Africa’s Growth: Africa’s Growth: From left, Standard Bank Corporate and Investment Banking CEO Luvuyo Masinda, Transnet COO Solly Letsoalo, Deputy Finance Minister David Masondo, Head of Infrastructure and Public Sector Customer Cover, Zeng Dlamini, Group CEO Simu Tshabalala and Acting Head of Infrastructure SA, Mameetse Masemola. Photo: Marco De Agostino
Africa’s infrastructure gap, estimated at more than $100 billion annually, presents an opportunity for projects that can boost the continent’s economy, create jobs and reduce poverty.
Speaking at the bank’s inaugural Infrastructure Connect Summit this week, Standard Bank CEO Sim Shabalala said the need for infrastructure investment will only increase as the continent continues to urbanize and grow.
The summit brought together industry experts, policymakers and financial leaders to discuss the future of infrastructure development in Africa and highlight the urgent need for collaborative efforts to close the infrastructure gap.
Mr Tshabalala said South Africa’s economy was turning a corner, supported by the recent lifting of the gray list, interest rate cuts and credit rating upgrades, and economists expected gross fixed capital formation to be positive next year.
He pointed to visible signs of infrastructure investment, including a surge in construction activity in Johannesburg, where a number of residential and commercial developments are underway.
Mr Tshabalala said the bank is committed to playing a key role in financing infrastructure development in the country and across the continent.
“We are financing infrastructure. We are financing infrastructure and mobilizing society’s resources to maximize the country’s productivity,” he said.
The bank leads South Africa’s renewable energy sector with a 31% market share and has provided more than R80 billion in financing to date.
The Business 20 (B20) Finance and Infrastructure Task Force has made several important recommendations to address Africa’s infrastructure needs, including increasing support for early-stage project preparation, improving the accuracy of rating agencies, and advocating for regulatory changes to treat infrastructure as an asset class.
Deputy Finance Minister David Masondo, who delivered the keynote speech at the summit, outlined the government’s efforts to encourage private sector participation in public infrastructure. He said key initiatives include: Credit guarantee instruments for electricity transmission infrastructure. Reform of the public-private partnership (PPP) regime. Ring-fencing of revenue from Metro trading services. and issuance of infrastructure bonds.
“Government aims to raise R15 billion through an infrastructure bond auction on 8 December 2025,” Masondo said, stressing the need for sustained partnership between government, the financial sector and development partners to address the R2 trillion infrastructure funding gap needed by 2040.
The summit included panel discussions on infrastructure financing, public-private partnerships, and the role of technology in driving infrastructure development. The importance of cross-border infrastructure in promoting regional integration and economic growth was emphasized. Panelists agreed that the African Continental Free Trade Area (AfCFTA) offers significant opportunities for cross-border projects and emphasized the need for a collaborative approach to infrastructure development.
Panelists emphasized the need for innovative solutions to mobilize private capital and realize profitable projects.
They also emphasized the importance of maintaining and upgrading existing infrastructure and investing in new projects. Discussions emphasized the important role that infrastructure plays in driving economic growth, improving living standards and reducing poverty.
As infrastructure needs continue to grow, the Summit is establishing itself as a platform for shaping the future of infrastructure investment. The foundation for further discussions and partnerships was laid at the summit.
Luvuyo Masinda, CEO of Standard Bank’s Corporate and Investment Banking Division, said, “We are feeling the impact of the structural reforms,” and reaffirmed the bank’s determination to support infrastructure development.
