In an era marked by volatility and uncertainty, infrastructure investing stands out as a stable and strategic avenue for long-term growth—especially in the context of emerging markets. As the world pivots toward sustainable development and urbanization, the appetite for infrastructure assets is intensifying. According to Varun Jain, Chief Revenue Officer at index provider BITA, emerging markets have already surpassed developed economies in terms of contribution to global growth, a trend that is set to accelerate in the coming decade.
Emerging Markets: The Growth Engine
Emerging economies now account for more than half of global economic growth, and this share is projected to surge to 65% by 2035. S&P Global Market Intelligence forecasts these regions will grow at an average annual rate of 4%, in stark contrast to the 1.6% expected from developed markets. Asia, Latin America, and Africa are at the forefront of this transformation, collectively facing an infrastructure investment need of $6.5 trillion by 2035.
What’s driving this surge? Robust economic momentum, demographic expansion, and rapid urbanization are all contributing factors. As rural populations flock to urban centers in search of opportunity, the demand for essential services such as transportation, energy, sanitation, and telecommunications is skyrocketing.
Urbanization and the Infrastructure Imperative
“Urban centers are becoming the new economic hubs,” notes Thuy Quynh Dang, portfolio manager at Cohen & Steers. “This migration, paired with rising living standards, is fundamentally reshaping the investment landscape.”
Emerging middle classes are asserting new consumer expectations—demanding modern water systems, reliable road networks, and ultra-fast broadband. Public and private sectors alike are scrambling to fill the infrastructure gap, creating fertile ground for investors seeking resilient, income-generating assets.
In particular, airport infrastructure is poised for growth as international travel becomes increasingly accessible. With demand for air travel expected to double in the next 15 years, expanding airport capacity across emerging economies presents a compelling investment thesis.
Why Infrastructure is a Stable Growth Haven
Infrastructure assets are typically long-term in nature, inflation-linked, and often underpinned by government contracts or monopolistic market structures. These characteristics make infrastructure an attractive hedge against inflation and market volatility—traits particularly appealing in today’s economic climate.
Moreover, infrastructure investing aligns with impact-focused and ESG strategies. Whether funding renewable energy parks in West Africa or smart transportation networks in Southeast Asia, infrastructure portfolios can generate both financial and social returns.
The Offshore Angle
For offshore investors, infrastructure in emerging markets offers exposure to high-growth regions while benefiting from portfolio diversification, currency arbitrage, and favorable regulatory frameworks via green bonds or infrastructure-focused investment trusts domiciled in places like Luxembourg, Dubai, or Singapore.
Conclusion
Infrastructure is no longer just a cornerstone of domestic policy—it’s a global investment imperative. Emerging markets are setting the pace, and the capital flowing into roads, bridges, energy grids, and digital networks is only expected to grow. For savvy offshore investors, the road ahead is paved not just with concrete and fiber optics—but with stable, long-term returns.
Invest Offshore is proud to support infrastructure initiatives in West Africa and currently seeks partners for high-impact projects in the Copperbelt Region. Contact us to learn more about investment opportunities.
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