Africa’s $170bn Infrastructure Deficit Presents Major Investment Opportunity — Expert

Africa’s estimated annual infrastructure financing gap of between $130 billion and $170 billion has been identified as a major investment opportunity, particularly as the continent navigates the global energy transition.

Chief Executive Officer of Montserrado, Ifeanyi Ajuluchukwu, said closing the infrastructure deficit especially in the energy sector remains critical to achieving sustainable development rather than pursuing renewable energy models that overlook urgent economic needs.

Speaking in a statement on Monday, Ajuluchukwu noted that Africa contributes less than four per cent of global carbon emissions, arguing that this should allow for pragmatic steps to expand reliable power supply while reducing waste and emissions.

“Nearly 600 million people in Sub-Saharan Africa still lack access to electricity. In Nigeria alone, power supply hovers around 4–5 gigawatts for over 220 million people,” he said.

He observed that unreliable grid supply has forced businesses and households to rely heavily on diesel generators, driving operating costs to between three and five times grid tariffs.

Citing data from the African Development Bank and other sources, Ajuluchukwu said Africa requires between $130 billion and $170 billion annually to meet infrastructure needs across energy, transport, water and digital sectors, with energy accounting for a significant share.

He added that reports from the African Union Development Agency-NEPAD and the Africa Investment Forum have consistently highlighted infrastructure shortfalls as a constraint on economic growth despite growing private sector interest.

Ajuluchukwu also pointed to gas flaring in Nigeria as an example of untapped potential. According to data from the Nigerian Upstream Petroleum Regulatory Commission, the country flared about 204 billion standard cubic feet of gas in 2025, representing significant lost revenue and substantial carbon emissions.

He said harnessing flared gas for power generation, liquefied petroleum gas (LPG) for clean cooking and industrial use could deliver both economic and environmental gains by displacing more polluting fuels.

Montserrado, he disclosed, has facilitated over $200 million in transactions spanning gas processing, solar photovoltaic projects, modular refining, power generation and transport infrastructure. The firm’s pipeline includes more than 370 million standard cubic feet per day of gas-to-power capacity, which could support about 2.1 gigawatts of generation, alongside over 240 megawatts of embedded and captive power projects.

“These solutions reduce emissions while enabling economic growth. The transition must not undermine other development priorities,” he said.

Ajuluchukwu stressed the need for long-term patient capital and partnerships with experienced local developers to de-risk projects at early stages, where international financiers often show hesitation.

He noted that Africa’s population is projected to reach 2.5 billion by 2050, with urbanisation approaching 60 per cent, trends that will drive sustained demand for baseload power in manufacturing, mining and urban centres.

Montserrado’s impact pipeline, he said, aims to expand clean cooking access to up to 15 million people annually, provide embedded power to over one million individuals and help avoid an estimated 2.3 million tonnes of carbon emissions each year.

Ajuluchukwu, who has more than two decades of experience in banking, project finance and energy, said the company was founded to bridge the gap between project concepts and bankable investments.

He advocated what he described as a realistic energy transition that balances climate objectives with economic realities, cautioning against rigid interpretations of net-zero goals that could discourage financing for essential fossil-to-cleaner energy shifts.

“Energy transition is ultimately about people — reliable power for hospitals, businesses and homes, cleaner air through improved cooking solutions and stronger national resilience through domestic energy use,” he said.

He added that investors willing to engage early and structure projects effectively stand to benefit from long-term, inflation-linked returns in high-growth African markets.