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Published:
Last Updated:
19 Oct 2021

Financing infrastructure in Africa

How the region can attract more project finance Author: Robert Sheppard, Stephan von Klaudy, Geeta Kumar

Sub-Saharan Africa receives only a small share of private investment in infrastructure. One reason for this is its difficulties in getting project finance—difficulties that stem from the low creditworthiness of most African countries, the limits of local financial markets, and the risk profiles typical of infrastructure projects. Whether the region can attract more private foreign currency funding for infrastructure will depend in part on the ability to reduce foreign exchange risks. But in some countries local currency sources, especially local capital markets, also offer good potential.

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