NAIROBI — Governments across Africa are seeking increased international investment in transportation, electricity and digital infrastructure as economies face rapidly growing demand for basic services.
The investment push is creating new opportunities for construction, telecommunications and renewable-energy companies.
Infrastructure Gap Remains Major Challenge
Africa's population is expected to continue growing rapidly over the coming decades.
That growth is increasing demand for roads, railways, electricity generation, internet access and urban housing.
Governments are therefore seeking investment from international financial institutions and private companies.
Renewable energy has become a particularly important area.
Many African countries have abundant solar and wind resources but lack sufficient electricity-generation capacity.
Developing those resources could help expand access to power while supporting economic growth.
Digital infrastructure is another priority.
Mobile-phone networks have transformed commerce and financial services across the continent, but many rural communities still lack reliable high-speed internet.
Investors are increasingly interested in African technology markets because of the continent's young population.
However, investment remains difficult in some countries because of political instability, currency risks and regulatory uncertainty.
Governments are attempting to address those concerns by improving investment rules and strengthening public-private partnerships.
Infrastructure development could have major economic consequences.
Better roads and ports can reduce transportation costs, while reliable electricity can improve industrial production.
The challenge is financing projects at a scale large enough to meet the continent's needs.
International institutions are expected to remain important sources of capital.
Private investors could also play a larger role if governments can reduce political and financial risks.
