By John Ikani
President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, has urged various blocs within the continent to collaborate in fostering greater market integration, stressing that a well-connected Africa would be a more competitive one.
Addressing the Africa Investment Forum (AIF) Market Days 2023 during a session on regional corridor development, Adesina underscored the AfDB’s commitment to developing essential infrastructure to link the continental market.
He stressed the necessity of a connected Africa to accomplish substantial advancements in continental trade, aligning with the objectives of the Africa Continental Free Trade Agreement (AfCFTA).
Adesina highlighted the tremendous opportunities for global economic growth, considering the projected population of 2.5 billion in Africa by 2050. He encouraged investors to capitalize on this moment, anticipating lucrative returns on equity.
“When fully operational, AfCFTA offers incredible opportunities for boosting intra-regional trade and the emergence of more competitive national, regional, and globally connected value chains,” Adesina noted.
Emphasizing the critical role of infrastructure development, he revealed that over the past seven years, the AfDB has allocated over $44 billion for infrastructure development, with an additional $2.5 billion dedicated to regional infrastructure.
Adesina outlined the bank’s focus on catalyzing public and private investments in transport and electricity connections. The bank is actively involved in the development of regional electricity corridors, including the $20 billion desert-to-power initiative, aiming to generate 10 gigawatts of solar power across 11 Sahel zone countries.
The AfDB President reiterated their commitment to provide up to 90% funding for regional infrastructure projects to enhance the continent’s competitiveness.
“To fast-track the integration of African economies, lower transport costs, connect landlocked countries to coastal countries, and improve regional trade, driving support for the development of regional transport corridors is necessary,” Adesina asserted. As of 2022, the AfDB has financed 25 transport corridors, contributing to the construction of over 18,000 kilometers of roads, 27 border posts, and 16 bridges, totaling $13.5 billion.
To strengthen backing for regional infrastructure, Adesina announced the dedication of a boardroom to regional corridors in upcoming AIF Market Days. This strategic move aims to mobilize private funding and amplify attention on projects across the five regional blocs.
Notably, at the previous AIF Market Days, the Lagos-Abidjan highway garnered investment interest of $15.2 billion, highlighting the potential for significant financial support from various financiers and investors.
During the discussion on regional corridors, Sédiko Douka, the Commissioner for Infrastructure, Energy, and Digitalization at the Economic Community of West African States (ECOWAS), revealed that $43 million had been mobilized for preparatory works on the crucial project, with the feasibility study completed. This funding was pooled from the AfDB and other project partners.
