As the continent grapples with challenges ranging from energy access to transportation inefficiencies, the Programme for Infrastructure Development in Africa (PIDA) has emerged as a beacon of hope, providing not only the blueprint for a sustainable future but also the momentum for transformative change.
PIDA highlights the importance of strategic investments in Africa’s infrastructure as a driver of economic growth, regional cooperation, and sustainability. This agenda is endorsed by the African Union, the African Union Development Agency – New Partnership for Africa’s Development (AUDA-NEPAD), and key international partners such as the African Development Bank and UNECA. It is positioned as a critical pathway to unlocking the continent’s vast potential. However, while significant strides have been made, the road ahead is fraught with challenges that demand a renewed and collective commitment to overcome.
Since its inception in 2015, PIDA has focused on creating and supporting infrastructure projects across four key sectors: transport, energy, water, and information and communications technology (ICT). The PIDA Priority Action Plan 2 (PAP 2) outlines 69 transformative projects that aim to reshape the continent’s economic and social landscapes.
Among the most notable projects are the Grand Inga Hydropower Project, which, when completed, will be the world’s largest electricity generation scheme, and the vision of a navigable Nile River that would connect Lake Victoria to the Mediterranean Sea. These initiatives echo Africa’s long history of innovation and ambition, from the building of the pyramids to the modern-day infrastructure endeavours that could place Africa at the forefront of global development.
The results achieved over the past decade are compelling. Over 30m people have gained access to electricity, a critical foundation for economic growth. Roads and rail infrastructure have helped increase intra-African trade, with trade between African nations now accounting for 16% of the continent’s total trade. Additionally, significant progress in the water sector has enhanced agricultural production and trade, while ICT developments have accelerated Africa’s digital transformation, reaching over 25% broadband penetration across the continent. Notably, these projects have created over 160,000 direct and indirect jobs, fostering local economies and creating opportunities for millions of Africans.
With Africa requiring an estimated $360bn in infrastructure investment by 2040, the current mobilised amount of just $82bn underscores a substantial financing gap. This challenge, compounded by the difficulty of achieving project bankability due to perceived risks, requires a recalibrated approach to investment, risk mitigation, and financing.
The financing gap is perhaps the most significant challenge facing PIDA’s success. Infrastructure development requires massive upfront investment, and for many years Africa has struggled to attract sufficient private sector participation. Misconceptions about the risks involved in African infrastructure projects have deterred potential investors.
By combining public and private sector funding, these mechanisms can unlock substantial resources for transformative projects.
Regional cooperation is equally crucial. Effective coordination between African nations ensures that infrastructure projects align with both national and continental development goals. Initiatives such as the Trans-African Highway Network and the Lobito Corridor demonstrate how strategic regional investments in transport infrastructure can improve connectivity, reduce trade barriers, and foster economic integration across borders. The operationalisation of one-stop border posts in 32 locations has already facilitated smoother cross-border trade, reflecting how collaborative approaches can have immediate, positive impacts on Africa’s economy.
One critical area where regional integration is pivotal is in the energy sector. Despite significant strides, over half of Africa’s population still lacks access to reliable electricity. The Continental Power Systems Masterplan (CMP) aims to address this gap by providing electricity to 80% of the population by 2040, enabling intra-African electricity trade worth $136bn annually. To achieve this, the integration of renewable energy sources and interconnected power grids across Africa is necessary. Countries like Morocco and South Africa have already demonstrated success in renewable energy generation, but further integration of these energy systems, and overcoming grid challenges, will be essential for realising Africa’s energy potential.
A Guest Editorial