A new report by the FII Institute, developed in collaboration with the Digital Cooperation Organization, Kearney, and Voluntary Carbon Market Company, estimates that the world faces a $15 trillion infrastructure financing shortfall by 2040. The gap includes $3.7 trillion in the United States and an annual deficit of $130 billion to $170 billion across Africa, underscoring mounting pressure on public finances and development budgets.
The report highlights the growing role of public private partnerships as a primary delivery and financing model, particularly in emerging markets, which account for 61 percent of global PPP activity by GDP share. In 2024, PPP investment in low- and middle-income countries rose 16 percent year on year to $100.7 billion. Countries with the strongest project pipelines include the Philippines, Saudi Arabia, Kyrgyzstan, Bangladesh, and Peru, reflecting sustained interest in structured private sector participation.
While well designed PPPs show higher user satisfaction rates than traditional procurement models, public trust remains limited. The report calls for clearer risk allocation, transparent contracting, outcome-based performance metrics, and blended finance mechanisms to strengthen project bankability and ensure inclusive, resilient growth.
