Investing USD 155 billion each year in infrastructure development could boost Africa\u2019s annual gross domestic product (GDP) growth by 4.5 percentage points, doubling the continent\u2019s GDP by 2040. These gains would enable Africa to surpass the objective of 7% annual GDP growth set out in the African Union\u2019s 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\u2019s GDP in 2024. According to the latest comparable data, its annual infrastructure investment \u2013 from private, government and development finance combined \u2013 averaged 3% of GDP (USD 83 billion) between 2016 and 2020, with African governments contributing on average 1.3% of their countries\u2019 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\u2019s 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\u2019s 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\u2019s infrastructure finance is lower than in other regions, and its absolute level is lower than would be expected given potential returns.<\/p>\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Infrastructure Investment Urbanisation, infrastructure and development African development strategies Financing infrastructure Infrastructure and development Infrastructure governance Investment for trade and economic development.<\/p>\n","protected":false},"featured_media":132,"template":"","kh_asset_type":[23],"kh_thematic_area":[24],"class_list":["post-131","kh_asset","type-kh_asset","status-publish","has-post-thumbnail","hentry","kh_asset_type-flagship-publications","kh_thematic_area-flagship-publications"],"_links":{"self":[{"href":"http:\/\/139.84.241.235\/kh\/wp-json\/wp\/v2\/kh_asset\/131","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/139.84.241.235\/kh\/wp-json\/wp\/v2\/kh_asset"}],"about":[{"href":"http:\/\/139.84.241.235\/kh\/wp-json\/wp\/v2\/types\/kh_asset"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/139.84.241.235\/kh\/wp-json\/wp\/v2\/media\/132"}],"wp:attachment":[{"href":"http:\/\/139.84.241.235\/kh\/wp-json\/wp\/v2\/media?parent=131"}],"wp:term":[{"taxonomy":"kh_asset_type","embeddable":true,"href":"http:\/\/139.84.241.235\/kh\/wp-json\/wp\/v2\/kh_asset_type?post=131"},{"taxonomy":"kh_thematic_area","embeddable":true,"href":"http:\/\/139.84.241.235\/kh\/wp-json\/wp\/v2\/kh_thematic_area?post=131"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}