Private equity investment in African infrastructure fell in 2023

Private equity investment in African infrastructure projects dropped to $1.4 billion in 2024 from $2.3 billion in 2023, a new report found.

The continent faces critical gaps in infrastructure — from power to digital connectivity — with an annual $100 billion financing hole for such projects, according to data from the Global Private Capital Association. But while this shortfall is holding back African businesses and consumers, “these structural shortcomings also create openings for private capital investors” to bypass legacy models and direct their money into more innovative technologies, GPCA said.

Investment in infrastructure has accounted for 42% of private capital deployed in Africa since 2023, with funds going into sectors including renewable energy, telecoms, and transportation.