Africa is emerging quickly as an exciting location for investment. In fact, some of the world’s fastest-growing economies are in Africa, including Ethiopia and Tanzania. Despite Africa’s improving economic position, however, it still has a $100 billion infrastructure problem. Africa’s need for better housing, roads, secure energy and sanitation is apparent. The infrastructure problem in Africa may deter some investors – savvy investors, however, should see the need for infrastructure as a prime investment opportunity. Below we explore investment opportunities in Africa in more detail, particularly their ability to create sustainable economic growth.
Why is infrastructure development important?
Infrastructure is the key basis for sustainable economic growth, as with more affordable housing, transport and commercial properties, African countries will be able to transport, trade and distribute more goods, improving their economic position. Recent infrastructure investments are already creating an impact as these can be traced as being responsible for over half of the latest improvements in African economic growth.
How can Africa close the infrastructure gap?
To close the infrastructure gap, Africa will need to see investments primarily from the private sector. Investors are in a strong position, however, as Africa is relatively late to infrastructure development globally, they can take advantage and inspiration from global blueprints and the lower cost of low-carbon technologies. This eliminates the need for trial-and-error infrastructure development, as they can base their investments on efficient, robust examples.
Why has infrastructure development been stunted in the past?
As a continent, Africa has faced many difficulties in the past that have stunted its economic growth. From perceived government corruption to local jurisdictional failures, individuals who sought to create or invest in infrastructure development were met with many challenges. As Africa’s population continued to grow, the continent was unable to keep up with the infrastructure demands and the gap continued to grow, further impacting its economy negatively.
Infrastructure development in Africa – where to find out more
Jabiut manages a wide range of diversified portfolios across several African countries. We work with investment partners to manage major capital projects to help African nations build and implement the basic infrastructure they need to allow their economies to thrive and their people live better lives.
Read more about our mission and vision.
Or get in touch to discuss how we can work together and generate real returns for investment partners.
About The Author
Tunde is the founder of UK-based Jabiut Development Partners; a strategic development, infrastructure finance and project consulting organisation. He is actively involved in major programme delivery and strategic advisory; providing numerous organisations and arms of government with advice on capital projects, project financing and infrastructure concession placement.
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