A Bold Path Required to Overcome Africa’s Infrastructure Deficit and Drive Economic Growth
The 8th Programme for Infrastructure Development in Africa (PIDA) Week convened in Addis Ababa, Ethiopia, under the theme “Fostering Resilient and Inclusive Infrastructure for Africa’s Sustainable Growth: Leveraging Transformative Financing and Regional Integration.” The event, hosted by the Government of Ethiopia in collaboration with the African Union Commission (AUC), the African Union Development Agency (AUDA), and the United Nations Economic Commission for Africa (ECA), provided a crucial platform to address Africa’s infrastructure challenges and opportunities.
Delivering a keynote statement, Claver Gatete, United Nations Under-Secretary-General and Executive Secretary of ECA, highlighted the pressing need for robust infrastructure as a catalyst for industrialisation, trade, and regional integration across the continent. He acknowledged Ethiopia’s remarkable pace of infrastructure transformation as a model for regional development.
Africa’s infrastructure deficit significantly impacts its competitiveness on the global stage. According to Gatete, inadequate infrastructure increases production and transaction costs, reducing per capita economic growth by 2% annually and firm productivity by as much as 40%. This underscores the importance of programmes like PIDA, which seeks to position Africa competitively through modern infrastructure.
The strategic framework of PIDA encompasses 69 projects prioritised by African Union Heads of State in 2021, requiring an estimated $160.8 billion for implementation. Gatete stressed the need for national ownership to ensure the successful mobilisation of these funds and enhance coordination efforts among stakeholders.
Gatete identified the African Continental Free Trade Area (AfCFTA) as a transformative tool for accelerating PIDA’s implementation. Upgrading and constructing regional transport networks is essential to support the increased traffic flow anticipated under AfCFTA. Key findings from an ECA study reveal that:
- 61,540km of regional roads require upgrades.
- Completing PIDA projects will reduce critical road links by 20,031km (33%).
- Full implementation of AfCFTA by 2030 could increase rail transport’s share from 0.3% to 7%, while road transport would maintain 70%. This will result in the need for over 2,000,000 trucks, 160,000 rail wagons, 243 aircraft and 135 maritime vessels.
This integration creates opportunities for investment in transport infrastructure and the construction industry, bolstering the continent’s capacity for regional trade and connectivity.
Sustainability emerged as a critical theme during the discussions. Gatete emphasised the importance of addressing environmental concerns and ensuring the resilience of infrastructure to climate-related challenges, such as the recent floods in Kenya that disrupted the Lamu Port-South Sudan-Ethiopia Transport Corridor. Strengthened regional coordination and sustainable practices are essential to overcoming such obstacles.
The ECA continues to play a pivotal role in PIDA’s progress, particularly through efforts to digitalise the management of infrastructure assets for regional corridors, enhancing their efficiency and resilience.
Africa’s infrastructure aspirations align with global connectivity initiatives like China’s Belt and Road Initiative and the European Union’s Global Gateway. However, Gatete called for caution, urging that African priorities under PIDA remain the cornerstone of partnerships with external stakeholders. Maintaining a unified continental position ensures that Africa’s needs drive collaboration with development partners.
Gatete reaffirmed ECA’s commitment to addressing Africa’s infrastructure deficits and fostering partnerships that align with PIDA’s goals. He noted that PIDA Week provides an invaluable opportunity to assess progress, share insights, and mobilise support for Africa’s infrastructure development agenda.