Meeting Africa’s Infrastructure Investment Need

Africa faces a significant infrastructure deficit, with an annual funding shortfall of US$68–108 billion. The report examines the role of the Programme for Infrastructure Development in Africa (PIDA), the potential of domestic capital—estimated at over US$1.1 trillion—and the challenges of public-private partnerships. It highlights that up to 90% of projects fail before financial close due to poor early-stage preparation, arguing for better project bankability and risk-sharing instruments to attract private investment.

• Africa's infrastructure investment needs are significantly higher than those of other developing regions, being three times those of Latin America and the Caribbean and five times those of developing Asia. Closing this gap requires annual investments between US$130 billion and US$180 billion, leaving an annual shortfall of US$68–108 billion.
• The infrastructure gap is primarily driven by deficits in water and sanitation (41%), followed by electricity supply and transport access (approximately 28% each), with ICT infrastructure making up the rest.
• The Programme for Infrastructure Development in Africa (PIDA) is the central response for cross-border infrastructure. While PIDA PAP1 (2012–2020) saw the construction of over 16,000 km of roads, 4,000 km of railways, and 3,500 km of transmission lines, only 18% of targeted projects were operational by 2025. PIDA PAP2 (2021–2030) now prioritises 69 projects valued at roughly US$125 billion.
• International initiatives provide critical funding and coordination. The EU's Global Gateway aims to mobilise up to EUR 150 billion between 2021 and 2027, having allocated nearly EUR 624 million in grants to regional energy and transport projects by the end of 2024.
• Public-private partnerships (PPPs) offer a way to mobilise finance but carry risks regarding equity and debt. For example, the Mombasa–Nairobi Standard Gauge Railway increased Kenya's debt burden due to commercial-rate Chinese loans, and the Nairobi Expressway's toll system may limit access for low-income users.
• Africa possesses over US$1.1 trillion in underutilised domestic capital, including US$777 billion in pension and insurance funds and US$400 billion in sovereign wealth funds and public development banks. Additionally, 2024 remittance inflows exceeded US$95 billion, which could be leveraged via diaspora bonds.
• Project preparation is a critical bottleneck; early-stage development can take up to seven years and cost 5–12% of total project costs. Consequently, up to 90% of African infrastructure projects fail before reaching financial close, with 80% stalling at the feasibility stage.

APA

Yeboua, K. (2026). Meeting Africa’s Infrastructure Investment Need. Institute for Security Studies. https://futures.issafrica.org/thematic/guide.pdf?thematic=11-large-infrastructure&topic=08-infrastructure-investment-need

Chicago

Yeboua, Kouassi. Meeting Africa’s Infrastructure Investment Need. Institute for Security Studies, 2026. https://futures.issafrica.org/thematic/guide.pdf?thematic=11-large-infrastructure&topic=08-infrastructure-investment-need.

Wikipedia

{{cite report |last1=Yeboua |first1=Kouassi |title=Meeting Africa’s Infrastructure Investment Need |publisher=Institute for Security Studies |date=25 May 2026 |url=https://futures.issafrica.org/thematic/guide.pdf?thematic=11-large-infrastructure&topic=08-infrastructure-investment-need |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{yeboua2026meeting, author = {Yeboua, Kouassi}, title = {{Meeting Africa’s Infrastructure Investment Need}}, institution = {Institute for Security Studies}, year = {2026}, month = may, url = {https://futures.issafrica.org/thematic/guide.pdf?thematic=11-large-infrastructure&topic=08-infrastructure-investment-need}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }