DailySun
This article is sponsored by AUDA NEPAD
The objective of PIDA is clear: to create resilient and inclusive infrastructure that acts as a foundation for Africa’s economic advancement. This includes not only physical infrastructure like roads, rail networks, and ports, but also digital and energy systems that foster regional integration, trade, and sustainable growth. A critical part of this initiative is the recognition that infrastructure transcends mere connectivity; it generates opportunities for all Africans to participate in a shared economic future.
A strategic framework
PIDA, the Programme for Infrastructure Development in Africa, has reliably provided the continent’s strategic roadmap for infrastructure improvement. The vision outlined in Goal 10 of Agenda 2063 – “World-Class Infrastructure crisscrosses Africa” – is truly transformative. By creating robust infrastructure networks that link borders and sectors, PIDA seeks to unify the continent in ways that stimulate economic advancement, reduce poverty, and enhance social cohesion. From railways connecting East and West Africa to energy networks powering various industries and homes, PIDA embodies the future that Africa aspires to achieve.
Yet, the path towards this vision is fraught with challenges. Africa’s infrastructure deficit remains substantial, marked by critical gaps in water, energy, transportation, and ICT. Tackling these challenges requires bold leadership, creative financing solutions, and cooperative efforts among various stakeholders. Progress through initiatives like the NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) and the PIDA service delivery mechanism (SDM) brings some hope. These frameworks have moved PIDA projects closer to financial realization, ensuring that infrastructure endeavors transition from theory to active implementation.
The need for innovative financing
There is an urgent need to diversify and innovate Africa’s financing approaches for infrastructure development. Traditional funding methods, such as government allocations and international aid, have proven insufficient for meeting the continent’s vast infrastructure needs. Emphasis should be placed on public-private partnerships (PPPs), impact investments, and blended finance models as crucial paths for garnering the required capital for these large-scale initiatives.
The private sector, particularly in emerging markets, has been wary of confronting Africa’s infrastructure challenges due to perceived risks. However, innovative financing frameworks that combine public support with private investment can provide viable solutions. Utilizing instruments like concessional finance, guarantees, and blended finance can help mitigate risks and enhance private sector engagement. Additionally, efforts must be made to simplify regulatory frameworks and cultivate an environment that fosters investor confidence.
A significant hurdle in financing infrastructure is the imperative to reduce capital costs. High financing rates continue to act as a substantial barrier for infrastructure development across Africa. This issue needs addressing by creating favorable conditions for investors, whether through regulatory reforms or financial tools that alleviate risks and lower expenses.
Building sustainable, resilient infrastructure
Resilient infrastructure goes beyond mere physical strength; it includes ensuring that projects are capable of withstanding the effects of climate change, political instability, and economic fluctuations. There is an urgent need for climate-resilient infrastructure that can adapt to changing environmental conditions. From floods and droughts to rising temperatures and shifting weather patterns, climate change poses a significant threat to Africa’s infrastructure investments. As the consequences of climate-related disasters grow, the importance of adaptive and mitigation strategies intensifies.
Effective transboundary water resource management is crucial as a foundational element of sustainable development. In many areas of Africa, water resources span multiple countries, necessitating cooperative management and investment. The push to increase funding in the water sector, especially for transboundary projects, underscores a broader commitment to ensuring that infrastructure development prioritizes sustainability, equity, and environmental stewardship.
Moreover, infrastructure must be inclusive. Often, the development of major projects neglects the needs of marginalized communities, including women, youth, and individuals with disabilities. Ensuring that vulnerable populations have a stake in infrastructure development is not only a question of equity but also a driver of economic growth. Involving local communities, particularly leveraging indigenous knowledge, should be central to the planning and execution of infrastructure projects. This approach will ensure that infrastructure meets the diverse needs of African societies while promoting ownership and inclusivity.
Digital transformation
In today’s digital age, infrastructure encompasses more than just physical structures. Digital infrastructure – including data centers, digital identities, and ICT connectivity – is crucial for Africa’s future development. The African Continental Free Trade Area (AfCFTA), which aspires to create a unified market for goods and services throughout Africa, will heavily rely on robust digital infrastructure to enable trade, communication, and the movement of people and products.
Furthermore, digital solutions offer a powerful means to enhance the efficiency and effectiveness of transport infrastructure, facilitating better logistics management, reducing congestion, and bolstering the safety and reliability of transportation networks. With growing investments in digital solutions, especially through initiatives like the African Union’s Digital Transformation Strategy, the continent stands to achieve significant progress in its endeavor for greater connectivity and growth.
The role of youth and SMEs
The continent’s youth, who represent a sizable portion of the population, are vital catalysts for innovation, entrepreneurship, and job creation. By creating opportunities for youth to participate in infrastructure development through training, funding, and mentoring, African nations can unlock remarkable potential. Likewise, micro, small, and medium-sized enterprises (M-SMEs), integral to many African economies, require enhanced support to engage 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 complex array of challenges that necessitate courageous, coordinated responses.
With the ongoing commitment of governments, development partners, the private sector, and civil society, Africa can establish the resilient, inclusive, and sustainable infrastructure required for its growth and integration. The future of Africa is undeniably interconnected – both physically and digitally – paving the way for a prosperous and sustainable future for all.
Second priority action plan
Amine Idris Adoum, director of economy, infrastructure, industrialisation, trade and regional integration, has played a pivotal role in advancing the second priority action plan of the PIDA programme – PIDA-PAP 2, which is currently in progress. PIDA-PAP 2 includes 69 large-scale projects projected to surpass $160 billion over its ten-year implementation plan. Despite the commendable successes and lessons learned from the first decade of PIDA, challenges concerning project financing and execution continue. Out of over 430 projects in PIDA PAP 1, approximately 50% did not advance to construction, while 30% remained at the feasibility stage.
However, progress has been noted in the transport sector with the development of 16,066 kilometers of roads and 4,077 kilometers of railways, complemented by nearly 120 Single Border Posts. In the energy sector, 3,506 kilometers of transmission lines have been installed, enabling access to 232 GW of electricity and connecting African electrical networks. Significant advancements in Transboundary Water Management have been achieved, including the Lesotho Highlands project, which has delivered about 17,990 million cubic meters of water to South Africa. In the realm of ICT, digital infrastructure capacity has grown to 9 Terabits, and 17 countries are now digitally interconnected. Given the critical nature of cybersecurity, the AU Convention on Cybersecurity has been established and ratified by 15 states.
For more information, please email [email protected], [email protected] or visit www.nepad.org
