ICA Financial Support Trends

Overview

Progress has been made on bridging the financing gap.  In2002, external finance for African infrastructure amounted to no more than US$4 billion per year.  In 2007, Africa countries received a minimum of $40 billion in external financial support to infrastructure.

Commitments in 2007 by ICA members alone reached $12.4 billion, an increase of 61% from the previous year.  ODA commitments to sub-Saharan Africa increased by 59%.  Multilateral institutions have continued to play a dominant role, responsible for over 70% of total ICA commitments.  The water and energy sectors received the major share of new commitments. Water commitments increased by 43%, energy by 62%.

Replenishments of multilateral funds (International Development Assistance, African Development Fund and European Development Fund), along with the launch of the EU-Africa Infrastructure Trust Fund in 2007 should guarantee that the upward trend in commitments to the sector continues.  However, these advances are now threatened by the global financial crisis.  In spite of these contributions, an overall annual funding gap of around US$40 billion remains.  It is clear that more finance is needed.