Infrastructure Spending in Africa

This report by the Institute for Security Studies analyzes infrastructure spending and financing in Africa, highlighting a significant gap between current investment levels and the needs driven by rapid population growth. It details the dominance of public and development funding, the constraints imposed by rising sovereign debt, the modest role of private investment, and the declining trend in development finance disbursements.

• Africa's infrastructure spending as a percentage of GDP is higher than in South America but lower than in South Asia, with the gap between Africa and South Asia expected to close by 2028. In 2024, Africa's total infrastructure expenditure was approximately 5.7% of GDP, while South Asia and South America were at 5.2% and 2.3% respectively.
• Infrastructure financing in Africa is dominated by governments and development funders, who together accounted for 89% of average annual commitments between 2016 and 2020, totaling an average of US$83 billion per year. While these sources focused on energy, water, and transport, the private sector was more active in digital infrastructure, providing 55% of investment in that sector.
• Public infrastructure investment is severely limited by high sovereign debt. In 2024, public debt reached 67% of Africa's GDP. Between 2019 and 2023, African governments spent an average of seven times more on debt servicing than on infrastructure, and in 15 countries, interest payments exceed infrastructure spending.
• China is the largest individual funder of African infrastructure, but its contributions dropped from US$25.7 billion in 2018 to US$6.5 billion in 2020 due to concerns over African sovereign debt burdens and debt servicing abilities.
• Private investment remains low due to high risk perceptions and a weighted average cost of capital of 13%, compared to 8% in OECD countries. However, high returns of up to 20% are possible. South Africa and Egypt were the primary recipients of private investment between 2013-2023, capturing 21% and 15% respectively.
• Development finance is becoming more uncertain, with disbursements falling from US$16.6 billion in 2022 to US$14.8 billion in 2023. Net aid from OECD Development Assistance Committee (DAC) members to Africa is projected to see a cumulative reduction of 16–28% between 2023 and 2025.

APA

Yeboua, K. (2026). Infrastructure Spending in Africa. Institute for Security Studies. https://futures.issafrica.org/thematic/guide.pdf?thematic=11-large-infrastructure&topic=07-infrastructure-spending

Chicago

Yeboua, Kouassi. Infrastructure Spending in Africa. Institute for Security Studies, 2026. https://futures.issafrica.org/thematic/guide.pdf?thematic=11-large-infrastructure&topic=07-infrastructure-spending.

Wikipedia

{{cite report |last1=Yeboua |first1=Kouassi |title=Infrastructure Spending in Africa |publisher=Institute for Security Studies |date=25 May 2026 |url=https://futures.issafrica.org/thematic/guide.pdf?thematic=11-large-infrastructure&topic=07-infrastructure-spending |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{yeboua2026infrastructure, author = {Yeboua, Kouassi}, title = {{Infrastructure Spending in Africa}}, institution = {Institute for Security Studies}, year = {2026}, month = may, url = {https://futures.issafrica.org/thematic/guide.pdf?thematic=11-large-infrastructure&topic=07-infrastructure-spending}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }