June 15, 2023
Over the past decade, Africa received an average annual investment of US$ 80 billion
47% of infrastructure investments were made in South and East Africa
44% of the investments were made in East and West Africa. Central Africa accounted for approximately 8% of the investments
Energy received the highest investment, followed by transport and infrastructure
Indian infrastructure firms are considering an annual investment ranging from US$ 130 billion to US$ 176 billion in Africa for the development of infrastructure, according to industry officials, at an event hosted by the Confederation of Indian Industry (CII).
The officials emphasized the significant investment Africa has received over the past decade, with an average annual investment of US$ 80 billion. They pointed out that 47% of infrastructure investments were made in South and East Africa, while 44% were made in East and West Africa. Central Africa accounted for approximately 8% of the investments.
In terms of sectoral distribution, energy received the highest investment, followed by transport and infrastructure. Water infrastructure and other sectors occupied the third position. Looking ahead, Indian firms are aiming for an annual investment requirement ranging from US$ 130 billion to US$ 176 billion.
In terms of transforming infrastructure in Africa, the officials suggested exploring alternative business models such as the receivable purchase model and barter system, in addition to conventional multi-level funding.
Media reports said underlined the immense need for infrastructure development in Africa, highlighting the disparity between the global average of 944 km of roads per thousand square kilometres and Africa’s existing 204 km per thousand square kilometres.
Source: Economic Times