Luanda: The African continent must significantly increase its annual infrastructure investment to approximately 130 billion US dollars, a stark contrast to the current expenditure of 90 billion US dollars per year. Mahmoud Ali Yusuf, chairperson of the African Union Commission, highlighted this pressing financial requirement at the 3rd Summit on Infrastructure Financing in Africa, which is currently taking place in Luanda from October 28 to 31.
According to Angola Press News Agency, Yusuf pointed out that the existing investment shortfall is a considerable barrier to industrialization and has weakened Africa’s logistics network. He emphasized that intra-African trade constitutes less than 16% of the continent’s total trade, in comparison to over 60% in Europe and 55% in Asia, affecting not just the financial, but also the institutional, strategic, and political sectors.
Yusuf underscored the urgent need to reconsider development, integration, and financing models across Africa, especially during this period
of political uncertainty. He stated that the continent must demonstrate its capacity to finance, plan, and drive its transformation, despite current challenges.
The chairperson also noted Africa’s aspiration for modern, interconnected, and sustainable infrastructure, which is crucial for economic sovereignty, competitiveness, and unity. Highlighting achievements under the Program for Infrastructure Development in Africa (PIDA), he mentioned the construction of over 16,000 kilometers of transcontinental roads, approximately 4,000 kilometers of railways, more than 3,500 kilometers of power lines, and improved water access for over 300 million Africans.
Yusuf advocated for creating an African financing and development ecosystem with four main pillars: mobilizing domestic resources, innovatively using financial instruments, tapping into global financing, and involving institutions like the African Union, NEPAD, and the African Development Bank.
The summit has gathered over 2,000 participants, including investo
rs, international financial institution representatives, experts, and policymakers. Discussions are focusing on promoting public-private partnerships, providing incentives for sustainable investment, and accelerating PIDA’s goals, which include enhancing regional connectivity, digital transformation, and resilient urban development.