The African Development Bank (AfDB) said private sector investment in Africa’s infrastructure in 2020 was $19 billion, the highest since 2016.

Solomon Quaynor, AfDB vice president for the private sector (infrastructure and industrialisation), disclosed this at a webinar organised by the bank and the Japan International Cooperation Agency (JICA).

This is according to the bank’s communication and external relations department statement.

The online event was held in the run-up to the eighth Tokyo International Conference on African Development (TICAD), expected to occur in Tunisia from August 27 to 28. The theme was ‘Private Sector Infrastructure Development Opportunities in Africa’.

The vice president said the greater private sector investment came as most African governments contended with the COVID-19 pandemic, limited fiscal space and high debt-to-gross domestic product ratios. 

“Private sector investment in Africa’s infrastructure rose to $19 billion 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 said.

Also speaking, Keichiro Nakazawa, the senior vice president of JICA, said the discussion would focus on growth prospects for African countries and the role of the private sector in providing high-quality, sustainable infrastructure.

The panellists were Rami Ghandour from Metito, Tshepidi Moremong from Africa 50, Vuyo Hlompho Ntoi from African Infrastructure Investment Managers, and Yoshio Kushiya from Sumitomo Corporation. 

They were joined by representatives of leading development finance institutions, JICA’s Shohei Hara, Mike Salawou from the AfDB, and Sue Barrett, the director of the European Bank for Reconstruction and Development.

The panellists shared perspectives, success stories and the challenges they faced to plug Africa’s estimated $67 billion to $107 billion annual infrastructure gap.

(NAN)