Investing USD 155 billion each year in infrastructure development could boost Africa’s annual gross domestic product (GDP) growth by 4.5 percentage points, doubling the continent’s GDP by 2040. These gains would enable Africa to surpass the objective of 7% annual GDP growth set out in the African Union’s Agenda 2063. Such a push is within the reach of African countries. USD 155 billion per year is equivalent to 5.6% of the continent’s GDP in 2024. According to the latest comparable data, its annual infrastructure investment – from private, government and development finance combined – averaged 3% of GDP (USD 83 billion) between 2016 and 2020, with African governments contributing on average 1.3% of their countries’ GDP. In 2019-20, four African countries already allocated more than 5% of their GDP to infrastructure from government spending, approaching the levels of the People’s Republic of China (6.7%) and Viet Nam (5.1%). A rise in total spending from 3% to 5.6% of GDP seems feasible for more African countries. Increasing Africa’s infrastructure investment to that level requires more financing from all sources, especially private capital. At 11% of the total, the share of private investment in Africa’s infrastructure finance is lower than in other regions, and its absolute level is lower than would be expected given potential returns.
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Africa’s Development Dynamics 2025: Infrastructure, Growth and Transformation
Infrastructure Investment Urbanisation, infrastructure and development African development strategies Financing infrastructure Infrastructure and development Infrastructure governance Investment for trade and economic development.
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