Africa seeks global investment to bridge infrastructure deficit

With less than four months until the G20 Summit in South Africa, the Africa Think Tank for Infrastructure Development (ATTID) has called on global investors, governments and development partners to seize the opportunity of Africa’s vast potential, especially in infrastructure, to drive economic transformation and sustainable development on the continent.

Addressing a press conference in Lagos yesterday, the Director of Strategic Communications at ATTID, Prof. Sylvester Odion Akhaine, announced that the organisation has secured the hosting rights for the Infrastructure and Sustainable Development Side Event ahead of the G20 Summit.

The side event, scheduled for 20–21 November at the Lakewood Conference Centre in Johannesburg, will serve as a forum for world leaders, international development agencies, financial institutions, regulatory agencies, and infrastructure entrepreneurs to advance Africa’s infrastructure agenda.

Speaking on the rationale for the event, Akhaine said Africa continues to grapple with deep-rooted infrastructural challenges that have severely hampered its economic development. He noted that poor transportation systems, inadequate electricity, weak sanitation services, and limited access to communication infrastructure remain critical barriers to progress across the continent.

Citing data from the African Development Bank, he said Africa requires between $130 billion and $170 billion annually to meet its infrastructure development objectives in sectors such as energy, transport, water, sanitation, and urban systems.

“Closing the infrastructure deficit is vital for Africa’s economic development objectives,” he said, emphasising that the continent’s fiscal limitations have made it more difficult for governments to meet these demands. He highlighted that in 2021, the average tax-to-GDP ratio in 33 African countries stood at just 15.6 per cent, far below comparable regions.

Akhaine also warned that the effects of poor infrastructure have been far-reaching, with loss in productivity estimated at 40 per cent and annual reductions in economic growth by up to two percentage points, according to recent data from the African Union.

He added that transport inefficiencies remain a major impediment to intra-African trade, with logistics costs in some landlocked countries accounting for up to 75 per cent of the retail price of goods.

While acknowledging modest progress in foreign direct investment inflows, which rose by 75 per cent to $97 billion in 2024 according to the latest UNCTAD report, he noted that the flow remains uneven, with North Africa capturing a larger share.

The ATTID Side Event aims to create a robust platform for strategic engagement among stakeholders and facilitate the design of a continent-wide infrastructure transformation blueprint.

According to Akhaine, the summit will promote regional integration, encourage public-private partnerships, and explore sustainable models for delivering quality infrastructure.

It will also focus on trade-facilitating infrastructure, including roads, ports, rail networks, airports, customs posts, industrial zones, and energy systems, in alignment with the objectives of the African Continental Free Trade Area (AfCFTA). He recalled how earlier frameworks like the Lagos Plan of Action and the UN Transport and Communication Decade for Africa had recognised the critical importance of transport and communication to the continent’s growth and integration.

Also speaking at the event, ATTID’s Director of Planning and Implementation, Dr Alfred Chiakor, said the summit will go beyond discussion to foster concrete outcomes, including the generation of new project ideas, strengthening of in-country mechanisms for infrastructure financing, and deeper collaboration with both local and international partners.

According to him, the event will provide a networking environment to identify and pursue viable opportunities, while also advancing strategies for inclusive economic growth and the delivery of infrastructure that meets Africa’s sustainable development priorities.

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