Private investment in infra declining, says GI Hub
A new report by the Global Infrastructure Hub (GI Hub) has said that private investment in new infrastructure has been steadily declining since 2010.
The Infrastructure Monitor 2020 report says that despite the financial performance of infrastructure assets being “better than generally expected” private investment in infrastructure through primary market transactions remains low at around $100bn per year.
The report notes that the social infrastructure sector has suffered the greatest decline, from $19bn in 2010 to $3bn in 2019, and that Europe has been the region that has waned the most. Conversely, Latin America, the Middle East and North Africa have been the fastest growing over the period.
GI Hub CEO Marie Lam-Frendo said: “Private investment of US$100bn per year is a drop in the ocean compared to the estimated US$15tn global infrastructure financing gap. Whilst mobilising private capital is key, Infrastructure Monitor shows a lack of private sector appetite for new infrastructure investment.
“Now is the time for industry to explore other options, with true partnership between the public and private sectors, to help close the infrastructure gap.”
The full report can be found by clicking here.