Africa currently spends approximately $45 billion a year on infrastructure investments and maintenance. However, a 2010 report suggested that Africa needs to spend $93 billion annually for a decade just to raise its infrastructure to a reasonable level. U.S. companies are increasingly engaged in filling the large gap in this crucial sector. The continent’s intra-and inter-regional trade is greatly restricted by an inherent lack of adequate physical infrastructure. The low number of farm to market roads make it challenging for rural populations to access urban markets. In most countries existing roads are poorly maintained and are often impassable during the rainy season. The African Development Bank has targeted infrastructure as one of its key sectors for development, and African countries have prioritized infrastructure development as an integral part of economic growth.
Beyond road and rail infrastructure, the continent has seen significant recent investments in airport and port infrastructure. The aviation sector in particular has grown, with new routes and carriers added to existing fleets. For the private sector looking for joint ventures in African infrastructure development, opportunities to partner with government or local partners are numerous and lucrative.
The Infrastructure Steering Group meets monthly to discuss infrastructure investment opportunities and challenges with experts from the field. The group also monitors infrastructure related issues and opportunities in Africa and plays the leading role in planning GHICC’s Infrastructure Conference and the infrastructure track at the U.S.-Africa Business Summit.
For more information on the Infrastructure Program and Working Group, contact the Program Manager.