Future Investment Initiative Institute urges ‘people-centred’ public-private partnerships to close USD 15 trillion gap
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A new report by the Future Investment Initiative (FII) Institute has called for a stronger focus on people-centered public-private partnerships to address a projected USD 15 trillion global infrastructure funding gap by 2040.
The FII Institute Impact Report was developed with the Digital Cooperation Organization, consulting firm Kearney and Voluntary Carbon Market Company. It examines the growing role of public-private partnerships, or PPPs, as governments face tighter budgets and rising investment needs in infrastructure, digital connectivity and energy transition.
According to the report, the global infrastructure financing gap could reach USD 15 trillion by 2040. It estimates a shortfall of about USD 3.7 trillion in the United States and an annual gap of USD 130 billion to USD 170 billion across Africa.
The report said PPPs are no longer limited to procurement arrangements and are increasingly used as a core financing and delivery model. Emerging markets are leading this shift. PPP spending in low- and middle-income countries reached USD 100.7 billion in 2024, a year-on-year increase of 16 per cent. These markets now account for about 61 per cent of global PPP activity by GDP share.
Project pipelines show a move away from traditional centres. The Philippines leads emerging markets with 230 projects, followed by Saudi Arabia with 98, Kyrgyzstan with 80, Bangladesh with 71 and Peru with 54.
The report cited data showing higher user satisfaction for PPP projects, with 83 per cent reporting positive outcomes compared with 69 per cent for projects delivered without private partnerships.
It also warned that public support remains limited. Surveys across seven countries showed that only 23 per cent of citizens believe PPPs benefit everyone equally, compared with 41 per cent of business and government leaders.
To improve outcomes, the report called for clearer risk-sharing arrangements, transparent contracts and performance measures focused on resilience, service quality and emissions.
It highlighted blended finance as a way to support projects that carry higher risk but deliver wider public benefit. One example cited was MUFG’s USD 1.48 billion Project GAIA platform, which uses concessional funding to support climate adaptation projects in 25 emerging markets, with about 70 per cent directed toward climate-resilient infrastructure.
The report said closing the infrastructure gap will depend on clear public mandates, workable investment structures and visible benefits for communities, allowing PPPs to support inclusive and long-term economic growth.
