African countries have been urged to seek long-term capital from foreign investors to address the continent’s estimated $170 billion infrastructure deficit.
The call was made by former banker and CEO of Montserrado, Ifeanyi Ajuluchukwu, during an interview with Nairametrics. According to the African Union Development Agency (AUDA), Africa requires between $130 billion and $170 billion annually to bridge its infrastructure gap, but current investments fall far short of that target.
Ajuluchukwu emphasized that domestic resources alone cannot close the financing gap, stressing the need to attract foreign investors for large-scale projects such as ports, power plants, and transport networks. “Foreign capital is the only way. When I say foreign, I don’t just mean Western capital. You have to raise capital for infrastructure,” he said.
He cited examples of growing international interest in Nigeria, including JP Morgan’s bond investments and Standard Bank’s partnership with China’s ICBC. Ajuluchukwu also noted a structural mismatch in Nigeria’s financial system, where most funds are short-term, whereas infrastructure projects require long-term financing spanning seven, ten, or even fifteen years.
While institutions like the Bank of Industry and the Central Bank have attempted to provide long-term funding, Ajuluchukwu maintained that the scale is insufficient to meet Africa’s massive infrastructure needs. He highlighted foreign investors such as Tolaram and Indorama Eleme Petrochemicals, which have evolved into strong local capital bases over time.
Experts have also underscored the potential role of the capital market in funding infrastructure, provided it develops products attractive to foreign investors. Tunji Andrews, CEO of Awabah, noted that much of Nigeria’s financial infrastructure has historically been driven by operators rather than regulators, citing the Nigeria Inter-Bank Settlement System (NIBSS) as an example of industry-led development.
With Africa’s infrastructure financing needs continuing to rise, attracting global investors and strengthening domestic capital markets are increasingly seen as critical steps toward closing the continent’s funding gap.
