New data from the World Bank reveals that private infrastructure investment in low- and middle-income countries reached $86 billion in 2023. This figure, while representing a 5% decline compared to 2022, is consistent with the average over the previous five years.
Interestingly, despite this overall decrease in total investment, more countries benefited from private investments in infrastructure across a broader range of projects. In 2023, private investments were made across 322 projects in 68 countries, compared to 260 projects in 54 countries the previous year. Countries such as Guinea Bissau, Libya, Papua New Guinea, São Tomé and Príncipe, and Suriname saw their first private participation in infrastructure (PPI) transactions for over a decade.
The World Bank's Private Participation in Infrastructure report has been tracking investments in around 10,000 infrastructure projects in low- and middle-income countries since its inception in 1984. As financing for infrastructure becomes an increasingly important priority globally, this dataset serves as a vital resource for monitoring progress and identifying trends.
"Getting the right infrastructure in place is crucial for people to live to their full potential. With government budgets under pressure and an infrastructure financing gap totaling multiple trillions of dollars, more private sector participation is needed to deliver infrastructure projects," said Guangzhe Chen, Infrastructure Vice President at the World Bank. "At the World Bank, we are pulling out all the stops to enable this progress through our work on public-private partnerships, our overhauled guarantees program, and our grants to the world's poorest countries."
Private infrastructure investments declined across most regions last year; however, there were notable exceptions. The Middle East and North Africa (MENA) region saw PPI investment levels nearly double from $1.4 billion in 2022 to $2.9 billion in 2023. Similarly, East Asia and Pacific (EAP) returned to pre-pandemic levels of investment following a three-year dip due to the impacts of COVID-19.
In terms of sectoral trends, energy witnessed a threefold increase in investment levels in 2023, primarily directed towards EAP. Consistent with the ongoing global effort to reduce greenhouse gas emissions, 97% of electricity generation projects were renewable in 2023, compared to 93% over the previous five years.
Regarding the world’s poorest countries, 26 members of the International Development Association (IDA) received investment commitments totaling $4.3 billion across 53 projects in 2023. This marked an 18% increase and set a record for the number of projects.
The PPI Database holds data on more than 10,000 infrastructure projects in 137 low- and middle-income countries from 1984 to present. It is considered the leading source of PPI trends in developing nations, covering projects across sectors such as energy, transport, water and sewage, information and communications technology (ICT), and municipal solid waste.
For further information, please visit: ppi.worldbank.org