In Africa, infrastructure development is a critical factor for progress, with the potential to drive sustainable economic growth. The economy requires reliable infrastructure to link supply chains and efficiently transport goods and services across borders. Recent crises, including climate-related issues, the COVID-19 pandemic, and the Russia-Ukraine conflict, have impacted the continent’s debt surge, slowing down the emergence of large infrastructure projects. Political instability poses a threat to foreign investments and commitments on high-impact infrastructure projects.
By 2050, Africa is projected to have the fastest urban growth rate in the world, with significant urbanization in small and medium-sized towns. However, this urban transition presents both opportunities and challenges. Despite contributing the least to global warming, Africa faces exponential collateral damage, posing systemic risks to its economies, infrastructure investments, and livelihoods, threatening populations into higher levels of extreme poverty.
To achieve sustainable economic growth and improve living standards, Africa must produce goods and services for domestic consumption and global trade. The African Continental Free Trade Area aims to address infrastructure gaps and enhance connectivity. However, the continent still faces serious infrastructure gaps across all sectors, both in access and quality, with a significant funding gap for infrastructure development.
To support infrastructure development, government and multilateral banks must expand the flow of private sector financing into more commercially viable assets. The Programme for Infrastructure Development in Africa aims to address inadequacies and enhance connectivity, with significant progress already achieved. However, additional resources, including private capital commitments, are needed to reach development objectives.
Regional integration is essential for sustainable development in Africa, as inadequate infrastructure has impeded economic growth. Regional integration and corridor development enable socio-economic transformation and facilitate intra-African trade. The recent International Forum: Financing Rail Projects in Africa has opened the debate around key issues to see main rail corridors emerge. In addition, green finance presents an opportunity for sustainable and resilient development, with a strategic approach to transform towards low-carbon and resource-efficient economies.
Overall, infrastructure development is crucial for Africa’s progress and economic growth, with a need for increased funding, private sector involvement, and regional integration to address infrastructure gaps and achieve sustainable development.