This article is sponsored by AUDA NEPAD
The objective of PIDA is clear: to create resilient and inclusive infrastructure that will act as a foundation for Africa’s economic advancement. This involves not only physical infrastructure, such as roads, railways, and ports, but also digital and energy systems that enhance regional integration, trade, and sustainable development. A fundamental aspect of these discussions is recognizing that infrastructure serves more than just connectivity; it generates opportunities for all Africans to partake in a shared economic future.
A strategic framework
PIDA, or the Programme for Infrastructure Development in Africa, has long served as the continent’s strategic compass for infrastructure improvement. The vision outlined in Goal 10 of Agenda 2063 – “World-Class Infrastructure criss-crosses Africa” – is nothing short of revolutionary. By establishing robust infrastructure networks that link borders and sectors, PIDA seeks to unite the continent in ways that foster economic growth, reduce poverty, and enhance social cohesion. From the rail systems linking East and West Africa to the energy grids powering industries and homes across the continent, PIDA embodies the future that Africa aims to realize.
Yet, the path toward this vision is fraught with challenges. Africa’s infrastructure deficit is considerable, marked by critical shortages in water, energy, transportation, and ICT. Tackling these shortcomings necessitates courageous leadership, innovative financing solutions, and collaborative efforts among various stakeholders. Progress through initiatives like the NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) and the PIDA service delivery mechanism (SDM) provides some hope. These frameworks have brought PIDA projects closer to financial viability, ensuring that infrastructure initiatives are not just theoretical but are actively moving forward into the implementation phase.
The need for innovative financing
There is an urgent requirement to diversify and innovate financing mechanisms for infrastructure development in Africa. Traditional funding methods, such as government financing and international aid, have proven insufficient in meeting the continent’s extensive infrastructure needs. Significant focus should be given to public-private partnerships (PPPs), impact investments, and blended finance models as crucial pathways for mobilizing the required capital for these large-scale undertakings.
The private sector, particularly within emerging markets, has often been reluctant to address Africa’s infrastructure challenges due to perceived risks. However, innovative financing frameworks that combine public support with private investment can offer a viable solution. By leveraging instruments such as concessional finance, guarantees, and blended finance, stakeholders can reduce risks and encourage private sector participation. Moreover, efforts must be made to simplify regulatory frameworks and create an environment that fosters investor confidence.
A significant challenge in infrastructure financing is the need to decrease the cost of capital. High financing costs continue to pose a substantial barrier to infrastructure development throughout Africa. This issue should be tackled by creating favorable conditions for investors, whether through regulatory changes or financial instruments that help mitigate risks and reduce costs.
Building sustainable, resilient infrastructure
Resilient infrastructure goes beyond mere physical strength; it involves ensuring that infrastructure projects can withstand the impacts of climate change, political instability, and economic fluctuations. There is an urgent need for climate-resilient infrastructure that can adapt to shifting environmental conditions. With risks posed by floods, droughts, rising temperatures, and changing weather patterns, climate change significantly threatens Africa’s infrastructure investments. As the effects of climate-related disasters grow, the importance of adaptive and mitigation strategies intensifies.
Managing transboundary water resources is crucial as a core element of sustainable development. In various parts of Africa, water resources span multiple countries, requiring cooperative management and investment. The call to increase investments in the water sector, especially for transboundary initiatives, highlights a broader recognition that infrastructure development must prioritize sustainability, equity, and environmental responsibility.
Additionally, infrastructure must be inclusive. Major infrastructure projects often disregard the needs of marginalized groups, including women, youth, and individuals with disabilities. Enabling vulnerable populations to participate in infrastructure development is not only a matter of fairness but also a driver of economic growth. Engaging local communities and incorporating indigenous knowledge should be central to the planning and execution of infrastructure projects, ensuring that developments meet the diverse needs of African societies while promoting ownership and inclusivity.
Digital transformation
In today’s digital landscape, infrastructure encompasses more than just physical structures. Digital infrastructure—including data centers, digital identities, and ICT connectivity—is vital for Africa’s future development. The African Continental Free Trade Area (AfCFTA), which strives to create a unified market for goods and services across the continent, will significantly rely on robust digital infrastructure to facilitate trade, communication, and the movement of people and goods.
Moreover, digital solutions offer a powerful avenue to improve the effectiveness and efficiency of transport infrastructure, enabling enhanced logistics management, reducing congestion, and increasing the safety and reliability of transportation networks. With rising investments in digital solutions, particularly through initiatives like the African Union’s Digital Transformation Strategy, the continent stands to achieve substantial progress in its quest for interconnectedness and growth.
The role of youth and SMEs
The continent’s youth, constituting a large portion of the population, are vital drivers of innovation, entrepreneurship, and job creation. By providing youth with the opportunities to engage in infrastructure development through training, funding, and mentorship, African nations can unlock impressive potential. Likewise, micro, small, and medium-sized enterprises (M-SMEs), which are the backbone of numerous African economies, need increased support to participate in the infrastructure sector.
A roadmap for Africa’s future
Africa’s future is closely linked to the enhancement of its infrastructure. From financing and climate resilience to digital transformation and inclusivity, the continent faces a multifaceted array of challenges that require bold, coordinated actions.
With the steadfast commitment of governments, development partners, the private sector, and civil society, Africa can build the resilient, inclusive, and sustainable infrastructure essential for its advancement and integration. The future of Africa is indeed interconnected—both physically and digitally—laying the groundwork for a prosperous and sustainable future for all.
Second priority action plan
Amine Idris Adoum, director of economy, infrastructure, industrialization, trade, and regional integration, has played a crucial role in advancing the second priority action plan of the PIDA programme – PIDA-PAP 2, which is currently in progress. The PIDA-PAP 2 comprises 69 large-scale projects anticipated to surpass $160 billion over its decade-long implementation strategy. Despite the impressive accomplishments and lessons learned from the initial ten years of PIDA, challenges regarding project financing and execution have persisted. Of more than 430 projects in PIDA PAP 1, approximately 50% failed to move forward to the construction phase, while 30% did not progress beyond the feasibility study stage.
However, the transport sector has seen positive developments, with the construction of 16,066 kilometers of roads and 4,077 kilometers of railways, supported by nearly 120 Single Border Posts. In the energy sector, 3,506 kilometers of transmission lines have been installed, facilitating access to 232 GW of electricity and interlinking African electrical grids. Notable advancements in Transboundary Water Management have also been made, including the Lesotho Highlands project, which has delivered approximately 17,990 million cubic meters of water to South Africa. In the ICT domain, digital infrastructure capacity has grown to 9 Terabits, and 17 countries are now digitally connected. Given the critical importance of cybersecurity, the AU Convention on Cybersecurity has been ratified by 15 states.
For further information, please email [email protected], [email protected] or visit www.nepad.org
