Special Edition: PIDA 10-Year Implementation Report – Japanese

Special Edition: PIDA 10-Year Implementation Report – Japanese

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Special Edition: PIDA 10-Year Implementation Report - Japanese

The report showcases the significant progress of PIDA in the past 10 years and identifies contributions of Japanese partners in shaping Africa's infrastructure landscape. The report reflects on the achievements and challenges faced over the years, outlining a roadmap for the future of PIDA and emphasizing the continued commitment of Japanese partners to supporting Africa's development journey.

PIDA Steering Committee to Gather in Addis Ababa for Infrastructure Development Talks

PIDA Steering Committee to Gather in Addis Ababa for Infrastructure Development Talks

Addis Ababa, Ethiopia 20 March 2024: The Program for Infrastructure Development in Africa (PIDA) Steering Committee is scheduled to convene from March 26-27, 2024, at the African Union Headquarters in Addis Ababa, Ethiopia to discuss progress and next steps for accelerating Africa’s infrastructure development priorities.

The meeting will bring together representatives of the African Union Commission (AUC), the African Union Development Agency (AUDA-NEPAD), the African Development Bank (AfDB), the United Nations Economic Commission for Africa (ECA), Regional Economic Communities (RECs), and invited pan-African organizations.

PIDA, an African Union initiative, is a framework launched in 2012 to integrate, connect and transform Africa through infrastructure. Mobilizing adequate resources is crucial for expediting the implementation of PIDA’s priority projects. The second Phase of PIDA (PIDA PAP2) comprises 69 strategic regional transport, energy, ICT and water projects that require USD 161 billion to bring them to completion.

The Steering Committee aims at reviewing progress made since the previous meeting in implementing PIDA PAP2 and identifying any challenges encountered; providing strategic guidance on priority actions required in 2024 to accelerate PIDA implementation and the achievement of its overarching goals of promoting sustainable infrastructure as well as exploring opportunities to synergize efforts among key partners and stakeholders.

The African Union and its member states as well as Regional Economic Communities are working to attract the necessary capital from both public and private investors. Resource mobilization efforts involve engaging development finance institutions, multilateral banks, and potential donors to secure funding commitments for PIDA projects. PIDA implementing stakeholders are seeking to form robust alliances with the private sector, non-governmental organizations, and development partners to foster technical, logistical, and financial cooperation.

The PIDA Steering Committee meeting in Addis Ababa is expected to produce recommendations and targeted interventions for this year to enhance strategic coordination and collaboration for the implementation of PIDA’s priority projects. //Ends

A Decade of Transforming Africa’s Infrastructure – The First 10-Year PIDA Implementation Report

A Decade of Transforming Africa’s Infrastructure – The First 10-Year PIDA Implementation Report

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The primary goal for the Programme for Infrastructure Development in Africa (PIDA) is to overcome regional connectivity challenges by developing transformative infrastructure across the continent. By fostering enhanced connectivity, PIDA aims to fuel intra-Africa trade, facilitate movement of people, and position Africa as a global player. With reduced business costs and unrestricted flow of capital and talent, PIDA paves the way for a prosperous and interconnected Africa.

Over the past ten years, PIDA has driven remarkable progress in transport, energy, ICT and transboundary water resources across Africa. Thanks to AUDA-NEPAD’s dedicated efforts, PIDA projects have transitioned from planning to active stages, with many now operational, under construction, in financial transactions, or undergoing structural development.

   

 

KEY IMPACT OF PIDA IMPLEMENTATION

 

Close to 30 million people gained access to electricity, with current overall access to electricity at around 44%. There has been a slight increase in intra-Africa exports to 16% of trade due to road and rail infrastructure. PIDA enables the water storage infrastructure needed for food production and trade. ICT broadband penetration is now more than 25%, exceeding the 10% target. One of the intended outcomes of PIDA is also to address economic marginalisation and social exclusion issues by facilitating the creation of economic opportunities and decent employment. During construction and operation, 112,900 direct and 49,400 indirect jobs were created.

By the end of 2020, investment commitments had exceeded the PIDA PAP1 initial estimation by USD 14 billion (20% above the initial target), reaching USD 82 billion. Different financing sources for PIDA PAP1 have been allocated, including USD 34.35 billion (42%) from AU Member States, USD 19.67 billion (24%) from ICA Members (including World Bank Group, AfDB, ICA MDBs, and DFIs), USD 19.42 billion (24%) from the People’s Republic of China, USD 2.28 billion (3%) from the private sector, and USD 5.88 billion (7%) from other sources. The portion of private sector financing (3%) of PIDA projects has been particularly low when compared with other emerging economies, such as India (19%) and Mexico (16%).

 

 

1
Years of PIDA Progress
PIDA was launched in 2012. It marks ten years of the implementation of the first phase of the PIDA PAP I and its transition to the second Phase of the PIDA PAP II
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PAP I Projects
Projects across sectors such as transport, energy, ICT, and water, with a focus on regional infrastructure development and connectivity enhancement in Africa.
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PAP II Projects
Projects selected based on a ranking system that assessed their viability and alignment with the Integrated Corridor Approach
USD
0
Billion
Investment Value of implementing PIDA projects
Implementing all PIDA projects to address anticipated infrastructure needs by 2040
USD
0
Billion
investment value of PAP II (Billion)
PIDA PAP2 includes 69 transport, energy, transboundary, and ICT projects,
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%
Achievements for PIDA Implementation
Most PIDA PAP1 projects are operational, under construction, or in financial transaction or structuring phases.. 73% of projects have moved from conceptualisation and early stages.

The ownership principle is critical to the success of infrastructure development projects promoted by PIDA across Africa. Its principle is based on the belief that infrastructure development projects must cater, first and foremost, to the needs of African countries. With this in mind, it is necessary to acknowledge that the most significant source of financing commitments to PIDA PAP1 (42%) comes from AU Member States. Failure to consider ownership may lead to poor implementation and eventual failure of infrastructure projects.

PIDA Financing

 

 

PERSPECTIVES ON THE FUTURE

Over the past decade, several important lessons have been learned in the context of PIDA that can be applied to achieve Africa’s infrastructure goals. These lessons can be summarized as follows:

  • Leveraging Innovative Opportunities: PIDA can expedite project implementation by embracing emerging opportunities in technology, innovative infrastructure sources,
    and financing. Advancements in technology, digitalisation, and renewable energy offer new avenues for infrastructure development, fostering connectivity, innovation, job creation, and economic growth. Private sector funding, green bonds, and climate financing should be harnessed to increase investment in PIDA projects.
  • Scaling Up Successful Projects: PIDA has shown the importance of regional integration and cooperation, especially in the ICT sector, where it has exceeded its targets. It is crucial to replicate successful projects and share best practices across Africa, emphasizing documentation and experience-sharing through platforms like the Virtual PIDA Information Centre (VPIC) to empower countries.
  • Addressing Capacity and Funding Challenges: The next generation of PIDA projects should tackle challenges related to inadequate capacity for project preparation and limited funding availability. Strengthening public-private partnerships, improving feasibility studies, and streamlining regulatory frameworks can enhance investment attractiveness and bridge financing gaps. Additionally, capacity-building and good governance practices are essential to ensure efficient project delivery.
  • Sustainability and Long-Term Impact: Infrastructure maintenance is often overlooked in Africa, so future PIDA projects should incorporate systemic maintenance plans and financing strategies. Furthermore, projects should prioritize environmental, social, and economic sustainability by integrating green initiatives, renewable energy, and climate resilience. Promoting social inclusivity and gender equality in infrastructure planning and implementation will ensure equitable growth.
  • Inter-Institutional Collaboration and Partnerships: Collaborative efforts among African Union institutions, Regional Economic Communities (RECs), development partners, and the private sector have been integral to PIDA’s success. These partnerships must be strengthened to mobilize resources, share expertise, and facilitate knowledge exchange, ensuring a harmonized approach to infrastructure development in Africa.

By integrating these lessons into PIDA’s future endeavors, Africa can address its infrastructure deficit, promote sustainable development, and foster economic growth and connectivity across the continent.

Key Highlights of the PIDA 10 Year Report

 

Statement by Mr. HORIUCHI Toshihiko, Ambassador Extraordinary and Plenipotentiary, Mission of Japan to the African Union on the 10 Year PIDA Progress Report

Statement by Mr. HORIUCHI Toshihiko, Ambassador Extraordinary and Plenipotentiary, Mission of Japan to the African Union on the 10 Year PIDA Progress Report

H.E. Mr. HORIUCHI Toshihiko, Ambassador Extraordinary and Plenipotentiary, Mission of Japan to the African Union

H.E. Mr. HORIUCHI Toshihiko, Ambassador Extraordinary and Plenipotentiary, Mission of Japan to the African Union

On the very important occasion of the pre-launch of 10 Year PIDA Progress Report, firstly I would like to express my sincere gratitude to all AUDA-NEPAD team members who devoted their efforts to this pre-launch. While congratulating on the completion of the report, I would like to introduce the Japanese engagement toward PIDA as well as Japan-Africa Partnership through decades- long Tokyo International Conference on African Development (TICAD).

(1) Japan`s Contributions to PIDA

PIDA incorporates two visions advocated by Japan: the concept of Corridor Development and the philosophy of Africa’s ownership in which Japan listens to the voices of Africa. Firstly, the concept of Corridor Development is based on the recognition that promotion of the development of Africa would be difficult without cross-regional analysis. That helps us to find out what the bottlenecks are, for example, in transporting goods from ports through trunk roads to landlocked countries over national borders. Corridor Development is expected to be further promoted toward its completion in 2040. In this context, Japan would like to combine the expertise and resources of both AUDA-NEPAD and JICA, build stronger partnerships, and support infrastructure development across the African continent. Here in Kenya as well, in order to contribute to the realization of PIDA, the Japanese government and JICA helped formulate the Master Plan (M/P) on Logistics in Northern Economic Corridor in 2016. Based on this M/P, multiple projects such as the expansion of Mombasa Port and the construction of future Mombasa Gate Bridge have been underway. The 10-year PIDA Progress Report shows a concrete achievement of the last decade and answers to the current challenges. I would like to point out one of the impressive findings: the question of who is the biggest contributor to the PIDA projects. It is nothing but African countries themselves. This is a strong statement that PIDA is an infrastructure policy framework of Africa, by Africa, and for Africa.

(2) Japan-Africa Partnership through TICAD

The other vision advocated by Japan in PIDA is the basic philosophy of Africa’s ownership that listens to the voices of Africa, which constitutes an imperative philosophy of TICAD. Launched by Japan in 1993, TICAD is one of the oldest and the most inclusive partnership platforms with Africa. TICAD has always shed light on the importance of ownership by Africa and partnership by the international community as an imperative philosophy, and both Japan and Africa have cherished the fruits of TICAD to this day. The Eighth Tokyo International Conference on African Development (TICAD 8) was held in Tunis on August 27 and 28, 2022, co-organized by the Government of Japan, the United Nations, the United Nations Development Programme (UNDP), the World Bank and the African Union Commission (AUC). During TICAD 8, Prime Minister Kishida Fumio expressed the commitment of Japan to stand together with Africa in this critical juncture, exacerbated by global challenges. To fulfill this commitment, Japan announced that it would invest 30 billion USD as the sum of public and private financial contributions over the next three years, with an emphasis on investment in people and the quality of growth. TICAD 9 is scheduled to be held in Japan in 2025. Counting on in our cooperation, it is often said that infrastructure realized by Japan’s cooperation in Africa works for a long time. Based on this brand, Japan will continue to promote the development of Quality Infrastructure that is resilient against disasters by leveraging the advanced technology and know-how that Japanese companies have. Furthermore, at the G7 Hiroshima Summit held in Japan in May 2023, we reaffirmed our shared commitment to “The Partnership for Global Infrastructure and Investment (PGII) ” launched by the G7. We also aim to mobilize up to 600 billion US dollars by 2027 together with the G7. In addition, through the Quality Infrastructure Conferences (GIC) held bilaterally with 14 countries since 2015, we will further promote to expand the business in Africa by Japanese companies.

(3) Conclusion

Japan has been utilizing external support generously offered by the international community in its struggle during the post-World War II reconstruction period. Japan was obliged to rebuild from scratch as it was devastated by the war. It was almost rebuilding a nation from the ashes. In addition to the hard works of our parents and grandparents who endeavored for the prosperity of Japan, Japan was also fortunate enough to enjoy the kindness and good will rendered by the international community. For instance, Shinkansen, the Japanese Bullet Train, is one of the fruits of international support for significant transportation infrastructure development that enabled Japan to overcome the challenges it faced. My dream is that one day Africa and Japan can further cooperate and pay it forward together for the sake of future generations! Once again, I would like to deliver congratulatory message on the completion of 10 Year PIDA Progress Report as the culmination of a strong and enduring partnership between AUDA-NEPAD and Japan that focuses on advancing African regional integration and infrastructure development. It is my hope that this report will serve as a signpost for real and positive change.

AFRICAN MSMEs ON THE MOVE

AFRICAN MSMEs ON THE MOVE

In 2021, the African Union Development Agency (AUADA-NEPAD) together with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) offered technical advisory to Micro, Small, and Medium Enterprises (MSMEs) through a Covid-19 Call for Proposals by AUDA-NEPAD’s Continental Business Network (CBN). Following the technical advisory offered by AUDA-NEPAD and GIZ support, Cool Lion launched a demonstration site in Abidjan, Côte d’Ivoire to showcase the product to prospective clients, mobilized USD25.000 grant funding from the Institute of Food Technologists (IFT) Foundation. The company was selected as one of the 25 finalists of the Milken-Motsepe Prize for which they receive USD10.000 to further develop and test their designs. Furthermore, Cool Lion received a EUR261.481 grant from the EU – African, Caribbean, and Pacific (ACP) Innovation Fund project on Accelerating Inclusive Green Growth through Agri-based Digital Innovation in West Africa (AGriDI). The Covid-19 Call for proposals offered technical assistance valued at EUR96.500 this comprised of a business plan, financial model, employment action plan, marketing collateral, and an opportunity to present to three prospective investors for business prospects.

Cool Lion is one of the MSMEs selected through a competitive continent-wide process and received technical advisory support to boost and improve its business prospects for investment opportunities. In addition, Cool Lion was selected as a pilot project under the Compact with Africa to receive technical assistance to mobilize financing for the project’s implementation and to carry out an employment analysis. Cool Lion contributes to eight of the UN Sustainable Development Goals, including Zero Hunger by providing access to storage means that minimize food waste and prolong the shelf-life of fresh food, Good Health, and Well-being by reducing respiratory disease-causing black carbon emissions associated with the current method of smoking fish and Industry, Innovation, and Infrastructure.

Cool Lion provides sustainable, cold chain solutions through the fabrication and sale of affordable, solar-powered, refrigerated solar-powered refrigerated containers for social impact. The main target markets are fishing and horticultural produce sellers. To service these markets, Cool Lion offers a range of different container configurations with a choice of power source, temperature, and size, manufactured according to the needs of each customer. Its human-centered design process used inputs from the National Women’s Association of Fishmongering in Côte d’Ivoire (UNSCOFEPCI) which comprises 13 cooperatives and over 1,000 members.