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Tackling Infrastructure Project Delays in Africa: The Hidden Costs of Inexperience and Poor Funding Strategies Infrastructure development across Africa promises economic development, economic growth, job creation and sustainable progress, yet chronic delays plague many projects. From solar farms in Southern Africa to mixed-use developments in South Africa, timelines stretch from years to decades. These setbacks often stem from inexperienced public officials putting together public projects without proper advice, without adhering to laws and regulations. The other factors causing such setbacks is due to civil servants compiling and wanting to undertake infrastructure development projects without proper budgeting, nor without ensuring that the projects that they need to undertake have been properly scoped, properly costed and they have a feasible funding model. Infrastructure and real estate development delays are also caused by inexperienced professionals preparing or driving such projects without undertaking proper project scoping, without doing feasibility studies and without undertaking proper costing that is informed by the work of various professions such as architecture, civil engineering, electrical engineering, mechanical engineering, structural engineering, etc. As a result of this gap in the scoping and the preparation of infrastructure development projects, such projects end up being delayed, or the projects end up collapsing because they fail the funding test. Another factor that causes delays to the implementation of projects related to infrastructure development and/or real estate development is that of promoters who are unskilled in structuring, arranging and capital raising, where they and the project owners come to the market with unrealistic expectations of cheap debt (where people have punted funding costs of 3% per annum), and in certain instances, they come to the market expecting to get grants for infrastructure development projects. Such promoters provide incorrect or incomplete advice, where infrastructure development and real estate development projects are planned in a manner that results in such infrastructure development projects being non-compliant with sustainability regulations. The cost of delays to infrastructure development projects is not just to the individual project owners, or to the government department or entity wanting to implement such projects, it is also a cost to the economy, as well as a cost to the sovereign integrity of a nation or country. In this two-part article, we dissect the root causes and offer actionable solutions. Part 1: How Project Owners’ Resistance to Structured Finance Fuels Delays and Raises the Cost of Infrastructure Delays Firstly, Project owners frequently underestimate the complexity of planning large-scale infrastructure development projects. Secondly, project owners underestimate the long-term costs of infrastructure project delays, where the real cost can even transcend generations, and start to erode the sovereignty of a nation. Thirdly, project owners frequently underestimate the complexity of funding large-scale infrastructure, where if funding from the government budgets fails, such project owners end up opting to not hiring structured finance professionals or transaction advisors. Sometimes even if they do, they hire transactions advisors who have no clue how public infrastructure development can be funded outside of the normal government balance sheet avenues. This decision creates a cascade of delays. Without expert guidance, owners approach financiers from a position of ignorance, pitching projects with flawed financial models or unrealistic terms, such as expecting 100% debt funding for equity-heavy ventures. Consider these common pitfalls: These issues compound: a solar project might languish for years because promoters bypassed advisors, only to learn post-pitch to potential financiers that their project does not meet funding requirements, this on top of violating grid compliance rules. Something that could have easily been avoided, had the correct approach been employed from Day 1. The delays related to infrastructure development projects prevent economies from diversifying, and they actually have the potential of delaying the adoption of 4IR (fourth industrial revolution) for many of the low-income and less developed countries. Part 2: Ziyanda Capital’s Proven Solutions to Accelerate Your Projects and Avoid the Cost of Infrastructure Delays Ziyanda Capital specialises in bridging the gaps highlighted herein. Ziyanda Capital advises project owners on the correct approach for infrastructure development in Southern Africa. Our structured finance advisory turns delayed dreams into delivered assets. Here’s how we deliver: Conclusion: Engage Structured Finance Consultants from Day One Infrastructure project delays erode value, inflate costs (artificially or through normal inflation creep) and erode investor confidence. The resistance of professional structured finance advisors by project owners results in setbacks that would otherwise be avoidable. Setbacks in project implementation do not just cause delayed financial gains for project owners, they erode reputation. Investors do not want to work with, nor to back novices. Investors do not have time to hand-hold project owners, or project promoters. Investors want to invest. Project owners who ignore engaging structured finance advisory firms risk rejection from investors and/or financiers, whilst they risk having to navigate the murky world of regulations, which often require the engagement of corporate lawyers who understand that specific sector of regulatory frameworks by which the project is affected. Partnering with Ziyanda Capital at the outset ensures: Avoid the pitfalls related to delayed infrastructure projects. Contact Ziyanda Capital today, to transform your vision into reality. Ziyanda Capital: For Structured Finance Solutions. Your partner in African infrastructure development finance. Specialising in project preparation advisory, project funding advisory and capital-raising.

A Ziyanda Capital opinion piece Africa needs $130–170 billion per year in infrastructure investment to realise the promise of the world’s largest free trade area.  13 min read · Transport · Energy · Digital · Finance Updated April 2025  Africa stands at a defining moment in its economic history. With the African Continental Free Trade Area (AfCFTA) creating the largest free trade area in the world by number of participating countries, 54 nations with a combined GDP of $10,8 trillion, and a market of 1.7 billion people, the continent has made its most ambitious economic commitment since independence. Yet one critical question persists: can Africa trade effectively with itself without the infrastructure to support that trade? The answer, backed by mounting evidence, is unambiguous: it cannot. Infrastructure is not a complementary asset to economic growth, it is the foundational prerequisite upon which Africa’s industrialisation, integration, and shared prosperity will be built or broken.  The Infrastructure Gap: Africa’s Binding Constraint Across the continent, infrastructure deficits remain among the most significant barriers to growth. From degraded road networks and skeletal rail systems to chronically unreliable electricity supply and thin digital connectivity, the challenges are both systemic and widespread, and the data is sobering. The African Development Bank estimates the continent requires between $130 billion and $170 billion annually in infrastructure investment.  AFRICA’S ANNUAL INFRASTRUCTURE INVESTMENT NEED VS. CURRENT SPEND — USD BILLIONS  Sources: Africa Finance Corporation – State of Africa’s Infrastructure Report 2025  The current financing gap is estimated at approximately $100 billion per year, a shortfall that has persisted for decades while the population and its needs continue to grow. At the current pace of investment, sub-Saharan Africa would only meet its Sustainable Development Goal infrastructure targets in the year 2117, according to analysis of UNCTAD data.   Transport costs are particularly crippling. Poor connectivity means road transportation accounts for approximately 29% of the price of goods traded in Africa, compared to just 7% for goods traded outside the continent, a structural competitiveness penalty embedded in every transaction.  KEY CONSTRAINT AREAS Transport inefficiencies dominate the cost of doing business. With 80% of goods and 90% of passenger traffic moving by road, and more than 60,000 km of critical road links requiring urgent upgrading to accommodate AfCFTA freight growth, the transport deficit is the continent’s most immediate trade barrier. Upgrading those road links alone would cost, at the very least, $24 billion.  Energy shortages undercut industrial productivity across the continent. Africa added just 6.5 GW of utility-scale energy capacity in 2024, which when compared to India’s 18 GW in renewables and the United States’ 48.6 GW, looks insignificant. Closing Africa’s energy gap requires approximately $190 billion annually, amount to approximately 6% of GDP, yet less than half of all Africans have reliable electricity access.  Digital infrastructure gaps constrain modern commerce. While 87% of people in Sub-Saharan Africa live within an area with mobile broadband coverage, 40% still lack connectivity due to digital literacy barriers, handset costs, and unaffordable data, limiting access to e-commerce, digital payments, and modern customs systems.  Water and logistics systems remain insufficient to support the scale of agriculture and manufacturing that AfCFTA envisions. Investment needs for roads account for 32% of total requirements, railways 24%, fibre-optic cables 23%, and solar power 17%, according to OECD analysis.  The State of Africa’s Infrastructure: A Spatial Overview Infrastructure development across Africa is highly uneven. Northern and Southern Africa are significantly better connected than the interior of the continent, while landlocked states, particularly in Central and West Africa, face the most severe constraints on trade and economic participation.  Infrastructure Development as Economic Stimulus: The Multiplier Case  Infrastructure development is one of the most powerful tools for economic stimulus available to any government or development institution. Its impact is simultaneously immediate, this through job creation and construction activity, and long-term, through the productivity gains and investment flows it unlocks over decades. 👷 Direct Job Creation Large-scale projects create millions of direct and indirect roles, construction, engineering, supply chains, and ongoing operations and maintenance.  🏭 Enablement of Industrial Development Programmes Reliable energy and transport unlock manufacturing, agro-processing, and mining at scale, the foundation of structural economic transformation.  💰Attraction of Investments Investors commit capital where infrastructure reduces operational risk. World Bank modelling projects FDI into Africa could rise by 159% under full AfCFTA implementation. 📦 Productivity Gains Lower transaction costs, shorter delivery times and improved market access cascade through every sector, compounding returns over time.  📈 GDP and/or Economic Multiplier   ISS (Institute of Security Studies) Africa modelling shows the Leapfrogging Infrastructure scenario could make Africa’s economy $600 billion larger by 2043, which is 7.1% above current-path forecasts. The ISS Africa modelling of is particularly instructive.  If Africa were to spend an additional $77.9 billion (2017 USD) in infrastructure development projects, such investment or capital spend would boost Africa’s GDP growth rate to 5,6% per annum by 2043. To put it into context, the $77,9 billion additional spend represents an economic stimulus package that could deliver an additional 310,000 jobs as well as a GDP measure of $377 per capita.    A Market Awakening: The Rise of Intra-African Trade Sources: Afreximbank Africa Trade Report 2024; One Africa Markets 2025; Brookings Institution If Africa builds the infrastructure, trade will follow. And where trade flows, prosperity grows. CENTRAL THESIS: AFCFTA INFRASTRUCTURE IMPERATIVE Between 2019 and 2024, intra-African trade tells a compelling story of both constraint and breakthrough. In 2019, trade across the continent stood at approximately $70 billion, a modest figure reflecting fragmented markets and deep structural barriers. The dip to around $58 billion in 2020, driven by the COVID-19 pandemic, exposed the fragility of Africa’s internal trade systems and the extent to which the movement of goods depended on inefficient infrastructure.  Recovery began gradually. By 2021 and 2022, trade activities climbed back to roughly $75 billion and $85 billion respectively, supported in part by the early implementation of the African Continental Free Trade Area. Yet growth remained constrained, highlighting a critical reality: policy reform alone cannot drive trade without the infrastructure to support it. The real shift came between 2022 and 2024. Intra-African trade surged dramatically to nearly $195 billion in

Unlocking Efficient Project Funding for Infrastructure Development Ziyanda Capital specialises in structured finance services for real estate, infrastructure and energy projects across Botswana, South Africa, Zambia, Mozambique and beyond. But why do we focus on these services? The finance world isn’t just about connecting investors with project owners, it’s far more nuanced. It’s not about being a glorified postbox, it’s about analysing, identifying risks, mitigating risks and advising clients accordingly. Realities of Expectations Asymmetry in Project Finance Investors and project promoters often enter negotiations with mismatched expectations, what we call expectations asymmetry, or “information asymmetry on steroids.” Project promoters expect to get money from investors with bare minimum information, whilst investors expect project promoters to submit reams and reams of information to show why the project is viable and feasible. It takes a structured finance expert to bridge the information gap between investors and project promoters. The reality about project promoters trying to do things by themselves are as follows: Cold fact: In Southern Africa’s competitive infrastructure market, unprepared projects fail fast. Professional project preparation and packaging is the promoter’s core responsibility – if you lack expertise, hire specialists. That is why Ziyanda Capital plays in this space, where we come in to bridge the information asymmetry gap. Enter Structured Finance: Your Path to Optimal Funding Once your project is scoped, costed, and planned, funding becomes the crux. There are certain project developers who are running around with project concepts, instead of scoped and costed projects, who are also looking to “source funding”. Structured finance bridges this information asymmetry gap by designing tailored solutions that align lender and equity portions for maximum efficiency in terms of implementation and providing returns to all stakeholders in a project. Key benefits of structured finance include: For example, in a recent Zambian solar project, structured finance reduced funding costs by 15% via blended finance, securing 70% debt at favourable rates while minimising equity dilution for the founding partners or shareholders. Structured finance brings the sensibility of arguments backed by numbers that are reflected in the financial model that runs off a set of agreeable assumptions. Why Choose Ziyanda Capital for Structured Finance in Africa? Ziyanda Capital is based in Johannesburg, Gauteng, with offices in Botswana, the UK (United Kingdom), Lesotho and Zambia, and soon-to-open offices in Eswatini. Ziyanda Capital draws on deep experience in Southern Africa investment banking experience, project finance, public-private partnerships (PPPs) and renewable energy structuring and financial modelling that is preceded by thorough and robust engagements. Our expertise saves you from “pillar-to-post” frustration—delivering funding efficiently so savvy competitors don’t steal your idea. Structured finance maximises your return on effort, cutting time, pain, and costs, all the while ensuring that you preserve your legacy as the founding partner in a venture or in a project. Structured finance brings the fusion between the legal and regulatory side of operations, with the commercial realities. Ready to structure your next infrastructure or energy project? Contact Ziyanda Capital today for a free consultation on your project, as well as a free funding assessment.

Infrastructure development projects rarely fail because the need is unclear. Infrastructure development projects fail because the funding thereof is often wrong. Across Africa and other emerging markets, governments and developers continue to plan for investing heavily into energy, transport, water and social infrastructure. Yet too many projects fail to reach financial close, whilst some stall during construction, and in the event that they proceed to completion of construction, such projects tend to underperform over the long term. At the core of these challenges lies a single issue: incorrectly structured infrastructure funding. Funding that is misaligned with project risk, asset life cycles and institutional capital requirements undermines otherwise sound infrastructure investments. From a structured finance perspective, getting infrastructure funding right is not optional; it is fundamental to delivery, sustainability and long‑term economic impact. Why does Infrastructure Development Matter? Infrastructure development is the bedrock of inclusive economic growth. Roads, energy systems, water infrastructure, social facilities and digital networks enable productivity, attract investment and improve quality of life. Yet across Africa and other emerging markets, infrastructure projects too often fail to achieve their intended impact, not because the need is misunderstood, but because the funding is incorrectly structured. At Ziyanda Capital, we have consistently observed that the success or failure of infrastructure projects is determined as much by how they are funded as by what is built. Correct funding is not simply about securing capital; it is about aligning capital structures, risk allocation, cash flows and institutional capacity over the full life cycle of a project. Infrastructure Funding Is Not the Same as Project Financing A common misconception in the market is that infrastructure funding is synonymous with project financing. In reality, infrastructure development (and maintenance) requires bespoke funding models that reflect long development horizons, complex stakeholder environments and public‑interest considerations. Unlike conventional project finance and/or corporate finance, infrastructure development projects: When funding structures do not account for these realities, projects experience cost overruns, refinancing distress or outright failure. Correct funding must therefore be purpose‑built and asset-matched not templated, i.e. taken from some template that was developed for another project. The Cost of Incorrect Funding Structures for Infrastructure Development Projects Poorly structured funding for infrastructure development has systemic consequences. From our experience in infrastructure investment mobilisation and advisory work, the most frequent outcomes of incorrect funding include: These outcomes ultimately burden the public sector, reduce fiscal space and delay socio‑economic benefits. Infrastructure development funding must therefore be approached as a strategic economic intervention, not merely as a financial transaction. Why Structured Finance Matters in Infrastructure Structured finance is essential because it allows infrastructure projects to blend multiple forms of capital in a way that distributes risk appropriately and improves bankability. Correctly structured infrastructure funding typically combines: This approach, usually obtained through intensive structuring by knowledgeable and experienced structured finance consultants unlocks private capital by mitigating risks that private investors cannot reasonably absorb on their own. Structured finance is not about complexity for its own sake, it is about making infrastructure investable at scale. Ziyanda Capital’s role as a structured finance consultancy is precisely to design these structures in a way that balances public objectives with commercial discipline.  Aligning Funding With the Infrastructure Lifecycle One of the most overlooked principles in infrastructure development is funding that is lifecycle aligned, i.e. funding required for project preparation, funding required for construction and funding required for maintenance post construction of an infrastructure asset. Infrastructure assets move through distinct phases; development, construction, ramp‑up, operation and maturity, each with different risk and return profiles. Correct funding ensures that: When funding does not evolve with the asset, projects become structurally fragile. Lifecycle‑aligned funding, on the other hand, enhances the success of the infrastructure development process, resilience and long‑term sustainability of the asset. Unlocking Institutional Capital Through Correct Structuring Pension funds, insurance companies and sovereign institutions control vast pools of capital suited to infrastructure investment. However, these institutions require clarity, predictability and governance certainty. Correct infrastructure development funding structures: By designing structures that meet institutional mandates, infrastructure development projects transition from being “government obligations” to bankable investment assets. This shift is critical for closing Africa’s infrastructure funding gap. Public Sector Balance Sheets and Fiscal Sustainability Incorrect funding for infrastructure development projects often migrates risk back onto the government balance sheet. Where applicable, guarantees are triggered, contingent liabilities crystallise and fiscal stress increases. Correct funding achieves the opposite: This is especially important in fiscally constrained environments, where infrastructure delivery must coexist with broader macroeconomic stability. The Strategic Value of Independent Financial Advisory Funding, even at that, correct funding for infrastructure development is too important to be driven by financiers alone, and it is equally too important to be driven by policy-makers and legislators alone. Independent structured finance advisers play a critical role in: The independent of financial advisory consultancies such as Ziyanda Capital allows us to act as trusted arrangers, structurers and transaction managers, ensuring that funding decisions serve long‑term project outcomes rather than short‑term capital deployment. Conclusion: Funding Is Infrastructure Development Infrastructure development is not only about engineering and construction, it is fundamentally about financing such projects in the most optimal way possible. Without correct and/or optimal funding, even the most well‑designed project will fail to deliver its intended impact. Getting infrastructure development and the funding thereof right: As infrastructure needs continue to grow, particularly across Africa, structured finance will remain the difference between ambition and achievement. At Ziyanda Capital, we believe that optimised funding for infrastructure development is not a support function, it is the essence of infrastructure development itself.