Africa Infrastructure Development Company – Driving Human Impact with GIA
With the World Bank and the African Development Bank uniting governments and the private sector, “economic transformation” across the continent seems closer than ever (World Bank, 2024).
The development giants are leading efforts to unlock Africa’s renewable energy potential with ‘Mission 300’ – a vision to bring affordable power to 300 million people in Sub-Saharan Africa by 2030.
Almost half of Africa’s population live without access to electricity. Lack of energy access leaves hundreds of millions struggling to achieve economic security and access real economic opportunities (UN Sustainable Development Group, 2025).
The Dar es Salaam Energy Declaration saw leaders from 43 African countries agree to energy sector reform, aiming to expand energy access, increase the share of renewables in the energy mix and attract private capital. Governments are taking unprecedented steps to promote sustainable growth and elevate living standards by widening access to clean cooking, raising life expectancies (Abdullahi & Sieng, 2023). They have already seen an encouraging response from investors — “Mission 300 partners pledged more than $50 billion in support of increasing energy access across Africa.” (World Bank, 2024).
Despite making progress, the African infrastructure sector is still yet to meet its capital needs; the African Development Bank estimates a yearly infrastructure spending gap of $68 to $108 billion. With demand and urbanization rising rapidly, investments in the sector represent opportunities to drive both public and private gain (African Development Bank, 2024).
Global Infrastructure Advisors (GIA), a leading infrastructure advisory firm operating from hubs in London and Casablanca, provides strategic and financial advisory to clients in the infrastructure and energy sectors. Working in collaboration with partners worldwide, GIA has worked on over $2 billion in financings for power projects on four different continents, helping to drive sustainable growth.
The Role of Infrastructure in Africa’s Development
Any concept of sustainable growth is closely entwined with human development. Amartya Sen, Nobel laureate in Economic Sciences, defined ‘development’ as a process of expanding human freedom.
The main freedoms supported by the state are political freedom, economic and social opportunities, transparency guarantees and protective security (Garrett, 2001). Indicators like GDP alone do not adequately measure living standards and fail to represent development dimensions such as life expectancy and literacy rates.
Sen’s work has been critical to the creation of the UN’s human development index (HDI), which measures countries by their average life expectancies at birth, the education level of their people as measured by average time spent in school and their material living standards as measured by per capita GNI.
Sub-Saharan Africa has the lowest HDI of any region in the world with a value of 0.568 out of 1, significantly below the world average of 0.756.
The infrastructure gap directly contributes to the low level of development. Investment in railway networks would allow children to spend more years in school; investment in renewable energy would raise life expectancy by widening access to clean cooking, preventing foodborne illness. Investment is crucial to improving living standards and human development across the continent.
Key Challenges in Africa’s infrastructure development
Funding and Financial Constraints
80% of infrastructure projects in Africa collapse at the feasibility and planning stage due to bankability concerns. This can be attributed in part to insufficient financial resources devoted to feasibility study and project development (McKinsey & Company, 2020).
Furthermore, private sector participation in African infrastructure projects is often low with 23% of investment coming from the private sector in 2020 (AfDB, 2022), far from the global average of 84% (Global Infrastructure Hub, 2021). Public entities themselves struggle to draw investment due to the perception of risk (Ngcobo et al., 2024).
Capacity constraints in local institutions
Insufficient human capital and resources often restrict the ability of institutions to deliver on infrastructure development at the local level.
This lack of capacity can produce a gap between political commitment to reforms and tangible policy execution. The expansion of capacity-building programs, such as training local government officials in project management and stakeholder engagement, can help successful policy execution take place increasingly (Kebede, 2021).
Technical and Regulatory Challenges
Adoption of innovative technologies that integrate sustainable practices will be integral to unlocking financing tied to environmental and social conditions.
Africa’s booming population requires transport systems that “minimize environmental impact while enhancing social needs.” Cities like Johannesburg must find a way to deal with increased road traffic, which poses a threat to efficient public transport and increased emissions — road transport contributes to 75% of transport emissions globally. These issues demand effective technical, social, economic and environmental strategies (Ngcobo et al., 2024).
Opportunities for growth and investment in the energy and infrastructure sectors
Infrastructure investment is key to achieving zero-carbon emission targets for 2050, reducing the likelihood of impacts such as air pollution and droughts that reduce human development.
These investments create jobs in the renewable energy sector and extend energy access towards millions in rural areas. (Chukwuemeka et al., 2023). Demand for digital infrastructure, such as Tier III and IV data centres, rises with increasing urbanization, making the sector another area of potential investment.
Tier Classification of Data Centres: Tier III centers are maintainable without downtime (99.982% uptime) but vulnerable to unexpected component failures. Tier IV centers continue operating even during equipment failures or maintenance (99.995% uptime).
Tier III data centers offer 99.982% uptime with N+1 redundancy and concurrently maintainable infrastructure that eliminates planned downtime but can still experience brief unplanned outages, while Tier IV centers achieve 99.995% uptime through 2N/2N+1 redundancy and fault-tolerant design with multiple active power/cooling paths that eliminate all single points of failure.
Building sustainable data centres will help Africa utilize technologies such as cloud computing and advanced analytics while reducing carbon footprints (Abiodun, 2025).
Global Infrastructure Advisors – an Overview
To navigate the challenges associated with developing infrastructure in Africa, we bring technical expertise based on lived deal experience.
GIA’s experience on the continent includes our role as project development advisor for a 300km urban transit railway system in Kinshasa and our support of the development and financing of a 360 MW combined cycle gas turbine project in Cap-de-Biches to financial close.
We specialize in strategic and financial advisory for infrastructure projects, assisting clients from the pre-feasibility stage to financial close and beyond.
Our services include not limited to, project management, development budgeting and scheduling, financial modeling, bid negotiations and due diligence. Our work in strategic advisory for African infrastructure projects is one part of our wider commitment to promoting sustainable development and delivering emerging market infrastructure solutions worldwide.
Key Areas of Focus in Africa
Energy Infrastructure Development
According to the global SDG database’s 2021 data, Africa leads Europe and North America in renewable energy usage, with 55.5% of “total final energy consumption coming from renewable sources.”
Hydropower is hugely significant among these sources, especially in Sub-Saharan Africa where it accounts for 40% of all power provided. Despite this, only 10% of hydropower generation potential has been unlocked, indicating an opportunity for further capacity exploitation.
Tapping into this potential could enable the much-needed expansion of the continent’s energy sector. Dadin Kowa Hydropower Plant in Gombe State, Nigeria, was commissioned in 2020. The 40 MW project has created jobs and provides baseload energy — further private investment will advance such energy infrastructure projects and drive impact (International Hydropower Association, 2023).
Transportation and Logistics
Investment is required to solve inefficiencies in port logistics, which harm regional trade. The Dar es Salaam Port, which serves Tanzania and neighbouring countries such as Zambia and Malawi, experiences delays in cargo handling caused by poor road conditions and congestion.
At the port, cargo spends 15% of its time waiting at the port, 50% in transit and 10% delayed, with only 25% successfully delivered (Kunambi & Zheng, 2025).
Investment in effective traffic management and road maintenance systems would boost the efficiency of port operations, driving trade and growth in Tanzania, as well as its neighbouring countries with whom the port is shared
Public-Private Partnerships (PPP)
PPPs unite private investment, expertise and public vision. Joint project structures and financing solutions help increase the feasibility of large-scale projects by pooling resources.
South Africa’s Gautrain Rapid Rail Link project is the result of a successful PPP and has “[eased] traffic congestion and [facilitated] travel in the Johannesburg-Pretoria corridor” (Global Infrastructure Hub, 2024).
Policymakers in Africa must work to encourage PPPs by strengthening regulatory frameworks to protect investor interests (Ogunsola et al., 2024).
Case Studies and Success Stories
GIA has built a varied body of work on energy and infrastructure projects in Africa.
In February 2023, the firm was appointed the advisor to arrange the debt portion for a 125 MW gas power plant in Senegal. Our work on this project included the development of a debt teaser, building detailed financial models and effective engagement with financiers. GIA also delivered comprehensive project finance services for a 250 MW combined cycle gas turbine project in Togo, carrying out, among other duties, detailed feasibility study, financial modeling, tariff determination and PPA negotiations.
GIA has also promoted sustainable development in Africa through our work on social infrastructure projects, such as our market assessment of the Tier 4+ clean cooking sector in Malawi. This assessment included demand and supply-side analysis, regulatory and policy assessment, carbon finance assessment, financial modeling and recommendations for intervention strategy. As part of this project, GIA advised the World Bank Group on intervention strategy design.
Market Insights and Projections for 2025
Market trends in Africa’s infrastructure and energy sectors
Countries such as Kenya, Ethiopia and Morocco lead the energy charge with expansions in the number and scale of solar, wind and geothermal projects. This growth is part of a broad movement to bring equitable energy access to millions across the continent (PwC, 2024).
Natural gas has proven critical to many African economies’ transitions towards low-carbon economies, with countries such as Mozambique, Nigeria and Senegal investing in LNG projects. These countries are taking a balanced approach to their energy development, leveraging the use of both fossil fuels and renewable energy sources (PwC, 2024).
Emerging investment opportunities in 2025
Africa’s digital transformation is accelerating with the adoption of emerging technologies such as AI and cloud computing — the continent’s digital infrastructure sector must receive significant investment to respond to the surge in demand.
Data centres, such as ‘Raxio Ethiopia’ and ‘ONIX Accra 1’ respectively, offer high availability and scalable designs and are needed to support the high levels of data security necessary for advanced technology applications to be successful at a wide scale (Abiodun, 2025).
Interest in green hydrogen is growing, especially in North African nations such as Morocco and Algeria. These countries have taken advantage of their abundant solar and wind renewable energy resources to develop green hydrogen projects. Their proximity to European markets might soon help make these countries hubs for hydrogen production and exports. Recent technological advancements in electrolysis and hydrogen production processes have made large-scale green hydrogen projects more feasible and these projects are expected to attract significant foreign investment over the coming years (PwC, 2024).
Role of development banks in future projects.
Development banks like the World Bank and the African Development Bank will continue to play the crucial role of facilitating public-private partnerships that boost private sector participation in energy and infrastructure projects (Otsuki & Helvoirt, pp.151-223, 2017).
They will also invest in projects themselves; the AfDB has already invested heavily into the energy sector, having committed to investing $12.74 billion between 2016 and 2025, aiming to expand electricity access throughout the continent (AfDB, 2025).
How GIA Supports Investors and Developers
GIA offers a comprehensive suite of services tailored specifically for energy project investors, developers and banks. We act as a holistic Africa infrastructure development company. With an acute understanding of the unique challenges and opportunities in the market, we are well-positioned to help bring about successful project outcomes.
GIA has a proven track record of facilitating successful project execution, providing services tailored specifically for investors and developers.
Tailored Services for Energy Projects
We cater to the specific needs of project stakeholders. Our services include feasibility studies, market analysis and risk assessments aimed at assisting clients in identifying viable investment opportunities and navigating regulatory complexities, ensuring compliance and maximizing returns.
Strategic Partnerships
GIA has worked to actively build strategic partnerships with financial institutions and governments.
Alliances enable GIA to connect investors with essential funding sources that enhance the viability of projects, including development banks like the African Development Bank and the World Bank.
End-to-End Project Execution Support
From project conception to completion, GIA provides comprehensive assistance, including project design, procurement, project management and financing. We ensure that projects are delivered on time and within budget while also adhering to world class standards of quality and sustainability. Our expertise in managing complex projects mitigates risks and enhances operational efficiency.
Call to Action
With the infrastructure gap growing between the global north and south, with African governments welcoming private sector investment, opportunities to drive development impact in the continent are abundant.
GIA is committed to helping push Africa into a new era of prosperity over the next 50 to 100 years. Having delivered on projects across EMEA, we are ready to help your projects succeed in this complex and exciting space.
References
- Abdullahi, A., & Wei Sieng, L. (2023). The effect of infrastructure development on economic growth: The case of sub-Saharan Africa. Journal of Infrastructure, Policy and Development, 7(2), 1994.
- Abiodun, K. (2025). Digital infrastructure & sustainable data centers investment in Africa: Role of Tier III & Tier IV. International Journal of Multidisciplinary Research and Growth Evaluation, 6(1), 1878–1888.
- African Development Bank. (2024). African Development Bank invests $20 million in infrastructure fund to catalyze continental development.
- African Development Bank. (2025). 2025 Annual Meetings: Ten years of investments have connected over 28 million people to electricity.
- Beatrice Adedayo Okunade, Bukola A, Odulaja, Foluke Eyitayo Adediran, Ololade Elizabeth Adewusi, Rosita Ebere Daraojimba, & Justice Chika Igbokwe. (2024). Community development programs in Rural Africa: An effectiveness review. International Journal of Science and Research Archive, 11(1), 1217–1226.
- Chukwuemeka, N. S., Ugonna, A. P., Ugochukwu, O. B., Immaculata, E. N., Chiziterem, E. K., & Chukwubuikem, O. P. (2023). The Challenges and Opportunities of Energy Transition across Africa. International Journal of Environment and Climate Change, 13(10), 4312–4339.
- Garrett, J. (2001). Amartya Sen’s Ethics of Substantial Freedom.
- Global Infrastructure Hub. (2021). Private Investment in Infrastructure
- Global Infrastructure Hub. (2024). Gautrain Rapid Rail Link.
- International Hydropower Association. (2023). Regional profile — Hydropower in Africa.
- Kunambi, M. M., & Zheng, H. (2025). Optimizing African Port Hinterland Connectivity Using Markov Processes, Max-Flow and Traffic Flow Models: A Case Study of Dar es Salaam Port. Applied Sciences, 15(4), Article 4.
- Leitão, J., Sarmento, E. M., & Aleluia, J. (2017). The Emerald Handbook of Public-Private Partnerships in Developing and Emerging Economies: Perspectives on Public Policy, Entrepreneurship and Poverty. Emerald Publishing Limited.
- McKinsey & Company (2020). Solving Africa’s Infrastructure Paradox.
- Ngcobo, N., Akinradewo, O., & Mokoena, P. (2024). Challenges to sustainable transport infrastructure integration in Johannesburg, South Africa. Journal of Sustainable Development of Transport and Logistics, 9(2), 92–108.
- Ogunsola, Olakojo & Adebayo, Yetunde & Dienagha, Ikiomoworio & Ninduwezuor-Ehiobu, Nwakamma & Nwokediegwu, Zamathula. (2024). Public-private partnership models for financing renewable energy and infrastructure development in Sub-Saharan Africa. Gulf Journal of Advance Business Research. 2. 483-492.
- PricewaterhouseCoopers. (2024). Africa Energy Review 2024. PwC.
- UNSDG. (2025). Decoding Africa’s Energy Journey: Three Key Numbers.
- World Bank Group. (2024). Mission 300 is Powering Africa.
- Yilak A Kebede & Lantern Institute of Data Science. (2021). Political Commitment, Institutional Capacity and Urban Transport Governance Reform in Addis Ababa, Ethiopia. International Journal of Engineering Research And, V10(01), IJERTV10IS010258.
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