Gulf investors are likely to contribute an average of $5bn to African infrastructure in the coming years, according to a recent study by the Dubai Chamber of Commerce and Industry.

The study, which was developed in collaboration with the Economist Intelligence Unit (EIU), revealed that Gulf entities have provided at least $30bn of funding to African infrastructure over the past decade.

This amounts to between 7% and 10% of total inflows, of which approximately $15bn in loans and grants from Gulf development agencies and approximately $15bn in direct investments.

According to the study, Gulf funding for African infrastructure has focused on North Africa, which has received the bulk of investment (65% and also a large share of the direct private investment (60%).

There was a focus on countries such as Djibouti and Senegal, whereas there was relatively little Gulf investment in the continent’s fast-growing economies of Angola, Ethiopia and Nigeria.

According to the findings, the telecoms sector was the main infrastructure focus of the GCC private sector, followed by ports and, increasingly, power generation.

Hamad Buamim, President and CEO of Dubai Chamber of Commerce, said the study highlights key facts about the economic reality in Africa and business opportunity.

He said that due to cultural and historical ties to Africa, “GCC investors are well positioned to invest in infrastructure in Africa”.

“Opportunities are not limited to public and large companies, small companies are also well positioned to invest. Dubai Chamber’s study has revealed that given the perceived  risks associated with mega-projects in several African markets, smaller-scale projects have becoming increasingly more appealing, especially in the energy industry,” said Buamim.

“Gulf investors must take care to differentiate between the region’s many countries, rather than view them as a homogenous “African” market,” he added.