DailySun
This article is presented by AUDA NEPAD
Honorable Excellencies, Esteemed Delegates, Ladies and Gentlemen,
I am privileged to welcome you to the 8th PIDA Week here in Addis Ababa, a city that epitomizes Africa’s unity and aspirations. I extend my heartfelt thanks to His Excellency, Prime Minister Abiy Ahmed Ali, for graciously hosting this event. Your unwavering leadership and personal involvement in this opening ceremony reflect your commitment to advancing Africa’s growth and enhancing regional integration. We are profoundly grateful for your steadfast support.
Since its inception in 2015, PIDA Week has transformed into a pivotal platform for infrastructure development across the continent. Organized in collaboration with the African Union, AUDA-NEPAD, the African Development Bank, and UNECA, this event serves as a vital forum to evaluate our progress, tackle challenges, and forge strategic partnerships. This year’s theme, “Fostering Resilient and Inclusive Infrastructure for Africa’s Sustainable Growth: Leveraging Transformative Financing and Regional Integration,” highlights our commitment to addressing the pressing infrastructure issues that Africa faces. Building on the momentum from the 2022 Dakar Financing Summit and the 2023 launch of the PIDA First 10-Year Implementation Report in Nairobi, we convene in Addis Ababa to explore innovative solutions that will reshape the infrastructure landscape and further our collective vision for the continent.
The accomplishments of PIDA over the past decade illustrate what Africa can achieve through determination and collaboration. The current Priority Action Plan 2 (PAP 2) comprises 69 transformative projects across transportation, energy, water, and ICT. These include groundbreaking initiatives such as the Grand Inga Hydropower Project, which will eventually be the largest electricity generation facility globally, and the ambitious plan to create a navigable Nile River connecting Lake Victoria to the Mediterranean Sea. These visionary efforts remind us of Africa’s longstanding tradition of innovation, a legacy rooted in the construction of the pyramids. Today, that same inventive spirit propels our infrastructure agenda forward, step by step, towards fulfilling our bold vision for Africa.
The PIDA Ten-Year Implementation Report highlights significant accomplishments. More than 30 million people have gained access to electricity, transforming lives and driving economic progress. Enhanced road and rail networks have contributed modestly to intra-African trade, which now represents 16% of total trade. In the water sector, essential storage infrastructure supports agriculture and commerce, while broadband access has exceeded expectations, reaching over 25% and accelerating Africa’s digital transformation. During the construction and operation phases, PIDA initiatives have created over 160,000 direct and indirect jobs, highlighting their substantial influence on employment and livelihoods. These milestones demonstrate the tangible benefits of PIDA’s efforts, but they also emphasize the ongoing challenges we must address.
Infrastructure development in Africa continues to face significant financing deficits, with only $82 billion secured out of the $360 billion needed by 2040. Numerous projects struggle to achieve bankability due to insufficient early-stage preparation and lingering risk perceptions. Addressing these challenges requires a focus on three core pillars: policies, partnerships, and financing. Effective regional coordination is essential, as seen in the success of treaty-based organizations and corridor initiatives that align national strategies with regional goals. Strengthening public-private partnerships is equally crucial to ensure projects are sustainable, inclusive, and community-driven. Innovative financing mechanisms, such as blended finance and risk guarantees, are vital for mobilizing the necessary resources to close the funding gap.
The transformative potential of Africa’s corridors is evident. These routes are not merely transport links; they are vital conduits for economic integration and industrial development. Initiatives like the Lobito Corridor, which connects Angola, the Democratic Republic of Congo, and Zambia, along with the Trans-African Highway Network—spanning over 56,000 kilometers—highlight the importance of connectivity in boosting regional trade. The establishment of 32 One-Stop Border Posts has significantly enhanced cross-border trade, reducing delays and fostering regional collaboration. These corridors exemplify how well-designed infrastructure can unlock economic opportunities, improve lives, and support Africa’s broader development goals.
Access to energy remains fundamental to sustainable development. Despite progress, more than half of Africa’s population still lacks reliable electricity. The Continental Power Systems Masterplan (CMP) proposes an ambitious solution, aiming to provide electricity access to 80% of Africa’s population by 2040 while facilitating intra-African electricity trade valued at $136 billion annually. This initiative seeks to integrate renewable energy markets and interconnected power grids, positioning Africa as a leader in clean energy. Countries like Morocco and South Africa have demonstrated what can be achieved through strategic policies and public-private partnerships, making notable strides in renewable energy production. Nevertheless, challenges such as weak procurement frameworks and grid integration issues must be rectified to fully realize Africa’s energy potential.
The success of PIDA depends on overcoming the urgent challenges facing Africa’s infrastructure landscape. One pressing barrier is risk mitigation. For far too long, perceived risks have dissuaded private sector participation, leaving critical financing gaps unaddressed. Implementing innovative financial instruments such as partial risk guarantees and blended finance provides a viable path forward. These mechanisms create an environment where private capital can engage with confidence, paving the way for transformative initiatives that redefine economies and connect regions.
Equally important is the need for integrated planning. Infrastructure development cannot thrive in isolation. Energy, transport, water, and digitalization need to operate as interconnected components of a cohesive strategy, generating synergies that foster sustainability and long-term impact. Coordinating initiatives across these interrelated sectors ensures that every road, bridge, or power facility acts as a crucial link in a broader network that uplifts communities and stimulates economic growth.
Local ownership adds further significance to this agenda. Infrastructure projects must be owned by the communities they are designed to serve. They cannot simply be external solutions imposed on unfamiliar landscapes. Public-private partnerships that engage local businesses and empower communities create avenues for genuine involvement and sustainable maintenance. Building local capacities guarantees that these initiatives are not only feasible but also cherished as engines of growth and transformation.
The ultimate goal of PIDA goes beyond the mere construction of physical assets. Its real essence lies in its ability to change lives. Roads and power grids are not the final objective but tools for fostering opportunities, promoting industries, and inspiring hope across the continent. As PIDA moves into its next phase, it must remain focused on empowering Africa’s populace, nurturing dynamic markets, and advocating for industrialization.
By placing people at the core of this vision, everything transforms. Infrastructure is not solely about steel and concrete; it becomes a catalyst for unlocking brighter futures and more resilient economies. When the needs and aspirations of Africa’s citizens form the foundation of every project, PIDA accomplishes far more than infrastructure delivery—it evolves into a powerful driver of prosperity, opportunity, and progress.
Let us seize the opportunity presented by this 8th PIDA Week to reaffirm our shared commitment, engage in meaningful dialogue, and chart a course towards sustainable growth and regional integration. Your participation is a vital step in achieving this vision.
Thank you.
