AFDB says Africa's infrastructure rose to $19 billion in 2020 due to private sector investment

The private sector's investment in Africa's infrastructure rose by a staggering $19 billion in 2020, a 23% increase, the highest level since 2016.

According to NAN, Mr. Solomon Quaynor, Vice President for the Private Sector, Infrastructure, and Industrialization at the African Development Bank (AfDB), revealed this at a webinar hosted by the bank and the Japan International Cooperation Agency (JICA).

According to Quaynor, increased private sector investment occurred at a time when most African countries were dealing with the COVID-19 pandemic, a tight budget, and high debt-to-GDP ratios.

He said, “Private sector investment in Africa’s infrastructure rose to 19 billion dollars in 2020, representing 23 per cent, the highest since 2016.

“This counter-cyclical role played by the private sector shows the importance of its growing role in infrastructure financing in Africa,” he added.

According to Vivek Mittal, the Chief Executive Officer of the AfDB Association, the majority of private sector investment interest over the previous two years was concentrated in four African nations.

Kenya, South Africa, Ghana, and Nigeria are the nations in question. He claimed that the most popular digital activities were those related to electricity and transportation.

"Projects take too long, eight to 10 years in Africa," he continued. Another issue, in his opinion, is the sluggish development of homegrown talent.

Source