General
Report Shows Shifting Patterns in Infrastructure Funding in Africa
A report by Baker McKenzie tagged New Dynamics: Shifting Patterns in Africa’s Infrastructure Funding has shown the state of the African infrastructure market and how the major global players’ approach to infrastructure lending on the continent is changing.
The study, which analysed new data from IJ Global, indicated that there has been a decline in the value of infrastructure lending in the region, which is known for its resilience and it is expected that as economies recover, new types of financing will be unlocked.
The data
The report’s data shows that multilateral and bilateral lending into Africa has declined – with investment levels falling successively in 2019 and 2020 compared to peak levels seen after the financial crisis.
In 2019, bilateral and multilateral lending into Africa amounted to USD 55 billion, which drops to $31 billion in 2020. Over the last six years, the decline is significant – deal values dropped from $100 billion in 2014 to $31 billion in 2020.
This slowdown in infrastructure investment was attributable to a number of factors, including the pandemic. The economic contraction has affected Nigeria and South Africa, meaning that the region’s largest economies have not been feeding in growth as in previous years.
However, market fundamentals signal a region with underlying resilience and, as the global economy recovers, finance will be unlocked. There are already positive indicators of forthcoming investment.
Commodity prices are rising and landmark deals are returning. For example, mining multinational Sibanye-Stillwater recently committed ZAR 6.3 billion to South African infrastructure projects.
The data also shows that deal tenor is contracting – from a high of 17 years in 2019 to 13 years in 2020. However, the long-term nature of infrastructure projects means that international partners have made lasting commitments to the region, which are unlikely to be abandoned despite immediate pressure on national finances.
China
Surprisingly, given the pandemic, the data shows that lending by Chinese banks into energy and infrastructure projects in Sub-Saharan Africa saw a small uplift in 2020, although deal values are well below their 2017 peak. In 2017, Chinese banks lent $11 billion to African infrastructure projects, which decreased to $4.5 billion in 2018, $2.8 billion in 2019 and $3.3 billion in 2020.
Simon Leung, Partner, Baker McKenzie Hong Kong, explains, “There has been a slowdown in the number of infrastructure deals from China. In the short-term, we expect to see more targeted lending – fewer projects of a higher quality using sophisticated structures – and new finance options, such as factoring, used to deploy Chinese capital into the region.”
International players
It is also clear that other international players have the region in their sights, with key political changes in the United States (US) and United Kingdom (UK) likely to see capital flow into Africa.
Michael Foundethakis, Partner and Global Head of Projects and Trade & Export Finance, Baker McKenzie Paris, notes, “The US hasn’t kept pace with Chinese lending into Africa. The recent change in administration is likely to renew focus on impact-building and financing strategic long-term projects in the region, but bankability and risk-sharing remain a priority for US lenders.”
Lodewyk Meyer, Partner, Baker McKenzie Johannesburg, notes further that, “The infrastructure funding gap is so large and of such strategic importance, it remains necessary to encourage international investment to fill it.
“African DFIs are very good at collaborating and I am encouraged by the actions of the new US administration, UK government and New Development Bank, in particular in their willingness to work with regional institutions in this regard.
“The UK is making a strong play for influence, investment and trade with Africa post-Brexit. Further to key summits held in 2020 and 2021, there are signs that finance will be redirected into Africa.”
Commercial banks
The report points to infrastructure gaps in energy provision, internet access and transportation that have resulted in an urgent imperative to identify and enable new sources of finance outside traditional lenders and international partners. Further to the expected return of multilateral and bilateral lending, there is room for evolution to bridge the funding-opportunity gap.
The report shows, however, that this vacuum is unlikely to be filled by commercial banks, noting that in 2020, just 84 projects were supported by commercial bank finance and their involvement in Development Finance Institution (DFI) and Export Credit Agency (ECA) deals continues on a downward trend.
Luka Lightfoot, Partner, Baker McKenzie London, explains, “Banks are likely to be focusing on managing liquidity, with lenders deploying capital selectively.”
DFIs and new financing solutions
Instead, local and regional banks, specialist infrastructure funds and private equity and debt are stepping in to collaborate with DFIs and access returns. This outlines the deepening DFI involvement in the infrastructure ecosystem at large, with DFIs increasingly anchoring the infrastructure ecosystem in Africa – serving a critical function for project finance as investment facilitator and a check on capital.
This is because they can shoulder the political risk and access government protections in a way that others can’t, enter markets others can’t and are uniquely capable of facilitating long-term lending.
The report explains how the amount of capital needed to fill the infrastructure gap is significant and DFIs can’t bridge it alone. Private equity, debt finance and specialist infrastructure funds are primed to enter the market, and multi-finance and blended solutions are expected to grow in popularity as a way to de-risk deals and support a broader ecosystem of lenders.
Lightfoot comments, “We expect to see an increase in non-bank activity in Africa in future as a result of new credit mitigation products come to market. We have seen an increase in appetite from established market participants, such as development banks, to create products that are not tied to existing arrangements that may have limited the type of finance available.”
A new era
Lamyaa Gadelhak, Partner and Co-head of Banking, Finance and Projects at Helmy, Hamza & Partners, Baker McKenzie Cairo, adds, “The pandemic represents the end of an era and the start of a new one. There will be a re-prioritization of funds and strategy through this lens. I expect to see more investments in the healthcare industry and connected infrastructure, as well as water-related projects, to be a top priority. We should also consider the impact of other factors aside from the pandemic.
“For instance, the African Continental Free Trade Agreement and what it needs to translate into increased cross-regional trends. I would expect the development of transportation and logistics infrastructure-focused projects to enable the acceleration of on-ground execution of intra-African trade.”
Emeka Chinwuba, Partner, Baker McKenzie New York, and Banking, Finance & Major Projects Group member, concludes, “Last year was a relatively difficult year across jurisdictions and for investors – with considerable uncertainty and change in the ways in which we do business.
“Shutdowns had a depressant effect on the infrastructure market, as deals in the pipeline were delayed and projects halted as a result of COVID-19. Full vaccination in Africa is still quite a long way off comparatively, so we can’t expect a full and fast return to normal activity. But we’ve reached the bottom, and the only way is up.”
By Adedapo Adesanya
The Nigeria Customs Service (NCS), in partnership with the Presidential Enabling Business Environment Council (PEBEC), has launched a strategic reform agenda aimed at enhancing port efficiency and strengthening Nigeria’s trade competitiveness.
The initiative was unveiled on Tuesday, April 7, 2026, at the opening of a three-day operational workshop in Apapa, Lagos, themed Customs Leadership in Port Efficiency, Inspection Reform and Clearance Timeline.
Speaking at the event, the Comptroller-General of Customs, Mr Adewale Adeniyi, outlined a five-pillar strategy designed to transform port operations. The framework focuses on joint inspections, risk-based cargo clearance, optimisation of scanning infrastructure, enforcement of service timelines, and improved inter-agency collaboration.
Mr Adeniyi emphasised that the Service is shifting from policy formulation to effective implementation, stressing the need for consistent execution of established best practices.
He noted that the “workshop was aimed at bridging the gap between knowledge and action within the system.”
He further highlighted the transition to intelligence-led cargo processing, stating that ongoing investments in digital platforms and scanning systems must result in faster, more transparent clearance procedures for traders.
To ensure accountability, the Customs boss disclosed that the workshop would produce a reform execution matrix subject to close monitoring, adding that he would personally track progress reports.
He also urged officers to uphold professionalism, integrity, and commitment in the discharge of their duties.
In her remarks, the Director-General of PEBEC, Mrs Zahrah Mustapha-Audu, underscored the importance of adopting risk-based, data-driven inspection systems.
According to her, efficient and transparent border processes are essential to reducing the cost of doing business and improving Nigeria’s global trade standing.
Also speaking, the Deputy Comptroller-General in charge of Tariff and Trade, Mrs Caroline Niagwan, said the evolving mandate of the Service places it at the heart of trade facilitation and economic growth, adding that efficiency must be reflected across all commands.
As part of the engagement, the Customs and PEBEC delegation visited the National Single Window facility, where they held discussions with the Chairman of the Nigeria Revenue Service, Mr Zacch Adedeji, and other stakeholders to review progress and address operational challenges.
By Adedapo Adesanya
Madica, a structured investment programme for pre-seed African startups, has announced new investments totalling $600,000 in three tech-enabled startups, including Nigerian data startup, Biovana.
According to the initiative, these investments further reinforce Madica’s commitment to supporting founders and startups often excluded from traditional venture funding. The other startups include Tanzania’s Kilimo Fresh and Kenya’s Hakimu.
Each company has secured up to $200,000 in funding and will take part in Madica’s 18-month programme. This includes a tailored curriculum, hands-on mentorship, executive coaching, and two fully funded immersion trips to key technology ecosystems, both locally and internationally. The startups will also gain access to Madica’s global investor network, helping position them for growth and long-term success.
Madica’s programme seeks to counter the concentration of Africa’s tech funding in a few markets, verticals, and well-networked entrepreneurs and instead drive more equitable growth across the continent. This is done by backing a mix of underrepresented founders, startups from underserved regions, and innovators in overlooked sectors.
Launched in 2022, Madica is a sector-agnostic investment program designed to address structural gaps in Africa’s startup ecosystem. The program tackles key challenges startups face, such as limited access to capital, a scarcity of investors, and insufficient mentorship. It also provides the structured support necessary for startups to resolve critical issues and foster innovation, entrepreneurship, and wealth creation across the continent.
Kilimo Fresh (Tanzania), co-founded by Ms Baraka Chijenga and Mr Justice Mangu, connects smallholder farmers in Tanzania to reliable urban markets by aggregating, processing, and distributing fresh produce through a technology-enabled supply chain, aiming to reduce food waste.
Hakimu (Kenya), Hakimu, co-founded by Ms Rawan Dareer, Mr Ahmed Ahmed and Mr Ahmed Elbashir, is building a pan-African legal infrastructure leveraging the power of AI.
Biovana (Nigeria), co-founded by two female founders, Ms Estelle Dogbo and Dr Jumi Popoola, is a data harmonisation and certification platform focused on unlocking African health datasets for global pharmaceutical, AI, and clinical research applications.
Commenting on the new portfolio companies, Mr Emmanuel Adegboye, Head of Madica, said, “Each new investment brings us closer to the portfolio we set out to build, one that reflects the full breadth and diversity of African entrepreneurship. These three startups join a growing community of founders we’re backing with the resources, relationships, and runway they need to succeed at this early stage. The opportunity across the continent is enormous, and we’re committed to being a crucial and consistent partner in realising it.”
“Joining the Madica portfolio is a significant moment for Hakimu. We’re revolutionising access to justice across Africa, and having a partner that understands the specific challenges and opportunities of scaling in Africa makes a real difference,” said Ms Dareer, co-founder and CEO of Hakimu. “We’re grateful for the trust, looking forward to the hands-on support, and clear-eyed about the work ahead.”
By Adedapo Adesanya
President Bola Tinubu is expected to be among the leading public figures attending the next edition of the Africa CEO Forum, which will take place on May 14-15, 2026, in Kigali, Rwanda
A strong Nigerian private-sector delegation will also take part, including Mr Aliko Dangote, Mr Wale Tinubu, Mr Ofovwe Aig-Imoukhuede, Mrs Adesuwa Ladoja, Mrs Rachel More-Oshodi, Mrs Zouera Youssoufou, Mr Karim Noujaim, Mr Dany Abboud, Mr Ayo Otuyalo and Mr Chukwuerika Achum. Nigeria’s Coordinating Minister of Health and Social Welfare, Professor Muhammad Ali Pate, will also be present.
According to a statement on Tuesday, the 2026 edition will convene in Kigali to address a defining question for Africa’s future: how to achieve the scale necessary to compete, integrate and thrive in a fragmenting world.
It comes as global power dynamics continue to evolve, while the ability of Africa to rely on competitive, agile and internationally integrated corporate champions has become a defining corporate imperative. In this shifting global landscape, one lesson is clear: scale is no longer optional. It is the first line of defence.
Organised by Jeune Afrique Media Group and co-hosted by the International Finance Corporation (IFC), the Africa CEO Forum 2026 will convene Africa’s leading public and private decision-makers around a clear conviction: scale can only be achieved through shared African ownership.
The Forum will explore three strategic levers to build continental scale. First is shared equity, which will look to unlock cross-border equity investment to create multinational African champions. Mobilise African institutional capital across markets to strengthen resilience and enhance long-term returns.
Also, is shared infrastructure, which will take on designing complementary infrastructure to integrate African value chains. Champion transformative projects that serve regional, not merely national, needs and create truly connected markets.
Thirdly is shared frameworks, which is set to harmonise standards, rules and regulations to boost investor confidence and enable the free flow of capital, goods and services. Build future-proof digital rails for health, education, agriculture and cross-border payments.
Speaking on this, Mr Amir Ben Yahmed, President of the Africa CEO Forum, stated: “If Africa wants to compete in a world defined by scale, it must move beyond economic patriotism and embrace a new model: African capital investing together. Shared ownership, cross-border partnerships and continental ambition will define the economic future of Africa and the next generation of African champions.”
On his part, Mr Makhtar Diop, Managing Director at IFC, stated: “Africa has the capital and the opportunity to grow and create quality jobs. What matters now is putting that capital to work at scale. That means building trust, sharing risk, and investing across borders. The Africa CEO Forum brings leaders together to connect policy and private investment, and to help shape Africa’s next phase of growth.”
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