Africa’s infrastructure financing needs are estimated at $130 billion per year.

Average yearly infrastructure financing needs in Africa are estimated to be about $130 billion through 2025, of which only about 60% ($80 billion) was being funded in 2015, leaving a large financing gap. Similarly, project development spending needs are estimated at $6.5 billion a year, well above the $4.0 billion funded in 2015. Africa50 is designed to narrow these gaps. It facilitates project development and channels capital from private investors into well-structured projects. Thanks to its sovereign shareholder base it is well positioned to overcome project bottlenecks by mobilizing the necessary political support.

Barriers to Bridging the Infrastructure Financing Gap

Public Sector  Private Sector
1. Limited public resources2. Limited government capacity to implement projects3. Enabling environment/ regulatory constraints4. Limited number of early risk-takers and credible private players
Budgetary constraints and inefficient use of resources limit the number of projects the public sector can fund Not enough well- prepared projects are ready for financing and implementation Slow progress in establishing enabling environments conducive to PPPs Early-stage investors and strong private sponsors are wary of Africa due to a perception of high risk

Africa50: A Bridge Between the Public and Private Sectors

Africa50 In the Public Sector Africa50 In the Private Sector
Substantial government ownership combined with private sector management:
– Constructive relationships with government shareholders
– Clear mandate to attract private investors by generating market based returns on equity
Improve infrastructure in Africa by developing bankable projects and catalyzing investments into shareholder countries
Strong sponsorship from the AfDB Leverage public funds to raise private capital from long term institutional investors in Africa and elsewhere
Support from other development banks Operate commercially with an appropriate financial return while promoting economic development
This helps our partners to:
Leverage government and AfDB ownership to support investees Become a leading African infrastructure investor