Categories: Economy

Africa Faces Infrastructure Funding Shortfall of $130-170bn Annually, Report Shows

A recent report by the Economic Commission for Africa (ECA) has estimated Africa’s infrastructure shortfall to be between $130 billion and $170 billion annually.

Despite strides made in various sectors, the continent continues to grapple with the challenge of financing critical infrastructure projects necessary for sustained economic growth and development.

The report highlights that while progress has been made in areas like roads and information and communication technology (ICT), advancements in rail transport and energy infrastructure have been minimal.

Insufficient financing emerges as a significant hurdle in addressing these infrastructure gaps.

Stephen Karingi, Director of the Regional Integration and Trade Division at the ECA, emphasized that Africa’s infrastructure deficit remains a pressing concern.

He pointed out that unconstitutional changes in government, persistent poverty, and limited employment opportunities exacerbate the challenges facing the continent.

Efforts to bridge the infrastructure funding gap have led to the exploration of innovative financial mechanisms such as blended finance and bonds focused on environmental, social, and sustainability goals.

Also, debt-for-nature swaps are being considered to mobilize resources for infrastructure development while addressing environmental concerns.

Addressing the funding shortfall is critical for Africa’s economic transformation and integration into the global economy.

It requires concerted efforts from governments, international organizations, and the private sector to mobilize resources and implement effective strategies for infrastructure development.

Without adequate infrastructure, Africa’s growth potential and prospects for sustainable development may remain unrealized.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Share
Published by
Samed Olukoya

Recent Posts

Eko DisCo Set for Transformation as Transgrid Enerco Signs Historic 60% Acquisition Agreement

Transgrid Enerco Limited has signed a Share Purchase Agreement (SPA) to acquire a 60% equity…

39 minutes ago

Metering Gap Exceeds 7 Million Despite Multilateral Loans and Government Funds

Despite interventions by the Federal Government and multilateral lenders amounting to over N1.5 trillion, Nigeria’s…

1 hour ago

Petrol Prices Surge to N990 in Abuja, N960 in Lagos as Oil Tops $80 Per Barrel

The Nigerian National Petroleum Company Limited (NNPC) has increased the pump price of petrol at…

2 hours ago

Brent Crude at $79.38 Amid Trump’s National Energy Emergency Declaration

Oil prices remained steady on Wednesday as investors assessed the potential impact of U.S. President…

3 hours ago

Netflix Hits 302 Million Subscribers, Surpasses $10 Billion in Annual Operating Income

Netflix ended 2024 on a high note as its global subscribers rose to 302 million…

4 hours ago

PalmPay Explores Remittance Services as Part of Ambitious Global Growth Strategy

PalmPay, a leading Nigerian fintech company with over 30 million users and $6 billion in…

4 hours ago