“Infrastructure development in Africa continues to face substantial financing gaps”-AUDA-NEPAD
Chief Executive Officer for the AUDA-NEPAD Nardos Bekele-Thomas says Infrastructure development in Africa continues to face substantial financing gaps, with only $82 billion mobilized out of the $360 billion required by 2040.
This was disclosed in Addis Ababa during the official opening of the 8th Programme for Infrastructure Development for Africa (PIDA) Week running under the theme “fostering Resilient and Inclusive Infrastructure for Africa’s Sustainable Growth: Leveraging Transformative Financing and Regional Integration.”
Bekele-Thomas said many projects struggle to reach bankability due to insufficient early preparation and persistent misconceptions about risk.
“Addressing these challenges requires a focus on policies, partnerships, and financing, therefore, effective regional coordination is essential, as evidenced by the success of treaty-based organizations and corridor initiatives that align national strategies with regional goals,” she said.
Bekele-Thomas further said strengthening public-private partnerships is equally important to ensure that projects are sustainable, inclusive, and locally owned. Innovative financing mechanisms, such as blended finance and risk guarantees, are critical to mobilizing the resources needed to close the funding gap.
Since its inception in 2015, PIDA Week has become a premier platform for infrastructure development on the continent. Organized jointly by the African Union, AUDANEPAD, the African Development Bank, and UNECA, it serves as a vital space to evaluate progress, tackle challenges, and forge strategic partnerships.
According to a recent 2020 report on PIDA progress, despite the challenges PIDA has for the past ten years managed to provide 30 million people with access to electricity, transforming lives and fuelling economic activity.
Furthermore, the report highlights that the enhanced road and rail infrastructure has modestly increased intra-African trade, now accounting for 16% of total trade. In the water sector, critical storage infrastructure supports agriculture and trade, while broadband penetration has surpassed expectations, reaching over 25% and accelerating Africa’s digital transformation.
“During project construction and operation, PIDA initiatives have created over 160,000 direct and indirect jobs, underscoring their impact on employment and livelihoods. These successes reflect the tangible benefits of PIDA’s efforts but also underscore the ongoing challenges we must address,” read the report in part.
