The African Development Bank has provided over 50% of financing secured by infrastructure projects under the Programme for Infrastructure Development in Africa (PIDA), making it the lead financier of this strategic pan-African initiative.
Over 17 flagship infrastructure projects were showcased at the Dakar Financing Summit 2 (DFS2) which concluded on 3 February in the Senegalese capital. Under PIDA, the bank is primarily supporting energy and transport projects.
Both sectors align closely with the High-5 operational targets: Light Up and Power Africa; Feed Africa; Industrialize Africa; Integrate Africa; and Improve the quality of life for the people of Africa. Energy and power also advance targets set under the AU’s Agenda 2063 and the African Continental Free Trade Agreement, which came into force on 1 January 2021.
PIDA is a blueprint for infrastructure development to increase Africa’s competitiveness and economic integration. Its Priority Action Plan 2, adopted in 2021 by the AU Assembly of Heads of State and Government, comprises 69 ICT, water, energy and transport projects that are to be fast-tracked to roll-out.
The Abidjan-Lagos Corridor Highway Development project will construct a 1,081-kilometer roadway linking Abidjan to Lagos via Accra, Lomé, and Cotonou when completed. This coastal stretch of West Africa accounts for almost 75% of regional commercial activity. Valued at $15.6 billion, this transformative public-private partnership project was the largest investment opportunity showcased at the Africa Investment Forum virtual boardrooms held in March 2022. The Africa Investment Forum(link is external) is a transactional, multi-stakeholder platform that raises capital for large-scale investments in Africa.
Another key transport initiative is the Nacala Corridor project, a major strategic regional transport effort, which will link the Nacala port– the deepest natural harbor on Africa’s east coast — to the Zambian capital, Lusaka, over 1,700 km away, through Malawi and Mozambique.
The bank has injected over $458 million to construct 1026 km of road upgrades and two one-stop border posts. This has already reduced transport costs and conditions for over 5.1 million people in Mozambique, Malawi and Zambia. Cumulative travel time on affected road sections has fallen to 15 hours from 30 hours; crossing time for trucks at the Malawi border decreased from 12 hours to 3 hours.
The Bank has been supporting the creation of the West African Power pool (WAPP) West African regional electricity market.It will drive integration of the region’s electricity sector into a unified market, offering residences and businesses in ECOWAS countries access to regular, reliable and affordable electricity. Under this umbrella, the Bank is financing several component projects:
The 128 MW Gambia River Basin Development Organization (OMVG) project entails construction of a roughly 1700km interconnection network to improve clean renewable energy generated electricity in The Gambia, Guinea, Guinea-Bissau and Senegal.
OMVG connects with the Côte d’Ivoire-Liberia-Sierra Leone-Guinea (CSLSG) Power Interconnection project,for which the Bank provided $197 million in financing.
Under CSLSG a 1,357-km double circuit high voltage (225 kV) line will be built to connect the four countries’ national networks to establish a dynamic electric power market in the sub-region.
In East Africa, The Bank has supported the 206 MW Ruzizi III Hydropower project.When completed, Burundi’s current total capacity is expected to double, while Rwanda’s is expected to increase by half. The project will replace significant amounts of fossil-fuel based power in the Economic Community of the Great Lakes Countries region, increasing the share of green energy. Additional benefits include the creation of permanent and temporary jobs and a reduction in greenhouse gas emissions.
These are just some of the PAP2 projects DFS-2 deal rooms showcased by bringing together project sponsors and representatives of development banks, corporations and governments to advance projects toward operationalization.
PAP2 builds on the lessons of PAP1, comprising 400 projects, which closed in 2020. Over 76 of these are now operational, including the Walvis Bay Container Terminal in Namibia for which the bank provided $300 million, 70% of the total financing, in 2013.
Bank funding underwrote expansion of the port’s container terminal, which serves as a gateway for the SADC region, specifically for land-locked countries.
Beyond financing, the Bank has also lent technical assistance support to the Yamoussoukro Decision (YD), a treaty that paved the way for open skies(link is external)and full liberalization of Intra-African air transport services among most African countries. The decision was endorsed by 44 members of the African Union(link is external) (AU) in 1999 and became binding in 2002.
The Bank is providing $7 million to help accelerate the full implementation of the Yamoussoukro decision implementation through the AU’s Single African Air Transport Market(link is external), which was launched in 2018 by the AU.
To see a full list of PIDA PAP2 projects, click here(link is external)
To learn more about the bank’s support for infrastructure development, click here