Ghana accounts for 70 percent of private sector investment in developing countries in 2016

Two projects in Ghana totaling US$2.05 billion—the US$552 million Amandi Energy Power Plant and the US$1.5 billion Tema Port Expansion—accounted for 70 percent of all investment in IDA countries in 2016 says a new World Bank Group report..

Although Investment commitments in infrastructure projects with private participation in developing countries declined sharply in 2016, falling by 37 percent compared to 2015, the Sub-Saharan Africa region recorded 11 infrastructure deals totaling US$3.3 billion, with Uganda the most active country with four projects worth US$64 million, followed by Ghana and Senegal with two projects each.

In 2015, the SSA saw considerably more projects: 22 projects in the energy sector (mostly in South Africa), and one project each in the transport and water sectors.

“Infrastructure in developing countries are untapped investment opportunities, with only a small percentage of projects attracting private sector investment so far,” said Laurence Carter, Senior Director for the Infrastructure, PPPs and Guarantees Group at the World Bank.

“The potential within regions and sectors is enormous, and the World Bank Group will continue to prioritize supporting infrastructure investments in order to boost more inclusive growth.

The PPIDB looks at infrastructure projects in 135 developing countries, but only a few dozen countries see significant private sector investment in infrastructure. A 43 percent increase in commitments in East Asia and an equally significant pick-up in the renewable energy sector were bright spots in an otherwise sluggish year.

Investment commitments in renewables continued to rise in 2016, comprising 88 percent of the 144 electricity generation projects supported by the private sector.

The projects are mostly focused on hydropower, solar PV, and onshore wind technologies. Compared to declining volumes in the transport and water sectors, private sector investment in energy projects increased overall, by 11 percent year-on-year.

The data also indicates a sixth straight year of declining investment in coal-fired power projects.

China and Indonesia were popular investment destinations. Investment commitments in China reached US$11.4 billion in 2016, an increase of 75 percent from the 5-year average, and the improvement may reflect early success for China’s recently launched PPP program.

“Strengthening private investment in infrastructure in the world’s poorest countries is a priority for the World Bank Group. We are committed to working with development partners to address and de-risk challenging environments, in order to attract more private sector investment in a broader range of countries,” said Clive Harris, Practice Manager for the Infrastructure, PPPs and Guarantees at the World Bank Group.

The PPI Database comprises of more than 8,700 infrastructure projects with private participation, dating from 1984 to 2016. It is prepared by the World Bank Group’sInfrastructure, PPPs and Guarantees Group and tracks investment commitments in infrastructure projects in low and middle income countries with at least 20% private ownership.

The five countries with the highest levels of investment in 2016 were: Brazil, with US$15.2 billion; China, with US$11.4 billion; Colombia, with US$10.1 billion; Indonesia, with US$6.9 billion; and the Philippines, with US$5.4 billion. These five countries together attracted US$49.1 billion and captured 69 percent of global commitments to infrastructure investments in emerging economies in 2016