Ten African countries face a funding gap of $ 1 trillion in infrastructure

JOHANNESBURG – A group of 10 African nations, including some fast-growing economic stars, will lose $ 1 trillion to finance the infrastructure needed to meet the UN's development goals by 2040, according to a study published on Tuesday.

The Global Infrastructure Hub (GHI) report from the rich and developing G20 countries outlines the challenges facing one of the world's least developed regions. But it also highlights the opportunities for investors eager to take the plunge.

"Africa is a fascinating continent for investors," said Chris Heathcote, managing director of GIH, at Reuters. "They do not say" Am I going to Africa? "They say" I'm going to Africa, I want to go to Africa, which country should I go to? "

The GIH report focuses on Morocco, Ethiopia, Cote d'Ivoire Ivory, Senegal, Egypt, Ghana, Tunisia, Benin, Guinea and Rwanda To keep pace with successes like Vietnam in terms of road development, railways, airports, seaports, electricity, water and physical telecommunication infrastructure, these countries will need 2 trillion dollars until 2040 According to the conclusions of the l & # 39; study, achieving the United Nations Sustainable Development Goals, which provide for universal access to electricity and water by 2030, will require $ 383 billion in additional investment, or approximately $ 2.4 trillion in current average investment level of 4.9% of gross domestic product, which leaves the 10 countries with a financing gap of 42% to be filled.

African Countries Do not Have the Resources to Intensify According to Heathcote, attracting private sector investment is essential.

Major international conglomerates, including Bouygues, Bolloré, China Railway Construction Corp. and General Electric, are already active.

A potential infrastructure fund was now ready to enter Africa under good conditions, Heathcote said.

"Pension funds hold a wall of money. They are increasingly considering the infrastructure of emerging markets, "he said.

Freeing up this money, however, will require addressing corruption and inefficiencies that have long hampered large-scale investment in Africa.

Rwanda, where private investment accounts for two-thirds of infrastructure spending, as an example of how well it can be done.

"They have established that if you lead transparent processes, if you have clear regulations that allow you to understand your results are likely to be long-term in your contracts, then investors will look very seriously about you. "