logo

Economic transformation of Africa : Infrastructure challenge

Home > Blog > Sustainable Development > Economic transformation of Africa : Infrastructure challenge

Economic transformation of Africa : Infrastructure challenge

Infrastructure gaps in Africa prevent populations from accessing healthcare, education, commercial centers, and economic opportunities. With only 53 % of roads paved, millions of people are hindered from accessing essential services. The African Development Bank (AfDB) estimates that developing regional corridors should be complemented by single-window border posts to stimulate trade.

Addressing the road infrastructure deficit

The road infrastructure deficit in Africa results in high production and transaction costs. These bottlenecks must be resolved to exploit the opportunities envisaged under the African Continental Free Trade Area (AfCFTA). The report « Cross-border Road Corridors Expand Market Access in Africa and Nurture Continental Integration» highlights two important points :

  • 80 % of goods and 90 % of passenger traffic are transported by road.
  • Only 43 % of the African population has access to an all-season road.

According to the International Monetary Fund, Africa’s population will reach 2.5 billion people by 2050.

Strategic importance of regional corridors

The session « Regional Corridors : The Quest for African Integration » featured a roundtable on the strategic importance of regional corridors in connecting Africa. Participants included government policymakers, regional economic communities, development partners, and private sector service providers.

AfDB President Dr. Akinwumi A. Adesina calls for concerted efforts to accelerate the integration of African economies. Dr. Adesina also called for the reduction of transport costs, the connection of landlocked countries to coastal countries, and the improvement of regional trade and competitiveness.

« This is the Africa we want: a fully interconnected Africa, using regional corridor infrastructures and innovative regional financing instruments to unlock economic opportunities and ensure the competitiveness of national and regional value chains. A well-connected Africa will be a more competitive Africa. »

The three priority areas for the development of regional corridors across Africa :

  • Devote common financing mechanisms to corridor projects.
  • Build special industrial zones around the corridors.
  • Optimize existing infrastructures.

The AfDB has invested over 44 billion USD in the past seven years to develop road corridors, ports, and railways to connect countries and boost trade. During the latest round of commitments, Dr. Adesina stated that the AfDB would contribute 500 million USD. This investment will serve the development of the strategic Lobito corridor to connect Angola, Zambia, and the Democratic Republic of Congo (DRC), linking the mines to the port of Angola.

Key infrastructure projects in Africa

Other projects include :

  • The 20 billion USD Desert-to-Power project aims to develop 10 GW of solar energy.
  • The Mozambique-Beira corridor transport system.
  • The 259 million USD Kazungula Bridge, which has already been commissioned.
  • The 2.7 billion USD Nacala railway and port project in Mozambique.
  • The Lagos-Abidjan highway, requires an investment of 15.2 billion USD.

In 2022, the AfDB financed 25 transport corridors, built over 18,000 km of roads, 27 border posts, and 16 bridges for 13.5 billion USD. Danae Pauli, Senior Advisor of the Partnership for Global Infrastructure and Investment (PGII), stated that her government’s involvement in the project reflects its commitment to partnering with African nations and institutions.

« Our goal is not to build roads for the sake of roads but to catalyze investments in multiple sectors to stimulate economic growth and improve people’s lives », she said, projecting that the project could be operational by 2028.

The development of the Lobito corridor involves collaboration between the Africa Finance Corporation (AFC), the United States, the EU, the AfDB, and the governments of Angola and the DRC. Once completed, the Lobito corridor promises to enhance export opportunities for Zambia, Angola, and the DRC, facilitate the movement of goods, and improve citizen mobility.

The Lobito project plans to construct approximately 550 kilometers of railways. The line will start from the Jimbe border to Chingola in Zambia’s copper belt. This transport line will also include a 260 km feeder road system within the corridor.

Share this article
Share this Article:
Join our newsletter

Join the latest releases and tips, interesting articles, and exclusive interviews in your inbox every week.