Follow Us on Google
African governments have been urged to address legal, regulatory, and financing bottlenecks preventing infrastructure projects from attracting private investment, as the continent faces annual funding requirements of up to $221 billion through 2030.
The call comes amid mounting pressure on African economies to bridge critical infrastructure gaps, create jobs and accelerate industrialisation at a time when rising debt burdens are limiting governments’ ability to finance development projects.
Byron Mutali, in an analysis of Africa’s development priorities following the 81st United Nations General Assembly (UNGA), said the continent must move beyond policy commitments to prepare commercially viable projects capable of attracting private and institutional capital.
The African Development Bank (AfDB) estimates that Africa requires between $181 billion and $221 billion annually in infrastructure investment through 2030, highlighting the scale of financing needed to support economic growth.
Mutali noted that nearly 600 million people in sub-Saharan Africa still lack access to electricity, while between 10 million and 12 million young Africans enter the labour force annually, intensifying the need for investments that can support industrial expansion and employment.
However, he argued that the availability of investment capital alone would not close the infrastructure gap, stressing that investors require projects with credible revenue streams, enforceable contracts, clear risk-sharing arrangements and predictable regulatory conditions.
With more than a third of sub-Saharan African countries in, or at high risk of, debt distress, he said private investment had become increasingly important to financing infrastructure without placing additional pressure on public finances.
According to Mutali, many projects encounter delays before construction because governments and project sponsors fail to address critical legal and regulatory requirements early enough.
He explained that lenders typically require enforceable security over project assets, rights to intervene when a project company defaults, and the ability to convert local currency and repatriate investment returns.
Where existing land, foreign exchange or procurement rules cannot accommodate these requirements, negotiations may drag on for years, delaying projects and increasing financing costs.
He therefore urged project sponsors and contracting agencies to conduct legal gap analyses before commissioning feasibility studies, ensuring that all necessary approvals are identified and secured in the right sequence.
These include land acquisition, environmental approvals, planning permissions, regulatory clearances and construction permits. Projects developed under public-private partnership arrangements, he added, must also meet the additional requirements of the relevant framework.
Mutali said governments could improve investor confidence by publishing regular infrastructure project pipelines, standardising contracts and ensuring that policy changes did not create uncertainty for businesses operating across interconnected sectors.
Other News
He cited Kenya’s electric-mobility transition as an example of why policy coordination matters, noting that incentives for electric vehicles must align with import policies, charging infrastructure, electricity regulation, financing and the interests of workers in the existing transport industry.
The expert also called for clearer allocation of risks between governments and private investors, particularly for infrastructure projects designed to operate over several decades.
He said project parties should agree on a risk-allocation matrix before negotiating the term sheet and resolve land ownership and resettlement issues before reaching financial close.
Changes in law and political risks should also be explicitly addressed in project contracts, with governments assuming risks within their control and private investors retaining those they are better equipped to manage.
Where appropriate, political risk insurance and guarantees from institutions such as the World Bank Group and the African Development Bank could provide additional protection and help attract financing.
Mutali further noted that Africa’s industrialisation ambitions, including the local processing of minerals, would require coordinated investments in electricity, transport, water supply, ports and industrial facilities.
He added that reforms to the international financial architecture and debt systems would influence the cost and availability of capital, as well as governments’ ability to provide guarantees and honour payment commitments.
Similarly, emerging rules on artificial intelligence, cybersecurity, data and interoperability would increasingly shape the regulatory environment for infrastructure and technology investments.
He said frameworks such as the African Union’s Agenda 2063 and the African Continental Free Trade Area had established broad development priorities, but translating these ambitions into bankable projects remained critical.
The focus following the UN General Assembly, he maintained, should be on building a pipeline of projects that meet investors’ requirements, generate sufficient revenue to service debt and deliver sustainable economic benefits.
For African economies seeking to close infrastructure gaps while managing public debt, the challenge is no longer simply identifying development needs, but creating the legal, financial and regulatory conditions that make the required investments possible.
