Financing trends 2016 – ICA members

In 2016, ICA members reported new commitments to infrastructure development in Africa of $18.6bn, down by 6% from $19.8bn in 2015. However, excluding the exceptional $7bn contribution from Power Africa in 2013, commitments by ICA members have remained broadly consistent for the past five years, averaging $18.9bn per year.

There have, however, been very substantial changes in ICA members' commitments by sector (see below). Those to the water and sanitation sector increased by 46% in 2016 to $4.7bn, compared with $3.2bn in the previous year. Commitments to all other sectors decreased - energy declined by 11%, transport by 26% and ICT by 32%, while multi-sector activities declined by 36%.

ICA members’ 2016 commitments by sector

There have also been very substantial shifts in regional emphasis (see below 'ICA members’ 2016 commitments by region'). Commitments by ICA members to the Republic of South Africa (RSA) dropped by 44% to slightly less than $1bn, the lowest amount since 2012. Commitments to Southern Africa are down by 23%, North Africa by 10% and East Africa by 6%.

ICA members' commitments to Central Africa are up by 70%, to $2.2bn but from the exceptionally low $1.3bn reported in 2015. West Africa is the only other region to show increased commitments, up by 14% in 2016 compared with 2015.

ICA members’ 2016 commitments by region

Disbursements by ICA members in 2016 totalled $13.4bn, marginally the highest level yet reported and up by 6% from $12.6bn in 2015. Disbursements have now remained quite consistent for the last five years, at between $11.4bn and $13.4bn.

There has been little change in the regional distribution of disbursements in 2016 compared with the previous year, with the exception of a 44% increase to $3.6bn in the amount disbursed to North Africa.

One year’s commitments cannot be directly compared with the same year’s disbursements - the latter will relate substantially to funds committed in previous years. Moreover, a gap between commitments and disbursements over time can be expected due to (a) some commitments being withdrawn; these are not reported, and (b) the reporting of commitments to funds, some of which are not subsequently reported as disbursements.

Subscribe to @ISSUE

Subscribe to our quarterly newsletter to get up-dates from the ICA

Subscribe now

You are currently offline. Some pages or assets may fail to load.