Private infrastructure investments in poor countries reached $86 billion in 2023: World Bank

In terms of support for the world's poorest nations, 26 countries affiliated with the International Development Association (IDA) saw a record 18% increase in investment commitments, totaling $4.3 billion across 53 projects.

According to new data released by the World Bank, private infrastructure investments in low- and middle-income countries reached $86 billion in 2023, marking a 5% decline from the previous year but aligning with the five-year average. Despite the overall decrease, the number of countries benefiting from private investments expanded, with 68 countries receiving funding for 322 projects, an increase from 54 countries and 260 projects in 2022.

Notably, countries such as Guinea Bissau, Libya, Papua New Guinea, São Tomé and Príncipe, and Suriname secured their first private participation in infrastructure (PPI) transactions in over a decade. This expansion underscores the growing geographical diversity in infrastructure investments.

The World Bank’s Private Participation in Infrastructure report, which has been tracking investments since 1984, highlights the critical role of infrastructure in enabling full societal potential and addressing the multi-trillion dollar global infrastructure financing gap. Guangzhe Chen, Infrastructure Vice President at the World Bank, emphasized the necessity of increased private sector participation to bridge this gap, particularly through mechanisms like public-private partnerships, revamped guarantee programs, and grants for the world's poorest countries.

Regionally, the Middle East and North Africa (MENA) and East Asia and Pacific (EAP) saw notable investment increases. MENA's investments nearly doubled from $1.4 billion in 2022 to $2.9 billion in 2023, while EAP bounced back to pre-pandemic investment levels.

The energy sector experienced a significant surge in investments, particularly in EAP, with a threefold increase from the previous year. This aligns with global efforts to reduce greenhouse gas emissions, as 97% of electricity generation projects in 2023 involved renewable sources, up from 93% over the previous five years.

In terms of support for the world's poorest nations, 26 countries affiliated with the International Development Association (IDA) saw a record 18% increase in investment commitments, totaling $4.3 billion across 53 projects.

The PPI Database, which includes data on over 10,000 infrastructure projects across 137 low- and middle-income countries from 1984 to present, continues to serve as a crucial resource for understanding and analyzing trends in private infrastructure investment in the developing world.