Africa’s $170 billion infrastructure gap requires global investors – Expert

African countries have been urged to seek long-term capital from foreign investors to address the continent’s estimated $170 billion infrastructure deficit.

The call was made by former banker and CEO of Montserrado, Ifeanyi Ajuluchukwu, during an interview with Nairametrics.

According to the African Union Development Agency (AUDA), Africa requires between $130 billion and $170 billion annually to bridge its infrastructure gap, but current investments fall far short of that target.

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**What they are saying **

Ajuluchukwu stressed that Africa must attract foreign investors to fund large-scale infrastructure projects, noting that local resources alone cannot close the continent’s massive financing gap.

• _“Foreign capital is the only way. When I say foreign, I don’t just mean Western capital. You have to raise capital for infrastructure.” _
• _“Africa has a $170 billion infrastructure deficit. Locally, we cannot bridge that gap. So you need foreign players who have the capacity to come and make those investments.” _

He also commended recent government reforms aimed at stabilizing the naira, noting that such measures are beginning to restore investor confidence in Nigeria’s financial markets.

Ajuluchukwu cited examples such as JP Morgan’s bond investments and Standard Bank’s relationship with China’s ICBC as signs of growing international interest in Nigeria.

**Backstory **

A 2025 white paper by the AU Development Agency titled “The Missing Connection: Unlocking Sustainable Infrastructure Financing in Africa” highlights the continent’s massive infrastructure needs.

• Africa requires between $130 billion and $170 billion annually for infrastructure development.
• Current annual commitments are estimated at about $80 billion, leaving a substantial financing gap.
• African governments account for more than 40% of total infrastructure financing.
• Donors contribute about 35%, although their role is evolving as China’s influence grows.

The remaining financing is largely provided by the private sector. The report noted that foreign direct investment (FDI) could increase if African countries develop bankable projects, particularly in areas such as green energy.

**More insights **

Ajuluchukwu also pointed to a structural mismatch in Nigeria’s financial system, where most available funds are short-term while infrastructure projects require long-term financing.

_“You’re not going to use three-year money or five-year money to build infrastructure,” he said. _

_“For infrastructure projects, you need capital that can last seven, ten, or even fifteen years.” _

He noted that institutions such as the Bank of Industry and the Central Bank have attempted to provide long-term funding, but the scale remains insufficient for projects like ports and power plants.

Despite ongoing recapitalisation efforts by Nigerian banks, Ajuluchukwu maintained that domestic institutions alone cannot generate the scale of funding needed to address Africa’s infrastructure deficit.

He also cited long-term investors such as Tolaram and Indorama Eleme Petrochemicals as examples of foreign investments that have gradually evolved into strong local capital bases in Nigeria.

**What you should know **

Experts have also highlighted the role the capital market could play in financing infrastructure if it develops products attractive to foreign investors.

• Tunji Andrews, CEO of Awabah, recently noted that much of Nigeria’s financial infrastructure has historically been driven by operators rather than regulators.
• He cited the creation of the Nigeria Inter-Bank Settlement System (NIBSS) by banks as an example of industry-led development.
• According to him, Nigeria’s capital market now faces a similar challenge in building the structures needed to support large-scale investment.

With Africa’s infrastructure financing needs continuing to rise, attracting global investors and strengthening domestic capital markets are increasingly viewed as critical steps toward closing the continent’s funding gap.