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Urgent Call from African Experts to Address Infrastructure Funding Deficit

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Urgent Call from African Experts to Address Infrastructure Funding Deficit

(3 Minutes Read)

 As policymakers, development experts, and stakeholders gathered in Addis Ababa for the eighth Programme for Infrastructure Development in Africa Week (PIDA Week 2024), there was a clear consensus: addressing the continent’s infrastructure financing gap is crucial for sustainable development and regional integration.

The event, held from November 25 to 29 under the theme “Fostering Resilient and Inclusive Infrastructure for Africa’s Sustainable Growth: Leveraging Transformative Financing and Regional Integration,” highlighted the structural challenges obstructing Africa’s connectivity and economic progress.

Kamugisha Kazaura, the Director for Infrastructure and Energy at the African Union (AU) Commission, highlighted that insufficient funding for infrastructure continues to be a major obstacle in realizing the objectives of PIDA, the AU’s flagship initiative to modernize and integrate Africa’s infrastructure by 2040. He stressed the importance of enhancing public-private partnerships and called for the mobilization of both domestic and international resources to support large-scale infrastructure projects. Kazaura also emphasized the need for building technical expertise to ensure the effective execution of these initiatives.

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. He cautioned that the vision of infrastructure-driven development would remain elusive without such bold measures.

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This year’s PIDA Week showcased the progress made and underscored the significant challenges Africa faces. With inadequate physical and digital infrastructure, these shortcomings hinder intra-African trade and economic development. However, the event also highlighted Africa’s vast untapped potential. By tackling financing and capacity challenges with innovative strategies, the continent can unlock sustainable growth, regional integration, and better livelihoods for millions.

The event highlighted the pressing need for practical strategies to bridge the infrastructure gap, with participants pledging to work together on innovative solutions. For Africa, the stakes are crucial: building modern, resilient, and inclusive infrastructure is essential for a more prosperous and interconnected future.