Adoption of the Programme for Infrastructure Development In Africa (PIDA)

During the 18th ordinary session of the AU Summit, African Heads of State and Government adopted the Programme for Infrastructure Development in Africa (PIDA) as strategic framework for regional infrastructure.The PIDA Priority Action Plan (PIDA­ PAP) comprises 51 cross-border programmes covering the four sectors transport, energy, and ICT as well as trans-boundary water resources management. Regional infrastructure is pivotal in increasing intra-African trade and improving the continent’s competitiveness in the world market. Hence,PIDA substantially contributes to the socio- economic development of an integrated Africa.

Adoption of the Institutional Architecture for Infrastructure Development in Africa (IAIDA)

As a strategic framework,IAIDA assigns roles and responsibilities to ensure a coordinated,speedy and efficient implementation of PIDA.

Presentation of the African Strategic Infrastructure Initiative

Led by the World Economic Forum (WEF), this initiative aims at effectively engaging the private sector in PIDA projects to accelerate their implementation. To this effect,a PIDA Business Working Group,comprising about 40 private sector institutions,was established. As a pilot project to foster and showcase their engagement,the Central Corridor was selected.

Launch of Virtual PIDA Information Centre (VPIC)

VPIC serves as “one-stop­ shop” for all PIDA related inquiries.It facilitates the M&E process of PIDA-PAP projects and promotes PIDA to the wider public as an essential framework for the transformation of Africa (www.au-pida.org).

Establishment of the Council for Infrastructure Development (CID)

As one of the key organ in the decision making process, the CID ensures coherence and harmony across sectors and identifies priority projects within PIDA. In this position, the CID develops and submits its recommendations to the African Head of States and Government at the AU Summit

Launch of the Africa 50 Fund

The Africa50 fund aims at mobilising private financing to accelerate the speed of infrastructure delivery in Africa,thereby creating a new platform for Africa’s growth. Africa50 focuses on commercially viable projects gaining returns.More importantly, the long-term strategic  aim is to directly invest USD 10 billion in projects,and facilitate total project  investment of USD 100 billion by crowding in private sector players.

The Dakar Financing Summit (DFS)

Prior to the Summit,16 PIDA-PAP projects were selected,which are of particular interest for the private sectors.These projects were presented during the Summit to mobilise additional monetary resources. Also,the DFS identified major challenges to the PIDA Vision (Lack of capacity for project preparation, lack of funding for project preparation,etc.) and developed innovative solutions to tackle those bottlenecks.

The Project Preparation Facilities’ (PPF) Roundtable

To address the lack of funding for project preparation, the NEPAD Agency organized a Roundtable of Project Preparation Funds (PPFs) in the course of the last ICA Annual Meetings in Cape Town/South Africa in November  2014. During this meeting, the PPFs agreed to cooperate with regards to PIDA project  preparation, since individually the different PPFs are generally too small to tackle projects the size of PIDA by themselves.The cooperation shall comprise financial cooperation, harmonization of application procedures, etc.

Introduction of the PIDA Service Delivery Mechanism (PIDA SDM)

This mechanism which is managed by the NEPAD Agency provides project implementers, most notably the Regional Economic Communities (RECs), with consultants to advise them on early stage project preparation (e.g.institutional and legal set up a project implementation and management unit.drafting of ToR for feasibility studies). The PIDA SDM is complementary with existing Project Preparation Funds (PPFs) since it helps to bring PIDA projects to the stage when feasibility studies can be undertaken. Then, PPFs can take over for the residual project preparation activities. The pilot project of this mechanism is the Abidjan-Lagos Corridor.

Launch of the Continental Business Network (CBN)

The Continental Business Network (CBN) is an African Union Heads of State and Government response to facilitate private sector advice and leadership in essential continent-wide infrastructure projects, notably PIDA, through the creation of a high-level private sector forum. In this regard, the CBN acts as an exclusive Infrastructure Investment Advisory platform for African leaders, providing thought leadership and engagement on a range of strategic issues like policy, investment risk rating(s), project structuring and specifically the existing constraints to the implementation of the PIDA projects. The Network will comprise leading African and global business and finance bodies as well as regional and international organizations. The purpose of the CBN is to engage and advance private sector priorities and requirements to invest in PIDA projects.

First PIDA Week, Abidjan, Côte d’Ivoire

The PIDA Week was launched, as a recommendation of the PIDA Communication Network, is an information tool to increase the visibility of PIDA and in addition to it, a platform for targeted PIDA promotion and a mutual exchange between all PIDA relevant actors. The PIDA Week shall be organised once a year. Subsequently, PIDA Steering Committee Meeting was held for the first time in October 2015.

The launch of MoveAfrica

The NEPAD Agency launched MoveAfrica as an Initiative to facilitate trade and logistics along corridors. The initiative was launched in May 2016 in Kigali on the margins of the World Economic Forum (WEF). The initiative aims to address the transformation of the transboundary transport and logistics sector in Africa. The NEPAD Agency’s focus as the Africa Union’s Development Agency is on implementing Regional Projects, in-order to promote regional markets and double digit growth, towards the Continental Free Trade Area, bearing in mind that transport and trade corridors are an increasingly common approach to accelerating cross-border investments.

Launch of the 2nd PIDA CBN Report

At the sidelines of the World Economic Forum in Kigali, Rwanda, the PIDA Continental Business Network launched its 2nd report titled “De-Risking Infrastructure and PIDA Projects in Africa”. One of its key recommendations concluded to establish a co-investment platform that seeks to increase the financing of African infrastructure projects by African pension funds and sovereign wealth funds

Second PIDA Week held and PIDA Progress Report launched

The second PIDA Week under the title “Creating Jobs through Regional Infrastructure Development” were held in Abidjan, Cote d’Ivoire. Also, for the second time, the PIDA Progress Report was presented as a result of the extensive PIDA M&E System.

The first AU Specialized Technical Committee on Infrastructure recognizes PIDA

The first ordinary session of the African Union specialized technical committee on transport, transcontinental and inter regional infrastructure, energy and tourism took place from 13th – 17th of March 2017 in Lomé, Togo. Among others, The Declaration of Lomé invited all African stakeholders to enhance coordination and synergies in regard to PIDA; requested Member States to include PIDA PAP projects in their national budget and infrastructure plans and requested AUC-DIE and NEPAD to finalize the PIDA Job Creation Toolkit in order to successfully estimate and track labour market effects of regional infrastructure.

Endorsement of PIDA Action Plan by AU Executive Council during AU Summit

The executive council of the AU endorsed the report of the first Specialized Technical Committee (STC) on Transport, Energy and Tourism as well as the sector action plans and the specific action plan for PIDA. Additionally, Member States were asked to further commit to the implementation of the Yamassoukrou Decision; to commit to PIDA and its significance for the implementation for Agenda 2063 and 2030 – call on Member States to mobilize resources and that generally PIDA and large scale infrastructure is significant in creating jobs.

Launch of 5% Agenda at NASDAQ, New York

The NEPAD Agency’s Continental Business Network, along with Africa investor (Ai), gathered international investors and CEO-level business leaders at NASDAQ on the 18th of September, for the launch of the 5% Agenda initiative. The 5% Agenda campaign highlights that only a collaborative public-private approach can efficiently tackle these issues and calls for allocations of institutional investors to African infrastructure to be increased to the declared 5% mark. Speaking at the launch event in New York, Ibrahim Assane Mayaki, NEPAD Chief Executive Officer, indicated that, for pension and sovereign wealth funds to invest in large-scale infrastructure projects in Africa, a variety of issues need to be addressed to facilitate long-term allocations. Chief amongst these matters is the need to reform national and regional regulatory frameworks that guide institutional investment in Africa.

First PIDA Public Private Partnerships Training Module in Dakar, Senegal

For the first time the NEPAD Agency and AUC-DIE in cooperation with the AfDB and the German government (via GIZ), organized capacity development training scheme for public officials/project implementers from Regional Economic Communities, national infrastructure departments and specialized institutions. Accordingly, the expertise in preparing, negotiation, procuring and managing PPPs for large scale and cross-border infrastructure projects was strengthened. The training was held in Dakar, Senegal.

The 2017 Programme for Infrastructure Development in Africa (PIDA) Week will be held from 10 to 14 December in Swakopmund, Namibia under the theme “Enhancing Trade and Economic Transformation through Regional Infrastructure Development”. (more…)

PIDA Job Creation Toolkit at Africa Talks Jobs, Addis Ababa, Ethiopia

After a successful first phase of developing a methodology for the estimation of labour market effects of PIDA projects, the results and the way forward of the PIDA Job Creation Toolkit were presented at the Africa Talks Jobs event. The Toolkit not only estimates the type and quantity of jobs that can potentially be created by PIDA projects, but it also provides actionably strategies and policy recommendations how to maximize local jobs and improve skills development. PIDA as a key driver for job creation and the PIDA Job Creation Toolkit as a future labour market information tool were incorporated to the final declaration which eventually will be forwarded to the AU-EU Summit in Abidjan, Cote d’ivoire.

The Programme for Infrastructure Development in Africa (PIDA) demonstrated its “Energy Vision” through the implementation of the Kaleta Hydropower Dam situated on the Konkoure River, approximately 120km from Guinea’s capital Conakry. The Kaleta Dam harnesses renewable (hydropower) energy resources in order for households, businesses and industries to gain energy access, not only in Guinea but for West Africa. The growth and improvement of resourceful, dependable, cost effective, and ecologically friendly energy infrastructure is a stepping stone towards poverty eradication and sustainable development in the region.

Socio-Economic-Impacts-and Regional Power Distribution

As part of the Economic Community of West African States (ECOWAS) Regional Energy Efficiency Policy, a long-term energy strategy was announced by the Guinean government to alleviate the energy crisis that has been hindering the development of the country. As a result, the implementation of the Kaleta hydropower plant improved energy access for the population of Guinea by adding 240 MW to the national electricity grid. In addition, it has widened the potential of businesses to expand, create more jobs as well as to increase the confidence for further investments in West Africa. In essence, the Kaleta Dam has a positive impact on the country’s socio-economic development as Guinea’s hydroelectric generating capacity increased from 2012 levels of 128 MW to 368 MW, almost tripling its mounted hydro capability. In addition, power generated from the dam plays a noteworthy part in providing unswerving power for Conakry’s 1.7 million citizens.

The development of renewable energy by means of the Kaleta Hydropower Dam was brought to fruition in 2015 after three years of construction. The Dam is resourceful in meeting the power demands of Guinea and an estimation of 30% of Kaleta’s output is intended to go to neighbouring Gambia, Guinea-Bissau and Senegal. At the core, the electricity generated at Kaleta feeds into the operation of the West African Power Pool’s vision of incorporating national power systems into an integrated regional electricity market. The main goal is to provide a consistent and dependable energy delivery at economical cost for the ECOWAS region as part of its Regional Energy Efficiency Policy.

Further Outlook

In the upcoming years, the PIDA energy infrastructure framework plans to include transmission lines to connect the continent’s power pools and permit a large increase in inter-regional energy trade. PIDA as the continental infrastructure framework is supported by the German Government through technical advisory services of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). With PIDA projects becoming operational, it continues to promote regional economic integration via the advancement of cross-border infrastructure on the African continent.

The Rusumo Hydro Power Plant is a transboundary project traversing over Rwanda, Tanzania and Burundi located on the Kagera River on the border between Rwanda and Tanzania, and nearly 25 kilometres downstream of Burundi. Rusomo Falls is also a PIDA Priority Project to which the African Development Bank (AfDB) provided a $4 million grant to the Nile Basin Initiative to technical studies for the transmission lines.

National and Regional Impact of Rusomo Falls.

The project is envisioned to strengthen regional power interconnection and to provide job prospects for more than 500 skilled and non-skilled labour forces from the recipient countries Burundi, Rwanda and Tanzania. It is forecasted to improve livelihoods of about 7000 households in the beneficiary districts and an additional 188 households directly affected by the projects through Livelihood Restoration Program (LRP) implemented by the Nile Equatorial Lakes Subsidiary Action Program (NELSAP).

Transbounday Water Management as success for Socio-Environmental Risk Mitigation

Naturally, the development of large scale infrastructure can be to the disadvantage of nature and communities. Therefore, it is of utmost importance that project states in cooperation with regional actors such as River Basin Organisation (RBOs) communicate early in the project preparation stage on socio-environmental risk mitigation. This is exactly what happened during the development of Rusomo Falls via Transboundary Water Management (TWM).
NELSAP as the RBO developed above mentioned livelihood restoration program, which is part of a broader Resettlement Action Plan (RAP) prepared in accordance with the World Bank social safeguard requirements and the AfDB Involuntary Resettlement Policy. Additionally, the RAP, to relocate people in a publicly responsible method and conferring to good international practice, was bolstered by a well-coordinated notification and consultation process of the three project states. Through the notification process, and the ensuing environmental and social assessments, it was decided to alter the original design of a 90MW plant and projected displacement of 90,000 people to an 80 MW hydropower scheme merely displacing about 500 people. This process demonstrated the significance and benefits of engaging a broader range of stakeholders at the national and regional level so as to promote RBOs and to achieve national level buy-in.

The Rusumo Hydro Power Plant has thus far been on track with satisfactory progress. Where there is impending transboundary impact, national standards should still apply to the degree that they correspond with universally established international rules and standards. The respective recipient countries have reported on the positive impacts the development of the project has had thus far, the most noteworthy being the absence of load shedding since December 2015 and the assertion that current power cuts are associated with network issues. It can thus serve as best practice example in mitigating socio-environmental risks in infrastructure development in Africa.

Africa is characterized by an infrastructural deficit, a situation that remains critical. In fact, across the continent, 319 million people are living without access to improved reliable drinking water sources, 695 million people are living without basic sanitation access, only 34 percent have road access, and 620 million people don’t have access to electricity (sub-Saharan Africa). These insufficient infrastructure networks across the continent have limited cross-border flows of trade, capital, information, and people, drastically affecting Africa’s growth and broader development performance and regional integration. The Program for Infrastructure Development in Africa (PIDA), a continental initiative aimed at tackling the infrastructure deficits in Africa by 2040, should address these major gaps, but the effort is a long way from meeting its potential.

AU-EU Summit, Abidjan, Côte d’Ivoire

The African Union (AU) and the European Union (EU) hosted a joint summit, the 5^th AU-EU Summit in Abidjan, Côte d’Ivoire from 29^th to 30^th of November 2017. The AU-EU Heads of State and Governments Summit takes place every three years and reviews progress made in the implementation of joint programmes to provide political and technical guidance on further actions. In this regard, the 6^th EU-Africa Business Forum were held, in which the NEPAD Agency and AUC-DIE represented PIDA at numerous events. One of the activities was the presentation, “market packaging”, of five PIDA Programmes seeking investment opportunities.

Third  PIDA Week, Swakopmund, Namibia

This year’s PIDA Week focused on the theme “Regional Infrastructure Development for Job Creation and Economic Transformation” – a central element was the so-called “market packaging” of five PIDA Programmes that are particularly impactful for socio-economic development. By presenting respective action plans, project owners were seeking further financing partners for its realization. Another highlight was the High Level Roundtable on Job Creation, Trade Facilitation and Economic Transformation through Regional Infrastructure, which was opened by the NEPAD Agency and its achievements in support of job creation and intra-African trade.

Fourth PIDA Week, Victoria Falls, Zimbabwe

Fourth PIDA Week’s theme was “Good Governance – realizing Smart Infrastructure for Africa’s Integration”. The 2018 PIDA Week built on previous events to continue to engage stakeholders on the effective delivery of infrastructure on the continent focusing specifically on good governance and how it can specifically help to: enable project preparation and implementation support resource mobilisation, promote private sector confidence to invest in PIDA projects, and encourage integration of PIDA projects into national development plans. As part of the strategy of cross-linkages with PIDA stakeholders, PIDA Week 2018 incorporated the Africa Forum for Utility Regulators (AFUR) AGM and annual conference for robust engagement.

African Infrastructure Guarantee Mechanism (AIGM), Mauritius

AUDA-NEPAD officials attended the 3^rd African Pension Funds and Alternative Investments Conference in Mauritius from the 20^th – 21^st of March 2019. AUDA-NEPAD presented a session on Scaling Risk Mitigation to enable greater pension fund investment in Africa’s Infrastructure: The African Infrastructure Guarantee Mechanism. The conference resulted in meaningful discussions as the event was well attended by an audience mostly composed of industry players (private pension fund administrators, trustees, asset managers, government pension funds and Development Finance Institutions), this demonstrated and reiterated the significance of the African Infrastructure Guarantee Mechanism as an initiative by AUDA-NEPAD to  increase the allocation of African asset owners from an approximate 1.5% to 5% of Assets under Management (AUM) by reducing the risk and crowd in the capital markets players’, pension funds, investment managers and other financial investors in Africa’s infrastructure.

Completion of all PIDA – PAP projects

The implementation of all PIDA – PAP projects facilitates economic prosperity and sustainable development. The completion of all PIDA-PAP projects establishes transnational transport corridors and telecommunications networks,improving regional energy supply and developing a functioning trans-boundary water management which are key for a sustainable and socially inclusive economic growth and facilitates cooperation between African countries; hence, brings to live the vision of an integrated and united Africa.

1. Launch of PIDA PAP 2 :
   • The second phase of PIDA, known as PIDA PAP 2, was officially launched. This phase covers the period from 2021 to 2030 and includes 69 priority projects aimed at enhancing infrastructure across Africa in sectors such as transport, energy, ICT, and transboundary water.
2. Strategic Framework and Adoption :
   • PIDA PAP 2 was adopted by the Heads of State and Government at the African Union Summit in January 2021. This adoption set the priorities for continental infrastructure development for the next decade.
3. Integrated Corridor Approach :
   • The projects under PIDA PAP 2 were selected based on an integrated corridor approach, which aims to enhance regional connectivity and economic integration.
4. Focus on Sustainable Development :
   • PIDA PAP 2 projects were designed to align with the African Union’s Agenda 2063 and the United Nations Sustainable Development Goals (SDGs), emphasizing sustainable and inclusive infrastructure development.
5. High-Level Political Engagement :
   • Throughout 2021, there was significant political engagement to rally support and resources for the implementation of PIDA PAP 2. This included strategic reflection sessions and ministerial meetings to discuss progress and challenges.
6. Challenges and Opportunities :
   • The year also highlighted challenges such as funding gaps and the need for enhanced project preparation. However, it also presented opportunities for increased private sector involvement and innovative financing mechanisms.

PIDA Week 2022, the 7th edition, was held in Nairobi, Kenya, from February 28 to March 4, under the theme “Putting Africa on a Firm Footing for Recovery, Growth, and Resilience through Infrastructure.” The event brought together international and regional experts to discuss strategies for accelerating infrastructure development in Africa. Key outcomes included commitments to enhance infrastructure projects that support economic integration and recovery, particularly in the context of the COVID-19 pandemic’s impacts. The discussions emphasized the importance of collaboration to achieve the goals of the African Continental Free Trade Area (AfCFTA) and Agenda 2063, focusing on sustainable and resilient infrastructure solutions.

PIDA Week 2022

In 2023, significant upgrades were made to the African Infrastructure Database (AID) and the Virtual PIDA Information Centre (VPIC) to enhance their capabilities in project tracking and monitoring. Here are the key features of these upgrades:

1. Enhanced Project Tracking :
   • The upgrades introduced real-time updates, allowing stakeholders to access the most current information on infrastructure projects across Africa.
2. Interactive Maps :
   • New interactive mapping tools were integrated into the systems, providing users with a visual representation of project locations and progress. This feature helps in better understanding the geographical distribution and status of projects.
3. Mobile Access :
   • The systems were optimized for mobile access, ensuring that users can conveniently access project data and updates on-the-go.
4. System Maintenance :
   • A scheduled system maintenance was announced for February 15-17, 2024, to implement these upgrades. Users were advised to save their reports before this period to avoid data loss.

Launch of the PIDA 10-Year Implementation Report 2023

The PIDA 10-Year Implementation Report was officially launched in September 2023 during the African Union Specialized Technical Committee meeting held in Zanzibar, Tanzania. This report marks a significant milestone, reflecting on a decade of infrastructure development achievements under the Programme for Infrastructure Development in Africa (PIDA).

Key Highlights of the Report

1. Achievements Over the Decade :
   • The report outlines the progress made in enhancing regional connectivity and infrastructure across Africa. It highlights successful projects in transport, energy, ICT, and transboundary water sectors.
2. Strategic Insights :
   • It provides strategic insights into the lessons learned over the past decade and how these can be applied to future infrastructure projects to overcome regional connectivity challenges.
3. Future Directions :
   • The report sets the stage for future infrastructure development, emphasizing the importance of sustainable development and economic growth through improved connectivity.
4. Stakeholder Engagement :
   • The launch event brought together key stakeholders, including representatives from the African Union Development Agency-NEPAD, government officials, and development partners, to discuss the report’s findings and future strategies.

Access the Report

• Full Report : PIDA 10-Year Implementation Report PDF
• Event Details : PIDA First 10-Year Implementation Report Launch

Information management services included new AI-driven services within the Virtual PIDA Information Centre (VPIC) to enhance project tracking and monitoring capabilities. These AI tools provide real-time data analysis and predictive insights to improve decision-making processes for infrastructure projects.

PIDA’s AI services are designed to enhance the planning, implementation, and monitoring of infrastructure projects across Africa. These services include:

1. Data Analysis and Insights : Utilizing AI to analyze large datasets for better decision-making and project planning, ensuring that infrastructure projects are aligned with regional needs and priorities.
2. Predictive Analytics : AI tools predict project outcomes and potential challenges, helping stakeholders to proactively address issues and optimize resource allocation.
3. Project Monitoring : AI-driven platforms provide real-time monitoring of project progress, enabling timely interventions and adjustments to keep projects on track.

PIDA Week 2024 was held from November 25 to November 29 at the African Union Headquarters in Addis Ababa, Ethiopia. This significant event was organized by the African Union Commission (AUC), AUDA-NEPAD, and the Ethiopian government, under the patronage of Prime Minister Abiy Ahmed. The theme for the week was “Fostering Resilient and Inclusive Infrastructure for Africa’s Sustainable Growth: Leveraging Transformative Financing and Regional Integration.”

The event brought together key leaders and stakeholders, including H.E. Moussa Faki Mahamat, Chairperson of the AUC, and H.E. Nardos Bekele-Thomas, CEO of AUDA-NEPAD. Discussions focused on strategic infrastructure financing, regional integration, and the role of infrastructure in sustainable growth. The week emphasized the importance of resilient and inclusive infrastructure in advancing Agenda 2063 and addressing Africa’s infrastructure deficits. High-level sessions explored climate change risks, decarbonization strategies, and transformative financing models to accelerate infrastructure development across the continent.

For more details, visit the PIDA Week Events Page.

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