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The Programme for Infrastructure Development in Africa - PIDA

Infrastructure serves as the bedrock for development in Africa, significantly contributing to economic growth, poverty reduction, and achieving sustainable development goals. It is crucial for increased regional trade, integration, and the realisation of Africa’s long-term vision outlined in Agenda 2063 and the Africa Continental Free Trade Area (AfCFTA). However, the continent continues to face a substantial infrastructure gap that hinders social and economic progress, with an estimated annual investment shortfall of up to USD 108 billion. Africa is the second largest continent, with a population of 1.34 billion in 2021 and projected to reach 1.7 billion by 2030. Africa must produce goods and services for domestic consumption and global trade to achieve sustainable economic growth and improve living standards. Inadequate infrastructure is a significant obstacle for Africa in capitalising on emerging conditions for trade, growth, and job creation. Insufficient infrastructure, both in quantity and quality, increases production and transaction costs, reduces business competitiveness, and hinders economic and social development. It also creates an unfavourable business environment, making it less attractive for foreign direct investment. Limited service options and reduced quality of infrastructure affect vulnerable segments of the population.

Content
Background, Objectives and Evolution
Background of PIDA

Individual efforts by African countries to develop infrastructure have faced significant funding deficits due to the high costs involved. African countries, through the African Union and regional economic communities, have adopted the Programme for Infrastructure Development in Africa (PIDA) to address these inadequacies and enhance connectivity. PIDA aims to spearhead physical infrastructure development in transport, energy, ICT, and transboundary water resources. The programme focuses on efficient project preparation, implementation, and operation to deliver the required services and improve living standards. Recognising the critical role of infrastructure in development, the African Union Development Agency (AUDA-NEPAD) has been entrusted with coordinating the planning, resource mobilisation, and implementation of PIDA. AUDA-NEPAD collaborates closely with individual states, the African Union Commission (AUC), Regional Economic Communities (RECs), AfDB, UN Economic Commission for Africa (UNECA), Pan African Institutions, Development Partners, and other relevant stakeholders involved in infrastructure development. AUDA-NEPAD aims to drive infrastructure advancement across Africa by working with these entities.

Upon the relaunch of the OAU into AU in 2002, the AU, through the then New Partnership for Africa’s Development (NEPAD), embarked on a comprehensive programme for enhancing continental connectivity in transport, energy, ICT and transboundary water resources. This was undertaken by formulating the Short-Term Action Plan (STAP), adopted in 2002. The STAP comprised a limited number of projects identified, selected, and prioritised for rapid mplementation.

The STAP, a short-term action plan, should have been followed by a Medium to Long-Term Strategic Framework (MLTSF) to articulate policies and strategies, outline priorities and contribute to establishing partnerships to promote economic integration and support the development of trade and commerce. The MLTSF was eventually transformed into the PIDA after extensive studies and consultations. The development of PIDA was completed in 2012, and it was adopted as a long-term rolling programme based on elaborate studies with wide stakeholder consultations to establish priorities together with robust institutional structures for the implementation of programmes and projects.

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Learn More about PIDA
Our Vision and Objectives

PIDA is grounded in regional and continental master plans and action plans as well as other relevant work undertaken by the African Union (AU), the regional economic communities (RECs), the regional and continental technical agencies (including the lake and river basin organisations (L/RBO) and power pools (PP)), and the concerned countries. The proposed infrastructure development programme articulates short- (2020), medium- (2030), and long-term (2040) priorities for meeting identified infrastructure gaps in a manner consistent with the agreed strategic framework - based on long-term social and economic development visions, strategic objectives, and sector policies - and buttressed by an implementation strategy for the Priority Action Plans (PAP). PIDA is a programme focused on four different infrastructure sectors aiming at a wide range of objectives:

Energy

To develop efficient, reliable, affordable and environmentally friendly energy networks and increase access to modern energy services. Clean power generation and transmission, high-capacity oil and gas pipelines and renewable energy projects can all fall under the PIDA’s energy sector tag.

Water

To promote and enhance integrated water resource management by developing transboundary water infrastructure and strengthening institutions for efficient cooperation on shared water resources.

Transport

To enable the free movement of goods and people through efficient, safe, affordable and reliable transport services. It includes roads, railways, ports, airports, and related transport services projects.

Information and Communication Technology

To improve the access of all Africans to reliable and affordable ICT networks, meeting Africa’s demand for affordable broadband, increasing access and security to internet services and
promoting intra-African e-commerce.

PIDA PAP1 comprises 51 cross-border infrastructure programmes, including over 400 projects to be developed by 2020. PIDA PAP2 is made up of 69 projects for the period 2021-2030. PIDA and its first Priority Action Plan (PIDA PAP1) was adopted by the African Heads of State and Government at the AU in 2012, covering the period 2012-2020. Relevant milestones of PIDA are shown in the timeline below:

November 2020

November 2020
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.

March 2019

March 2019
African Infrastructure Guarantee Mechanism (AIGM), Mauritius

AUDA-NEPAD officials attended the 3rd African Pension Funds and Alternative Investments Conference in Mauritius from the 20th – 21st 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.

November 2018

November 2018
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.

December 2017

December 2017
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.

November 2017

November 2017
AU-EU Summit, Abidjan, Côte d’Ivoire

The African Union (AU) and the European Union (EU) hosted a joint summit, the 5th AU-EU Summit in Abidjan, Côte d’Ivoire from 29th to 30th 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 6th 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.

October 2017

October 2017
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.

September 2017

September 2017
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.

July 2017

July 2017
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.

March 2017

March 2017
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.

November 2016

November 2016
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.

July 2016

July 2016
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

May 2016

May 2016
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.

November 2015

November 2015
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.

June 2015

June 2015
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.

November 2014

November 2014
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.

June 2014

June 2014
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.

May 2014

May 2014
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.

January 2014

January 2014
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

May 2013

May 2013
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).

July 2012

July 2012
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.

Pricing
Case Study: PIDA objectives and regional integration

PIDA is based on a shared vision of regional integration and a long-term agenda that will support the objectives of the Abuja Treaty
that established the African Union. It is further expected to achieve the following:

- Reducing transport costs and boosting intra-African trade with transport efficiency gains totalling approximately USD 172 billion in the African Regional Transport Integration Network (ARTIN) and potential for more significant savings as trade corridors open;

- Reducing energy costs and increasing access, enabling Africa to reap savings on electricity production costs of USD 30
billion annually through 2040. Power access is planned to rise from 39% in 2009 to nearly 70% in 2040, providing access to
an additional 800 million people;

- Increasing global broadband connectivity by increasing broadband penetration by 10%, which is expected to will increase GDP by 1% by strengthening connections between goods and markets and between people and jobs; and
- Ensuring water and food security in Africa which has the lowest water storage capacity and irrigated agriculture in the world, and about where half the continent faces water stress or water scarcity

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