GPCA reveals infrastructure as a major focus for private capital invested in Africa

London - The Global Private Capital Association has just released its latest special report Infrastructure for Africa’s Next Generation: The Role of Private Capital. Growing populations, urbanization and rising demand for energy, digital access and transportation networks are fueling a long-term opportunity for private capital investors in African infrastructure.

Despite massive global shifts and a period of economic turbulence in Africa’s major markets, infrastructure remains a key focus area for investors on the continent, accounting for 42% of private capital deployed in Africa since 2023.

The report leverages GPCA’s proprietary dataset of 243 private capital transactions in infrastructure in Africa since 2015 – representing US$5.6bn in aggregate value – and includes listings of notable deals across the energy, digital and transportation segments. Our analysis is also informed by interviews of key fund managers and development finance institutions active in African infrastructure, including Actis, Africa50, AIIM, A.P. Moller, British International Investment (BII), Climate Fund Managers, DPI, Helios, International Finance Corporation (IFC), Inspired Evolution, Meridiam and Ninety One.

Key themes include:

• The participation of PE players and global corporates in digital infrastructure, which is vital to the continued growth of technology ecosystems and the continent’s AI potential,
• The growth of “platform” investing in the energy segment, where solar has emerged as a least-cost solution,
• The rise of private credit funds providing long-term financing for infrastructure assets,
• The emergence of new fund models – including blended finance and long-life funds – for accessing infrastructure opportunities,
• Geopolitical competition as a driver of investment in African infrastructure,
• Policy initiatives in key countries that are moving the needle for private investors and
• The role of DFIs and local institutions in mobilizing additional capital for infrastructure.

Infrastructure has accounted for many of the largest private capital exits in Africa, which is poised to become home to more than a quarter of humanity by 2050. This report highlights where investors are “doubling down” on past successes to fulfill the region’s long-run potential and put capital to work at scale.