Transport Financing Trends
The ICA’s flagship annual report Infrastructure Financing Trends in Africa 2015 shows that of the US$83.4bn committed to infrastructure development in Africa in 2015, the transport sector achieved US$34.7bn, representing 41.6% of the total commitment.
The US$34.7bn committed to Africa’s transport sector in 2015 was slightly above the US$34.4bn recorded the previous year. While there was a significant decline in investments made by African national governments in 2015, this was compensated by increased commitments from ICA members – up almost two-fold from US$3.6bn in 2014 to US$6.8bn in 2015, while a further US$12.5bn was committed by non-ICA nations and multilateral institutions – of which over three-quarters was from China.
Figure 73: ICA Member Commitments to the Transport Sector 2011-2015
East Africa was the largest recipient of funding for transport development projects during 2015. Of the US$11.8bn invested in the region, ICA members committed some US$2.2bn while US$5.3bn was provided by non-ICA development partners. North and West Africa received US$1.19bn and US$1bn from ICA members respectively, while Southern Africa (including the Republic of South Africa) saw US$728m committed during 2015. Pan-African transport projects also saw significant financial commitments from ICA members during 2015, of US$934m.
The considerable spike in non-ICA member donor financing in 2015 was largely due to the US$9.8bn of financial commitments made by China, which again featured as the largest investor in the sector. Chinese investments were aimed predominantly at East and West Africa (US$4.8bn and US$3.3bn respectively) while some US$1.7bn was committed to the Republic of South Africa.
The private sector again played a limited role in financing transport infrastructure projects, with only a single privately-financed project reaching financial close during 2015.
Figure 74: Total Commitments to the Transport Sector 2014 and 2015