Rising demand for critical minerals, expanding intra-African trade under the Africa Continental Free Trade Agreement (AfCFTA) and rapid urbanisation have been identified as factors placing greater pressure on already weak infrastructure needed to move goods and people efficiently.
With public investment capacity constrained, development finance institutions (DFIs), bilateral lenders and private investors have been urged to play a key role in project financing and delivery.

This is according to a report by the Africa Export-Import Bank (Afreximbank) titled, ‘Transport Industry Outlook 2025’, which examined how dilapidated transport systems are negatively impacting trade across the continent.

The report noted that improvements to Africa’s transport infrastructure remain focused on connectivity, competitiveness and regional trade integration. It added that investment must be directed to both cross-border logistics corridors and domestic transport networks by governments to reduce trade costs, unlock export potential and support economic diversification.

This, it said, is driven by the need to move bulk commodities, particularly minerals, more efficiently from inland production zones to coastal ports.

“The current project pipeline reflects a strong emphasis on rail infrastructure, which accounts for over half, 54 per cent, of total planned transport investment by value. Ports (21 per cent) and roads and bridges (20 per cent) also remain significant, reflecting continued efforts to strengthen gateway infrastructure and upgrade key national routes. By comparison, airport investment (five per cent) remains severely limited.

“The West Africa region and the Central and North Africa region lead in terms of total planned transport investment. In West Africa, this reflects strong activity in mineral-rich markets like Guinea and Ghana, where iron ore and bauxite production are driving new rail and port infrastructure and ongoing competition between coastal countries to serve as trade gateways for landlocked neighbours.

“In North Africa, governments are pursuing large-scale multi-modal projects to strengthen their roles as transit hubs for European and sub-Saharan Africa (SSA) trade, just as major regional transport corridors are under development across Africa, reinforcing continent-wide investment in infrastructure and trade connectivity,” the report said.