Africa is standing at a defining moment in its development journey. The continent’s infrastructure deficit — which is long acknowledged but insufficiently addressed — has become a critical bottleneck to growth.
As global trade structures are hastily reconfigured and economic alliances shift, the urgency to invest in Africa’s infrastructure has never been greater. The numbers are stark. Africa faces an annual infrastructure financing gap of $100bn (R1.7-trillion), according to the African Development Bank.
Most African countries spend less than 5% of GDP on infrastructure, which is well below the global average. This underinvestment is not just a missed opportunity; it’s a structural constraint that limits Africa’s ability to compete, integrate, and thrive in a rapidly changing global economy.
Yet the potential is immense. Africa’s GDP is approaching $3-trillion, and its real growth is projected to outpace global averages over the medium to long term. This growth is underpinned by a youthful population, rapid digital innovation, and abundant natural resources. But without the roads, railways, ports, power grids and digital networks to connect people and markets, this potential will remain unrealised.
Infrastructure development is not just a development goal, it is an economic imperative. It is the foundation upon which inclusive growth, industrialisation and regional integration must be built.
Across the continent, we’re already seeing how infrastructure investment can transform economies. In East Africa, for example, investment in toll roads, energy projects, and logistics corridors is improving connectivity, reducing costs, and stimulating local enterprise.
Rail is emerging as a particularly strategic priority. It is not only climate-smart but also economically vital. South Africa alone requires more than $240bn to restore and expand its rail network. Strategic partnerships that combine global expertise with local financing are already delivering results, and these are reducing emissions, lowering freight costs and unlocking new trade corridors. For Africa’s mining and logistics sectors, rail is not just a mode of transport; it is a lifeline.
Energy is another critical frontier. Africa’s energy landscape is shifting from scarcity to sustainability. Mining companies are leading the charge, with more than 15,800MW of renewable energy projects underway. To highlight this need and demand, just one South African financial institution is mobilising up to R300bn for sustainable finance by 2026. This is not just about powering homes and businesses;it is about enabling Africa’s just energy transition, and opening new markets for global clean technology.
Digital infrastructure, too, is essential. The pandemic underscored the importance of connectivity, but many parts of Africa remain digitally excluded. Roads, ports, and broadband networks are the arteries of modern economies. Without them, Africa cannot fully participate in the Fourth Industrial Revolution or realise the promise of digital inclusion.
The African Continental Free Trade Area is one of the most ambitious economic projects in the world today, and more people should start to grasp its importance and possibilities
The scale of Africa’s infrastructure challenge demands a new approach to financing and delivery. The importance of Africa’s infrastructure challenge is underscored by its prominent discussion at the B20, the business voice of the G20, where advocacy is focused on accelerating the development of sustainable infrastructure.
The finance & infrastructure task force brings together more than 150 members and 10 co-chairs from every region of the world. The taskforce is working to expand the pool of investable infrastructure projects, improve access to capital by increasing the availability, effectiveness, and resilience of public, private, and philanthropic investment, and enhance the flow of funds between investors, infrastructure projects and the wider economy.
Success stories like Zambia’s Ndola–Lusaka toll road show what is possible when the public and private sectors work together. But they also highlight the limits of domestic budgets and the need for greater institutional capacity. Africa needs not only capital but also the ability to plan, procure, and manage complex infrastructure projects. This is where development finance institutions, multilateral banks and global investors must step up.
The African Continental Free Trade Area (AfCFTA) is one of the most ambitious economic projects in the world today, and more people should start to grasp its importance and possibilities. It creates a $3.4-trillion market with 1.3-billion people and the potential to double intra-African trade by 2035. But trade agreements alone are not enough. Without the infrastructure to move goods, services, and people across borders, AfCFTA will remain an aspiration rather than a reality.
Africa is at a crossroads. The decisions we make now will determine whether the continent becomes a global growth engine or remains on the margins of the global economy. The infrastructure gap is not just a challenge; it is an opportunity. It is a chance to build the roads, railways, power plants, and data networks that will define Africa’s future.
• De Zilva is chief executive of Standard Bank New York.
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