- African Group says inadequate infrastructure networks costs continent about two percent GDP annually
From Aidoghie Paulinus, New York
Nigeria and other African Countries under the aegis of the African Group have called for the development of infrastructure connectivity to fortify global resilience and promote sustainable development, especially in Africa.
The African Group made the call while delivering a statement during the United Nations General Assembly (UNGA) Sustainability Week in New York, United States, with the theme: “Informal dialogue on building global resilience and promoting sustainable development through infrastructure connectivity.”
The Permanent Representative of Angola to the United Nations, Ambassador Francisco Jose Da Cruz, while speaking on behalf of the African Group, said in today’s world which is highly interconnected, it was crucial to enhance infrastructure connectivity to fortify global resilience and promote sustainable development, especially in Africa.
The Angolan Permanent Representative also said with a projected population of 2.5 billion by 2050, Africa faces both great opportunities and daunting challenges.
According to the African Group, “The inadequacy of infrastructure networks costs the continent about two per cent of its GDP annually. As eleven of the world’s 20 fastest-growing economies in 2024 are expected to be in Africa, it is vital to focus on infrastructure development to leverage this projected economic acceleration, with an estimated average GDP growth of 3.8 per cent in 2024.”
The African Group however said one important initiative was the Program for Infrastructure Development in Africa (PIDA).
The African Group stated that the strategic framework prioritized infrastructure projects and promoted regional integration.
“PIDA has received over $65 billion in funding commitments from AU member states, which illustrates Africa’s dedication to addressing infrastructure deficits as a crucial aspect of sustainable development. Currently, infrastructure investment stands at four per cent of GDP, but this is expected to increase,” the African Group said.
The African Group also said by bridging the infrastructure gap, it is estimated that GDP growth could increase by two percentage points annually, which would contribute to sustainable development and economic resilience.
“The AU’s Agenda 2063 puts infrastructure connectivity at the forefront of its goals, with a focus on interconnectivity between regions and sectors.
“The African Union (AU) is making efforts to leverage infrastructure connectivity to unlock Africa’s economic potential through initiatives such as the Continental Free Trade Area (AfCFTA). This initiative aims to create the world’s largest single market. Recent studies estimate that AfCFTA could boost intra-African trade by up to 52 per cent by 2022. This underscores the pivotal role of infrastructure in driving continental integration and resilience. The African Group is also emphasizing the importance of innovative approaches, such as digital infrastructure investments. The AU is championing initiatives to bridge the digital divide and harness the transformative power of technology for sustainable development.
“Furthermore, the Africa Group firmly believes that by collaborating with public and private stakeholders and focusing on sustainable infrastructure solutions, we can lead the way towards a future characterized by inclusive growth, environmental responsibility and shared prosperity.
“It is important to tackle key challenges such as inadequate financing, regulatory barriers and institutional capacity constraints to harness the momentum of these initiatives. Recent efforts, such as the establishment of the African Continental Free Trade Area Adjustment Facility and the Africa50 infrastructure investment platform, are positive signs of a concerted push towards overcoming these hurdles and accelerating progress towards a more connected and resilient Africa where no one and no country is left behind,” the African Group further said.
In his remarks, the President of the 78th Session of the United Nations General Assembly, Dennis Francis, said quality, reliable, sustainable and resilient infrastructure, including regional and trans-border infrastructure, is important to sustain trade and commerce, facilitate effective transportation, connect the world to virtual grids, maintain energy flows, and make populations safer against natural hazards.
“At a very fundamental level, it can support a country’s overall socioeconomic development — while safeguarding assets and minimizing risks to our populations,” Francis said.
Francis also said the interconnectedness of today’s globalized economy necessitated sustainable and resilient infrastructure for reliable transportation.
“The recent bridge collapse in Baltimore, Maryland, demonstrated how damage to vital infrastructure carries far-reaching economic reverberations, inter alia, through disruptions to supply chains, at national — and indeed, global levels,” Francis added.