May 14, 2024
According to recent World Bank data, private infrastructure spending in low- and middle-income nations reached $86 billion in 2023. Although investments decreased by 5% from 2022, they still matched the five-year average prior to that.
More nations got private investments in infrastructure over a larger sample of projects, even though the overall amount of investment decreased. 68 nations got investments across 322 projects in 2023 as opposed to 260 projects and 54 countries in 2022. The following countries accomplished their first private participation in infrastructure (PPI) agreements in excess of ten years: Guinea Bissau, Libya, Papua New Guinea, São Tomé and Príncipe, and Suriname.
In 2023, private infrastructure investments fell in most regions, with the Middle East and North Africa (MENA) and East Asia and Pacific (EAP) being two major exceptions. PPI investment levels nearly doubled from $1.4 billion in 2022 to $2.9 billion in 2023 as MENA kept up its growing trajectory. Following a three-year lag as the region recovered from the COVID-19 pandemic, investment levels in the EAP region reached their pre-pandemic levels.
As it relates to sectoral trends, there was a threefold increase in energy investment levels for 2023, with majority of this increase being directly related toward EAP. In line with the international acceleration to decrease greenhouse gas emissions, in 2023 97% of electricity generation projects were renewable in comparison to 93% for the prior five-year period.
Regarding the poorest countries in the world, 26 countries that are apart of the International Development Association (IDA) were given investment commitments totaling $4.3 billion across 53 projects for 2023, therefore resulting in a 18% increase and setting a record in terms of number of projects.
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