Financing of Infrastructure

The document analyzes the shift from traditional official development assistance (ODA) and commercial bank lending toward alternative financing for infrastructure in Africa. It highlights the role of Public-Private Partnerships (PPPs), blending finance, and institutional investors like pension funds and sovereign wealth funds. A significant portion of the text focuses on the SADC Regional Infrastructure Development Master Plan (RIDMP), which requires an estimated $500 billion in capital, and the systemic challenges facing the region, including underdeveloped financial markets and high utility tariffs.

• The SADC Regional Infrastructure Development Master Plan (RIDMP), adopted in August 2012, requires an estimated $500 billion in capital, with $100 billion expected from private-sector sources for implementation between 2014 and 2027.
• Infrastructure costs in sub-Saharan Africa are significantly higher than in other developing countries, with power tariffs up to 460% more expensive, road freight tariffs 350% higher, and water tariffs up to 1,093% higher.
• Private investment in African infrastructure has lagged significantly behind other regions; between 1990 and 2011, only 10% of global private investment flowed to African infrastructure, compared to 40% in Latin America.
• Financial markets in Southern Africa are underdeveloped, characterized by a lack of medium- to long-term lending and weak regulatory frameworks, with South Africa being the primary exception.
• China provides infrastructure funding to sub-Saharan African countries through low-interest, concessional loans and oil-for-infrastructure deals via the China Export–Import Bank and China Development Bank, often without the conditionality required by Western institutions.
• There is significant untapped potential in diaspora-related financing for sub-Saharan Africa, with estimates suggesting the region could raise $5–10 billion through diaspora bonds and $17 billion by securitising future remittances.
• Project preparation in Africa is costly and often insufficient, with the OECD estimating that preparation costs average between 5% and 10% of total project costs.

APA

Wentworth, L. (2013). Financing of Infrastructure. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/12/REV_SAIIA_perisa_infr_wentworth_financing_20131213.pdf

Chicago

Wentworth, Lesley. Financing of Infrastructure. South African Institute of International Affairs, 2013. https://saiia.org.za/wp-content/uploads/2013/12/REV_SAIIA_perisa_infr_wentworth_financing_20131213.pdf.

Wikipedia

{{cite report |last1=Wentworth |first1=Lesley |title=Financing of Infrastructure |publisher=South African Institute of International Affairs |date=August 2013 |url=https://saiia.org.za/wp-content/uploads/2013/12/REV_SAIIA_perisa_infr_wentworth_financing_20131213.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wentworth2013financing, author = {Wentworth, Lesley}, title = {{Financing of Infrastructure}}, institution = {South African Institute of International Affairs}, year = {2013}, month = aug, url = {https://saiia.org.za/wp-content/uploads/2013/12/REV_SAIIA_perisa_infr_wentworth_financing_20131213.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }