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Funding Africa’s Infrastructure Gap

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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.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via [email protected]

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Essent Slashes Contact Centre Technology Costs by 50%

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Essent Energy provider

By Modupe Gbadeyanka

The Netherlands’ largest energy provider, Essent, has cut the technology costs of its contact centre infrastructure by half.

The organisation, which serves 2.5 million customers, recorded zero critical incidents post-migration and improved agent workplace satisfaction by 36 per cent.

The migration was delivered in partnership with AI-first customer experience transformation specialists, Sabio Group, and was completed in under 12 weeks for an operation spanning over 1,000 agents across two locations.

Agents were forced to juggle multiple disconnected screens simultaneously — a workflow that was as inefficient as it was stressful.

“Our agents were constantly working with different screens — multiple chat instances open at once, multiple agent desktop instances. It was messy, and in some cases, quite stressful,” SAFe Product Manager for Customer Interaction, Omnichannel and Digital Transformation at Essent, Michiel Kouijzer, stated.

“A lot of colleagues were saying I was mad for even suggesting this approach. It kind of feels like a victory on a personal level that it did work out. You just have to be a little ambitious — and have the right expert partner who can make it work,” Kouijzer added.

With stable cloud infrastructure now firmly in place, Essent is turning its attention to the capabilities that were impossible in its legacy environment: AI-powered call summarisation, agentic customer self-service, and next-generation workforce optimisation.

Rather than a reckless ‘big bang’ cutover that could have affected service to millions of households, Sabio engineered a phased migration strategy — beginning with Essent’s SME segment to validate technical readiness before scaling to the full enterprise operation.

“This project showcases Sabio’s unique position in the contact centre technology landscape. We’re not just moving Essent to the cloud — we’re establishing a foundation for continuous improvement in their customer experience delivery,” the Country Manager for Sabio Group Benelux, Wouter Bakker, commented.

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Africa: A New Market for Russian Business

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New Market for Russian Business

By Kestér Kenn Klomegâh

On April 11, the presentation of the book “Africa: a new market for Russian business” took place, which aroused lively diverse interests among business representatives, entrepreneurs and employees of federal structures of Russia. The event was dedicated to discussing the prospects of Russian companies entering the African market and became a platform for the exchange of views and experiences.

Participating guests, packed in the small hall, included:

– representatives of business circles,

– entrepreneurs interested in new directions of development,

– employees of federal agencies curating foreign economic activity.

The presentation was held in a constructive and friendly atmosphere. The author of the book, Serge Fokas Odunlami, detailed the key ideas and conclusions presented in the publication. Particular attention was paid to the practical aspects of operating in the African market, as well as the analysis of opportunities and risks for Russian companies.

During the lively discussion, participants asked questions, shared their experiences and made suggestions for developing cooperation with African countries. This format allowed not only to get acquainted with the content of the book, but also to discuss topical issues of expanding business relations.

Meaning of the book: The publication, “Africa: a new market for Russian business” offers readers not only analytical, but also practical recommendations on investment and market trends, and how to enter the African market. The book will be a useful tool for those considering Africa as a promising destination for investment and business development.

The presentation of the book became a significant event for the Russian business community interested in expanding cooperation with Africa. Serge Fokas Odunlami introduced the participants to the new edition, which is a comprehensive business guide that gives an impetus for dialogue and implementation of joint entrepreneurial projects and corporate initiatives across Africa.

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Ryan Collyer Reveals Reasons Behind Africa’s Significant Energy Deficit

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Ryan Collyer Rosatom CEO

By Kestér Kenn Klomegâh

Perhaps Russia’s state nuclear corporation, Rosatom, is at the frontline, shaping Africa’s energy security. And African countries are also accelerating coordinated efforts to build nuclear power plants primarily to supply their energy, which will drive industrialisation and boost power capacity for domestic utilisation.

Energy experts say adopting nuclear can further support a diverse energy mix, reduce reliance on fossil fuels, and help across the continent. Over the past two decades, Russia has been collaborating with African countries, adopting energy initiatives to provide power to approximately half the continent’s population, and making it an important component of Africa’s future energy strategy and solutions. At this point, however, it is necessary to underline the irreversible fact that Russia’s ultimate goal is to ensure long-term African energy security.

In this interview, Rosatom’s Chief Executive Director for Central and Southern Africa, Ryan Collyer, reiterates the strategic importance of Russia-Africa’s energy cooperation through strengthening bilateral agreements on collaboration on the peaceful use of nuclear energy. Collyer explains that the Russian approach is its ability to offer an integrated solution, from technology and financing to training and localisation. According to him, partnerships must be built on mutual benefit and on the principle of transparency. Here follows the interview excerpts:

What are the expectations, specifically in the nuclear energy sphere, for Africa during the forthcoming Russia–Africa Summit scheduled for 2026?

The expectation is a clear shift from dialogue to delivery. Over the past few years, we have built a strong foundation through agreements, feasibility discussions and partnerships. The 2026 Russia–Africa Summit is an opportunity to demonstrate tangible progress.

In practical terms, I would expect greater focus on implementation readiness. That includes regulatory development, human capital, financing models and localisation strategies. We also expect to see more structured cooperation in areas like small modular reactors, which are particularly relevant for many African grids, as well as stronger emphasis on education and training partnerships. Ultimately, the success of the Summit will be measured by how many initiatives move from concept to execution.

Why, despite many bilateral agreements, is Africa still experiencing a significant energy deficit?

Africa’s energy deficit is not a result of a lack of ambition or agreements. It is primarily a question of scale, financing and infrastructure readiness. Energy projects, especially large-scale ones, require long-term investment, stable policy frameworks and strong institutional capacity. Many countries are working under fiscal constraints, and at the same time, demand is growing rapidly due to population growth and urbanisation. So, even when progress is made, it can be outpaced by rising demand.

It is also important to understand that many agreements are not meant to deliver immediate infrastructure. They are part of a longer preparation cycle, including feasibility studies, regulatory development and workforce training. Nuclear projects in particular are long-term by nature, and while this can be perceived as slow progress, it is actually a reflection of the level of diligence required.

How do you assess the contribution of nuclear energy to climate change mitigation and technological development in Africa?

Nuclear energy plays a dual role in Africa’s development, both as a clean energy source and as a driver of technological advancement. From a climate perspective, nuclear provides reliable, low-carbon electricity at scale. Africa needs a significant expansion of its energy capacity to support economic growth, and this growth must be both stable and sustainable.

Nuclear allows countries to increase power generation without increasing emissions, while ensuring a consistent baseload supply. At the same time, its impact goes beyond electricity. Nuclear technologies support medicine, agriculture, water management and industrial processes. Across Africa, they are already used in areas such as cancer treatment, food preservation and environmental monitoring, making nuclear a broader platform for sustainable development.

In this context, Rosatom offers integrated solutions across the full nuclear value chain. This includes large-scale and small modular reactors, as well as advanced non-power applications such as nuclear medicine and irradiation technologies. Our focus is on delivering practical, tailored solutions that support long-term development and local capacity building.

Is Africa unprepared to deal with nuclear waste, as some critics suggest?

I would say that preparedness varies across countries, but it would be inaccurate to suggest that the issue is being ignored. Responsible nuclear programmes require a comprehensive approach to waste management from the very beginning. This includes legal frameworks, regulatory oversight, storage solutions and long-term planning. These elements are part of international best practice and are supported by organisations such as the IAEA. What is true is that this topic is often undercommunicated in the public space. It should be discussed more openly, because transparency builds trust.

Countries that are serious about nuclear energy understand that waste management is not optional. It is a core component of the programme, and it is addressed in parallel with all other aspects of development. Rosatom offers comprehensive solutions for spent fuel and radioactive waste management. These include technologies for safe storage, transportation, reprocessing and recycling of nuclear materials. In fact, advanced reprocessing solutions allow for the reuse of valuable components of spent fuel, significantly reducing the volume of waste and improving the overall sustainability of the nuclear cycle.

Nuclear power remains controversial. Why do you believe it is important for Africa, and what role does it play in the energy mix?

Africa needs a balanced and pragmatic energy strategy. The conversation should not be about choosing one technology over another, but about building an energy mix that is reliable, affordable and sustainable. Renewables will play a critical role and are already expanding rapidly. However, they are variable by nature. For industrialisation, countries also need stable, continuous power that is baseload. This is where nuclear can make a meaningful contribution. A diversified energy mix that includes renewables, nuclear, hydropower and other sources allows countries to reduce risk, improve energy security and support long-term economic growth.

Nuclear is not the only solution, but it is an important part of a resilient system, especially for countries with growing industrial ambitions. In this context, Rosatom is able to support countries with integrated energy solutions that combine reliability, sustainability and long-term partnership models, tailored to national development priorities.

How can we shift public perception, given the legacy of Chornobyl and Fukushima?

We cannot rewrite history, and we should not try to. Events like Chornobyl and Fukushima shaped public perception for a reason. The starting point is respect for those concerns, not dismissal. At the same time, what is often missing in the conversation is what happened after those events. Chornobyl, in particular, fundamentally reshaped the entire philosophy of nuclear safety. It led to a complete rethinking of reactor design, emergency response, and regulatory oversight. Independent regulators were strengthened, safety responsibilities were clearly separated from operators, and safety culture became not just a principle but a legal requirement supported by continuous drills and probabilistic risk assessments.

Technologically, the industry also changed dramatically. Modern reactors are designed to withstand even worst-case scenarios, with multi-layered “defence-in-depth” systems, core melt traps, and passive safety mechanisms that rely on natural physical processes rather than human intervention. These are not incremental improvements. They are the direct result of lessons learned at a very high cost. But facts alone do not change perception. People do not build trust through reports. They build it through experience and transparency. That is why our approach in Africa is deliberately open.

We create opportunities for students, young professionals and journalists to visit nuclear facilities, research centres and training programmes. When people can see how systems operate, how safety is managed, and how seriously it is taken, the conversation becomes more grounded and less abstract. There is also an important human dimension that is often overlooked.

The history of Chornobyl is not only a story of tragedy. It is also a story of professionalism, responsibility and the people who managed the crisis and generated the knowledge that made today’s safety standards possible. Acknowledging that the full picture helps move the discussion away from fear alone toward understanding. At the same time, we need to broaden the narrative. Nuclear is not only about power generation. It is about cancer treatment, food security, water management and high-skilled employment. When communities begin to connect nuclear technology with real benefits in their own lives, it stops being an abstract risk and starts becoming a practical solution. Ultimately, perception does not change through persuasion. It changes through consistency. Through transparency, long-term engagement, and real-world impact.

What are your final thoughts on Russia’s preparedness to support Africa’s nuclear ambitions?

Russia has demonstrated that it is committed to long-term partnerships in Africa, particularly in the nuclear sector. We are already seeing concrete examples of cooperation in areas such as project development, education and skills transfer. The key strength of the Russian approach is its ability to offer an integrated solution, from technology and financing to training and localisation. Partnerships must be built on mutual benefit and transparency. Africa’s priorities are clear: energy security, economic development and local capacity building. Any partner that is ready to contribute to these goals consistently and practically will have a meaningful role to play. If we look country by country, the picture becomes even more interesting.

Take Ethiopia. This is a country thinking long-term about energy security and industrialisation. It has strong hydropower, but also understands the need to diversify. Ethiopia is prepared to take a big step towards nuclear energy. In Rwanda, the approach is different. It is focused on innovation and speed. There is a strong interest in small and flexible nuclear technologies, alongside active use of nuclear science in healthcare and agriculture. What stands out is the clarity of vision and pace of implementation.

Then, there is Namibia. As a major uranium producer, the question is how to move up the value chain. Partnerships can help connect resources to technology, skills and future energy applications. So, Russia’s role is not one-size-fits-all.

The real strength lies in adapting to each country’s strategy. If that continues, nuclear cooperation becomes not just about energy, but about shaping long-term technological development. Rosatom is one of the few global players capable of delivering the entire nuclear value chain. This includes reactor technologies, fuel supply, waste management solutions, including reprocessing, as well as long-term operational support and human capital development. This comprehensive capability is what allows us to move projects from concept to reality in a structured and sustainable way.

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