The Missing Middle: Infrastructure as the Strategic Constraint on Africa’s Industrial Ascent

Africa stands on the cusp of an industrial and energy transition. With abundant critical minerals and renewable energy resources, the potential to build local value chains and catalyse sustainable development is immense. Yet one persistent constraint undermines this potential: infrastructure - or rather, the lack of it.

Despite growing policy momentum and investor interest, the absence of enabling infrastructure remains the greatest impediment to the continent’s industrial future.

Power reliability is a major concern; energy deficits and grid instability continue to hinder industrialisation and clean technology manufacturing. Transport corridors remain underdeveloped. Many critical mineral deposits are landlocked and inadequately connected to processing centres and ports. Cross-border trade is slowed by customs inefficiencies and regulatory friction, driving up costs and eroding competitiveness. Digital infrastructure and contextualised data are also lacking, limiting logistics efficiency, traceability, and ESG compliance.

The continent is not unique in facing these challenges. Other growth markets offer valuable blueprints. Vietnam and Indonesia have strategically invested in special economic zones (SEZs) and reliable power to attract large-scale FDI and build clean technology supply chains. Chile and Peru have developed integrated mining, energy, and port clusters, anchored by regulatory clarity and targeted infrastructure investment. India has scaled renewable energy and rail infrastructure through blended finance and public-private partnerships. These examples demonstrate that infrastructure, aligned with industrial policy, can transform economies within a generation.

Infrastructure is more than a physical necessity - it is the critical nexus where strategic capital inflows, sustainable development, and intra-continental trade converge. Initiatives like the Lobito Corridor, a multimodal transport and industrial corridor linking Angola, the DRC, and Zambia, exemplify how targeted infrastructure investment can unlock value chains, accelerate regional integration, and enable African countries to retain more value from their resource wealth. But to realise this potential, the continent needs collaborative governance structures, regulatory

certainty, and investment frameworks that align global strategic interests with continental development priorities.

Regional infrastructure corridors must be prioritised under the African Continental Free Trade Area (AfCFTA) framework. This includes establishing cross-border PPP structures that blend public investment with concessional and private finance, and investing in local technology capabilities for renewable energy, processing, and traceability systems.

Notably, several African-led institutions, including the African Development Bank, Africa Finance Corporation, and Africa50, are already addressing the continent’s estimated $68bn to $108bn annual infrastructure financing shortfall (1).

These institutions are deploying capital, de-risking projects, and structuring innovative investment vehicles that lay the groundwork for industrialisation and regional integration. Their efforts signal a growing ecosystem of continental capability. What’s now required is tighter coordination between infrastructure investment and industrial strategy to translate bold capital flows into productivity, local value addition, and long-term competitiveness.

The continent needs a new generation of infrastructure partnerships; data-rich, policy-aligned, and built to scale. At Acorn & Partners, we help shape these partnerships by combining regional insight with proven global strategies. Our focus is on arming stakeholders with decision-grade intelligence and translating ambition into bankable, outcomes-driven investments.

References: https://african.business/2025/04/long-reads/bridging-africas-infrastructure-gap