Unlocking Africas Growth Through Strategic Infrastructure Investment

The African Development Bank AfDB estimates that the continent will need 170 billion annually in infrastructure financing by 2025. Multilateral development banks and government-backed lenders contribute significantly, with approximately 100 billion to 120 billion committed yearly to development projects in low- and middle-income countries. Yet, the financing gap remains substantial, leaving many critical projects underfunded.

Africas vast infrastructure needs, spanning sectors from energy to healthcare, cannot be met by governments alone. Innovative funding solutions, including public-private partnerships and cross-border investments, are essential to close the financing gap. Private capital, when mobilized through collaborative partnerships with export credit agencies, development finance institutions, and multilateral organizations, can play a key role in unlocking the capital needed to bridge this gap.

The Emerging Africa Infrastructure Fund EAIF is a public-private partnership providing long-term debt financing for infrastructure projects in sub-Saharan Africa. In its recent funding round, EAIF secured 294 million in debt facilities, making it one of the largest blended finance debt packages for African infrastructure. The principal shareholders are the governments of the UK, Netherlands, Sweden, and Switzerland. EAIF also receives debt capital from private investors like Allianz and Standard Chartered Bank, and development finance institutions, enabling it to provide flexible and patient capital for major infrastructure projects in Africa that enhance connectivity, foster regional integration, and drive sustainable economic growth across the continent.

Several projects led by Standard Chartered have demonstrated how international partnerships can address Africas systemic infrastructure challenges. In Angola, water scarcity is a pressing issue, exacerbated by climate change. For example, a 22 million loan is currently being used to finance clean water infrastructure for rural communities in Luanda. The Quiminha water project will renovate the Quiminha Dam and create new water storage and distribution infrastructure, benefiting about 100,000 people in rural areas.

This initiative aims to enhance living conditions and support economic growth by ensuring a reliable supply of clean water for industrial and agricultural use in the Quiminha region, a crucial agricultural hub. According to the World Bank, agribusiness is critical for Angolas economic diversification. The project exemplifies how global financing expertise is helping address climate-related challenges and improving access to vital resources.