AIIM maps out where to look in Africa

With governments across the continent reeling from the economic impacts of Covid-19, investment into African infrastructure has never been more important.

However, the average annual private infrastructure spend in Africa is estimated at only USD 6bn, despite a financing gap of circa USD 70bn-USD 100bn annually, according to G20 estimates.

In a recent report, the AfDB encouraged private investors’ involvement and the use of PPPs to develop basic services infrastructure. But to do so, the support of multilaterals and ECAs to provide guarantees is necessary, as is the governments’ better allocation of resources, it wrote.

AIIM Investment Director Paul Frankish spoke to Inframation about Africa as an infrastructure investment destination, the varied opportunities across AIIM’s markets, and AIIM’s key pillars of digitisation, urbanisation and the energy transition.

“Africa’s huge infrastructure deficit provides ample opportunities. It remains the market with probably the biggest gap between infrastructure needs and spend. We believe this creates significant opportunities as the gap is driven by long-term secular imbalances as opposed to cyclical trends,” Frankish says.

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