World
Funding Africa’s Infrastructure Gap
Key to enabling African economies to make the most of their opportunities is developing infrastructure in the region. Across the continent, new laws are being implemented and alternative sources of infrastructure funding are being sought in order to kick-start direly needed infrastructure projects. At the centre of it all is China, which is providing alternative sources financing to countries in Africa that have not been able to access funding in more traditional ways. The benefits are numerous, but African countries are also concerned about their growing dependence on China.
Research released in 2018 from Baker McKenzie and IJGlobal (research) with data drawn exclusively from fully financed projects and excluding recent announcements of government funding commitments, shows that the value of loans from Chinese financing of energy and infrastructure projects in Africa almost trebled between 2016 and 2017, from $3 billion to $8.8 billion..
“As China’s Belt and Road Initiative (BRI), a multi-billion dollar plan to link Asia, Europe and Africa, is actively being implemented, we expect this amount will increase even further in the coming years,” says Wildu du Plessis, Head of Banking & Finance at Baker McKenzie in Johannesburg.
According to the research, Chinese banks have been active lenders to infrastructure projects in 19 different countries in Africa in the past four years. Infrastructure projects in Ethiopia have received $1,8 billion since 2014, Kenyan projects $4,8 billion, Mozambique infra deals $1,6 billion and Nigerian projects $5 billion from Chinese lenders. South African infrastructure projects have received $2.2 billion from Chinese lenders since 2014, Zambia has received $1.5 billion and Zimbabwe has seen $1.3 billion in loans from Chinese policy lenders since 2014.
As one of South Africa’s largest trading partners, China plays an important role in infrastructure investment in this country too. At the BRICS Summit Energy in 2018, China pledged to invest USD 14.7bn in South Africa and to grant loans to state owned enterprises Eskom and Transnet.
Du Plessis notes that even though the South African infrastructure funding gap is not as severe as other countries in Africa, there is a still difficulty in mobilising funds for infrastructure development and related projects because traditional funders take time to decide on whether to get involved.
Stanley Jia, Partner in the Beijing Office of Baker McKenzie, notes, “As part of the mobilisation of different sources of funding to fill the infrastructure gap, there is a big bucket of Chinese funding that can be used for infrastructure projects in Africa. The increasing appetite from China for funding infrastructure projects as part of its BRI means they are happy to partner with local development finance institutions and other international funders.”
According to Kieran Whyte, Head of Energy, Mining & Infrastructure at Baker McKenzie in Johannesburg, “A big attraction of the BRI for both African governments and project sponsors is that it assists the speed of project implementation. Project stakeholders advise that the whole process is a lot quicker than other options.”
Jia notes that, “Chinese policy lenders also assist in providing liquidity in that they are willing to negotiate with countries that have financial constraints that deny them access to traditional capital.”
Du Plessis notes, however, that there is rising concern amongst African sovereigns who are worried about the long term effects on their dependence on China.
“This is even though China has reiterated that it wants to be considered a responsible investor in Africa. It remains to be seen whether this concern has an impact on Chinse involvement in the funding infrastructure projects in future years. African countries have also begun building capacity to correct the imbalance between borrowers and lenders in the negotiation phase so that more balanced agreements can be reached,” he explains.
Senegal and Côte d’Ivoire
Khaled Abou El Houda, Managing Partner of Houda Law Firm in Senegal and Côte d’Ivoire, notes, “Senegal became a BRI partner with China after the two countries signed bilateral deals during Chinese President Xi Jinping’s West Africa trip in late July 2018.
“In addition to plans for improving infrastructure in Senegal, China promised to support the country with anti-terror, peacekeeping and maintaining social stability. However, while the BRI has provided many opportunities for development, the general consensus is the China-Africa relationship could be placed on more equal footing. The challenge for Africa is in establishing where its interests converge with China’s, where they diverge, and how areas of convergence can be shaped to advance African development priorities,” he says.
Houda explains that in order to help fund the infrastructure gap, the Senegalese government adopted the Plan Senegal Emergent (PSE) in 2014, with the overall aim of boosting the economy.
“We saw encouraging signs of 6.8% real GDP growth one year after the PSE’s implementation and it has maintained more than 6% growth in subsequent years. Building on this success, the government is continuing its PSE implementation and related reforms, targeting sectors such as energy, transport infrastructure and agriculture.”
Zimbabwe
In Zimbabwe, Thomas Chagudumba, of Atherstone & Cook notes that the infrastructure funding gap is being addressed in various ways. Funding comes through government floating infrastructure bonds, Public Private Partnerships (PPPs) and off-budget loan funding. Khumalo notes that policy consistency, particularly in respect of currency convertibility, exchange control regulations on repatriation of funds and improved transparency and accountability are all essential to encourage infrastructure funding in Zimbabwe. Further, he explains that it is important to ring fence resources, including foreign currency, for critical inputs in support of ongoing works. This can be done via undertakings from the Reserve Bank of Zimbabwe and government guarantees. Construction and performance bonds could also be used to curb poor project implementation, mismanagement and corruption in the infrastructure sector.
Chagudumba notes that Zimbabwe has also benefited from the BRI with major projects in Zimbabwe including the Kariba South Hydro Power Station and the Victoria Falls International Airport.
“For Zimbabwe, the benefits of the BRI include that it aids in infrastructure development, which in turn benefits economic expansion. The transfer of information and expertise and employment creation are further benefits.”
Mauritius
Mauritius does not have a large infrastructure funding gap as compared to other jurisdictions in Africa, explains Moorari Gujadhur, a barrister at Madun Gujadhur Chambers in Mauritius. “Infrastructure projects in Mauritius tend to focus on either improving current infrastructure (ie large grid separated flyovers) or to introduce new projects (ie light rail transport). These tend to be government to government,” he says.
He explains, “India has provided Mauritius with a grant and loan to fund the development of a light rail transport project, whilst China is making investments in the ports. The new Mauritian airport terminal was entirely funded by China.”
Ethiopia
In Ethiopia meanwhile, bridging the infrastructure gap is more complicated. Mehrteab Leul, Principal of Mehrteab Leul & Associates Law Office in Ethiopia, explains, “In February this year, Ethiopia enacted a new proclamation facilitating PPPs called the Public-Private Partnership Proclamation. According to the proclamation, it is within the powers of the PPP Board to approve PPP projects as well as instruct public bodies/enterprises to carry out a certain project as a PPP.
“According to the policy document, one of the main objectives for PPP projects is to increase the financial resources available for the development of infrastructure services in Ethiopia. All of the 17 recently approved under the PSE centre around the delivery of infrastructure services,” he notes.
Leul says that China and Italy are the prime role players infrastructure investment in Ethiopia. They have made a significant impact on the sector including via developing electricity generation capacity, supplying drinking water in urban and rural areas, developing road infrastructure and building hospitals and other infrastructure investments.
“Since 1957 the Italian contractor Salini Impregilo has completed 20 major projects in Ethiopia, worth a total of €9 billion. Chinese infrastructure investment in Ethiopia totalled $4.7 billion between 2009 and 2012.”
Leul says that in terms of the BRI, a strong win- in situation has developed for both China and Ethiopia.
“In particular, the country has benefited from infrastructure development funding, as well as technological transformation from China to Ethiopia and job creation. In general, it will enable both countries to optimize the benefits from the global market. The Addis Ababa-Djibouti Railway project is a working example of benefits of the BRI,” he says.
Leul cautioned however, that the BRI, “might leave the country open to the risk of troubled debt pressure and increasing dependence on China.”
Tunisia
Omar Besbes of United Advisers in Tunisia notes that all North African countries have signed the Belt and Road Initiative with China. However, the benefits received from this initiative are divergent. While in Tunisia it is only focused on studies of infrastructure projects so far, in Algeria and Morocco some infrastructure projects are already implemented such as seaports and desalination plants.
For North African in countries, the benefits of the BRI are that it allows recipient countries to not have to depend on traditional donors, and gives them the opportunity to benefit from China’s growth. Besbes says that countries other than China that have played a substantial role in infrastructure investment in North Africa include the European Union, Japan France and Germany. As a result on their funding, roads, bridges, ports, airports, electricity production stations and desalination plants have been built in the region.
By Kestér Kenn Klomegâh
One year after launching a continental initiative designed to make excellence in public governance the foundation of a new drive to transform Africa, LEAD, the Africa CEO Forum’s pan-African leadership programme, takes stock of its first cohort and announces the launch of its second class. Built around a community of senior public decision-makers committed to modernising the state and to the continent’s digital transformation, this new cohort gathers for three days, from 28 to 30 August 2026, on the campus of Mohammed VI Polytechnic University (UM6P) in Rabat, Morocco.
A second cohort that confirms the programme’s durability
For its second class, LEAD brings together 50 fellows, senior public decision-makers engaged in the design and implementation of the continent’s economic and social policies. Over three days, participants take part in collective and collaborative working sessions, peer exchanges and meetings with figures from the public, business and academic spheres, in order to compare their practices and build shared responses to the major challenges of governance.
Speakers include Mehdi Jomaa, former Head of Government of Tunisia, Donald Kaberuka, Managing Partner & Founder, SouthBridge Group, and former President of the African Development Bank, Serge Ekue, President of the West African Development Bank (BOAD), Sanjay Jain, co-creator of India Stack and Director of Digital Public Infrastructure, Gates Foundation, and Mauricio Cardenas, Professor of Professional Practice in Global Leadership, Columbia SIPA, and former Finance Minister of Colombia (2012-2018).
They share their reform experience, their public policy trade-offs and their view of continental priorities. Throughout the programme, the cohort benefits from the dedicated support of Mohammed VI Polytechnic University, Asafo & Co, BOAD, BCG and the African Development Bank, LEAD partners that have chosen to invest in the transformation of African public action.
LEAD, a pan-African community serving public action
Created by the AFRICA CEO FORUM, LEAD is a leadership programme whose ambition is to reposition Africa’s administrative elite as a driver of reform, of performance and of dialogue with all the continent’s stakeholders.
Designed for senior African public decision-makers, LEAD sets out to build a lasting community of public officials able to share their experience, compare their practices and build common solutions to the major economic, technological and institutional transformations under way in Africa. That community is structured around three pillars: modernizing the state, improving public services, and strengthening cooperation between governments, development institutions and private-sector players.
From fellows to alumni: a long-term initiative
Made up of 36 fellows drawn from a range of administrations and institutions and representing 24 countries across the continent, LEAD’s first cohort demonstrated the quality and the potential of this community from its very first year. In less than twelve months, six of its members have taken a significant step forward: two have been appointed ministers, two have moved into strategic positions at the highest level of the state and two have been promoted to chief executive roles. These moves, which account for 16.7% of the first class, show the role LEAD plays as an accelerator of impact within African administrations.
By bringing together a new cohort of fellows every year, each of them joining the LEAD alumni community, the initiative follows a long-term trajectory: in time, to unite several hundred African public decision-makers around a shared culture of transparency, performance and regional cooperation.
A first year devoted to public service and digital public infrastructure
Throughout the year, the fellows devoted their work to strengthening African public action, to make excellence in public governance a central lever of transformation. An awareness campaign, run as part of Africa Public Service Day, brought to light those who, within the continent’s administrations and institutions, are concretely transforming public policy and improving the services offered to citizens.
Members of the cohort also took part in a special round table held in Kigali during the ACF 2026, in order to carry their thinking to a wider community of public and private leaders. That forum reinforced LEAD’s role as a platform for dialogue between the administrative elite and the continent’s economic players. Digital public infrastructure (DPI) formed the main thread of this first year of work.
Discussions covered issues at the heart of the digital sovereignty of African states: digital identity, payments, secure data exchange, interoperability, governance and the protection of citizens. This work examined the conditions under which African states are developing, in some cases, and can develop, in others, shared, open infrastructure robust enough to improve the quality of public services while supporting local innovation and preserving the capacity of public authorities to set the rules of the game.
A white paper to move from consuming technology to creating value
This year of work concludes with the publication, in collaboration with BCG, LEAD’s Knowledge Partner, of a white paper on Africa’s place in the digital economy and in artificial intelligence. With the digital economy still accounting for around 5% of African GDP, against close to 15% worldwide, the paper calls on the continent to shift from a logic of technology consumption to one of value creation.
The white paper identifies three structuring priorities for African public actors:
- Building shared digital infrastructure that serves as the backbone of public services and private innovation.
- Pooling investment in order to reach critical mass and avoid the fragmentation of efforts across the continent.
- Favouring open and interoperable architectures, with trust and governance built in by design, so as to protect citizens while stimulating the entrepreneurial ecosystem.
The white paper is available here to all public decision-makers, technical partners and institutions concerned.
“LEAD’s first cohort confirms a simple conviction: Africa already has the women and men capable of profoundly transforming public action. Our responsibility, either with our partners, is to give them, at pan-African level, a space in which to compare experience, build common solutions and bring forward a new generation of public policy. With this second cohort, we want to accelerate the move from ambition to execution, in particular on digital public infrastructure and artificial intelligence, two decisive issues for sovereignty, for the effectiveness of the state and for value creation across the continent,” says Amir Ben Yahmed, President of the Africa CEO Forum.
By Kestér Kenn Klomegâh
Africa is set to make history as it hosts the World Public Summit for the first time, with Addis Ababa, Ethiopia, welcoming global leaders and changemakers from July 29–30, 2026, for the landmark gathering under the theme “New World: Africa in Shaping a Shared Future.”
The inaugural African edition of the World Public Summit marks a significant milestone in the continent’s growing role in shaping international dialogue on governance, sustainable development, human-centred leadership and global cooperation.
Hosted by the World Peoples Assembly in partnership with African and international organisations, the summit will convene government officials, diplomats, business leaders, academics, journalists, youth representatives, civil society organisations and cultural leaders from across Africa and around the world.
According to Andrey Belyaninov, General Secretary of the World Peoples Assembly, “the Summit is not just a meeting—it is a space for unity. A space where the ‘values that unite us’ come to life: respect for people, openness to the world, responsibility for the future, and a commitment to creation.
“Today, we understand more clearly than ever: the future cannot be built alone. It is born in dialogue, in trust, in the ability to listen to one another and to act together.”
The programme begins on July 29 with a series of high-level roundtables and expert discussions covering Pan-African economic integration, civil society, education, scientific cooperation, cultural diplomacy and humanitarian partnerships.
The opening plenary, “Values, Development and Partnership as the Basis of a Sustainable and Just World,” will explore how African values—including Ubuntu—can help shape a more inclusive and sustainable global future. Discussions will also focus on youth leadership, innovation, civil society, ethical AI, public initiatives and international partnerships.
The summit will also showcase Africa’s creativity and innovation through the “Innovations for the Future” exhibition, the contemporary African art exhibition “Unity,” and the international exhibition “The World Paints Happiness.”
Another featured initiative is “The Zambezi River: Economy, Society, Soul,” an international interdisciplinary project exploring the river’s socioeconomic importance across Angola, Botswana, Mozambique, Namibia, Zambia and Zimbabwe, highlighting the shared heritage and development potential of one of Africa’s most important waterways.
The event will conclude with the adoption of the African Communiqué, reflecting the summit’s shared vision for stronger international cooperation, sustainable development and people-centred leadership.
Tsegaye Chama, General Secretary of the Global Black Centre, promised that, “The Summit will be delivered with exceptional distinction, reflecting the magnitude and spirit of the World Peoples Assembly. It embodies a unity that is not transactional, but purposeful and conscious, a unity that shapes new contours for a world that works for all peoples of the World.”
As delegates prepare to arrive in Addis Ababa, anticipation continues to build for what promises to be one of Africa’s most significant international gatherings of 2026—one that will place the continent firmly at the centre of global conversations about the future.
By Adedapo Adesanya
Nigeria regained its position as Africa’s leading destination for equity startup investment in the first half of 2026, raising $214 million in equity financing and a total of $254 million across equity and debt, according to the latest Africa: The Big Deal report.
The report, titled H1 2026: Mapping the Money, showed that Nigeria ranked second on the continent in total funding, behind Egypt, which attracted $327 million, while Kenya and South Africa followed with $126 million and $83 million, respectively.
However, the report noted that Egypt’s top position was largely driven by a single fundraising by electric mobility company Spiro, which secured $327 million, including $270 million in equity and $57 million in debt. Excluding debt financing, Nigeria emerged as Africa’s largest equity funding market in the first six months of the year.
According to the breakdown by Africa: The Big Deal, Nigeria’s equity funding of $214 million was higher than Egypt’s $183 million, while South Africa and Kenya attracted $66 million and $46 million, respectively.
Beyond funding value, Nigeria also led the continent in the number of startups that raised at least $100,000 during the review period, reclaiming the top spot after what the report described as an “underwhelming” second half of 2025.
The publication observed that Nigeria’s fundraising performance has remained relatively stable over the past few years and exceeded the $250 million mark for the first time since 2022, pointing to renewed investor confidence in the country’s startup ecosystem.
It also found that while the Big Four startup markets—Nigeria, Egypt, Kenya and South Africa—continued to dominate Africa’s investment landscape, their combined share of total funding stood at 58 per cent in the first half of 2026.
“Zooming back on the Big Four (110 out of 190 $100k+ deals, i.e. 58%), Nigeria is head and shoulders above its peers, with Egypt and Kenya almost tying, and South Africa in fourth position again,” the report noted.
The report highlighted contrasting performances among the continent’s largest startup ecosystems. While Nigeria and Egypt maintained strong funding momentum, Kenya recorded its weakest funding performance since early 2021 after a strong second half of 2025, and South Africa failed to attract $100 million in funding during the period despite leading the continent a year earlier.
Africa: The Big Deal also noted a broader shift in investor behaviour, with funding increasingly concentrated in larger transactions while early-stage investments continued to decline. According to the publication, the drop in smaller funding rounds reflects growing concerns about limited capital available for early-stage startups across Africa.
