In a significant move to accelerate infrastructure development across Africa, the African Union (AU) is leveraging its Service Delivery Mechanism (SDM) to address early-stage project preparation challenges. This initiative comes in the wake of the AU’s adoption of the second phase of the Priority Action Plan (PIDA PAP2) in 2021, which outlines 69 critical infrastructure projects with an estimated investment of USD 161 billion.

The PIDA PAP2, covering energy, ICT, transport, and water sectors, aims to create interconnected infrastructure networks that enhance regional integration and economic development. This approach is crucial, given the African Development Bank’s estimate that the continent requires between USD 130-170 billion annually for infrastructure development.

One of the primary obstacles to smooth project progression has been the inadequate preparation of projects in their early stages. To tackle this issue, the AU, through its development agency AUDA-NEPAD, established the SDM in 2014. This tool is designed to streamline the project preparation process, facilitating easier access to financing and attracting investors for detailed engineering studies, construction, and maintenance.

A key feature of the SDM is the PIDA Quality Label (PQL), a recognition awarded to projects that excel in early-stage preparation. The Specialized Technical Committee on Transport, Infrastructure, Intercontinental and Interregional Infrastructure, and Energy (STC-TTIIE) of the AU adopted the Quick Check Methodology and the Green Check Methodology, both of which are critical appraisals that are part of the PQL.

Examples of SDM’s impact are already evident. For instance, the North-South Power Transmission Corridor, a massive 8,000 km line project aimed at providing energy to 10 African countries, has benefited from SDM’s early-stage support. This project, which will connect Egypt, Sudan, South Sudan, Ethiopia, Kenya, Malawi, Mozambique, Zambia, Zimbabwe, and South Africa, showcases the potential of cross-border infrastructure initiatives.

To date, the SDM has evaluated over 90 projects, assisting with the preparation of Terms of Reference, feasibility studies, and job estimations. Some of these projects have successfully secured financing for construction, demonstrating the effectiveness of the SDM approach.

Looking ahead, AUDA-NEPAD is organizing a workshop titled “SDM Workshop: Quality Assurance and Acceleration of the Preparation of Infrastructure Projects in Africa,” scheduled for October 8-10, 2024, in Sandton, Johannesburg. This event aims to share SDM results, present AUDA-NEPAD’s vision for improving SDM services, discuss best practices for innovative infrastructure financing, and establish new partnerships for project preparation and bankability.

As Africa continues to push for enhanced regional integration and economic growth, tools like the SDM are proving invaluable in bridging the gap between project conception and realization. With continued refinement and support, the SDM stands to play a pivotal role in shaping Africa’s infrastructure landscape for years to come.

Download Workshop Documents Here