The World Bank notes that Sub-Saharan Africa must invest approximately 7.1% of its GDP annually to achieve sustainable development goals, while current investments hover around just 3.5% of GDP.
- Business Insider Africa presents the top 10 African countries leading in private sector investments.
- The list is courtesy of World Bank.
- In FY24, the IFC mobilized $22.5 billion in funding, a 50% increase compared to FY23.
Africa’s infrastructure challenges have long been a major barrier to its economic growth and development. The African Development Bank (AfDB) estimates that the continent requires between $130 and $170 billion annually to meet its infrastructure needs. Yet, the financing gap remains vast, with an annual shortfall of up to $100 billion.
Similarly, the World Bank notes that Sub-Saharan Africa must invest approximately 7.1% of its GDP annually to achieve sustainable development goals, while current investments hover around just 3.5% of GDP.
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Governments alone cannot shoulder this burden, making private capital a vital piece of the solution.
The International Finance Corporation (IFC), a member of the World Bank Group, is a key player in driving private sector investments across Africa.
By financing infrastructure projects and advising governments on structuring PPPs, the IFC creates an enabling environment for private capital to thrive.
In FY24, the IFC mobilized $22.5 billion in funding, a 50% increase compared to FY23. This was achieved using over 30 different tools to attract and manage investments.
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A significant portion of these funds was directed toward Africa, supporting projects in renewable energy, healthcare, agriculture, and digital infrastructure.
For example, the IFC has backed renewable energy initiatives that expand electricity access to millions of households. It has also invested in agribusiness projects that empower smallholder farmers with better market access and financial tools.
Below are the top 10 African countries leading in private sector investments:
| Rank | Country | Investment |
|---|---|---|
| 1 | South Africa | $5.07 billion |
| 2 | Nigeria | $3.96 billion |
| 3 | Egypt | $3.37 billion |
| 4 | Ethiopia | $2.29 billion |
| 5 | Cote D’Ivoire | $2.18 billion |
| 6 | Kenya | $1.7 billion |
| 7 | Guinea | $1.5 billion |
| 8 | Mozambique | $1.32 billion |
| 9 | Morocco | $0.87 billion |
| 10 | Cameroon | $0.8 billion |
