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PIDA Executive Summary

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PIDA Executive Summary Programme for Interconnecting, Infrastructure integrating and Development transforming a in Africa continent African Union Table of contents Foreword iii Africa’s time for action 1 PIDA’s outcomes: development through regional integration 2 Establishing priorities: a new approach to an old problem 4 Programme costs: determining financing and investments 5 Financing strategy: rising to the challenge of investment and project preparation 6 Implementation: identifying actors, responsibilities and required actions 8 The way forward: embracing Africa’s shared responsibility 10 Annex 1. PIDA’s energy impact 12 Annex 2. PIDA’s transport impact 13 Annex 3. PIDA’s transboundary water impact 14 Annex 4. PIDA’s ICT impact 15 Annex 5. PIDA Priority Action Plan: summary tables of sector projects and programmes 16 ii PROGRAMME FOR INFRASTRUCTURE DEVELOPMENT IN AFRICA Foreword Through its ambitious plans for the conti- Bank and NEPAD Planning and Coordi- nent, the African Union placed Integration, nating Agency, in cooperation with all Afri- Socioeconomic Development and Coopera- can stakeholders. We would like to take this tion in the second pillar of its 2009–2012 opportunity to pay tribute to the Regional Strategic Plan. Delivering on this pillar Economic Communities, member states and requires good regional infrastructure. specialized agencies for their substantial con- The African Union Commission, in part- tributions, without which this result would nership with the United Nations Economic not have been achieved, and to the Panel of Commission for Africa, African Develop- Experts for their independent peer reviews. ment Bank and the NEPAD Planning and We would also like to thank the African Coordinating Agency, recently completed for- and international donor community, partic- mulating the Programme for Infrastructure ularly the African Development Fund, the Development in Africa (PIDA). This conti- Nigeria Technical Cooperation Fund, the nental initiative, based on regional projects African Water Facility, the NEPAD Infra- and programmes, will help address the infra- structure Project Preparation Facility Special structure deficit that severely hampers Africa’s Fund, the European Union, the Islamic De- competitiveness in the world market. velopment Bank and the U.K. Department PIDA provides a common framework for International Development for their fi- for African stakeholders to build the infra- nancial contributions. structure necessary for more integrated trans- Implementing PIDA will require solid co- port, energy, ICT and transboundary water ordination structures and mobilizing all rele- networks to boost trade, spark growth and vant funding sources, both public and private. create jobs. Implementing it will transform PIDA attaches more importance to member the way we do business, help deliver a well- states to drive delivery of projects, as well as connected Africa and realize the building of acknowledging the important role of the the African Economic Community, outlined Regional Economic Communities and the in the 1991 Abuja Treaty. To put this ambi- NEPAD Planning and Coordinating Agency. tion into practice we need strong political We invite Africa’s various development leadership and ownership. partners and the private sector to consider PIDA’s complex and long-term strategic supporting PIDA’s delivery. That support planning for Africa’s regional infrastructure would help realize the Africa Union’s Vision (2012–40) has been conducted under the and Strategic Plan for an integrated, prosper- coordination of the African Union Com- ous and peaceful Africa, driven by its citizens mission, United Nations Economic Com- and standing as a dynamic force on the world mission for Africa, African Development scene. Dr. Jean Ping Dr. Donald Kaberuka Mr. Abdoulie Janneh Chairman President Executive Secretary African Union Commission African Development Bank Economic Commission for Africa INTERCONNECTING, INTEGRATING AND TRANSFORMING A CONTINENT iii Africa’s time for action Africa commands a powerful position on the programme, existing or previous continental world stage. It is seen as a land of opportunity infrastructure initiatives such as the NEPAD — an emerging destination of choice for Short Term Action Plan, the NEPAD Me- many investors and development actors as dium to Long Term Strategic Framework they look for high-growth markets, despite and the AU Infrastructure Master Plans. It the ongoing economic turmoil and the lin- fills in gaps and, based on previous lessons, af- gering effects of the financial crisis and reces- fords proper weight to the value of local own- sion. In this rapidly changing global environ- ership, the necessity of both hard and soft ment, Africa needs to seize the initiative and interventions, the need for diverse financing take advantage of these emerging conditions and the importance of sound implementa- that will substantially boost trade, spark tion strategies. Underpinned by an extensive growth and create jobs. But right now, it is consultation and analytical process, PIDA not capable of seizing the initiative or reap- provides an agenda of sensible, affordable pri- ing the full benefits of its resources. A major ority projects aligned with Africa’s long-term problem: infrastructure. The solution: PIDA. goals. Simply put, PIDA will be different The 12th Assembly of Heads of State and from previous regional infrastructure inte- Government adopted Declaration Assembly / gration initiatives because it will produce ef- AU/Decl.1 (XII) requesting the African fective investments. Union Commission (AUC) to formulate PIDA assumes that the average economic the Programme for Infrastructure Develop- growth rate for African countries will be ment in Africa (PIDA), which was officially 6% a year between 2010 and 2040, driven launched in Kampala, Uganda, in July 2010. by a surging population, increasing levels This Executive Note consolidates the out- of education and technology absorption.1 comes of the work and encapsulates what This growth implies that, over the 30 years Africa needs to do to capitalize on its mo- to 2040, the GDP of African countries will mentum and reach its potential — act boldly multiply sixfold, and the average per capita by investing in its regional infrastructure. income will rise above $10,000 for all coun- Africa’s leading continental organizations, tries. This continuing growth and prosperity including AUC, NEPAD Planning and Co- will swell the demand for infrastructure, al- ordinating Agency (NPCA) and the African ready one of the continents greatest impedi- Development Bank (AfDB), have worked for ments to sustainable development. Assuming years to address the infrastructure deficit. that this growth is achieved, Africa’s infra- In addition, the G20 Infrastructure Action structure needs are starkly apparent: Plan, Infrastructure Consortium for Africa • Power demand will increase from 590 (ICA), EU-Africa Infrastructure Trust Fund terawatt hours (TWh) in 2010, to more and Africa Infrastructure Country Diagnos- than 3,100 TWh in 2040, corresponding tic all highlight the importance of regional infrastructure for Africa’s growth. 1. This growth rate would be similar to India’s PIDA provides new analysis and in- over the past three decades. Since 2005, the average sights to bring together, under one coherent annual rate of growth in Africa has exceeded 5%. INTERCONNECTING, INTEGRATING AND TRANSFORMING A CONTINENT 1 to an average annual growth rate of nearly geography is particularly challenging, and 6%.2 To keep pace, installed power gen- because its infrastructure needs are so great, eration capacity must rise from present regional integration is the best, and perhaps levels of 125 gigawatts (GW; comparable only, way for Africa to realize its growth po- with the United Kingdom) to almost tential and equitably share the benefits of an 700 GW in 2040. increasingly connected world marketplace. • Transport volumes will increase 6–8 times, with a particularly strong increase PIDA’s outcomes: development of up to 14 times for some landlocked through regional integration countries. Port throughput will rise from 265 million tons in 2009, to more than 2 The importance of regional integration for billion tons in 2040. supporting Africa’s economic development • Water needs will push some river basins has long been recognized by African leaders, — including the Nile, Niger, Orange and who have consistently expressed their desire Volta basins — to the ecological brink. to build a common market for goods and ser- • Information and communications tech- vices. PIDA’s overall strategic objective is to nology (ICT) demand will swell by a fac- enable Africa to finally build that common tor of 20 before 2020 as Africa catches up market. By improving access to integrated with broadband. Demand, around 300 regional and continental infrastructure net- gigabits per second in 2009, will reach works, PIDA will allow countries to meet 6,000 gigabits per second by 2018. forecast demand for infrastructure services This growing infrastructure demand pres- and boost competitiveness by: ents a critical challenge for Africa as it com- • Increasing efficiencies petes in global and regional trade markets • Accelerating growth that rely on just-in-time production and flexi- • Facilitating integration in the world ble, speedy and reliable delivery. By just about economy any measure of infrastructure coverage — • Improving living standards whether road density, telephone density, gen- • Unleashing intra-African trade.
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