International Project Finance Decline in 2024

ongoing decline

Prospective

International project finance (IPF), a key financing mechanism for large-scale infrastructure and sustainable development projects, declined by 26 percent globally in 2024. The decline affected capital-intensive infrastructure projects in developing economies, including utilities, transport, communications, and renewable energy sectors tied to the Sustainable Development Goals (SDGs). The downturn led to a 9 percent drop in infrastructure project numbers, with renewable energy announcements falling 12 percent and critical minerals projects dropping nearly 50 percent. Several large mining and energy infrastructure projects in Africa and Latin America faced delays due to environmental permitting. Digital infrastructure was an exception, with project numbers rising by 4 percent and broader digital sectors seeing increased deals and value. The slump disproportionately affected developing countries, especially low-income and frontier markets, with significant declines in Least Developed Countries (LDCs) and African Landlocked LDCs. Some notable projects include major renewable energy projects in Egypt totaling about $17 billion, including a $3.8 billion undersea transmission line, a $2.5 billion hybrid solar-wind plant, and a $2.2 billion onshore wind project. A $2 billion project supported by the International Finance Corporation in Jamaica also contributed to increased IPF value in Small Island Developing States (SIDS). The report calls for stronger roles by governments, multilateral development banks, risk insurance providers, and institutional investors to revive IPF flows, particularly in high-impact sectors.

Infrastructure

ZAWYA

Project

Solar, Wind