Aid for investment in infrastructure in Africa

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USD 93 billion a year is needed for Africa’s infrastructure, two-thirds for investment in new physical infrastructure and a third for operations and maintenance of existing assets. However, only USD 45 billion is being spent.

To fill the gap substantial scaling up of resources is required, as well as institutional and policy reforms to strengthen the framework for infrastructure development. However, public money and official development assistance (ODA) are not enough to respond to the needs.

Private investment can also make important contributions, but in order to increase the private sector’s role, there needs to be a sound policy environment in place and financing arrangements that facilitate investment. ODA can play a catalytic role in this regard but this raises questions about the extent, opportunities and limitations of ODA’s contribution to infrastructure development.

To address these issues, the Aid for Investment in Africa's Infrastructure project has published a mapping report analysing how aid can leverage private investment in Africa’s infrastructure sectors.

The report includes data on official development finance for infrastructure and the enabling environment, and examines:

the role of development agencies in supporting infrastructure through financing tools;
how export credit agencies can facilitate exports and insurance for investors; and
how donors implement the Paris Declaration in their support for infrastructure and the contribution of non-OECD financiers such as China.

This project is a joint undertaking between the OECD's Investment Committee and the Development Co-operation Directorate and implemented within the framework of the NEPAD-OECD Africa Investment Initiative in partnership with NEPAD, the African Development Bank and other organisations.