The Infrastructure Consortium for Africa (ICA) has unveiled the 2017 infrastructure development in Africa which it said rose by 22 per cent.
It published the outlook on the first day of the Africa Investment Forum, holding in South Africa.
The ICA’s Infrastructure Financing Trends in Africa 2017 report shows that commitments to develop Africa’s infrastructure increased to $81.6 billion in 2017 from US$66.9 billion 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 $13 billionn increase in identified Chinese commitments and a $3.7 billion 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 Africa report 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.