By 2025, there will be 100 African cities with over 1 million inhabitants. Twice as many as in Latin America.
Lagos – already Africa’s largest city – is predicted to expand by an astonishing 77 people every hour between now and 2030.
Such urban growth presents substantial opportunity for those of us who feel at home amidst rapid changes.
Major urban infrastructure gap
Africans need to spend between $130-170 billion annually to meet the continent’s basic infrastructure needs. Current financing shortfalls amount to $68-$108 billion
Annual national public spending on infrastructure in Africa was an average of 2% of GDP in 2009-2015, compared to 5.2% in India and 8.8% in China.
60 % of all African urban dwellers live in over-crowded and under-serviced slums.
25-45% walk to work due to lack of affordable transportation.
Current financing is mostly from the public sector
Total capital investment in Africa between 1980-2011 averaged 20% of GDP (as compared to 40% of GDP in the case of East Asia). Holding African cities back are lack of city planning, inefficient land use, regulatory blockages and vested interests. Instability and regulatory confusion naturally deter private capital.
City authorities often lack the political discretion and financial autonomy to take action
US cities raised over $111 billion worth of municipal bonds for infrastructure projects in just two months of 2017. Cities in Africa raised the equivalent of 1% of this amount over the past 14 years.