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Rand Merchant Bank (RMB) Botswana is a division of First National Bank of Botswana Limited, an authorised financial services provider, registration number: BW00000790476.
RC 1031371 Copyright © FirstRand 2026. All rights reserved.
Infrastructure is the backbone of economic development – and one of the biggest challenges Africa must overcome to unlock its full potential. In this episode of RMB Africa Focus, journalist Crystal Orderson explores how innovative funding models and public–private partnerships are helping close the continent’s infrastructure gap, and why collaboration is essential to reshape Africa’s future cities, industries, and trade routes.
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Crystal unpacks the scale of Africa’s infrastructure deficit, the financing solutions being explored, and the game-changing projects already driving impact across the continent.
Africa’s infrastructure deficit and the opportunity behind it
According to the African Development Bank, Africa faces an annual infrastructure funding gap of between $130 billion and $170 billion. With rapid urbanisation, population growth, and rising energy needs, this deficit threatens to stall development – but also represents a massive investment opportunity. Sectors such as power, transport, logistics, and digital infrastructure are attracting growing interest, especially where projects can create jobs and long-term impact.
Tapping into patient capital
One of the most promising sources of funding? Pension funds. In 2020, African pension funds managed over $500 billion, and that number is projected to grow significantly in the coming decades. Yet most governments currently allocate less than 3% of pension capital to infrastructure. South Africa and Kenya are exceptions – allocating up to 10% – and showing how pension-backed investment can support long-term development goals. Because these funds are designed to be “patient capital,” they can absorb longer return horizons and help finance large-scale projects.
The power of public–private partnerships
Partnerships between governments, development finance institutions, and the private sector are key to bridging the financing gap. African Infrastructure Investment Managers (AIIM), for example, manages over $3 billion in assets across the continent, helping fund energy, transport, and digital infrastructure. Similarly, the African Development Bank has invested heavily in agriculture, supporting smallholder farmers and agribusinesses with initiatives that grow economies from the ground up – especially in countries like Ethiopia.
Mega projects and game changers
Projects like Kenya’s Mombasa–Nairobi Standard Gauge Railway have demonstrated what’s possible. Once a grueling 12-hour road journey, the new rail link now connects the two cities in under five hours – boosting trade, easing congestion, and transporting over 30,000 passengers a day. Meanwhile, initiatives like Angola’s solar electrification programme are bringing clean energy to rural communities through blended finance and sustainable bonds.
Innovative finance is the enabler
As Crystal notes, traditional funding alone won’t meet Africa’s needs. Blended finance, patient capital, and creative structuring are essential to unlock transformative infrastructure. Collaboration – not just between governments and institutions, but also between public and private capital – will be the catalyst for a more connected and resilient continent.