Can PIDA Tackle Africa’s $170bn Infrastructure Gap?
By Mohammed Dahiru-Lawal
An African dream is unfolding—one defined by an ambitious blueprint aimed at connecting people and infrastructure to eradicate poverty and accelerate development across the continent.
This vision emerges against the backdrop of Africa’s staggering infrastructure deficit. With an estimated annual funding gap of $170 billion, the continent’s economic growth and development hang precariously in the balance.
However, the Programme for Infrastructure Development in Africa (PIDA) outlines a promising strategy to close this multi-billion-dollar gap. PIDA prioritizes transformative projects that could reshape Africa’s infrastructure landscape, stimulate economic growth, and enhance living standards.
“The ultimate purpose of PIDA extends beyond the mere construction of physical structures. Its essence lies in its potential to change lives. Roads and power grids are not our end goals; they are means to create opportunities, foster industries, and inspire hope across the continent,” says Mrs. Nardos Bekele-Thomas, Chief Executive Officer of the African Union Development Agency – New Partnership for Africa’s Development (AUDA-NEPAD), the AU arm responsible for coordinating the planning, resource mobilization, and infrastructure deployment associated with the PIDA vision.
Speaking during the 8th PIDA Week held in late November in Addis Ababa, Ethiopia, Bekele-Thomas lauded the initiative as an “engine of growth and transformation.”
PIDA’s strategy is anchored in a straightforward yet powerful principle: targeted investments in high-impact infrastructure initiatives can unlock Africa’s economic potential. From the proposed Trans-African Highway connecting Cairo to Cape Town, to the Grand Inga Dam, projected to provide electricity for over 500 million people, PIDA focuses on projects designed to drive growth, create jobs, and improve lives while aiming to overcome the significant financing, logistical, and political challenges that have historically undermined Africa’s infrastructure development efforts.
The initial Priority Action Plan (PAP 1) launched in 2012 focused on expediting infrastructure development across Africa by identifying and prioritizing 51 key regional projects. The plan’s primary objective was to improve regional connectivity and economic competitiveness.
In the transport sector, 24 projects were prioritized, encompassing roads, railways, ports, and airports. The energy sector also received significant attention, with 15 projects dedicated to power generation, transmission, and distribution. Furthermore, four transboundary water resource projects were initiated to manage shared water resources, while eight information and communication technology (ICT) projects aimed to enhance telecommunications infrastructure.
Building on this foundation, PAP 2 (2020 – 2030) now encompasses 69 transformative projects across transport, energy, water, and ICT. These include monumental initiatives such as the Grand Inga Hydropower Project—slated to become the world’s largest electricity generation project—and plans for a navigable Nile River, connecting Lake Victoria to the Mediterranean Sea.
“The progress of PIDA over the past decade is a testament to what Africa can achieve through determination and collaboration,” Bekele-Thomas enthused during her speech.
A central focus of PAP 2 is fortifying regional institutions and promoting economic integration. During a media interaction at the 8th PIDA Week, Mrs. Zippora Maubane, Head of Communications and Advocacy, underscored this mission.
“The Africa we seek is characterized by interconnectivity, driven by people and technology. For goods to move freely as we work towards Agenda 2063—our transformative strategic plan for Africa’s development—this is crucial to achieving our vision,” she emphasized.
The Infrastructure Crisis
From unlit villages to pothole-riddled roads, Africa’s infrastructure story often narrates a tale of lost potential. Over 640 million Africans lack access to electricity, and inadequate transport and port facilities inflate trade costs by 30-40%, stifling intra-African commerce. This deficit represents not only a logistical challenge but also an economic and social divide.
The African Development Bank (AfDB) estimates that the continent requires between $130 billion and $170 billion annually for infrastructure financing—translating to an annual deficit of $68 billion to $108 billion.
If unaddressed, this gap will impede progress towards industrialization, economic integration, and improved quality of life. The World Bank emphasizes the urgency of this situation, reporting that inadequate infrastructure in Africa reduces economic growth by 2% annually and diminishes productivity by up to 40%.
Dr. Akinwumi Adesina, President of the AfDB, highlighted the critical role of strategic investments in reshaping Africa’s development trajectory. At the Bank’s Annual Meetings, he described the continent’s current challenges as “formidable” but urged that immense opportunities could be harnessed through innovative partnerships and enhanced private sector participation. “The resources of governments alone are insufficient to meet Africa’s needs,” he noted, calling for collaborative efforts to scale up investment in infrastructure.
At an Infrastructure Day conference in 2019 in Addis Ababa, the Infrastructure Consortium for Africa (ICA) acknowledged that the global financial crisis would likely impact financing availability for African infrastructure but insisted that a determined approach could overcome these challenges. The ICA also highlighted that a lack of adequately prepared projects stands as a significant bottleneck.
The AfDB estimates that addressing the infrastructure deficit requires $360 billion by 2040, yet only $82 billion has been mobilised. For African nations already grappling with macroeconomic instability exacerbated by global crises like COVID-19, securing these resources appears daunting.
Regional integration is key to lowering infrastructure costs—$2 billion could be saved annually by trading power across national borders.
Enter PIDA: a comprehensive blueprint aimed at systematically tackling these challenges. Launched in 2012 and led by AUDA-NEPAD, PIDA is more than a project; it is a movement for transformation.
An African Solution to an African Problem
“PIDA is an African solution to an African problem,” asserts Ibra M. Wahabou, AUDA-NEPAD’s Head of the Infrastructure Unit. “It is a master plan, a platform, and a development agenda,” Wahabou explains.
At its core, PIDA transcends a simple collection of projects; it is a continent-wide blueprint for connectivity and growth. The master plan is predicated on key assumptions—that Africa’s electricity demand will grow at an annual rate of 6% and that transport volumes could increase up to fourteenfold in key sectors by 2040. With the African Continental Free Trade Area (AfCFTA) poised to create the world’s largest free trade zone, infrastructure is not merely desirable; it is essential.
“These assumptions reflect the trajectory of a rising Africa—a continent whose population, technological adoption, and educational advancements are driving unprecedented growth,” Wahabou elaborates.
He emphasizes the critical importance of AfCFTA, stating, “Without robust infrastructure, AfCFTA’s potential remains just that—a potential. PIDA is the indispensable enabler that ensures the highways, power grids, and digital networks needed to connect economies and people are in place.”
PIDA’s PAP 2 exemplifies this ambition, aiming to resolve critical bottlenecks in regional connectivity and economic integration. Among its flagship projects is the Grand Inga Hydropower Project in the Democratic Republic of Congo, described by Wahabou as “not just Africa’s project, but the world’s largest hydropower endeavor, capable of illuminating the continent and beyond.”
Another key initiative is the Lobito Corridor, which connects Angola, Zambia, and the Democratic Republic of Congo. “The Lobito Corridor is more than a transport link; it serves as an artery of commerce and opportunity, unlocking the mineral wealth of Southern Africa and facilitating unprecedented trade flows,” Wahabou notes.
Beyond its ambitious scope, PIDA fosters collaboration and innovation. “PIDA provides a framework for African nations to work together,” Wahabou explains. “It aligns national strategies with regional and continental priorities, creating a unified vision for development.” This collaborative approach has harmonized the efforts of diverse stakeholders—governments, private investors, and multinational organizations—ensuring that infrastructure projects are both sustainable and impactful.
Moreover, this vision prioritizes people. Wahabou is clear about PIDA’s ultimate objective: “It is not infrastructure for its own sake. It is about what that infrastructure enables—education, healthcare, business growth, and improved living standards. It is about creating an Africa that works for its people.” This people-centered approach is the foundation of PIDA’s vision, ensuring that every road built, power station erected, or broadband network established contributes to the continent’s long-term prosperity.
“This effort is about redefining Africa’s future, one project at a time,” he declares, underscoring the initiative’s potential to turn a continent not just surviving but thriving—reinforcing that African solutions can indeed address African problems.
Progress Amid Challenges
Since its inception, PIDA has achieved noteworthy milestones. Over 30 million Africans now have access to electricity, intra-African trade has increased to 16% of total trade, and broadband penetration has surpassed 25%, fueling digital transformation. Furthermore, 160,000 direct and indirect jobs have been created during project construction and operation.
However, significant challenges persist, particularly in financing. Many projects struggle with bankability due to lingering risk perceptions. The financing gaps remain stark; even successful initiatives like the Trans-African Highway Network—a 56,000-kilometer web connecting capitals and key economic zones across the continent—require innovative funding solutions.
“For far too long, perceived risks have deterred private sector investments, leaving critical financing gaps unaddressed. By leveraging innovative financial instruments like partial risk guarantees and blended finance models, we are creating an environment in which private capital can engage with confidence,” Bekele-Thomas assures. “For us, derisking is not merely a financial strategy; it is a means of establishing trust and acting as a catalyst for progress.”
Despite mobilizing $82 billion to date, PIDA still faces a daunting shortfall relative to the $360 billion required by 2040. The COVID-19 pandemic and resultant economic challenges have further strained public investment capacities. “The success of PIDA hinges on policies, partnerships, and financing,” emphasized Bekele-Thomas.
Blended finance models and risk guarantees have become pivotal tools for closing these gaps. By integrating public and private capital with development finances, blended models distribute risk more equitably, making large-scale infrastructure projects more appealing to investors. Risk guarantees help mitigate perceived uncertainties, encouraging increased private sector involvement—mechanisms already in effect for projects like the Grand Inga Hydropower Project, where public-private collaborations are unlocking opportunities for clean energy.
Partnerships serve as another cornerstone of PIDA’s strategy. Public-private partnerships (PPPs) have proven effective in aligning government objectives with private sector efficiencies, ensuring that projects are both sustainable and impactful. The establishment of 32 One-Stop Border Posts across the continent exemplifies this collaborative approach, streamlining cross-border trade, minimizing delays, and fostering regional integration, which is critical to PIDA’s mission.
Nonetheless, the road ahead requires continued commitment. Policies must evolve to embrace the interconnected nature of infrastructure development, integrating energy, transport, water, and ICT into a cohesive framework. As Bekele-Thomas pointed out, “Regional coordination is essential.” Treaties and corridor-based initiatives must harmonize national strategies with regional goals to ensure that PIDA’s projects represent not just isolated successes but part of a broader continental transformation.
Why Now is Africa’s Moment
Amid the challenges lie unprecedented opportunities. Africa’s population is projected to reach 2.5 billion by 2050, creating a vast consumer and labor market. The AfCFTA offers unparalleled prospects for trade-driven growth, while global investors increasingly view Africa as a frontier for green energy and sustainable infrastructure.
This moment presents Africa with a crucial opportunity to leverage its demographic advantages, capitalize on regional trade initiatives, and attract global investments.
With AUDA-NEPAD leading initiatives such as PIDA, the continent is positioned to convert challenges into opportunities, forming the bedrock for a future characterized by resilience, connectivity, and shared prosperity. “Agenda 2063 is not merely a vision,” asserts Maubane. “It is our roadmap for transforming potential into progress and ambition into action.”
The Path Ahead: Can PIDA Deliver?
Ultimately, PIDA signifies more than roads, rails, and power lines. It is about people. Roads must connect more than cities—they must connect opportunities for rural farmers. Power grids must illuminate more than homes—they must energize industries. Broadband must not merely connect devices—it must empower individuals.
As Wahabou rightly emphasizes, “Infrastructure must belong to the communities it serves.” This ethos is the cornerstone of PIDA’s initiatives, ensuring local ownership, capacity building, and long-term sustainability.
Africa’s infrastructure journey is far from over. For every electrified village and connected highway, countless others await transformation. But as PIDA enters its next decade, the foundational work has been established.
The appetite for investment is growing. Innovative tools like the Continental Power Systems Masterplan envisioning 80% electricity access by 2040 are reshaping possibilities. Meanwhile, success stories such as Morocco’s renewable energy boom and the operationalisation of 32 One-Stop Border Posts offer glimmers of hope.
PIDA’s vision is monumental, but so too is the resolve of the continent it serves. As Bekele-Thomas succinctly put it, “Placing people at the center of this vision changes everything. Infrastructure is no longer just about steel and concrete; it becomes a facilitator for unlocking brighter futures and stronger economies.”
The question now is not if Africa can bridge its $170 billion infrastructure gap, but whether the world will rally behind Africa’s ambitions. For investors, one message is clear: the time to bet on Africa is now. PIDA is not simply a plan; it is the promise of a continent on the rise.
Mohammed Dahiru-Lawal is a Nigerian journalist, media strategist, and member of the PIDA Journalists Network, writing from Abuja, Nigeria. Email: [email protected]
