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 Ministry of Finance Incorporated (MOFI) and the Niger State Government have signed a landmark Memorandum of Understanding (MoU) to pilot the Sustainable Integrated Productive Communities (SIPC) programme and enterprise development into a single, scalable framework for inclusive growth.
The MoU was signed at the Federal Ministry of Finance, Abuja.
Speaking at the ceremony, the Minister of State for Finance, Mrs Doris Uzoka-Anite, described the agreement as a moment of delivery rather than a ceremonial exercise, noting that the SIPC Programme demonstrates how national priorities can be translated into tangible outcomes through strong federal-state collaboration.
“This partnership reflects our belief that development works best when housing, agriculture, finance, and governance move together. By anchoring farmers in secure, well-planned communities, we are not just building houses. We are strengthening livelihoods, food security, and long-term prosperity,” she said.
Under the programme, Niger State will host the pilot phase of integrated farming and housing estates designed to provide farmers with secure settlements located close to agricultural production zones, storage, processing facilities, and markets.
The model directly addresses long-standing challenges such as insecure rural settlements, rural-urban migration, post-harvest losses, and limited youth participation in agriculture.
On his part, Mr Mohammed Umaru Bago, Executive Governor of Niger State, reaffirmed the state’s commitment to the initiative, highlighting the availability of extensive arable land, water resources and supporting infrastructure.
He emphasized that the programme would also contribute to improved security, climate resilience, and the orderly development of rural communities while creating viable economic opportunities for farming households.
The SIPC Programme adopts an innovative financing structure that blends public land and assets with private investment, allowing the government to focus on policy, coordination, and oversight while leveraging private-sector efficiency and scale. MOFI’s role is central to this approach, ensuring transparency, sustainability, and shared risk across partners.
Key federal agencies participating in the initiative include Family Homes Funds Limited, the Rural Electrification Agency, and Niger Foods Limited, each contributing sector-specific expertise spanning affordable housing delivery, renewable energy solutions and agricultural value chain development. Renewable energy, particularly solar-powered community infrastructure and mini-grids, will underpin agro-processing, storage, and household energy needs, reducing costs and enhancing productivity.
Beyond agriculture, the programme is expected to stimulate broad-based economic activity through construction, logistics, agro-processing and community services, creating jobs for engineers, artisans, builders and suppliers, while supporting local industries such as cement, steel and transportation.
The settlements are explicitly designed to be affordable and functional, with transparent allocation mechanisms and governance structures to ensure access for farmers and low – to middle-income earners.
The signing of the MoU sends a clear signal to developers, financial institutions, pension funds, agribusiness investors and development partners that Niger State, working in alignment with the Federal Ministry of Finance and MOFI, is open to credible, impact-driven investment. The SIPC framework is intended to serve as a replicable national model for integrated rural and peri-urban development.
The Federal Ministry of Finance also reaffirmed its commitment to ensuring that the agreement moves swiftly from signing to execution, with close coordination among all stakeholders to deliver measurable outcomes on housing, food security, employment and inclusive economic growth.
By Adedapo Adesanya
Nigeria is among 75 countries the US government will suspend the processing of immigrant visas for its citizens.
According to the US State Department, the citizens of the 75 countries are those whose nationals are deemed likely to require public assistance while living in the United States.
The State Department, led by Secretary Marco Rubio, said it had instructed consular officers to halt immigrant visa applications from the countries affected in accordance with a broader order issued in November that tightened rules around potential immigrants who might become “public charges” in the US.
Business Post gathered that alongside Nigeria are Afghanistan, Albania, Algeria, Antigua and Barbuda, Armenia, Azerbaijan, Bahamas, Bangladesh, Barbados, Belarus, Belize, Bhutan, Bosnia, Brazil, Burma, Cambodia, Cameroon, Cape Verde, Colombia, Cote d’Ivoire, Cuba, Democratic Republic of the Congo, and Dominica.
Others include Egypt, Eritrea, Ethiopia, Fiji, Gambia, Georgia, Ghana, Grenada, Guatemala, Guinea, Haiti, Iran, Iraq, Jamaica, Jordan, Kazakhstan, Kosovo, Kuwait, Kyrgyzstan, Laos, Lebanon, Liberia, Libya, Macedonia, Moldova, Mongolia, Montenegro, Morocco, Nepal, Nicaragua, Pakistan, Republic of the Congo, Russia, Rwanda, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Senegal, Sierra Leone, Somalia, South Sudan, Sudan, Syria, Tanzania, Thailand, Togo, Tunisia, Uganda, Uruguay, Uzbekistan, and Yemen.
The suspension, which will begin on January 21, will not apply to applicants seeking non-immigrant visas, or temporary tourist or business visas.
“The Trump administration is bringing an end to the abuse of America’s immigration system by those who would extract wealth from the American people,” the department said in a statement.
“Immigrant visa processing from these 75 countries will be paused while the State Department reassess immigration processing procedures to prevent the entry of foreign nationals who would take welfare and public benefits.”
President Donald Trump’s administration has already severely restricted immigrant and non-immigrant visa processing for citizens of dozens of countries, many of them in Africa.
By Adedapo Adesanya
Nigeria has reportedly engaged the services of a Washington-based lobbying firm, DCI Group, in a $9 million contract aimed at communicating its efforts to protect Christians in Nigeria to the United States government.
According to The Africa Report, the amount appears to be a record for African lobbying in the US capital, citing documents filed with the US Department of Justice by Aster Legal, a Kaduna-based law firm, acting on behalf of National Security Adviser (NSA), Mr Nuhu Ribadu.
The agreement, signed on December 17, 2025, between Mr Oyetunji Olalekan Teslim, Managing Partner of Aster Legal, and Mr Justin Peterson, Managing Member of DCI Group, authorises the US firm to assist the Nigerian government “in communicating its actions to protect Nigerian Christian communities and maintaining US support in countering West African jihadist groups and other destabilizing elements.”
Under the terms of the contract, DCI Group will receive $750,000 monthly, amounting to $9 million over 12 months. The deal runs initially for six months, until June 30, 2026, with an automatic renewal clause for another six-month period.
A clause in the agreement also allowed either party to terminate the deal “for any reason without penalty” by giving 60 days’ advance written notice.
It was reported that on December 12, 2025, Nigeria paid DCI Group 50 per cent or $4.5 million prepayment covering the first six months of the retainership agreement. A second installment is due at the end of the initial contract period.
This comes amid recent threats by US President Donald Trump to invade the country after its redesignation of Nigeria as a “country of particular concern,” citing alleged attacks against Christian communities. However, the Nigerian government has repeatedly denied claims of a Christian genocide, insisting that violence in the country affects all regardless of their affiliations.
Following an engagement late last year, the federal government pledged to “engage with the American government through diplomatic and legal channels” to address the allegations. Since late November, the US has been conducting intelligence-gathering flights over large parts of Nigeria.
On Christmas Day, the US military launched airstrikes against Islamic State (IS) terrorist enclaves in Bauni Forest, Tangaza Local Government Area of Sokoto State, marking a significant escalation in US counterterrorism involvement in Nigeria.
On Tuesday, the US delivered critical military supplies to Nigeria to bolster the country’s operations, the US military’s Africa Command (AFRICOM) said.
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