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
0
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.
0
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,
0
%
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.

African Heads of States and Governments adopt the second phase of the Programme for Infrastructure Development in Africa (PIDA PAP 2) and the Africa Single Electricity Market (AfSEM)

African Heads of States and Governments adopt the second phase of the Programme for Infrastructure Development in Africa (PIDA PAP 2) and the Africa Single Electricity Market (AfSEM)

The Assembly of the African Union Heads of State and Government adopted, in its 34th Ordinary Session on 7 February 2021, the strategic documents submitted by the Department of Infrastructure and Energy related to the Second Phase of the Program for Infrastructure Development in Africa (PIDA PAP2, 2021-2030). The strategic documents include PIDA PAP2 implementation strategy, financing strategy, and partnership strategy for sixty-nine (69) regional infrastructure projects in the sectors of Energy, Transport, Trans-Boundary Water, and Information and Communication Technology (ICT), with an estimated budget of 161 Billion USD. These projects were selected from a long list of over 240 projects proposed by Member States, Regional Economic Communities (RECs), and Specialized African Institutions. The long list was the subject of extensive consultations from December 2018 and throughout 2020 and were prioritised according to new criteria which include rural connectivity, economic viability, financial attractiveness, climate friendliness, gender sensitive and smart infrastructure. The alignment of projects to the integrated corridor approach has been ensured during the submission and selection process through the corridor overlap and the inclusiveness and sustainability criteria. At a more strategic level of arbitration, projects which contribute to integration across regions and AUC flagships and Agenda 2063, especially those facilitating the implementation of the African Free Trade Area (AfCFTA) and the Free Movement of Goods and People, have been prioritized.

The selection of projects of the second phase of PIDA also ensured equitable distribution by African region and by sector and focused on preparedness and fast-tracked approaches.

It is estimated that, upon the implementation of PIDA PAP II projects, the outcomes include modal switch from road to rail transport and inclusion of fluvial navigation in more competitive and climate friendly multimodal transport systems, key contributions to establishment power pool interconnection as a first step to the African Single Energy Market (AfSEM), development of high impact multipurpose dams to achieve sustainable rural livelihoods and climate resilient agriculture, and using ICT infrastructure to develop value added services, boost digitalization and create jobs for youth. PIDA PAP 2 is expected to play a key role through the immediate impact of the construction activities, job creation and also boost industrialization and trade through provision of utilities and competitive transport and logistics services enabled by multi modal infrastructure.

The Heads of States and Governments meeting has also adopted the roadmap, policy and governance structure of the African Single Electricity Market (AfSEM). AfSEM is aims to facilitate a sustainable development of the African electricity sector through the integrated continental electricity market on the basis of the 2019 African Continental Free Trade Area Agreement (AfCFTA). AfSEM will serve as key instruments under AfCFTA to foster conditions for economic growth and stability, while facilitating cross-border electricity trade. Under this scenario AUC is collaborating with pan-African and regional Energy institutions to operationalise the Electricity Market harmonization agenda by developing working documents, policy papers, roadmap and governance structure. The common policies for the organisation and functioning of the AfSEM are based on the existing policies governing the regional markets under RECs and the national markets within the AU Member States and have been designed to give confidence to investors and ensure that the supporting regulatory frameworks are robust, credible, and transparent to support investment and unlock trading opportunities that will enhance the socio-economic development of the African continent.

According to African Union Commissioner for Infrastructure and Energy, H.E. Dr Amani Abou-Zeid, post-COVID-19 recovery requires the fast-tracking of Africa’s infrastructure development to improve resilience and improve livelihoods and economies. “The COVID-19 pandemic also accelerated digitalisation, exposed the gaps in energy in rural areas and the gender divide, and highlighted the need to develop infrastructure that is smart, climate resilient, inclusive and sustainable”, said Dr. Abou-Zeid, African Union Commissner for Infratsructure and Energy.


About the Programme for Infrastructure Development in Africa (PIDA)

The Programme for Infrastructure Development in Africa (PIDA) is an African Union Commission initiative, in partnership with the African Union Development Agency (AUDA-NEPAD), the African Development Bank (AfDB) and the United Nations Economic Commission for Africa (UNECA). This continental programme is designed to address the infrastructure deficit in transport, energy, ICT and transboundary water sectors. PIDA provides a common continental strategic framework and blue-print for inter-connecting and integrating Africa through priority infrastructure programmes and projects for African stakeholders to build the infrastructure necessary for more integrated transport, energy, ICT and trans-boundary water networks to unleash Africa’s economic and social transformation, boost trade, spark growth and create jobs and re-position Africa as a modern, competitive and vibrant continent, in line with the AU Agenda 2063 aspirations and goals.

The Second phase of PIDA has benefitted from the learning from phase 1 for over a decade (2012-2020). PIDA PAP II design and process have achieved (i) a high degree of country ownership and national prioritisation, (ii) a strategic approach to regional cross border infrastructure development, (ii) focus on projects with a well-defined scope which can independently reach financial close and be implemented in the short to medium term.

About the Africa Single Electricity Market (AfSEM)

The Africa Single Electricity Market (AfSEM) is the initiative of AUC. AfSEM is initiated to be the common language, the common energy governance system establishing the market operation over the continental-wide, interconnected electricity infrastructure. The goal is to give African households and businesses more secure, sustainable, reliable, competitive and affordable energy.The creation of AfSEM at the continental level started in 2015 in cooperation with the EU, to date, the AfSEM Policy Paper, the Roadmap and the governance structure were prepared by the team of EU-TAF Experts coordinated by the Department of Infrastructure and Energy, validated by RECs, Power Pools and other Pan African Energy Institutions. AfSEM is designed to bring greater energy security, sustainability and competitiveness to Africa Member states, it will be the largest single Electricity Market in the World covering 55-member states serving 1.5 Billion population, AfSEM will be the most cost-efficient response for strong growth of electricity demand in Africa, most essential tool to use full potential of the continent’s Renewable Energy Sources, and an Effective accelerator to 100% access of electricity in the continent. It is planned to launch the AfSEM in March, 2021. and to be fully operational by 2040.