- The BCG report shows that around 130 transnational projects in the energy, transport, digital and water sectors can be rapidly accelerated through innovative coordination and strategic partnerships with the private sector, with the potential to unlock up to $6 billion in GDP value for every $1 billion invested.
- A key example of Kenya’s infrastructure leadership is its role in the development and modernization of the Northern Corridor, the main trade artery connecting the Port of Mombasa with landlocked countries in East and Central Africa.
However, the old view that Africa’s infrastructure ambitions have crumbled under the weight of systematic implementation failures is true, the report said. Bridging Africa’s infrastructure implementation gap According to a report from the Boston Consulting Group (BCG), this is about to change.
It shows how the continent’s portfolio of some 130 transnational projects across the energy, transport, digital and water sectors can be rapidly accelerated through innovative coordination and strategic partnerships with the private sector, with the potential to unlock up to $6 billion in GDP value for every $1 billion invested.
BCG analysis shows that Africa has all the fundamental building blocks for infrastructure success: political commitment, identified projects, available financing mechanisms and proven delivery models. With strategic coordination and targeted interventions, the continent can transform its development trajectory while creating 74 million new jobs and generating $500 billion in additional economic value.
“There has never been a more exciting or feasible opportunity for the advancement of Africa’s infrastructure,” said Takeshi Oikawa, Managing Director and Partner at BCG Nairobi. “We are seeing excellent performance across regions, and as our report highlights, the next step is to scale these successes across the continent by strengthening coordination and deeper private sector involvement.”
Strategic African infrastructure investments
Key regional achievements presented in the report provide blueprints for continental expansion. The success of electrification in North Africa shows what is possible when infrastructure delivery is prioritized. While East Africa’s progress in trade facilitation has produced tangible results, post-2010 Kenya’s trade value growth has outperformed the region’s thanks to harmonized customs systems and one-stop border crossings. These successes prove that strategic infrastructure investments, when properly coordinated, can quickly transform economic prospects.
A key example of Kenya’s infrastructure leadership is its role in the development and modernization of the Northern Corridor, the main trade artery connecting the Port of Mombasa with landlocked countries in East and Central Africa.
Through targeted investments in road, rail and port facilities, aligned with the implementation of customs harmonization and one-stop border crossings, Kenya has significantly improved the efficiency, reliability and competitiveness of cross-border trade. These efforts have shortened transit times, lowered costs for businesses and created new opportunities for regional integration and economic growth.
“Kenya’s continued progress along the Northern Corridor clearly illustrates the power of sustainable investments, regional cooperation and implementation discipline,” Takeshi added. “By modernizing crucial trade routes and streamlining border processes, Kenya will not only drive its own economic growth, but also enable prosperity and connectivity in East and Central Africa.”
Capital for African infrastructure
These tangible benefits for the private sector are particularly compelling. While current private participation in major continental projects stands at 3 percent, other emerging regions have successfully achieved participation rates of more than 15 percent, representing a potential fivefold increase in the capital available for African infrastructure. This potential, combined with growing investor interest in the continent’s long-term prospects, creates important opportunities for public-private partnerships.
“The ambition and associated transformation we are witnessing in projects like the Northern Corridor highlight the value of a coordinated strategy, operational discipline and innovation in complex infrastructure projects,” Takeshi notes. “We don’t look at theoretical solutions; we have proven models that already deliver results.”
The Lobito Corridor is another critical example of Africa’s realized infrastructure potential. After years of underutilization, coordinated action in 2023 through the Lobito Corridor Transit Transport Facilitation Agreement yielded notable results. Rail transit times for copper shipments were reduced from 25 days to just six, freight costs fell below road alternatives, and the corridor attracted more than $500 million in blended financing. Demonstrate how strategic coordination can quickly unlock dormant infrastructure assets.
Building on these successes, the report proposes stronger coordination from the top, which can serve as Africa’s infrastructure acceleration engine. Building on the lessons of the Presidential Infrastructure Champion Initiative, the African Union Commission on Infrastructure, Energy and ICT would coordinate cross-border initiatives, increase project bankability, structure innovative financing pathways and drive accountability for multi-stakeholder projects. This would leverage private sector expertise while building on the AU’s existing institutional strengths.
Transportation infrastructure improvements
Regional opportunities are available in all corners of the continent. The 51 percent electrification rate in sub-Saharan Africa, while below the level of North Africa, represents significant opportunities for growth and return on investment. The continent’s 27 percent internet penetration rate indicates potential for digital infrastructure expansion that could transcend traditional development pathways. Improvements in transport infrastructure can unlock agricultural productivity and industrial competitiveness, making Africa a global supply chain hub.
The opportunity to develop skills is equally promising. The continent’s need for 5 million additional infrastructure professionals, including engineers, technicians and artisans, represents a generational opportunity to build world-class local capabilities. The AU’s Skills Initiative for Africa (SIFA), in partnership with AUDA-NEPAD and international development organizations, is already laying the foundation for systematic capacity building that will ensure sustainable, locally-led infrastructure delivery.
The timing for this infrastructure acceleration could not be better. Key stakeholders across the continent agree on the need for coordinated action. Standard Bank Group CEO Sim Tshabalala, chairman of the B20 Finance and Infrastructure Task Force, calls for stronger project preparation and streamlined regulatory processes. While AU Commissioner for Infrastructure, Energy and ICT, HE Lerato Mataboge, brings implementation-oriented leadership and commitment to greater private sector participation.
The report identifies clear paths to success through three strategic levers: targeted private sector participation to unlock financing and capacity, strengthened cross-border regulatory harmonization, and improved project bankability through improved risk management. These levers, in combination with each other, have the potential to transform Africa’s infrastructure landscape in the current decade.
“The opportunities for Africa have never been greater,” Takeshi concludes. “Strategic alignment, innovative financial approaches and enhanced collaboration are the keys to realizing the continent’s infrastructure ambitions and supporting inclusive growth. It is no longer about the opportunity, but the speed of execution.”
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