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

Stories abound of how young school children in rural areas across Africa walk long distances to reach their places of learning and of pregnant women who must be carried in wheelbarrows to receive medical attention at clinics in outlying areas. There are also tales of how poor road infrastructure has and continues to hinder the transportation of goods across the region, which, in some areas, become inaccessible during the rainy season.

Congested and inefficient port and harbour infrastructure has also caused inordinate delays to move goods or resulted in ships taking weeks to berth to unload their cargo. Inadequate border infrastructure means transporting people and goods takes longer than it should – a frustrating experience for businesses and individuals. This affects efforts to not only boost intraregional trade and investment but tourism and intraregional travel as well.

These examples emphasise the importance of adequate and modern transport networks and infrastructure to facilitate economic growth and achieve better lives in a continent where inequality persists. Poor national and regional road networks, fragmented rail systems, and inadequate airports and ports increase logistics costs and hamper economic diversification and industrialisation efforts. This limits the competitiveness of African goods in both regional and global markets. 

All is not lost though. African governments have acknowledged the importance of investments in infrastructure, in particular transport infrastructure, because it is the backbone of any economy, let alone the region. They also realise that infrastructure development is critical owing to its significant impact on economic growth and social progress. Infrastructure development is also crucial to thrive under the African Continental Free Trade Agreement (AfCFTA), which aim to improve the continent’s trade position in the global economy.

To unlock growth and trade opportunities and to bring meaningful development to communities, a coordinated approach between public and private investors is needed to attract investment in infrastructure, including efficient and modern integrated transport and logistic networks. Current estimates from the African Development Bank (AfDB) show that Africa needs between $130 and $170 billion in annual infrastructure funding, with a financing gap of $68 to $108 billion. At least 15% of this total relates to transport infrastructure.

Prioritising cross-border transport infrastructure as part of economic development plans has become even more critical if the region is to achieve its developmental, economic, and social goals. For instance, Tanzania has identified transport as a key focus area under its ‘Tanzania Development Vision 2025’, aiming to improve roads, railways, as well as air and water transport systems.

Similar projects are underway in Kenya, Rwanda and the Democratic Republic of Congo (DRC), focusing on integrated transport corridors, highways, and border posts, as well as ports and harbours. While these investments are commendable, additional capital is needed to expand and achieve modern, cost-effective, integrated transport infrastructure.

Cross-border connectivity remains a challenge, even in regions with increasing integration, like east and southern Africa. Concessionary funding from Development Finance Institutions (DFIs) will therefore be crucial for developing cross-border transport systems beyond pit-to-port models, expanding railways and roads to support multi-sector growth and private sector development.

The significant investment required for large-scale, cross-border projects demands innovative financing solutions. This will involve public-private partnerships (PPPs) to leverage risk-sharing mechanisms and blend funding sources. DFI support is especially crucial for low-income countries with underdeveloped financial markets, enabling them to secure necessary infrastructure investment.

A successful PPP model requires supportive policies, government guarantees, and flexible project frameworks, since no ‘one-size-fits-all’ strategy works across Africa’s diverse markets. Well-structured contract drafting ensures clarity in operations and maintenance responsibilities, attracting private investors and spreading financial risk.

Financial institutions like Nedbank Corporate and Investment Banking will play a critical role in unlocking investment for transport infrastructure and improving cross-border connectivity across Africa. With a growing presence in Tanzania and east Africa, Nedbank is well-positioned to facilitate these investments.

Regional governments should therefore continue to implement macroeconomic and financial reforms to attract large-scale private sector capital for transport infrastructure. Addressing sovereign and political risks will be critical in enhancing investor confidence in the transport infrastructure sector. These reforms are essential for facilitating the movement of goods and promoting trade and growth across Africa.

Investing in transport infrastructure today will pave the way for a connected, prosperous Africa tomorrow; one that can trade competitively, grow sustainably, and thrive regionally. It will also address the inequality that exists between the impoverished and the wealthier people across the continent, because better infrastructure is essential for better lives.