Infrastructure development is decidedly the fulcrum for economic development. In the light of climate change challenges, it is important to build infrastructure with an eye on sustainability, resilience and compatibility with a net-zero future.
A recent report by Infrastructure for Climate Action reveals that infrastructure is responsible for 79 per cent of all greenhouse gas emissions. The report is a wake-up call for everyone.
In the quest to achieve an improved quality of life and socio-economic development through the rapid roll-out of critical infrastructure across the African continent, investment in sustainable infrastructure is non-negotiable.
In this regard, Africa is in a unique position. The huge infrastructural deficit means Africa can truly begin to build from the ground up sustainably and for the future.
To appreciate the size of the gap, consider this data by the African Development Bank (AfDB) that suggest that the continent’s infrastructure needs amount to $130–170 billion a year, with a financing gap in the range of $68–$108 billion. Those figures are far higher than previous estimates of $93 billion in annual needs and annual financing gaps of $31 billion published by Agence Française de Développement and the World Bank.
AfDB notes that institutional investors such as insurance companies, pension funds, and sovereign wealth funds have more than $100 trillion in assets under management globally. The bank argues that a small fraction of the excess global savings and low-yield resources would be enough to plug Africa’s financing gap and finance productive and profitable infrastructure.
The implication is clear, the infrastructure deficit in Africa can be bridged with the right approach – a smarter way. It is equally important that this idea gains ascendency speedily as infrastructure is especially critical for sustainable growth and inclusive development.
Africa, undoubtedly, has a compelling case for investment in infrastructure. It can boost productivity, transform economies and improve the quality of life of residents in their communities. It is the best hope for the emergence of a truly transformed continent.
The starting point is for countries across the continent to begin to explore options and avenues, means and ways, to boost investments in infrastructure. This is the smarter way. And WOFA will be there to make this possible.