Africa’s infrastructure financing needs are estimated to be up to $170 billion a year.

The latest AfDB estimates on infrastructure funding needs in Africa are $130-170 billion a year, with a gap of $68-108 billion. Government and public funding, while critically important, will not be enough to bridge this gap. Similarly, project development spending needs are not being met. Africa50 is designed to narrow these gaps and could unlock up to $50 billion in project value through its equity investments and value-added capabilities.

Download the Africa50 Annual Report 2016.

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

Leverage government and AfDB ownership to support investees
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
Strong sponsorship from the AfDB
Support from other development banks
Become a leading African infrastructure investor
Improve infrastructure in Africa by developing bankable projects and catalyzing investments into shareholder countries
Leverage public funds to raise private capital from long term institutional investors in Africa and elsewhere
Operate commercially with an appropriate financial return while promoting economic development
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