- African countries spend \$90bn yearly on infrastructure
- Local contractors sidelined due to financing gaps
- Afreximbank launches support plan for African firms
Africa spends nearly \$90 billion every year on infrastructure, but most of the contracts still go to foreign companies.
Eko Hot Blog reports that this concern was brought to the fore during the Intra-African Trade Fair (IATF 2025) in Algiers, where Afreximbank’s Executive Vice-President, Kanayo Awani, said that African contractors continue to be sidelined despite growing competence.
EDITOR’S PICK
- Strike Averted As Dangote Allow Refinery Workers Join NUPENG
- Tambuwal’s Comments On Me, Tinubu, Won’t Go Unanswered – Wike
- Lagos Taskforce Dislodges Illegal Street Traders at Mile 2
Foreign firms dominate the space largely because they offer bundled financing solutions, something many African companies cannot yet match.
Awani stressed that although local Engineering, Procurement and Construction (EPC) companies have become more capable in recent years, they struggle to compete due to limited financial backing, regulatory bottlenecks, and restricted access to project opportunities. She noted that the issue isn’t just about who builds the infrastructure it’s about who benefits from it in the long term.
In response, Afreximbank has taken steps to shift the balance. The bank has already facilitated over \$12.1 billion in contracts for African EPC firms in the last five years. Projects like the Julius Nyerere Hydropower Plant in Tanzania, worth \$2.9 billion, and the Nigeria–Niger railway upgrade were successfully executed by African contractors with support from African financial institutions.
Now, the bank is launching the Intra-African EPC Contract Promotion Initiative. This new plan will offer financing, technical support, policy advocacy, and a digital portal to connect African firms with open contracts, training tools, and industry insights. The aim is to close the gap between potential and participation.
Awani urged African governments and the private sector to improve procurement systems, reduce red tape, and create space for local contractors to lead. Keeping infrastructure projects within the continent, she argued, is key to job creation, skill development, and long-term economic growth.
FURTHER READING
- Tinubu Pays Tribute to Late Educationist Leila Fowler FG Orders
- NCAA To Name, Shame Airlines Over Flight Disruptions
Click here to watch video of the week
Advertise or Publish a Story on EkoHot Blog:
Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.
Citizen journalists will receive a token as data incentive.
Call or Whatsapp: 0803 561 7233, 0703 414 5611
