A new infrastructure development financing plan has been unveiled by African leaders in a move that is likely to herald a new chapter in the region’s protective coatings systems market. The envisaged infrastructure projects would drive up demand for solutions that cushion them against corrosion and harsh environmental challenges.

The platform, Africa Infrastructure Financing Facility (AIFF), was launched by African Heads of State and Government on Feb. 14, 2026, in Ethiopia’s capital, Addis Ababa, during the Third Presidential High-Level Dialogue of the Alliance of African Multilateral Financial Institutions (AAMFI). The goal is to “accelerate the preparation and facilitation of financing for priority cross-border infrastructure projects aligned with Agenda 2063.”

Agenda 2063

According to the African Union, a continental union of 55 member African states, projects under Agenda 2063 include the Integrated High-Speed Train Network to connect all African capitals and commercial hubs with 12,000 km of track already constructed out of the planned network; the Trans-African Highways (TAH) entailing construction of major road networks to enhance intra-African trade; the Programme for Infrastructure Development in Africa (PIDA), comprising 69 priority cross-border projects across energy, transport, ICT, and water sectors; the Energy and Digital Connectivity initiative; and completion of key transportation undertakings such as the Addis Ababa–Djibouti Railway, TAZARA Railway (connecting Tanzania and Zambia), as well as the Horn of Africa Corridor connecting Djibouti, Ethiopia, South Sudan, and Uganda.

These projects entail the installation of critical assets, a large share of which utilize steel as the key raw material, with some located in areas characterized by harsh environmental conditions. Hence, there is the likelihood of a steady increase in demand for coating solutions that can withstand corrosion, resist abrasion, and provide chemical durability qualities.

Consumption of protective and industrial coatings in this market, like the rest of the global markets, is largely driven by public and private investments in critical sectors such as oil and gas, transportation, energy infrastructure, and marine applications. Industry experts say these investments require structural corrosion protection, extended life performance, concrete protection and waterproofing, rapid cure and abrasion resistance, as well as ultraviolet (UV) stability and weather resistance.

Gathering Financial Resources

However, governments in the continent have documented episodes of delays in mobilizing enough financial resources to address challenges such as aging infrastructure, increasing maintenance costs and below-average lifecycle performance of most assets, such as bridges, tunnels, highways, dams, rail networks and marine structures. 

This financing snag for new infrastructure and for the repair and maintenance of existing ones could mean less spending, especially on protective coatings and linings, thus increasing the risk of compromising the longevity and reliability of the structures.

A statement at the Addis Ababa leaders’ forum by Afreximbank said the drive to achieve the 2063 infrastructure agenda for Africa faces “financing constraints driven by fragmented capital markets, elevated cost-of-capital premiums, limited long-term funding, and persistent reliance on external financial systems that do not fully reflect Africa’s development realities.”

The financing gap is not a reflection of lack of resources, at least according to Ghana’s president John Mahama, who argues the continent’s domestic capital pool currently is in excess of US$2.5 trillion.

“The challenge is not the availability of capital, but how intentionally we deploy it into infrastructure, industrialization, and job creation to realize Agenda 2063 and the African Continental Free Trade Area,” he said.

“The launch of the AIFF is a powerful demonstration of what can be achieved when political will and institutional coordination converge,” he added. “We are confident that this facility will contribute meaningfully to closing Africa’s infrastructure financing gap, estimated at approximately US$221 billion annually over the period 2023 to 2030.”

Samaila Zubairu, Africa Finance Corporation president and CEO, said the continent has the wherewithal to mobilize the financing needed to deliver transformative infrastructure, including cross-border projects that enhance the region’s integration.

“The Alliance of African Multilateral Financial Institutions represents over US$70 billion in balance sheets, working together to close Africa’s trade, investment, and development financing gaps,” he said.

Meanwhile, Dr. George Elombi, Afreximbank president and chairman of the Board of Directors, lauded the new AIFF, saying it “has been designed to address the most persistent constraint to infrastructure delivery in Africa: the gap between political approval and financial execution.

“Too many projects stall not because they lack relevance, but because they are insufficiently prepared, inadequately structured, or misaligned with the requirements of long-term capital,” he added.

Infrastructure Investment

Despite hosting 18% of the world’s population, Africa continues to grapple with an annual infrastructure financing gap of US$100 billion, with experts estimating the region requires an estimated US$181 billion to US$221 billion if it is to achieve the Sustainable Development Goals (SDGs) that include building of resilient infrastructure, promotion of inclusive and sustainable industrialization, as well as fostering innovation.

With the continent receiving only 5% of global infrastructure investment, the launch of AIFF, which will bring together a closer collaboration between public and private sector, will help “address the most persistent constraint to infrastructure delivery in Africa – the gap between political approval and financial execution,”
Elombi said.

“Too many projects stall not because they lack relevance, but because they are insufficiently prepared, inadequately structured, or misaligned with the requirements of long-term capital,” he added.

He called on the African Multilateral Financial Institutions, which he said understand African risk, African markets, and African development realities, to pool expertise, balance sheets, and risk frameworks, and ensure AIFF moves Africa from fragmented interventions to a coherent system capable of mobilizing capital at scale.

According to the African Development Bank, “efficient government debt-financed public investments in areas such as transportation and energy infrastructure will reduce the cost of doing business (while) investment in public infrastructure will catalyze innovation and technological spillovers and open the economy to private participation to accelerate the pace of transformation and economic diversification.”

Coatings Solutions

With the anticipated expansion of the built environment and general cross-border infrastructure in support of Africa’s economic growth, which is projected to increase from 3.3% in 2024 to 3.9% in 2025, reaching 4% in 2026, the importance of solutions such as epoxy, polyurethane, polyurea, cementitious, and other hybrid systems will be more pronounced.

Elsewhere, the production and consumption of corrosion-resistant coated steel is also likely to be driven by the new infrastructure development drive in Africa, although each of the 54 countries in the continent is expected to demonstrate diverse market trends.

Recent construction materials reports indicate both production and demand for steel in Africa have been on the increase since 2021, after a slight decline that coincided with economic shutdowns to the effects of the COVID-19 pandemic.

For instance, the Organisation for Economic Co-operation and Development (OECD) says in its ‘Steel Outlook 2025 Report”, Africa’s steel-making capacity is projected to have increased to 47.3 million metric tons in 2024 up from the 43.5 million metric tons in 2023.

Over the next three years, the steelmaking capacity addition is estimated to increase by 4.5 million metric tons, or nearly 9.5%, as the region expands both new infrastructure and maintenance of existing ones, many of them requiring corrosion-resistant coated steel products.

For Synresins Ltd, one of the East African synthetic resin market players, “the rise of modular construction across East Africa offers faster, safer, and more sustainable housing solutions, and this model relies on structural adhesives and pre-coated panels — both essential for off-site manufacturing and rapid installation.”

The company said in a previous statement, “major infrastructure projects like the East African Crude Oil Pipeline and the Lamu Port-South Sudan-Ethiopia Transport Corridor are anchoring long-term demand for high-performance coatings.”

“These megaprojects require certified epoxy systems and anti-corrosion solutions that can withstand extreme temperatures, humidity, and saline exposure,” it added.

Globally, the Kenyan-based company said the industrial coatings market is expected to grow at a compound annual growth rate of around 3.5%, “but East Africa’s specialised niches, such as corrosion protection coatings and structural adhesives, are expanding faster at nearly 5% per year, signaling a regional shift from generic paint products to performance-engineered coatings built for Africa’s harsh environments.”

For market players such as Kansai Paints, which currently has operations in 10 countries across East and South Africa, the planned infrastructure expansion in the continent fits into its long-term strategy that includes “developing untapped markets by expanding construction chemicals technologies in India to the African market.”