Private Sector injects $86B into Infrastructure in Low- to Middle-Income Nations

In 2023, private infrastructure investment in low- and middle-income countries reached $86 billion, marking a 5% decline from 2022 but aligning with the five-year average. Despite the overall dip, investments were distributed more broadly, with 68 countries benefiting from 322 projects, compared to 54 countries and 260 projects in 2022. Notably, Guinea Bissau, Libya, Papua New Guinea, São Tomé and Príncipe, and Suriname saw their first private infrastructure investments in over a decade.

The World Bank’s Private Participation in Infrastructure (PPI) report, which tracks investments in over 10,000 infrastructure projects since 1984, highlighted the critical role of private sector participation amid global infrastructure financing challenges. Guangzhe Chen, Infrastructure Vice President at the World Bank, emphasized the necessity of private investments to bridge the substantial infrastructure financing gap, leveraging public-private partnerships, guarantees programs, and grants to support the world's poorest countries.

Regionally, the Middle East and North Africa (MENA) and East Asia and Pacific (EAP) saw notable increases in investment, with MENA nearly doubling its investments from $1.4 billion to $2.9 billion. The energy sector experienced a significant boost, particularly in renewable projects, with 97% of electricity generation investments being renewable. Additionally, International Development Association (IDA) countries saw an 18% increase in investments, reaching $4.3 billion across 53 projects, a record in terms of project numbers.