As the global demand for infrastructure will only continue to grow, the investment environment around it must mature for the private sector to close funding gaps.
Private sector participation in infrastructure is not new, but the need for it is greater and much more apparent now than before. The World Bank maintains a database of nearly 7,000 projects in low and middle-income countries that were funded either completely or partly by private investment over the last three decades. From 1990-2016, these projects amounted to $1.6tn of investments. While this does not include private investment in high-income countries, it is a miniscule amount compared to the $94tn needed to fill the world’s infrastructure needs by 2040 based on the Global Infrastructure Hub’s estimates.