Bridging Africa’s $16.1 Billion Infrastructure Funding Gap: AUDA-NEPAD’s Plan to Attract Investment
By Mohammed Dahiru-Lawal
Africa’s ambitious infrastructure agenda faces a significant challenge: a substantial $16.1 billion annual financing gap.
Despite strong commitments from governments and development partners, this shortfall continues to delay critical projects across the continent.
At a recent AUDA-NEPAD workshop in Addis Ababa, experts outlined a new strategy to attract private sector investments and Development Finance Institutions (DFIs). The approach includes the utilization of blended finance instruments and tailored Public-Private Partnerships (PPPs) to enhance project bankability. These strategies aim to mitigate risks and make infrastructure projects more appealing to private investors.
Historically, African infrastructure projects have relied heavily on funding from governments and development banks.
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However, the private sector remains largely untapped. AUDA-NEPAD is working on structured engagement frameworks to encourage private investment, recognizing that mobilizing private capital is crucial for long-term success.
Ibrah Wahabou, Head of Infrastructure at AUDA-NEPAD, emphasized that mobilizing private capital is crucial for long-term success.
“At the end of the day, our success should be measured by two factors: first, the progress of the projects, and second, the amount of resources we have mobilized.”
To make infrastructure projects more attractive to investors, AUDA-NEPAD is focusing on improving project preparation to ensure bankability from the outset. This includes enhancing technical capacities and creating incentives for long-term investment through tailored PPP models.
While challenges remain, AUDA-NEPAD’s commitment to attracting private sector funding signals a shift in Africa’s infrastructure financing landscape. If successful, these efforts could unlock billions in investment, bridging Africa’s infrastructure gap and accelerating economic development.
