This decline stands in sharp contrast to the average share of funding received by the sector between 2017 and 2023. Africa, however, remains a land of opportunity, especially as investment banks become increasingly saturated and commercial banks are squeezed by new risk regulations.

Private equity investments in infrastructure across Africa saw a decline in 2024, falling to 38% of the total private equity funding on the continent. This represents $1.4 billion, down from $2.3 billion in 2023, according to data released on March 11, 2025, by the GPCA, a global association of private equity professionals.

Despite this drop, Africa remains a land of opportunity. The continent’s growth potential is significant, driven by a rapidly growing population, with an estimated 600 million more people expected by 2030, and an edge in renewable energy sources.

This downturn in 2024 contrasts with the previous seven years, which saw a steady increase in infrastructure investments. From just $600 million in 2017, private equity in infrastructure rose to $2.3 billion by 2023, highlighting growing investor interest.

Renewable energy remains a key area of focus, with $6.7 billion invested between 2015 and 2024—more than double the amount poured into conventional energy sectors. Other sectors attracting substantial investments include telecommunications, logistics, and industrial supply chains.

However, the pace of investment still falls short of the continent’s massive infrastructure needs, which are estimated at between $97 billion and $105 billion annually until 2030. With multilateral institutions limited in capacity and commercial banks constrained by regulations, private funds are increasingly seen as a strategic way to fill this gap.

South Africa, Nigeria, and Kenya, along with pan-African projects, continue to attract the bulk of these investments. These countries offer mature markets, growing regional economic integration, and improved governance and business environments, making them top destinations for private equity.