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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