APN, AfCFTA host Webinar on infrastructure funding for Africa

The Africa Prosperity Network (APN) and the African Continental Free Trade Area (AfCFTA) Secretariat hosted a webinar on Thursday. The session focused on funding and building infrastructure for trade and economic growth in Africa. It was titled “The Africa We Want: How Should Africa Fund and Build the Infrastructure for Trade, People Movement and Prosperity?” Moderators Nana Yaa Mensah and Kojo Mensah from Asaase Radio led the discussion. Influential voices from various sectors participated to find solutions for Africa’s infrastructure deficit.

CEO Sidig Eltoum highlighted key weaknesses in Africa's infrastructure. These include fragmented transport systems, unreliable power supply, inefficient logistics, and limited digital connectivity. He stated that infrastructure is crucial for long-term prosperity. Rui Pedro Afonso Livramento from AfCFTA emphasized the urgency of building infrastructure now.

A major highlight was the launch of the Integrated Africa Infrastructure Growth Fund, known as the “One Dollar A Day” campaign. This crowdfunding initiative aims to raise funds for critical infrastructure across Africa. Finance expert Eric Otoo leads this initiative, which has two parts: a commercial arm for institutional investments and a social arm for individual donations. He urged everyone to take necessary steps now.

The webinar also discussed how colonial-era infrastructure hinders intra-African trade. A unified funding approach could help reverse this legacy.

The World Bank estimates that an integrated African market could boost income by $450 billion by 2035. It could also lift 30 million people out of extreme poverty. However, there is an annual financing gap of $130–170 billion for infrastructure in Africa. Poor infrastructure adds 30% to 40% to trade costs and limits intra-African trade significantly.

Ziad Hamoui from Borderless Alliance stressed the need for a mindset shift regarding borders. He suggested viewing borders as bridges to enhance economic integration.

Emeka Uzomba from Afreximbank shared three innovative financial strategies:
1. Infrastructure bonds with returns of 8–10%.
2. A Pan-African Infrastructure Credit Rating system.
3. Blended finance models where multilaterals absorb initial losses.

He announced that Afreximbank has set aside $5 billion for corridor projects starting in Q3 2025.

James Amoo-Gottfried from Ghana’s Ministry of Roads presented their Road Fund model funded through fuel levies and tolls as a sustainable financing option. Pierre Coussey emphasized aligning development with profitability to attract investment.

Serwaa Agyemang-Botchey from Microsoft London encouraged stakeholders to start small but act decisively.

Another topic was barriers to free movement caused by visa restrictions and travel system issues. Gideon Asare noted that only 25% of intra-African air routes are directly connected, with visa-on-arrival policies covering just 54% of the continent. He pointed out that traveling within Africa can be much more expensive than traveling internationally.

Anthony Pile stated that border limitations hinder trade significantly.

The discussions built on outcomes from earlier meetings in Accra where the APD 2025 Compact was adopted. This Compact includes commitments from governments, private sector players, and multilateral partners to prioritize infrastructure projects like regional railways and renewable energy initiatives.

Multilateral institutions aim to mobilize up to $2 trillion in domestic capital through blended finance models.

Tshegofatso Motaung noted that improved infrastructure will greatly benefit MSMEs as they expand into new markets.

Overall, the webinar highlighted urgent needs regarding Africa’s infrastructure challenges amid growing populations in many countries over the next three decades. Stakeholders agreed it is time for unified action rather than just discussion.