The Africa Think Tank for Infrastructure Development (ATTID) has projected that the continent requires between $130 billion and $170 billion annually to meet its infrastructure needs and drive sustainable development across sectors such as energy, transport, water, sanitation, and urban systems.
This was disclosed during a press conference in Lagos ahead of a major infrastructure-focused side event it will host before the Gao Summit of industrialized nations scheduled for November 22-23, 2025, in South Africa.
According to ATTID, the Infrastructure and Sustainable Development Side Event will take place from November 20-21 at the Lakewood Conference Centre in Johannesburg.
Themed, “Enhancing Africa’s Infrastructure Transformation Agenda through Investments and Partnership,” the forum is expected to attract world leaders, executives of international development agencies, investment institutions, financial service providers, regional economic commissions, regulatory bodies, and private infrastructure developers.
Speaking at the press briefing, Director of Planning and Implementation of ATTID, Dr. Alfred Chiakor, said the event presents a vital opportunity to mobilize global and regional stakeholders toward closing Africa’s vast infrastructure gap.
He noted that the continent continues to face systemic challenges, including poor road networks, erratic electricity supply, and inadequate transportation systems, which have collectively led to a 40% loss in productivity and a two-percentage-point drag on annual GDP growth.
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“Africa’s economic development is closely tied to the availability of quality infrastructure. Unfortunately, the continent’s infrastructure financing needs are immense and growing,” Chiakor said, citing African Development Bank estimates.
ATTID also expressed concern over Africa’s low tax-to-GDP ratio, which averaged 15.6% in 2021 compared to 19.8% in the Asia-Pacific region and 21.7% in Latin America and the Caribbean. The weak fiscal position of many African governments, compounded by rising debt levels, has made private sector participation and international collaboration indispensable, the group stated.
Professor Sylvester Odion Akhaine, Director of Strategic Communication at ATTID, emphasized the need to harness the African Continental Free Trade Area (AfCFTA) as a catalyst for infrastructure development.
He said the success of the agreement depends heavily on investments in trade-enabling facilities such as ports, rail lines, industrial parks, and energy grids.
Highlighting recent gains, ATTID pointed to the 75% surge in foreign direct investment (FDI) to Africa in 2024, which brought inflows to $97 billion–about 6% of global FDI–according to the latest UNCTAD report. North Africa reportedly took a significant share of this growth, driven by large-scale energy and transport projects.
The group also lauded intra-African investments, citing examples such as Dangote Group’s cement operations across the continent and MTN’s expansion into regional telecommunications markets. Between 2020 and 2023, intra-regional FDI accounted for 21% of total inward FDI in Sub-Saharan Africa, up from 14.7% in the preceding decade.