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Home Magazine Knowledge and Events

BCG report highlights Africa’s untapped infrastructure potential

October 15, 2025
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BCG report highlights Africa’s untapped infrastructure potential
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While Africa’s infrastructure ambitions have historically struggled under systemic execution challenges, a new report from the Boston Consulting Group (BCG), titled Bridging Africa’s Infrastructure Execution Gap, presents a compelling case for change.

The study reveals that the continent’s portfolio of approximately 130 transnational projects across energy, transport, digital, and water sectors can be significantly accelerated through innovative coordination and strategic private sector engagement. This approach could unlock up to $6 billion in GDP growth for every $1 billion invested, transforming Africa’s development trajectory.

BCG’s analysis underscores that Africa already possesses the essential building blocks for infrastructure success — strong political commitment, clearly identified projects, accessible financing mechanisms, and proven delivery models. By applying targeted interventions and enhanced coordination, the continent can generate 74 million new jobs and add $500 billion in economic value, demonstrating that Africa’s infrastructure opportunity is both extraordinary and achievable.

Thomas Kingombe, Managing Director and Partner at BCG Johannesburg, and co-author of the report, emphasised that “Africa’s infrastructure opportunity is extraordinary and entirely achievable.” He pointed out that while progress has been made in various regions, the challenge now is to scale these proven models across the continent through better coordination and increased private sector participation.

The report highlights regional success stories that serve as blueprints for broader expansion. North Africa’s electrification achievements showcase the potential when infrastructure delivery is prioritised, while East Africa’s trade facilitation improvements — such as Kenya’s harmonised customs and one-stop border posts — demonstrate how strategic investments can rapidly enhance economic prospects. These examples prove that well-coordinated infrastructure investments can rapidly transform regional economies.

A particularly compelling aspect of the report is the potential for private sector involvement. Currently, private participation in major continental projects stands at a modest 3%. However, other emerging regions have successfully achieved private sector participation rates exceeding 15%, indicating a possible five-fold increase in available capital for African infrastructure. This, combined with rising investor interest, presents significant opportunities for public-private partnerships.

The Lobito Corridor exemplifies this potential. After years of underutilisation, coordinated efforts in 2023 through the Lobito Corridor Transit Transport Facilitation Agreement led to a dramatic reduction in copper shipment transit times — from 25 to just six days — and attracted over $500 million in blended financing. This success illustrates how strategic coordination can unlock dormant infrastructure assets rapidly.

Building on these successes, the report advocates for stronger, continent-wide coordination led by the African Union (AU). Inspired by initiatives like the Presidential Infrastructure Champion Initiative, the AU’s Commission for Infrastructure, Energy, and ICT can serve as a central body to align cross-border projects, improve project bankability, develop innovative funding pathways, and ensure accountability across stakeholders. Leveraging private sector expertise within this framework could significantly accelerate progress.

Opportunities extend across Africa’s regions. Sub-Saharan Africa’s current 51% electrification rate, while below North Africa’s levels, presents significant growth potential. The continent’s 27% internet penetration rate signals a major opportunity for digital infrastructure expansion, which could leapfrog traditional development pathways. Improvements in transport infrastructure could also unlock agricultural productivity and enhance manufacturing competitiveness, positioning Africa as a vital player in global supply chains.

Skills development is equally crucial. Africa’s need for five million additional infrastructure professionals — including engineers, technicians, and artisans — presents a generational opportunity to build sustainable, locally driven capabilities. The AU’s Skills Initiative for Africa (SIFA), in partnership with AUDA-NEPAD and international agencies, is laying the foundation for systematic capacity-building to ensure long-term, self-sufficient infrastructure delivery.

Trudi Makhaya, co-author and Partner at BCG, emphasised that “Africa’s infrastructure story is fundamentally one of opportunity, not deficit,” highlighting the existing projects, financing mechanisms, regional successes, and political alignment driving transformation.

Key stakeholders across the continent are now aligned on the need for coordinated action. Standard Bank Group CEO Sim Tshabalala advocates for improved project preparation and streamlined regulations, while AU Commissioner H.E. Lerato Mataboge emphasises the importance of private sector participation and effective execution.

The report identifies three strategic levers to unlock Africa’s infrastructure potential within the next decade: targeted private sector involvement to boost funding and capabilities, cross-border regulatory harmonisation, and improved project bankability through risk management. When combined, these pathways could catalyse a continent-wide infrastructure revolution.

“Africa’s moment has arrived. Through strategic coordination, innovative financing, and partnerships, Africa can realise its infrastructure potential and unlock decades of sustainable, inclusive growth. The question now is not whether transformation is possible, but how quickly we can make it happen,” said Trudi Makhaya.

 

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