Africa stands at a pivotal moment in its development journey. While the continent faces a substantial infrastructure financing gap, it also possesses immense untapped potential. From energy and transport to water and digital connectivity, infrastructure is the backbone of economic growth and regional integration. However, to unlock the full benefits of this transformation, Africa must move beyond traditional funding models and adopt innovative partnerships, private sector engagement, and long-term planning grounded in data and sustainability.

This was the key submission of experts during the virtual launch of the 2025 State of Africa’s Infrastructure Report, the Africa Finance Corporation’s (AFC) flagship publication on Thursday.

This year’s edition underscores a powerful yet underexplored truth: Africa already holds over $1.1 trillion in domestic capital, from pension and insurance funds to public development banks and sovereign wealth funds.

At a time when global capital is constrained and Africa’s needs are urgent, the report reframes the conversation, showing that unlocking these internal resources is not just possible but essential.

After making the case for unlocking domestic capital pools, the report returns to Africa’s core infrastructure sectors—energy, transport and logistics, industry, and digital infrastructure — to highlight actionable opportunities for transformation, regional integration, and scale.

It highlights that Africa must shift from fragmented generation toward interconnected systems for economic sovereignty, manufacturing competitiveness, and Africa’s place in the global data economy.

The Chief Economist and Director of Research and Strategy at the AFC, Dr. Rita Babihuga-Nsanze, pointed out that capital allocations in the continent remains heavily concentrated in short-term assets, mainly government securities and money market.

For her, rather than viewing Africa’s infrastructure gap as a constraint, it should be seen as an opportunity.

She noted that Africa’s energy future is about building the integrated energy systems that will power its industrial transformation, not just connect 600 million people to electricity. These systems must make full use of Africa’s vast and diverse energy resources – from the world’s largest untapped hydropower and geothermal reserves, to abundant solar irradiation, wind corridors and newly discovered gas.

Africa needs to scale—urgently and decisively. In 2024, the continent added over 6.5 GW of utility-scale capacity to its grid. By comparison, India added 18 GW in renewables alone, and the United States added 48.6 GW. To meet its development goals, Africa must double or triple its annual energy buildout. This is not just an infrastructure challenge—it is a strategic economic imperative.

Building integrated African grids is no longer aspirational—it is essential. Cross-border interconnectors and regional power markets are key to unlocking scale, attracting investment, and stabilising supply. The priority now is to mobilise finance for intra-pool transmission links—to strengthen existing regional power pools—and inter-pool interconnections that can lay the foundation for a truly continental power system.

Africa’s ability to move goods and people reliably and efficiently is central to its industrialisation and trade ambitions. A new cycle of infrastructure development is underway—but it must be more integrated, investor-driven, and future-focused.

According to the report, the continent is entering a third wave of port privatisation – characterised by new investment partners and increased hinterland trade facilitation. To be competitive and serve as efficient regional gateways, ports must make better use of technology and enhance the maintenance and operations of common marine infrastructure.

Railway investment is picking up across the continent, with new models that prioritise private capital, anchor industries, and regional trade corridors. Projects like the Lobito Corridor are unlocking mineral wealth while supporting new agricultural and fuel supply chains.

However, road infrastructure remains a high-need, high-impact investment area, especially in for landlocked and hinterland agricultural centres. Updated data reveals sharp disparities in road quality and density, with limited private participation outside of mining corridors. Policy reforms, including viable Public-Private Partnership frameworks and corridor-based tolling models, are needed to attract investment in road rehabilitation and rural connectivity.

Similarly, airports offer untapped potential to overcome Africa’s vast geography and boost intra-African trade—particularly through upgrades to cargo handling, customs efficiency, and air freight logistics.

Clearly, Africa’s industrial future depends on turning raw materials into value-added products and the report focuses on refining, fertilisers, and steel—three sectors that must sit at the heart of Africa’s structural transformation. Each reflects a strategic convergence of urgent needs (energy and food security), natural advantages (gas and strategic minerals), and industrial opportunity. Together, they also account for some of the largest and most persistent items in Africa’s import basket, making them foundational to building a more self-sufficient, resilient, and competitive African economy.

Steel is becoming Africa’s industrial imperative. Without it, the continent cannot build its infrastructure or expand its manufacturing base. Considering the upcoming surge in African iron ore production, a continental steel strategy is needed to link upstream resources in West Africa with downstream value chains.

The oil refining sector offers a critical opportunity to build Africa’s energy security. Brownfield investments—estimated at $16 billion—are urgently needed to upgrade existing refineries, enhance operational efficiency, and ensure compliance with cleaner fuel standards and environmental sustainability. At the same time, new greenfield refining capacity must be developed to meet projected demand and reduce reliance on imported fuels. To ensure energy self-sufficiency, future refining hubs must be backed by robust coastal storage facilities, pipeline networks, and rail logistics—enabling efficient distribution across borders and into landlocked markets.

To the President/CEO, AFC, Samaila Zubairu, there is a need for coordinated action to unlock financing opportunities in infrastructure investment in the continent.

Zubairu noted that, “the world has changed and there is a different focus now from traditional development partners to focus on defense and rearmament of their respective economies and of course, the factionalisation of the world.

“What that means is that this is an opportunity for Africa. That is because, as you seek to industrialise your economy and focus on defense, it means you need secure supply chains. Of course the minerals for that is in Africa. So, Africa is not relevant; we are essential.

“I say that because it underpins one our main theses  of what needs to change in Africa. The one thing that must change is that we must stop exporting raw materials and embark on transformation. It is the transformation that creates quality jobs that leads to increased savings. The only way to increase the pool of savings is by having higher-quality jobs. We have always advocated that as Africans, we must take ownership of our development and fund it.”

Zubairu stressed the need for the right structures for regulatory reforms in the continent, so as to make investment in infrastructure attractive.

Kenyan economist, banker and former Governor of the Central Bank of Kenya, Patrick Njoroge, noted that good macro-policies and economic stability are the key attraction for infrastructure financing.

He, also urged banks in the continent to do more in terms of infrastructure financing.

However, Rwandan economist and former president of the African Development Bank,  Donald Kaberuka, stressed that the domestic resources are not anywhere near the amount required to transform infrastructure in the continent.

From the foregoing, beyond funding, there is an urgent need for stronger policy coordination across African countries. Too often, infrastructure projects are derailed by bureaucracy, political instability, or lack of continuity in leadership. Governments must align national development plans with regional infrastructure blueprints. Strong institutions, transparent procurement processes, and a focus on governance are essential to build investor confidence.

Africa has the resources, talent, and growing political will to transform its infrastructure landscape. What is needed now is bold action: to implement policies that attract private capital, to think regionally rather than nationally, and to embed transparency and innovation at every level.

Therefore, Africa’s future hinges not on potential, but on execution. The need to unlock opportunities for infrastructure transformation is no longer a matter of ambition but a matter of urgency. Roads, railways, energy, and digital connectivity are not just development goals; they are lifelines for economic independence, social equity, and regional integration. With visionary leadership, bold financing, and a commitment to regional cooperation, Africa can shift from being infrastructure-deficient to infrastructure-driven.