Addis Ababa, 21 March 2025 (ECA) - The implementation of the African Continental Free Trade Area is expected to bring tremendous opportunities for investment in the continent’s infrastructure.
Panellists at a roundtable discussion on the nexus between the AfCFTA and infrastructure development during the Economic Commission for Africa’s Conference of African Ministers of Finance, Planning and Economic Development agreed that increased intra-continental trade will require improvements in digital and physical connectivity on the continent.
Robert Lisinge, Director of ECA’s Technology, Innovation, Connectivity and Infrastructure Division, noted that trade and infrastructure are “ mutually reinforcing” and that with increased trade will come opportunities for the transport and energy sectors.
“Our research shows that with the implementation of the AfCFTA, we will need an additional 2 million trucks, 150,000 rail wagons, over 150 maritime vessels and 250 aircraft. This represents over $400bn in opportunities for investment in transport,” he said.
By 2030, Lisinge said, demand for energy is also expected to rise by 3%, while by 2035, an additional 80% of electricity generation will be required compared to 2020 levels.
Reflecting on the infrastructure funding gap, Mike Salawou, Director, Infrastructure and Urban Development Department, African Development Bank said while the bank had invested about $45bn in cross-border infrastructure, much more was needed to close the funding gap.
“According to our estimates, Africa’s infrastructure needs are between $130 bn and $170bn annually, " he said, adding that “ average annual investment in Africa’s infrastructure has been approximately $80bn, leaving a funding gap of between $70 and $90 bn.”
Investments in the various sectors, Salawou explained, were moving at varying paces. “ICT is the sector that has attracted the most private sector investment on the continent, enabling us to narrow that. Transport and energy also have the benefit of attracting private sector investments. The gap in water is extremely high, accounting for about 50% of the gap, with transport at 16% and energy at 21%,” he revealed.
Elizabeth Maruma Mrema, Assistant Secretary-General of the United Nations and Deputy Executive Director of the United Nations Environment Programme, stressed the need to account for climate resilience in the continent’s infrastructure planning.
“Climate resilient infrastructure plays a critical role in supporting cross-border trade in Africa by ensuring that the airports, ports and transport networks remain operational,” she pointed out.
Mrema explained that the additional cost of integrating resilience into existing infrastructure systems is estimated to be only 3% of the total investment required, contrary to the perception that it is prohibitively expensive.
Issued by:
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Economic Commission for Africa
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