Financing urban infrastructure and services in Africa

Abstract

African cities suffer from major urban infrastructure, services and investment gaps. Infrastructural projects in Africa face problems, frequently because these projects are complex. Various innovative financial mechanisms are available but rarely applied and unlikely to replace traditional methods of infrastructure financing. To help address the challenges of infrastructure financing, local governments are combining traditional and alternative approaches. However, Africa’s legal, institutional, and governance framework constrain the attraction of private capital for infrastructure. Governance networks are needed to decide on infrastructure projects and to attract infrastructure finance from multiple sources. Infrastructure delivery and maintenance subsequently require robust networks across levels of governments and other actors. Governance models allow for more flexibility and should be set within a clear institutional framework in order to reduce opportunistic behavior (such as corruption) and poor quality.