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The infrastructural deficit remains one of the greatest impediments to Africa’s development and industrialization. According to the African Development Bank, the continent has an annual infrastructural financing gap in the range of $68–$108 billion.
To bridge this gap, the African Development Bank Group and Africa50, in partnership with the African Union Commission and the African Union Development Agency (AUDA-NEPAD) have launched a new initiative, the Alliance for Green Infrastructure (AGIA) at the sidelines of COP27, to fast track Africa’s transition to green infrastructure.
Africa contributes to a meager 3% of the global emissions yet suffers the hardest brunt of climate change effects. Different parts of the continent have frequently suffered devastating disasters in recent years.
“We are beyond speeches, trying to prove the climate change effects and any preaching. The urgency of the situation cannot be over emphasized. What we need to do is act,” says Dr Amani Abou-Zeid, the African Union Commissioner for Energy and Infrastructure.
“This is one of the projects we have launched here and what is new with this alliance is the inclusion of the international private sector mainly for example venture funds that we want to attract. Attracting 2% of this private funding can help us close the infrastructural gap in the continent,” says Dr. Amani.
With support from partners such as the European Bank for Reconstruction and Development, The Rockefeller Foundation, European Investment Bank, and the French Development Agency (AFD), among others, the alliance that aims to raise $10Bn will fund bankable, scalable and green infrastructural projects in the energy, sanitation, water and transport sector.
“Four criteria were crosscutting in the selection of the projects; they have to be climate-smart and resilient, have to ensure women are included every step of the way across the value chain, link urban to rural and have to use smart technologies because we are building for the future.”
Dr Amani says the alliance will thus provide $500m for the preparational phase for the projects to become attractive to the private sector, and then aim to attract $10Bn for the first phase of implementation of green projects.
“The projects should be implemented in 3-4years maximum. We want things to move fast and at scale.”
With the implementation of the African Continental Free Trade Area (Afcta) agreement, a young population and new technologies, green infrastructural alliances such as this present Africa with an enormous opportunity to not only achieve its net zero targets but also accelerate its industrialization and economic prosperity.
By Nila Yasmin Faisal