The World Bank in its recent data projection on investments has disclosed that infrastructure investments in low and middle-income countries resumed in the year ending in December 2022.
According to the World Bank’s study, commitments for Private Participation in Infrastructure (PPI) across 263 projects were $91.7 billion (Sh12.4 trillion), a 23% increase from 2021.
“The total number of projects, however, is still below pre-pandemic levels.”
World Bank
Despite the fact that the trends point to an overall recovery, the lender claims that investments were unevenly distributed and concentrated in certain areas.
Stating an example, World Bank noted that investments in Sub-Saharan Africa fell by 15% from the average over the previous five years.
“Nevertheless, the Sub-Saharan Africa regions had the most PPI transactions per country and project over the previous ten years. Around 45 PPP projects are currently being implemented or running in Kenya, six of which are 639 km of roads under the road’s annuity and tolling programs.
“39 additional projects total 3,034 megawatts of installed capacity for energy generating. Road tolls were initially implemented in the nation in the late 1980s, but they were discontinued in the middle of the 1990s in favor of the Roads Maintenance Levy to combat corruption at toll booths. Currently, the levy costs drivers Sh18 per liter when buying gasoline and diesel, respectively.”
World Bank
World Bank in its report further pointed out that in the time under consideration, 30 projects totalling $4.7 billion (Sh639.2 billion) in investment pledges were made to the world’s 18 poorest countries, 18 of which are IDA members.
“This represents more than a 26%t increase in investment levels compared to 2021, but also a 22%t lower investment level than the past five-year average of $6.1 billion (Sh829.6 billion).”
World Bank
World Bank Segregation Of Investment Among Various Sectors
According to World Bank, its International Financial Organization IDA provides grants and concessional loans to the world’s poorest developing nations.
Up to 2022, the global lender revealed that the transport industry continued to outpace other industries in emerging countries’ continuous recovery. With 85 projects totalling $66.2 billion (Sh9 trillion) in PPI investment, transportation accounted for nearly 68% of all 2022 PPI spending.
“This is explained by more investment in roads, which have historically been the largest sub-sector in transport commitments. With an increase of around 21% and a total of $25.9 billion (Sh3.5 trillion) in PPI investment during the period under review, the energy industry also saw a considerable increase.”
World Bank
As opposed to an average of 63% over the previous five years, World Bank revealed that investments were increasingly concentrated on environmentally sustainable solutions, with about 85% of new energy projects utilizing renewable energy.
“When compared to other regions’ investment levels, Latin America and the Caribbean, East Asia, and the Pacific saw increases in PPI commitments of 16% and 17%, respectively.”
World Bank
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