The Infrastructure Financing Trends in Africa 2015 report shows that $83.4bn was committed to Africa’s infrastructure development in 2015, a 12% increase on the 2014 total of $74.5bn.
This comprises nearly $28.4bn of identified African national budget allocations, while commitments from ICA members totalled $19.8bn. Commitments from non-ICA bilateral and multilateral financiers totalled $27.7bn and private sector investment of $7.4bn was also identified.
TOTAL FUNDING IN 2015: $83.5bn
SOURCES OF FUNDING
FUNDING TO EACH SECTOR
FUNDING TO EACH REGION
Other key findings from the 2015 report include:
- Of the $27.7bn of non-ICA bilateral and multilateral finance, $20.9bn is from announcements of funding from China. This compares with $3bn in the previous year, though the average of announced investments from China over the 5 years to 2015 is over $12bn.
- 2015 saw reduced identifiable infrastructure allocations of $28.4bn by 44 African national governments, compared with $34.5bn (based on 42 countries) in 2014.
- Private sector commitments increased by $4.6bn in 2015 to $7.4bn, of which $7.2bn went to the energy sector.
- Commitments to the water sector have shown a declining trend since 2013. 95% of 2015 commitments are from national governments, ICA members and other development partners.
- There has been a sustained, but not entirely even, increase in commitments to the energy sector over the last five-years, attracting both public and private capital.
- Commitments to the transport sector remained broadly the same in 2015 at $34.7bn (2014 - $34.3bn) with the biggest contribution (over $15bn) from African national governments, followed by China ($9.8bn). ICA member commitments to the sector increased, from $3.7bn in 2014 to $6.8bn in 2015.
- Central Africa saw a substantial fall of 41% in anticipated infrastructure spending, from $8.3bn in 2014 to $4.9bn in 2015, attributed mainly to declining African national government budget allocations and ICA members’ commitments.
- ICA members reported infrastructure financing commitments of $19.8bn in 2015, representing 5.6% or $1bn more than reported in 2014. This includes additional data from the US (Power Africa, $307m) and the UK (CDC, $139m).
- Disbursements by ICA members in 2015 totalled $12.6bn, a small decline of 2.9% compared with the $13bn reported in 2014. Despite this marginal decline, disbursements have remained reasonably consistent over the past few years (2012 to 2015) averaging around US$12.5 bn.
This year’s report includes more detailed analysis of the processes and dynamics that drive (or restrain) the continent’s infrastructure financing trends. The report includes views from a wide range of stakeholders on these forces and how strategies are emerging and developing to address the challenges of infrastructure financing in Africa.
Annual Report 2015
To view or download the full report please visit: Infrastructure Financing Trends in Africa 2015.