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Generally, Africa lacks behind other continents in the area of infrastructure. This deficiency is particularly greater in the area of sanitation (65% coverage for sub-sahelian countries against a total of 82% for developing countries as a whole), electricity (24% against 58%) and rural road access (34% against 90%).

An annual growth of 7%, making it possible to attain the Millennium Development Goals on poverty reduction, will require a yearly investment of US$22 billion in infrastructure on the continent, 40%of which is in the transport sector, 25% in energy, 20% in water and the rest in telecommunications.

The four key areas under the infrastructure sector are sanitation, energy, transport and telecommunications. Besides the said annual investment, there are financial needs estimated at US$18 billion for the operation and maintenance of investments in Africa. The continent should allocate approximately US$ 38 billion each year, which is between US$ 32 and US$40 per inhabitant, from 2005 to 2015, to enable the continent achieve the Millennium Development Goals for these sectors. This deficiency raises a major impediment to economic development and the improvement of the populations’ living conditions.

Following the Gleneagles Summit in 2005, the partners’ financial support to Africa’s infrastructure sector has been on the increase. Direct aid for infrastructure from OECD countries went from US$5.1 billion in 2005 to US$5.7 billion in 2006.

AfDB & Infrastructure

Aware that this sector is lagging behind, the Bank has, since its establishment in 1967, favored infrastructure by devoting 36% of its total commitments to this sector, equivalent to US$52 billion. Since 2001, following NEPAD's creation, a new impetus has been given to the infrastructure sector and its contribution for 2007 attained US$2.27 billion, up 88% from 2006. Activities in favor of the sector have been stepped up considerably, accounting for 62% of all Bank approvals (against 52% for ADF X).   

In line with these goals, regional projects and programmes have been key vehicles for this funding. The amount of support to multinational projects went from US$2.46 billion in 2006 to us$ 2.78 billion in 2007, representing an increase of 12.9%.  The bulk of these resources went to the transport sector, followed by communications and energy.  

In addition, the Bank in 2007 approved 5 regional projects under NEPAD, for a total cost of US$ 327 million. US$ 4.2 billion was also approved by the NEPAD Special Fund Infrastructure Project Preparation, intended for financing the preparation of 7 projects in the Energy, Transport and communications sectors.

Even with this substantial effort, AfDB financial resources remain limited. To make up for this, It is  necessary to call on the private sector to meet the increasing financing needs and the infrastructure department encourages public-private partnerships for its new organizational structure, which includes sound expertise in this area.

Infrastructure Consortium for Africa

The Infrastructure Consortium for Africa (ICA) was created in 2005 following the Gleaneagles G8 Summit. The Consortium is a major new effort to accelerate progress to meet Africa's urgent infrastructure needs in support of economic growth and development. It will address both national and regional constraints to infrastructure development, with emphasis on regional infrastructure, recognizing particular challenges at this scale. The Consortium is made up of G8 bilateral donors and mutlilateral agencies. It is managed by a Secretariat hosted by the AfDB.  

For more information www.icafrica.org.

EU-Africa Partnership on Infrastructure

In December 2005, the European Council adopted an EU (European Union) Strategy for Africa which clearly spells out a framework for interaction between the whole of Europe and Africa, at all levels: pan-African institutions such as the Bank, the African Union Commission, regional economic communities and national authorities. It calls for a forging of a strategic security and development partnership between the EU and Africa. The overarching goals of the strategy are to support Africa’s efforts to reach the UN Millennium Development Goals (MDGs) and make Europe's partnership with Africa more efficient. The strategy is built around the following pillars: 1-Good governance, peace and security; 2–Economic growth, Trade, regional integration and interconnectivity and 3-Health, education, and a safe environment.

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