The Global Infrastructure Hub (GI Hub) has revealed that it needs (US) $94 trillion by 2040, with an additional $3.5 trillion for Sustainable Development Goals.
The GI Hub is a not-for-profit organisation formed by the G20.
The financing gap could reach $18 trillion. Emerging markets, especially BRICS, bear the brunt. They account for nearly two-thirds of the financing gap, with BRICS countries collectively constituting about one-third of this requirement.
However, the Organisation for Economic Co-operation and Development (OECD) believes $80 trillion in investor assets can support infrastructure.
BRICS Investment symposium
The Infrastructure Investment Symposium fosters innovation and collaboration. The South African Treasury Department hosted the event on Thursday.
The main aim is to bridge the financing gap and promote sustainable infrastructure development.
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South African Finance Minister Enoch Godongwana, who opened the online symposium, emphasised the need to fast-track infrastructure development and delivery through greater private sector participation.
“Building on the success of previous presidencies, our focus this year has been on exploring ways to fast-track infrastructure development and delivery through greater private sector participation, the promotion of approaches that ensure effective and expedient execution of infrastructure and promoting the transition towards a more resilient and sustainable economic development.”
Enoch Godongwana, South Africa Finance Minister
Global outlook
As the global economy grapples with a gradual rebound from various setbacks, the International Monetary Fund (IMF) issued a stark warning in its April 2023 World Economic Outlook. It warned of slowed economic growth and dominant downside risks.
Projections indicate a slowdown in global growth, dropping from 3.4% in 2022 to 2.8% in 2023, with a subsequent rise to 3% in 2024.
Emerging markets and developing economies are also expected to experience a marginal decrease from 4% in 2022 to 3.9% in 2023, followed by an increase to 4.2% in 2024.
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