Back to the complete issue
Wednesday, 4 July 2018

Egypt among 10 countries facing a collective USD 1 tn funding gap for infrastructure

Egypt among 10 countries facing a collective USD 1 tn funding gap for infrastructure: Egypt was among 10 African countries facing a collective USD 1 tn shortfall of infrastructure financing required to meet their 2040 development goals, according to a study by the Global Infrastructure Hub (GIH) on the G20 wealthy and developing nations. The 10 countries, which also include Morocco, Ethiopia, Senegal, Tunisia, and Rwanda, will need a total of USD 2.4 tn in investments in water, electricity, roads, railways, airports, seaports, and telecoms to meet the UN’s development goals, the study showed. At their current average investment level of 4.9% of GDP, the countries will have a 42% funding gap of around USD 1 tn to fill.

With great funding gaps come great opportunities: The report sees this shortfall as a major opportunity that only the private sector can tackle. “African nations do not have the resources to ramp up infrastructure spending on their own, even with backing from aid agencies and multilateral donor institutions, and so attracting private sector investment is essential,” GIH Chief Executive Chris Heathcote told Reuters. “There is a wall of money being held by the pension funds. They are looking more and more at emerging market infrastructure,” he said. He noted that a number of international infrastructure development powerhouses, including Bouygues , Bollore, China Railway Construction Corp and General Electric are already active in Africa.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.