Unlocking Africa’s Growth Potential: The Role of Transport Infrastructure

By Zakhele Mayisa, Co-Head of Africa Infrastructure at Nedbank Corporate and Investment Banking, South Africa, and Geoffrey Gangla, Chief Representative Officer and Head of East Africa Coverage at Nedbank Corporate and Investment Banking, Kenya

In the heart of Africa, stories abound of daily struggles caused by inadequate infrastructure. Young schoolchildren in rural areas walk miles to reach their classrooms, and pregnant women are transported in wheelbarrows to distant clinics. Poor road networks hinder the transportation of goods, especially during rainy seasons, leaving some areas inaccessible. Similarly, congested and outdated ports, harbors, and border infrastructure create frustrating delays, affecting trade, tourism, and intraregional travel.

These challenges underscore the pressing need for modern, integrated transport networks to drive economic growth, enhance regional connectivity, and improve livelihoods. Without robust infrastructure, African goods face high logistics costs, reduced competitiveness, and limited access to global markets, further entrenching economic disparities.

African governments are increasingly acknowledging the critical role of infrastructure in fostering economic growth and social progress. Transport infrastructure, in particular, is essential for achieving the objectives of the African Continental Free Trade Agreement (AfCFTA), which seeks to position Africa as a competitive global trading partner. The African Development Bank (AfDB) estimates that the continent requires $130–$170 billion annually for infrastructure development, with a significant financing gap of $68–$108 billion. About 15% of this need relates to transport infrastructure alone.

For Africa to thrive under the AfCFTA, prioritizing cross-border transport projects is essential. Integrated transport corridors and modernized border facilities can unlock trade opportunities, facilitate the movement of goods, and promote economic diversification.

Tanzania, for example, has made transport infrastructure a focal point under its Tanzania Development Vision 2025, investing in roads, railways, and air and water transport. Similarly, Kenya, Rwanda, and the Democratic Republic of Congo are developing integrated transport networks, including highways, ports, and railways. While these efforts are commendable, the scope of investment required to achieve seamless connectivity across Africa far exceeds available resources.

Cross-border connectivity remains particularly challenging, even in regions with increasing integration, such as east and southern Africa. Addressing this will require concessional funding from Development Finance Institutions (DFIs) to expand railways, improve road networks, and develop multi-sector infrastructure projects.

The scale of investment needed for Africa’s transport infrastructure demands innovative financing models. Public-private partnerships (PPPs) offer an effective mechanism for pooling resources, sharing risks, and mobilizing private capital. DFIs play a vital role in supporting low-income countries with underdeveloped financial markets, enabling them to access the funding necessary for large-scale projects.

For PPPs to succeed, supportive government policies, clear operational frameworks, and robust contract management are essential. A tailored approach, recognizing Africa’s diverse market dynamics, ensures that projects attract private investors while meeting regional needs.

Financial institutions like Nedbank Corporate and Investment Banking are uniquely positioned to facilitate infrastructure development across Africa. With a growing presence in east Africa and a deep understanding of local markets, Nedbank provides innovative financing solutions for transport projects that enhance cross-border connectivity and regional integration.

To attract large-scale private investment, African governments must address sovereign and political risks while implementing macroeconomic reforms. Creating an enabling environment for investors is critical to ensuring the development of transport infrastructure that meets the continent’s developmental, economic, and social objectives.

Investing in transport infrastructure today will pave the way for a connected and prosperous Africa tomorrow. By fostering trade, reducing inequality, and enhancing access to essential services, improved infrastructure can transform lives and unlock the continent’s immense potential. A well-connected Africa is not just a dream—it is an achievable reality that promises sustainable growth and shared prosperity for all.

This article reflects the shared vision and expertise of Zakhele Mayisa and Geoffrey Gangla, who remain committed to driving meaningful infrastructure development across Africa.