Funding commitments to Africa’s infrastructure development rose by 22% in 2017, the Infrastructure Consortium for Africa (ICA) announced today.
Published on the first day of the Africa Investment Forum, the ICA’s Infrastructure Financing Trends in Africa 2017report shows that commitments to develop Africa’s infrastructure increased to $81.6bn in 2017 from US$66.9bn in 2016.
The 2017 figure is the highest reported since 2010, and the ICA’s research shows that the main factors behind the growth include a $13bn increase in identified Chinese commitments and a $3.7bn increase in African government spending.
Mr Mike Salawou, ICA Coordinator and Manager, Infrastructure Partnerships, at the African Development Bank, commented:
“Over the years the Infrastructure Financing Trends in Africareport has become an important document for presenting, in a consistent manner, how finance is being mobilised to develop the continent’s infrastructure.
“The report’s publication this year on the first day of the Africa Investment Forum is extremely timely. While the 22% increase in financial commitments in 2017 is very welcome, the report also serves to highlight the size of Africa’s infrastructure financing gap – an important issue that the forum will address,” Salawou said.
The report highlighted key findings from 2017. The findings show that commitments from ICA* member countries to African infrastructure projects in 2017 rose to US$19.7 bn, an increase of 5% from the $18.6bn reported in 2016 and one of the highest commitments since the ICA began collecting data.
The value of projects with private sector participation reaching financial close in 2017 totalled $5.2bn, of which $2.3bn (44.8%) was privately financed. The transport sector continued to be the largest beneficiary of infrastructure commitments in 2017, accounting for nearly 42% of all funding, followed by the energy sector (30%) and the water sector (16%);
Of the US$81.6bn committed to Africa’s infrastructure development in 2017, West Africa received $22bn of commitments, followed by North Africa (US$15.9bn), East Africa (US$15.8bn), Southern Africa, excluding South Africa (US$12.2bn), South Africa (US$8.7bn) and Central Africa (US$6bn).
The inaugural Africa Investment Forum takes place from 7 to 9 November 2018 in Johannesburg, South Africa, offering a platform for sourcing funding for bankable African projects, brokering infrastructure deals and providing innovative financial solutions.
The event will attract key global companies, financial players, and public officials who will address the continent’s critical infrastructure investment gaps.
Infrastructure Financing Trends in Africa 2017 can be downloaded from the Infrastructure Consortium for Africa website.
Notes to Editors
Launched at the G8 Gleneagles Summit in 2005, the role of the Infrastructure Consortium for Africa (ICA) is to help improve the lives and economic well-being of millions of Africa’s people through encouraging, supporting and promoting increased investment in infrastructure in Africa, from both public and private sources.
*The ICA is a tripartite relationship between bilateral donors, multilateral agencies and African institutions. Membership from the African side is led by the African Development Bank and Development Bank of Southern Africa. The World Bank, International Finance Corporation (IFC), European Commission (EC) and European Investment Bank (EIB) are members of the ICA, together with all G7 countries (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States) and the Republic of South Africa.