A new report by the Infrastructure Consortium for Africa (ICA) has identified China as the biggest single factor driving the higher level of commitments in funding for Africa’s infrastructure development projects.
The ICA’s annual report, Infrastructure Financing Trends in Africa 2017, shows that total US$81.6 billion was committed to Africa’s infrastructure development in 2017, the highest level of directly comparable commitments reported since 2010, and a 22 percent increase from U.S.$66.9 billion compared to 2016.
The report, released at the Africa Investment Forum in Johannesburg, said the biggest single factor driving the higher level of commitments in 2017 was a U.S.$13 billion increase in identifiable Chinese investments, up from U.S.$6.4 billion in 2016 to U.S.$19.4 billion in 2017.
Spending from African national and subnational governments increased only by U.S.$3.7 billion, up from U.S.$30.7 billion to U.S.$34.4 billion in the same period.
The ICA’s report said Chinese funding has fluctuated substantially over recent years, with the 2016 figure of U.S.$6.4 billion following a high of U.S.$20.9 billion in 2015 and a low of U.S.$3.1 billion in 2014.
Infrastructure Financing Trends in Africa – 2017 is the ICA’s annual report on how financial resources are being mobilised to facilitate the development of the continent’s transport, water and sanitation, energy and ICT sectors.
The annual publication identifies how resources are being mobilised to make an impact on Africa’s infrastructure development. The report covers all sources of infrastructure financing – including multilateral and bilateral donors, African state spending, development banks and the private sector.
One of the issues addressed in the 2017 report is African state spending on infrastructure development.
The report provides examples of how finance has been mobilised for bankable projects likely to have a significant development impact, adding that bankable projects will be needed to both attract new and retain existing financiers to help close Africa’s infrastructure financing gap.
The African Investment Forum prioritizes public-private partnerships and private sector deals curated from a total pipeline of 230 projects worth more than U.S.$208 billion, which span several sectors from energy, infrastructure, transport and utilities, to tourism, housing and aviation.
– African News Agency (ANA)