In Africa, infrastructure development has been a major driver of progress and economic growth (SDG 8), crucial for creating jobs (SDG 8) and reducing poverty across the continent (SDG 1). Over the past two decades, significant investments in transportation, energy, and telecommunications have led to transformative mega-projects such as Kenya's Mombasa-Nairobi Standard Gauge Railway, Ethiopia's Grand Renaissance Dam, and China's Julius Nyerere Hydropower Station. These projects significantly contributed to Africa’s infrastructure boom.
Despite being home to 18.5% of the global population, Africa has seen little growth in manufacturing over the past decades, resulting in the continent's share of global manufacturing value added (MVA) remaining below 2%. This already small share is heavily concentrated, with Nigeria, Egypt, and South Africa alone accounting for half of Africa’s manufacturing activity in 2021. Including Algeria and Morocco in the group of countries that raises the figure to nearly 70% of the continent’s manufacturing value, all within just five nations.
Source: State of Africa’s Infrastructure Report 2024
Africa's rapidly growing population, expected to reach 2.5 billion by 2050, creates a pressing need for enhanced infrastructure in transportation, energy, water, and sanitation. With over 75% of the population under the age of 25, this youthful demographic offers a lucrative market for investors. In addition, by investing in sustainable and inclusive infrastructure aligned with Economic, Social and Governmental (ESG) principles, investors can not only achieve significant returns but also make a positive social impact. The rapid urbanization across the continent further drives demand for modern infrastructure in real estate, waste management, and renewable energy, presenting new opportunities to meet the evolving needs of Africa's cities.
At Oxano Capital, we believe in the transformative power of infrastructure investments to drive economic progress and strengthen communities across Africa. Join us in building a community-driven, impactful future. Reach out to us today for exciting investment opportunities.