Private Credit Addresses Africa’s Infrastructure Financing Gap
Due to reduced bank lending, private credit is addressing Africa’s infrastructure gap. Energy, logistics, and digital connectivity initiatives like telecoms and fiber-optic internet are drawing this type of debt capital, as noted in the October issue of Global Finance Magazine.
Investment in Africa is being hindered by outdated infrastructure systems, while government budgets frequently fail to allocate enough resources to address these challenges. The Southern Africa Venture Capital Association’s 2025 findings highlight that ‘private credit and infrastructure investments are becoming more popular’ as the continent adapts to shifting financial demands and development goals.
According to the SAVCA report, private credit is emerging as the “most favoured strategy” for African private equity firms seeking investment diversification. With a large mismatch between infrastructure financing needs and capabilities, the burden and opportunities related to financing development have clearly fallen on private credit investors.
“We are in exciting times for private credit in Africa,” Sanaa Tabani, head of Loan Syndicate for Africa at Standard Chartered Bank, told Global Finance in an interview. “As the African continent’s financing needs continue to grow, private credit is playing an increasingly important role in providing capital to midsized corporates and supporting critical infrastructure development.”
The 2026 State of Africa’s Infrastructure Report by Africa Finance Corp. estimates that over $1 trillion in assets managed by nonbank financial entities—such as pension and insurance funds—could be redirected to support infrastructure projects. Standard Chartered also reported growing investor enthusiasm for African debt instruments, largely driven by the continent’s expanding infrastructure requirements.
Key Private Credit Deals
Private credit is now targeting essential sectors like energy, transportation, ports, and housing, while also supporting corporate infrastructure financing needs. Recently, Ninety One finalized its Africa Credit Opportunities Fund 3, raising $404 million. Meanwhile, the IFC contributed $20 million to the Africa50 Infrastructure Acceleration Fund, which will fund digital networks, renewable energy, transport, logistics, water, and sanitation initiatives across Africa.
This latest funding round built on the fund’s initial $222.5 million commitment, secured from 16 institutional backers. Alain Ebobissé, CEO of Africa50, attributed the fund’s appeal to strong backing from African institutional investors, stating that ‘this success demonstrates how African investors are increasingly driving real-economy financing and unlocking the continent’s potential.’
Ninety One echoed this perspective, noting persistent demand for private credit solutions to fund businesses and infrastructure projects in Africa and other developing markets. Nathaniel Micklim, co-head of emerging market alternative credit at Ninety One, explained that ‘there remains a major funding shortfall for well-structured businesses and infrastructure in Africa, creating opportunities for lenders with strong local expertise and deal-sourcing abilities.’
Infrastructure Funding Needs
‘Africa’s infrastructure funding demands are immense,’ remarked Pazani Vaitilingon, chief commercial officer for Africa at IQ-EQ. The World Bank’s Africa Pulse report emphasizes that reliable infrastructure, from transport systems to energy and digital networks, is essential for economic expansion across key industries.
Many African nations, including Zimbabwe, the Democratic Republic of Congo, and Zambia, regularly face power shortages. Private investors are expected to play a major role in reinforcing national and local electricity grids, as well as expanding mobile coverage in underserved regions. The Africa Pulse report identifies unreliable power access as a critical obstacle for African businesses.
To help plug connectivity gaps, the Emerging Africa and Asia Infrastructure Fund (EAAIF) deployed a $32.8 million senior secured loan to Eastcastle Infrastructure DRC in August to boost its mobile tower base stations. The loan is part of a larger $179 million upsized facility for the tower company’s operations in the Democratic Republic of Congo.
Digital and Renewable Energy Projects
BluePeak Private Capital Fund II recently invested $12 million in Monty Mobile International, a provider of digital connectivity solutions across Africa. Fulton Shiundu, a partner at BluePeak, highlighted Monty’s “essential digital infrastructure with a scalable, asset-light business model and deep relationships with mobile network operators across Africa.”
Renewable energy projects are also attracting private credit, particularly from large miners and telecom operators seeking solar power plants to sustain operations.
Investor Sophistication and Market Growth
Private credit investors in Africa have developed a more sophisticated understanding of the continent’s risk profile and opportunities. Tabani from Standard Chartered stated that investors are increasingly drawn to Africa’s compelling risk-adjusted returns relative to other markets.
Ayan Ghosh, head of cross-asset investment strategy at Investec, noted that ‘infrastructure is no longer just a government priority; it’s now a viable investment category.’ Investec is exploring opportunities in South Africa’s underperforming rail and port systems, which are impeding trade, investment, and economic output.
Felix Boadi Missah, a Ghana-based finance expert, noted that Africa accounts for less than 1% of the global $3 trillion private credit market. Deal volumes for 2025 are rising by 8%, with the $600 million attracted by Africa in private debt investments during the first half of 2026 funding motorways, mobile towers, power plants, and digital systems.
