Global Infrastructure Hub claims there is $1trn investment gap in 10 African countries
According to the Global Infrastructure Hub, there is an infrastructure investment gap of US$1trn in 10 countries in Africa over the next 22 years.
The countries, which are all part of the Compact with Africa initiative launched by G20, include Morocco, Tunisia, Egypt, Ethiopia, Senegal, Guinea, Côte d’Ivoire, Ghana, Benin, and Rwanda.
The investment gap represents 42%, making it one of the largest regional gaps in the world.
The report released by the Global Infrastructure Hub suggest that by 2040, $2.4trn must be invested in the countries in order to close infrastructure gaps and keep up with economic growth.
The ‘Global Infrastructure Outlook: Infrastructure Investment Need in the Compact with Africa Countries’, an additional $415bn will be needed to meet UN Sustainable Development Goals by 2030.
“These figures demonstrate a clear desire from investors to spend more in emerging markets. However, attracting private sector investment into African countries remains a major challenge,” remarked Chris Heathcote, CEO of the Global Infrastructure Hub.
“The key to addressing this is creating the right environment to encourage investors to turn their interest into action.”
“It’s now more important than ever that emerging markets continue to develop their infrastructure project pipelines, as well as continuing a track record of attracting public and private capital into well-identified, selected and prioritised projects.”
“As the investment environment in these 10 countries improves, there is a real opportunity for infrastructure investors to deliver impactful projects; providing access to essential services— roads and rail, airports and seaports, telecommunications, drinking water, sanitation and energy— for a large proportion of the population.”