A new report has revealed an infrastructure investment gap of US$1 trillion in 10 Compact with Africa countries over the next 22 years.
The report, which was released by the Global Infrastructure Hub, has for the first time revealed the scale of the infrastructure investment need, current investment trends, and corresponding investment gaps in 10 Compact with Africa countries at a country and sector level.
It notes that US$1.4 trillion, of a forecasted US$2.4 trillion, of investment is expected to be delivered based on current spending. Of this US$1 trillion investment gap, US$415 billion is required by 2030 for countries to meet the UN Sustainable Development Goals (SDGs) for universal access to drinking water, sanitation and electricity.
Turning investor interest into action
According to the Annual Global Infrastructure Investor Survey 2017 by the Global Infrastructure Hub and EDHEC Infrastructure Institute-Singapore, 37% of infrastructure investors invest in emerging markets and of those already investing in emerging markets, 82% are looking to increase their investment.
Chris Heathcote, CEO of the Global Infrastructure Hub, says 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.”
“The key to addressing this is creating the right environment to encourage investors to turn their interest into action,” Heathcote adds.
Delivering impactful projects
Heathcote says it’s essential 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.”