Bridging the great infrastructure funding gap

28 September 2011 - The Asset, James Courtenay

Across emerging markets, much needed economic growth is hampered by a shortage of roads, telecommunications, airports, power plants and other basic infrastructure. The sheer magnitude of investment needed is staggering: World Bank estimates have suggested emerging markets will require at least USD900 billion of annual infrastructure spending up to 2020. Infrastructure is a key driver of productivity, competitiveness and growth in economies. Asia, Africa and the Middle East, in particular, all have huge infrastructure requirements over the next decade, as countries seek to move up the value chain while absorbing fast-growing numbers of citizens. However, funding the multitude of projects required in emerging markets – home to more than four fifths of the world’s population – is a huge challenge for governments and the financial sector, with Asia alone estimated to need around USD8.3 trillion of infrastructure spending up to 2020. Read More.