8TH PROGRAMME FOR INFRASTRUCTURE DEVELOPMENT IN AFRICA (PIDA) WEEK
Theme:
Fostering Resilient and Inclusive Infrastructure for Africa’s Sustainable Growth: Leveraging Transformative Financing and Regional Integration
Statement
By
Mr. Claver Gatete
United Nations Under-Secretary-General and
Executive Secretary of ECA
Addis Ababa, Ethiopia
26 November 2024
Your Excellency, Taye Atske Selassie, President of the Federal Democratic Republic of Ethiopia,
Your Excellency, Mr. Moussa Faki Mahamat, Chairperson of the African Union Commission (AUC),
Honourable Dr. Alemu Sime Feyisa, Minister of Transport and Logistics, the Federal Democratic Republic of Ethiopia,
Your Excellency, Mrs. Nardos Bekele-Thomas, Chief Executive Officer, African Union Development Agency (AUDA-NEPAD),
Your Excellency, Dr Amani Abou Zeid, Commissioner for Infrastructure and Energy, African Union Commission (AUC),
Distinguished Delegates,
Ladies and Gentlemen:
It is an honour to address you at this 8th PIDA Week under the important theme of “Fostering Resilient and Inclusive Infrastructure for Africa’s Sustainable Growth: Leveraging Transformative Financing and Regional Integration.”
I wish to begin by extending my gratitude to the Government of the Federal Democratic Republic of Ethiopia for hosting us in Addis Ababa, a city that amply demonstrates Ethiopia’s commitment to infrastructure development.
I also thank the African Union Commission and the African Union Development Agency-NEPAD for collaborating with us to organize this event.
We are meeting today following recent difficult negotiations for a fair and just climate deal for developing countries, with Africa as a major stakeholder.
This moment provides a dual opportunity: to celebrate our shared achievements in infrastructure development, and to candidly address the barriers that persist in realizing a truly integrated and developed continent.
Excellencies,
Distinguished Ladies and Gentlemen:
We cannot contest the role of infrastructure as the foundation of our continent’s transformation.
It enables connectivity, facilitates trade and lays the foundation for inclusive growth.
Yet, the continent’s infrastructure gap remains a significant impediment.
Current estimates reveal that the continent’s infrastructure deficit reduces economic growth by two percentage points annually, and diminishes productivity by up to 40%.
This is why the African Union’s adoption of 69 PIDA projects in 2021, with an estimated cost of US$160.8 billion, is so critical.
These projects provide a framework for addressing gaps in transport, energy, water and digital connectivity, among others.
To be clear: these projects are not merely about physical assets.
They are about empowering people – connecting farmers to markets, entrepreneurs to customers and students to access educational opportunities.
They are about connecting dreams and transforming lives.
And this is a vision that is central to our work at ECA and integral to achieving the Africa we want.
Excellencies,
Distinguished Delegates,
The African Continental Free Trade Area (AfCFTA) is a game-changer for our continent.
With a market of 1.3 billion people and a combined GDP of over US$3.4 trillion, the AfCFTA represents a transformative opportunity for Africa.
However, without robust and integrated infrastructure, the AfCFTA’s transformative potential will remain unrealized.
At present, intra-African trade accounts for only 15% of the continent’s total trade.
Studies project that implementing the AfCFTA with the right supporting conditions, including adequate infrastructure, could increase this figure by up to 33%.
Projects like the LAPSSET Corridor which connects Kenya, Ethiopia and South Sudan, and the Lobito Corridor, which links Angola, Zambia and the Democratic Republic of Congo, exemplify this linkage, as they enhance connectivity, reduce trade costs and catalyze regional economic integration.
And considering that Africa will need to upgrade over 60,000 kilometers of regional roads and complete the missing links in the Trans-African Highways to meet the expected surge in trade volumes, the role of infrastructure cannot be understated.
However, to fully leverage the potential of infrastructure for trade and development, I propose four priority actions.
First, we must harness the regional economic communities to advance the AfCFTA agenda.
Infrastructure for trade transcends national boundaries and this makes the Regional Economic Communities (RECs) indispensable.
Indeed, the RECs have already proven instrumental in coordinating cross-border projects like the LAPSSET and Lobito Corridors, which align with AfCFTA objectives.
AUDA-NEPAD has provided exceptional policy frameworks, but their implementation depends on leveraging the structures of the regional economic communities for effective coordination and resource mobilization.
In addition to this, the regional economic communities can bridge the gap between national priorities and continental aspirations, and ensure that infrastructure initiatives are not fragmented.
Second, we must strengthen national ownership.
Member States must take ownership of PIDA projects by establishing national coordination units to ensure seamless integration with regional priorities, and to serve as focal points for mobilizing domestic and international financing.
Furthermore, with robust national ownership, institutions like the African Development Bank, AUDA-NEPAD, Afreximbank and the ECA can be empowered to support resource mobilization, underpinned by accurate progress data.
Third, Africa’s infrastructure agenda must benefit from global collaboration while ensuring alignment with Africa’s long-term vision, as articulated in PIDA.
Initiatives like China’s Belt and Road, and the EU’s Global Gateway, provide opportunities for transformative financing when effectively harmonized with PIDA’s priorities.
Finally, we must prioritize inclusive and innovative financing for infrastructure development.
This can be achieved by attracting private sector participation through innovative de-risking mechanisms.
Furthermore, it is also essential to integrate green financing solutions to ensure that Africa’s infrastructure is sustainable and climate resilient.
But we must not forget to anticipate and mitigate climate risks.
Recent flooding along the LAPSSET Corridor in Kenya highlights the urgency of adopting green construction standards and incorporating climate-resilient designs.
Moreover, Africa’s infrastructure must also embrace the digital age, with investments in technology, telecommunications, and logistics to unlock the full potential of trade and innovation.
Excellencies,
Ladies and Gentlemen,
Africa’s infrastructure journey, as we have seen, is both a challenge and an opportunity.
The success of PIDA lies in our collective resolve to act decisively, to mobilize the necessary resources, and to align our efforts with the broader aspirations of the AfCFTA.
And the ECA remains committed to work with the AUC, AUDA-NEPAD, African governments and all stakeholders, to bridge Africa’s infrastructure gaps and realize the transformative promise of a connected and prosperous continent.
I thank you for your kind attention.