African growth: African growth: From left, Luvuyo Masinda, CEO
Standard Bank Corporate and Investment Banking, Transnet COO Solly
Letsoalo,, Deputy Finance Minister David Masondo, Zen Dlamini, Head
of Infrastructure and Public Sector Client Coverage, Group CEO Sim
Tshabalala and Mameetse Masemola, Acting Head of Infrastructure SA.
Photo: Marco De Agostino
Africa’s infrastructure gap, estimated at over $100 billion annually, is an opportunity for projects that can boost the continent’s economy, create jobs and reduce poverty.
As the continent continues to urbanise and grow, the need for infrastructure investment will only continue to increase, Standard Bank CEO Sim Tshabalala said at the bank’s inaugural Infrastructure Connect Summit this week.
The summit brought together industry experts, policymakers, and financial leaders to discuss the future of Africa’s infrastructure development, and it underscored the urgent need for collaborative efforts to bridge the infrastructure gap.
Buoyed by the recent lifting of the greylisting, a rate cut and a credit rating upgrade, South Africa’s economy has turned the corner, with economists expecting gross fixed capital formation to become positive next year, Tshabalala said.
He pointed to visible signs of infrastructure investment, including a surge in construction activity in Johannesburg, where numerous residential and commercial developments are underway.
Tshabalala said the bank was committed to playing a key role in funding infrastructure development at home and across the continent.
“We finance infrastructure. We mobilise society’s resources to finance infrastructure and help with the country’s productivity to the maximum capacity,” he said.
The bank leads South Africa’s renewable energy sector with a 31% market share, having provided over R80 billion in funding to date.
The Business 20 (B20) Finance and Infrastructure Task Force has made several key recommendations to address Africa’s infrastructure needs, including increasing support for early-stage project preparation, improving the accuracy of ratings agencies, and advocating for regulatory changes to treat infrastructure as an asset class.
Deputy Finance Minister David Masondo, delivering the keynote speech at the summit, outlined the government’s efforts to mobilise private-sector participation in public infrastructure. He said key initiatives included: a credit guarantee vehicle for transmission infrastructure; reforms to the Public-Private Partnership (PPP) regime; ring-fencing of revenue from metro trading services; and the issuance of infrastructure bonds.
“The government aims to raise R15 billion through an infrastructure bond auction on December 8th 2025,” Masondo said, emphasising the need for a sustained partnership between government, the financial sector and development partners to address the R2 trillion infrastructure finance gap required by 2040.
The summit included a panel on infrastructure financing, public-private partnerships, and the role of technology in driving infrastructure development. The importance of cross-border infrastructure in driving regional integration and economic growth was highlighted. The panellists agreed that the African Continental Free Trade Area (AfCFTA) offers significant opportunities for cross-border projects and emphasised the need for a coordinated approach to infrastructure development.
The panellists emphasised the need for innovative solutions to mobilise private capital and deliver bankable projects.
They also highlighted the importance of maintaining and upgrading existing infrastructure and investing in new projects. The discussions underscored the critical role that infrastructure plays in driving economic growth, improving living standards, and reducing poverty.
As the infrastructure needs continue to grow, the summit has established itself as a platform for shaping the future of infrastructure investment. The groundwork for further discussions and partnerships was laid at the summit.
Standard Bank Corporate and Investment Banking CEO, Luvuyo Masinda, reaffirmed the commitment to support infrastructure development, saying they are “seeing the impact of structural reforms”