Africa’s Infrastructure Gap: A Call for $170 Billion Annual Investment to Fuel Growth

African

The African Export-Import Bank (Afreximbank) has sounded the alarm on Africa’s infrastructure financing gap, estimating that the continent needs to mobilize between 130 billion – 170 billion annually to bridge the shortfall.

Speaking at the Africa Prosperity Dialogue 2025 in Accra, Afreximbank’s Managing Director, Gwen Mwaba, warned that failing to address this gap could severely hinder Africa’s economic transformation. She emphasized the urgent need for innovative financing solutions and strategic partnerships to unlock the continent’s potential.

The Infrastructure Imperative

Mwaba stressed that infrastructure is the backbone of economic growth, regional integration, and trade under the African Continental Free Trade Area (AfCFTA). She highlighted Afreximbank’s commitment to financing transformative projects that improve transport networks, energy systems, and digital connectivity. “Bridging Africa’s infrastructure gap requires an estimated 130 billion to 170 billion annually. Addressing this challenge demands innovative approaches,” she stated. She also called for policy harmonization to create an enabling environment for investments.

Afreximbank is not limiting its efforts to traditional debt financing. Through its subsidiary, the Fund for Export Development in Africa (FEDA), the bank is also making equity investments in infrastructure projects. Additionally, Afreximbank is leveraging its guarantee offerings and project preparation facility to ensure the successful execution of key initiatives. “To attract investment, we must create ecosystems that foster transparency, reduce risks, and drive innovation,” Mwaba added.

Momentum in Infrastructure Financing

The Arab Bank for Economic Development in Africa (BADEA) has also been actively supporting infrastructure development on the continent. BADEA’s Secretary General, Dr. Fatima ElSheikh, revealed that the institution has invested over $15 billion in Africa, with a significant portion directed toward infrastructure projects. These investments align with the broader vision of creating a robust infrastructure framework that supports trade, connectivity, and industrialization across Africa.

Ghana’s Infrastructure Success

Ghana’s progress in infrastructure development was a focal point at the event. Vice-President Professor Naana Jane Opoku-Agyemang highlighted the country’s achievements, describing Ghana’s airports as among the best in Africa. She also pointed to ongoing efforts to modernize ports, expand road networks, and improve energy infrastructure. “Our airports are among the best on the continent. Our ports are being modernized to facilitate trade, and we are expanding our road and rural networks to connect key economic zones,” she noted.

Opoku-Agyemang praised the government’s commitment to infrastructure development, particularly in the energy sector, which aims to provide reliable and affordable power to industries and households. She also acknowledged the role of former President Mahama’s administration in laying the groundwork for Ghana’s infrastructure transformation.

A Unified Vision for Africa

Despite these successes, Opoku-Agyemang acknowledged that much remains to be done across the continent. She identified digital infrastructure as a critical area for investment, noting that mobile technology has already revolutionized financial inclusion in Africa. She called on African leaders to demonstrate collective will and decisive action to ensure the successful implementation of the AfCFTA.

Addressing over 4,000 delegates and eight heads of state, Opoku-Agyemang emphasized that the AfCFTA presents a transformative opportunity for Africa’s economic growth. “The success of the single market depends on our collective will and decisive action. We must accelerate progress to ensure that Africa’s gains are realized for this generation and future ones,” she stated.

She urged policymakers, business leaders, and development partners to prioritize cooperation, share ideas, and work toward the seamless integration of African economies. “As we engage in today’s sessions, I encourage all of us to collaborate, exchange ideas, and push Africa closer to a fully integrated market,” she added. Eliminating trade barriers, enhancing infrastructure, and investing in digital connectivity will be critical to realizing the full potential of the AfCFTA.

Africa’s infrastructure gap remains a significant challenge, but the continent is making strides in addressing it. With institutions like Afreximbank and BADEA leading the charge, and countries like Ghana setting an example, there is hope for a brighter future. However, achieving this vision will require sustained investment, innovative financing solutions, and a unified approach to regional integration.

As Africa moves closer to realizing the goals of the AfCFTA, the continent stands on the brink of a new era of economic growth and prosperity. By prioritizing infrastructure development and fostering collaboration, African nations can unlock their full potential and create a more interconnected, competitive, and resilient economy for generations to come.

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