The African continent boasts many natural resources which could support green growth, making it a powerhouse in green economy.
The Africa Green Industrialisation Initiative builds upon the success of the UAE’s existing USD 4.5 billion Africa Green Investment Initiative with its aim to finance 15GW of renewable energy in Africa by the end of this decade. This will unlock investments while pursuing inclusive economic growth through policies, programmes and projects, investing in sustainable infrastructure. Natural resources could be better managed, resilience to natural disasters can be built and food security enhanced though sustainable agriculture. It could see carbon emission reduced and would pave the way towards addressing climate change.
The renewable energy sector, while needing investment of up to 55 billion US dollars by 2030, would expand electricity access, create much needed jobs, drive economic growth and show Africa’s ability to lead the worldwide green transition.
Sustainable Agriculture to Ensure Food Security
Agriculture is a cornerstone of Africa’s economy, employing millions and contributing significantly to the regional GDP. Taking the entire value chain of agriculture taken into account, its contribution to South Africa’s (SA) GDP is approximately 12%. This ranges from intensive crop production and mixed farming to cattle-ranching and sheep-farming. About 12% of SA’s surface area can be used for crop production. The contribution of agriculture to the GDP of sub-Saharan Africa is forecasted to decline from 14.5% in 2019 to 6.3% in 2043, still a considerable contribution.
Sustainable agricultural practices are crucial to ensuring food security for the billions of African relying on the land and simultaneously mitigate the impacts of climate change. By adopting innovative techniques such as precision farming, agroforestry and efficient irrigation systems, Africa can increase agricultural productivity, reduce environmental impact and build resilient food systems.
Innovative Technologies Driving green innovation
Africa, especially, is embracing innovative technologies to drive green growth. From mobile applications supporting smallholder farmers to block chain solutions for supply chain transparency, technology is playing an increasingly vital role in driving sustainable development on the continent. Investments in research and development, together with supportive policies, can further accelerate the adoption of green technologies and position Africa as a leader in sustainable innovation.
The Infrastructure Africa Business Forum (IABF)
This event, held on 16-17 July in Cape Town, was a pivotal event for catalysing green growth across the continent. Bringing together key stakeholders, investors, and industry leaders, the Forum focused on exploring investment opportunities, forging partnerships and driving sustainable project implementation. The IABF is an essential platform for advancing conversations and collaborations necessary to unlock Africa’s green growth potential.
Infrastructure Africa Forum Highlights
Hosted by AUDA-NEPAD, the event saw a diverse group attending; government officials and policymakers, international and regional development partners, private sector investors and financiers, infrastructure development experts and practitioners, as well as civil society organisations and advocacy groups.
Infrastructure Africa Forum 2024 was dedicated to addressing the challenges and opportunities across the continent’s infrastructure sector. Through plenary, breakout and project pitch sessions, exhibitions and networking events, participants engaged in discussions and shared insights on best practices, innovative solutions and successful case studies.
During the opening of the Forum, the Minister of Public Works and Infrastructure of SA, Mr Dean MacPherson highlighted how infrastructure plays a central role in improving competitiveness, facilitating domestic and international trade and enhanced the continent’s integration into the global economy.
“Most importantly, it can bring dignity to people who live very difficult lives in very difficult circumstances.” – Dean Macpherson
He stressed that it is time to re-imagine infrastructure development in our country and contemplate how we can better forge regional infrastructure integration to unlock new economic opportunities between SA and our neighbours.
The Forum facilitated critical discussions and pitches for the Programme for Infrastructure Development in Africa (PIDA) Priority Action Plan 2 projects. It featured dedicated deal rooms, providing project owners with an opportunity to present their infrastructure initiatives to stakeholders, including potential investors.
Showcasing Achievements and Building Partnerships
The event provided a platform for AUDA-NEPAD to showcase and highlight the achievements and milestones of selected PIDA Priority Action Plan 2 projects. It also fostered partnerships with investors, development partners and stakeholders to secure financing and technical support for ongoing and future projects.
Dr. Towela Nyirenda-Jere, AUDA-NEPAD Head of Infrastructure, Digitalisation and Energy, participated in panel discussions on cross-border infrastructure development, focusing on the role of regional cooperation and economic integration. Dr Nyirenda-Jere spoke on the critical role of the private sector in cross-border infrastructure development and noted that private sector participation in these projects amounts to less than 5% of total investments.
“We need to address the challenge of financing for early-stage project preparation that would help to unlock and catalyse further investments upstream, especially from private sector. Working with member states, AUDA-NEPAD aims to contribute to the enabling environment that private sector often quotes as a pre-requisite for their investment,” – Dr Towela Nyirenda-Jere
Highlighted Projects
AUDA-NEPAD hosted deal rooms where three substantial projects were presented by project owners, emphasising sustainable infrastructure and regional development:
- Angololo Multi-purpose Water Resources Development Project: Valued at $150 million, this ambitious project aims to construct a regional dam and electric generation facility, enhancing water resource management and availability while also offering the potential for energy production through its solar component. It spans across two countries, Kenya and Uganda, showcasing a collaborative effort in addressing regional water needs.
- Douala-N’Djamena Rail Project: This 330 km rail project, estimated to cost $8.8 billion, is a significant venture between Chad and Cameroon. It aims to transform the agriculture and mining sectors of both countries by improving transportation infrastructure. The rail line will enhance the efficiency and capacity of transporting goods, boosting economic activities and regional trade.
- IGAD-Trans Border Submarine Fibre, Regional Smart Hub and Data Centre: This project includes interconnectivity between Kenya and eight neighbouring countries, relaying the Kenyan terrestrial fibre network connecting the submarine cable landing at Mombasa to their borders. It also includes a regional smart hub and a data centre.
These deal rooms served as dynamic platforms for project owners to engage directly with investors and other stakeholders. This interaction is crucial for advancing infrastructure projects from planning stage to tangible development. The support from AUDA-NEPAD, through PIDA, highlighted a concerted effort to mobilise resources and expertise for sustainable infrastructure growth across the continent.
The Infrastructure Africa Forum, through these deal rooms, exemplified the importance of collaboration, investment and strategic planning in addressing Africa’s infrastructure challenges. As these projects move forward, they promise to bring significant benefits to the regions involved, fostering economic growth and improved quality of life.
AUDA-NEPAD’s participation in Infrastructure Africa 2024 was a valuable opportunity to advance PIDA as the continent’s infrastructure agenda. By showcasing achievements, fostering partnerships and advocating for inclusive development, PIDA can significantly contribute to Africa’s sustainable growth and integration.
For further details and updates on these projects and future initiatives by AUDA-NEPAD’s PIDA, visit their websites at http://www.nepad.org and http://www.AU-PIDA.org.
