The World Bank points out that sub-Saharan Africa needs to invest about 7.1% of GDP annually to achieve the Sustainable Development Goals, but current investment is only around 3.5% of GDP.
Africa’s infrastructure challenges have long been a major barrier to its economic growth and development. The African Development Bank (AfDB) estimates that between $130 billion and $170 billion are needed annually to meet the continent’s infrastructure needs. But the funding gap remains large, with a shortfall of up to $100 billion a year.
Similarly, the World Bank points out that sub-Saharan Africa needs to invest around 7.1% of GDP annually to achieve the Sustainable Development Goals, but current investment is only around 3.5% of GDP.
Governments cannot shoulder this burden alone, so private capital is a key part of the solution.
The International Finance Corporation (IFC), a member of the World Bank Group, plays a key role in promoting private sector investment across Africa.
IFC creates an enabling environment for the growth of private capital by financing infrastructure projects and advising governments on structuring PPPs.
In FY24, IFC mobilized $22.5 billion, an increase of 50% compared to FY23. This was achieved using over 30 different tools for attracting and managing investments.
The bulk of these funds went to Africa, supporting projects in renewable energy, healthcare, agriculture, and digital infrastructure.
For example, IFC supports renewable energy initiatives that expand electricity access to millions of households. We also invest in agribusiness projects that provide market access and financial tools to smallholder farmers.
Below are the top 10 African countries leading private sector investment.
Rank Country Investment 1 South Africa $5.07 billion 2 Nigeria $3.96 billion 3 Egypt $3.37 billion 4 Ethiopia $2.29 billion 5 Ivory Coast $2.18 billion 6 Kenya $1.7 billion 7 Guinea $1.5 billion 8 Mozambique $1.32 billion 9 Morocco $870 million 10 Cameroon $800 million
