Who is financing Africa’s infrastructure development?
$83.4bn was committed to Africa’s infrastructure development compared with $74.5bn in 2014 - but there has been a substantial shift in the source of funds committed.
Announcements of Chinese funding are up to nearly $21bn in 2015 compared with just $3bn in the previous year. While the average of announced investments from China over the 5 years to 2015 is over $12bn, the wide year-on-year fluctuations and lack of official data render it very difficult to predict future trends with any accuracy.
However, the increase in funding from China in 2015 was partially offset by African governments reducing their budget allocations for infrastructure development, primarily due to pressure from low oil and commodity prices. The ICA’s analysis of identifiable infrastructure allocations across 44 African national governments revealed that $28.4bn was allocated in 2015 compared with $34.5bn (based on 42 countries) in 2014.
Figure 6: Reported and identified financing flows into Africa’s infrastructure, 2015
ICA members committed $19.8bn in 2015, up from $18.8bn in 2014. Excluding the exceptional Power Africa contribution (from the US) of $7bn from the 2013 figures, ICA member commitments have remained consistent over the past four years, at between $18.3bn and $19.8bn. Commitments from non-ICA European DFIs and multilateral institutions reduced from $1.3bn to $876m.
Excluding China, contributions from non-ICA countries and multilateral organisations increased from around $6bn in 2014 to $6.8bn in 2015, largely as a result of Arab Co-ordination Group commitments increasing from $3.5bn in 2014 to $4.4bn in 2015. Overall commitments in 2015 were bolstered by $500m from Brazil, $524m from India and $88m from South Korea.