African countries have been urged to attract long term foreign capital to address the continent’s widening infrastructure financing gap, estimated at up to $170 billion annually. African Union Development Agency estimates that Africa requires between $130 billion and $170 billion each year for infrastructure development, yet current investment levels remain far below this target.
Ifeanyi Ajuluchukwu, former banker and CEO of Montserrado, noted that Africa must broaden its sources of international capital, including investors from emerging economies. He highlighted growing investor interest in Nigeria, citing global financial institutions such as JPMorgan Chase and Standard Bank, as well as partnerships involving Industrial and Commercial Bank of China. He added that recent reforms aimed at stabilising the naira are gradually improving investor confidence in Nigeria’s financial markets.
He also pointed to structural challenges in Nigeria’s financial system, where most available funds are short term while infrastructure requires long term financing of up to 15 years. Institutions such as the Central Bank of Nigeria and Bank of Industry have provided some support, but experts say deeper capital markets and stronger foreign investment flows will be critical to closing Africa’s infrastructure funding gap.
