The PIDA Priority Action Plans - PIDA PAP

PAP stands for Priority Action Plan. It is a strategic framework that outlines the priority infrastructure projects and programs for the development of Africa's regional integration. The PAP is a result of an extensive consultation process involving various regional economic communities (RECs), specialized agencies, and basin organizations. It includes investment programs, master plans, and other important information. The PAP aims to address the infrastructure gaps in Africa and promote economic growth and development. The African Heads of State and Government adopted the PIDA Framework, which includes the PAP, during the 18th ordinary session held in Addis Ababa, Ethiopia, in January 2012.

PIDA Priority Action Plan Phase 1 (PIDA PAP1) contained regional priority projects for implementation during the period 2012-2020.

PIDA PAP1 aimed to fast-track the mplementation of programmes and projects for regional integration. Projects were prioritised based on eligibility, regional integration; feasibility and readiness; and development impacts. Fifty-one cross-border infrastructure programmes were unbundled into just over 409 individual projects.

PIDA PAP2, covering the period 2021-2030, includes projects that promote regional integration and industrialisation towards the realisation of Agenda 2063. Project prioritisation was based on the Integrated Corridor Approach and other factors such as rural-urban connectivity, job creation, gender, and climate friendliness. Its projects span the entire African continent, both the mainland and the islands, and leverage lessons from PIDA PAP1. It also employs more elaborate strategies and tools.

PIDA Financing Requirements

The projected cost for completing the PIDA PAP1 projects amounted to USD 67.9 billion, with a targeted completion date of 2020. PIDA PAP2, comprising 69 projects spanning transportation, energy, transboundary, and ICT sectors, is estimated to require an investment of USD 160.7 billion. The comprehensive cost projection for executing all PIDA projects to meet future infrastructure demands by 2040 stands at USD 360 billion.

Africa's Infrastructure needs (2012-2040): USD 360 billion

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%).

The ownership principle is critical to the success of infrastructure development projects promoted by PIDA across Africa. Its principle is based on the 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 Target for the period 2012-2040

The primary objective of PIDA is to address the ubiquitous regional and intra-regional connectivity challenges in Africa through infrastructure development. In its broadest scope, PIDA is intended to provide not just an adequate stock of infrastructure but a transformational infrastructure that will spur Africa to the next level of development and position it as a recognised player in the global economy. Through its various phases, PIDA is geared to enhance connectivity across the continent and thus facilitate the growth of intra-Africa trade in goods and services and the movement of persons. This will be achieved through, among other things, the reduced cost of conducting business and the unrestricted flow of financial and human capital across the continent. The following physical infrastructure needs to be built under PIDA between 2012 and 2040:

Key impact resulting in 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.

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