Africa rethinks how it funds infrastructure

Construction of a flyover in progress. PHOTO/ FILE


Nairobi. African governments are increasingly exploring alternative ways to finance infrastructure, moving beyond conventional external borrowing toward capital-market instruments, pooled investment vehicles, and domestically anchored funds.

Policymakers and market participants say the shift reflects tighter debt constraints, rising currency risks, and a policy push to mobilise long-term local capital for transport, energy, and social infrastructure while reducing reliance on foreign-currency loans.