AfDB and KfW Join Forces: USD 20 Million Agreement to Enhance African Infrastructure

(3 Minutes Read)

In a major step towards enhancing regional integration and supporting the African Continental Free Trade Area (AfCFTA), the African Development Bank (AfDB) and Germany’s KfW Development Bank have finalized a USD 20 million funding agreement focused on infrastructure project preparation through the Infrastructure Project Preparation Facility – New Partnership for Africa’s Development (IPPF-NEPAD).

The agreement, signed in Abidjan, Côte d’Ivoire, by KfW’s Tiskens and AfDB’s Director of Infrastructure and Urban Development, Mike Salawou, is designed to accelerate the advancement of vital transport, energy, and digital infrastructure projects that will promote intra-African trade and stimulate economic growth.

The IPPF-NEPAD facility is essential in developing bankable infrastructure projects, making them attractive for investment from both the public and private sectors. It offers technical and financial support for project development, feasibility studies, and regulatory frameworks, aiming to address Africa’s infrastructure financing shortfall.

Germany’s KfW Development Bank is a key player in financing African infrastructure and is committed to promoting sustainable and climate-resilient development across the continent. This latest funding will enhance Africa’s transport corridors, improve energy access, and boost digital connectivity, directly benefiting businesses and local economies.

As the AfCFTA seeks to establish the world’s largest single market, valued at over USD 3.4 trillion, infrastructure development is vital for lowering trade barriers, reducing transport costs, and increasing industrial competitiveness. This funding will enable African countries to expedite critical projects, ensuring efficient logistics networks, seamless cross-border trade, and improved energy security.

Read Also;

https://trendsnafrica.com/afdb-creates-facility-for-concessional-lending-and-rating/

The partnership between AfDB and KfW represents a significant milestone in Africa’s pursuit of sustainable infrastructure development. By mobilising funds for project preparation, the initiative aims to unlock substantial investment opportunities, strengthening Africa’s position as a global hub for trade and investment.