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Home Climate Change

African Experts Call for Urgent Measures to Close Infrastructure Financing Gap

by SAT Reporter
November 29, 2024
in Climate Change
0
African Experts Call for Urgent Measures to Close Infrastructure Financing Gap

As policymakers, development experts, and stakeholders convened in Addis Ababa for the eighth Programme for Infrastructure Development in Africa Week (PIDA Week 2024), the consensus was clear: bridging the continent’s infrastructure financing gap is imperative for sustainable development and regional integration. The event, held from 25 to 29 November under the theme “Fostering Resilient and Inclusive Infrastructure for Africa’s Sustainable Growth: Leveraging Transformative Financing and Regional Integration,” brought into sharp focus the structural challenges hindering Africa’s connectivity and economic aspirations.

Kamugisha Kazaura, Director for Infrastructure and Energy at the African Union (AU) Commission, emphasised that inadequate infrastructure funding remains a critical bottleneck in achieving the goals outlined in PIDA, a flagship AU initiative aimed at transforming Africa with modern, integrated infrastructure by 2040. Stressing the need for strengthened public-private partnerships, Kazaura called for the mobilisation of both domestic and international resources to finance complex infrastructure projects. He also highlighted the necessity of technical capacity building to ensure successful implementation.

The AU has underscored PIDA’s impact thus far, with data indicating that nearly 30 million Africans have gained access to electricity since its inception, lifting the continent’s overall electricity access rate to approximately 44 per cent. Over 16,000 kilometres of roads and 4,000 kilometres of railway lines have also been developed, illustrating progress but underlining the magnitude of work yet to be accomplished.

Speaking at the opening session, Moussa Faki Mahamat, Chairperson of the AU Commission, pointed to Africa’s pivotal juncture in its developmental trajectory. The vision of structural transformation articulated in Agenda 2063—the AU’s 50-year development blueprint—requires resilient and inclusive infrastructure capable of fostering regional integration. Mahamat noted that PIDA embodies Africa’s shared commitment to a prosperous, interconnected future.

Ethiopian Minister of Transport and Logistics Alemu Sime echoed these sentiments, citing stark disparities in access to essential infrastructure. He pointed out that nearly half of Africa’s population remains without electricity, while millions still lack access to clean drinking water and reliable road and rail networks. Africa, he observed, lags behind global averages across nearly all infrastructure metrics.

Sime identified inadequate financial resources and prohibitive investment costs as primary obstacles to addressing the continent’s infrastructure deficit. He urged stakeholders to move beyond traditional financing mechanisms and embrace innovative funding models, particularly public-private partnerships and international financing options. Without such bold measures, he cautioned, the vision of infrastructure-driven development would remain elusive.

This year’s PIDA Week highlighted not just the progress achieved but also the depth of challenges confronting the continent. As Africa grapples with poor physical and digital infrastructure, these deficits pose formidable barriers to intra-African trade and economic growth. Yet, the gathering also served as a reminder of the continent’s untapped potential. By addressing financing and capacity gaps through transformative approaches, Africa can pave the way towards sustainable growth, regional integration, and improved livelihoods for millions.

The event underscored the urgent need for actionable strategies to close the infrastructure gap, with stakeholders committing to innovative and collaborative solutions. For Africa, the stakes could not be higher: modern, resilient, and inclusive infrastructure remains the cornerstone of a more prosperous and connected future.

Tags: africaAfrican UnionAgenda 2063economic growthinfrastructure financingPIDA Week 2024public-private partnershipsRegional Integrationsustainable development
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