Despite obstacles, African infrastructure investment is rebounding.

Despite obstacles, African infrastructure investment is rebounding.
Despite obstacles, African infrastructure investment is rebounding.

 

The distribution of investments is still uneven, with PPI investments in Sub-Saharan Africa declining by 15% from pre-pandemic levels.
With transportation accounting for about 68% of PPI spending in 2022 and renewable energy projects on the rise, the transportation and energy sectors are leading the rebound.

According to the World Bank’s most recent data prediction on investments, which was just published, infrastructure investments in low- and middle-income countries will restart in the year ending in December 2022.

A 23% increase from 2021, the report found that commitments for Private Participation in Infrastructure (PPI) across 263 projects totaled $91.7 billion (Sh12.4 trillion). The World Bank notes that “the total number of projects, however, is still below pre-pandemic levels.”

The lender contends that investments were unfairly allocated and concentrated in specific areas, despite the fact that trends indicate a widespread recovery. For instance, compared to the average for the previous five years, investments in Sub-Saharan Africa decreased by 15%.

 

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