At an event hosted by the G20 Finance Track, experts identified bottlenecks and priorities for leveraging Africa’s development. Climate change increases the urgency of action for the continent’s development.
10/16/2024 7:00 AM – Modified 1 day ago
G20 Brazil will discuss infrastructure investment in Africa. Luanda, the capital of Angola. Photo: Getty Images
Despite being larger than the world’s two largest powers, China and the United States, the African continent holds only 4% of the world’s infrastructure stock. Data presented by Hannah Ryder, Economist and CEO of Development Reimagined, shows that there is an urgent need to expand the availability of infrastructure financing to drive development action in the region. It makes one thing clear.
Experts will discuss the challenges of goods transportation and the need to transport goods by sea between countries in the region. Hanna explains that the lack of logistics capacity in each country’s ports and highways makes the cost of commerce very high, which has a major impact on the country’s growth. “There are serious problems with funding gaps, and it will be difficult for countries to fill these gaps. The stock of infrastructure that needs to be built is much larger than the economy itself,” she said.
According to Hanna, Development Reimagined’s research on infrastructure scenarios for 21 African countries shows that if these countries are to meet the United Nations Sustainable Development Goals, US$106 billion and US$149 billion will be needed to close the gap. estimated to be necessary. She noted that a key challenge is that improving the situation in these countries remains the responsibility of local governments and that multilateral development banks need to increase infrastructure financing on the continent.
According to Hanna, Development Reimagined’s research on infrastructure scenarios for 21 African countries shows that if these countries are to meet the United Nations Sustainable Development Goals, US$106 billion and US$149 billion will be needed to close the gap. estimated to be necessary. She noted that a key challenge is that improving the situation in these countries remains the responsibility of local governments and that multilateral development banks need to increase infrastructure financing on the continent.
Ryder also cited the limited resources Bretton Woods institutions have allocated to the continent as a problem, and the fact that current funding models do not work for African countries due to several historical challenges. Pointed out. “African governments must address this issue on their own. There is a lack of serious international efforts to meet Africa’s infrastructure needs,” the economist said.
Mike Serawu, from AfDB. Harold Tavares of the World Bank and Hannah Ryder of Rethinking Development. Mariana Davi, from the Brazilian Ministry of Finance. Boitsumelo Mashilo, from South Africa. Eric Ntagengerwa of the African Union attended the G20 event hosted by Brazil in Rio de Janeiro. Photo: g20.org Unified development strategy Eric Ntagengerwa, head of the African Union’s transport and mobility sector, understands that African countries need to move towards a unified and strategic approach to infrastructure investment. The challenge for engineers is not limited to the amount of investment, but also how the 55 countries that make up the forum prepare for and approach these opportunities. “We are encouraging African countries to cooperate on larger regional projects,” he said.
Mr Ntagengerwa said work is underway on a wide range of infrastructure development projects aimed at increasing investment efficiency and fostering further integration between African countries. He emphasized the importance of developing smart economic infrastructure that not only fosters integration and development, but also contributes to reducing greenhouse gas emissions.
“We encourage countries to have a unified market, allowing African airlines to connect with each other without the need for bilateral agreements. “We have the opportunity to deliver ready and more efficient projects. Smarter economic infrastructure reduces greenhouse gas emissions,” he said.
Be optimistic even in the face of difficulties
South African Treasury economist Boitsumelo Masilo believes the continent needs effective partnerships and economic fundamentals to foster infrastructure development, particularly in the face of growing concerns about climate change and the financial challenges it faces. There is a need to invest in improving the quality of the products. by many African countries.
“As a continent we have our own development goals. Unfortunately, we find ourselves in a contradictory picture and in some cases, especially in Africa, many countries are deeply in debt. This means that we have to rely not only on our own resources, but also on the resources of other countries,” the economist said.
Despite the delicate scenario, Mr Masiro is optimistic about the development potential and looks forward to partnerships both between countries and with the private sector to achieve infrastructure goals. “We need to improve our macroeconomic fundamentals and the regulatory environment. This is essential. Otherwise we won’t attract the funding we need. Second, a deal for a pragmatic approach to infrastructure. “I think we need to strengthen this,” the expert concluded.
Role of MDB
The discussion took place during the Africa-led debate on infrastructure held last week as part of the G20 Finance Track’s Infrastructure Working Group activities. Mariana Davi from Brazil’s Ministry of Finance mediated the discussion. The discussion also included participants highlighting institutional actions relevant to the African continent. Mike Serawu, Director of Infrastructure and Urban Development, African Development Bank (AfDB);
“It is a difficult but exciting time for us to cope with the challenges. It is important that we look at this constructively and positively, not only in physical architecture but also in digital. People, markets, The ability to connect ideas is what drives progress,” Tavares said.
Translation by PGET-UFSC