The Minister for Finance, Hon. Dr. Mohammed Amin Adam says, Africa need to focus on adequate infrastructure development indicating that, the infrastructure deficit in Africa impedes economic growth and development.
He hinted that, the inadequate networks of road, rail, air and waterways make transport costs in Africa among the highest saying, the deficient infrastructure in today’s Africa has been found to sap growth by as much as 2% a year.
“Quite frankly, we have a continental problem that requires a continental solution. As such, we must redouble our efforts to invest in critical infrastructure projects, including transportation, energy, and digital connectivity, to unlock Africa’s full potential for trade and investment”.
The Finance Minister made this known during the official launch of the Africa Prosperity Dialogues 2025 held in Accra on the theme, “DELIVERING AFRICA’S PROSPERITY THROUGH INFRASTRUCTURE: INVEST. INTEGRATE. Connect”.
The challenges of infrastructure deficits to economic disparities according to Hon. Dr. Amin Adam, required a collective action and partnership on a continental scale.
“An estimated 546 million people are now living in poverty, and 149 million “non-poor” Africans are at risk of falling into it. Furthermore, the UNECA estimates the annual Sustainable Development Goal financing gap for developing countries has increased by $1.7 trillion”.
He emphasized that, debt-to-GDP ratio across the continent is an area that African leaders need to focus saying, recent figures indicated that African governments face US$89 billion in external debt servicing in 2024 alone, posing significant risks to fiscal sustainability and economic stability.
“This underscores the urgent need for concerted efforts to address debt sustainability and fiscal discipline. I emphasise the importance of supporting Africa’s financial and development finance institutions (DFIs) in playing a more active role in financing development initiatives across the continent”.
He revealed further that, strengthening the capacity and resources of DFIs would enable them to mobilise capital more effectively and channel investments towards priority sectors, including energy, transportation, and telecommunications.
The Minister noted that, the traditional financing mechanisms may no longer suffice in meeting the growing demands and rapidly expanding economies in Africa.
“We must explore new avenues for mobilising resources, including public-private partnerships (PPPs), green bonds, and leveraging digital technologies to enhance financial inclusion and access to capital. PPPs have proven to be effective mechanisms for leveraging private sector expertise. I thus encourage African governments to embrace PPPs as a viable solution to bridge the infrastructure gap and drive economic growth”.
He therefore, express his gratitude to the Africa Prosperity Network (APN), esteemed partners, and all participants who continue to make the vision a resounding success.
On his part, the Founder and Executive Chairman of Africa Prosperity Network (APN), Mr.Gabby Asare Otchere-Darko in a welcome address said, African’s future rests heavily on the ability to reimagine how to fund and link infrastructural developments and the boldness to get on with it.
“Despite the continent’s potential, its infrastructure gap serves as a more potent blockade. The success of AfCFTA hinges on key enablers, such as energy, water, R&D, ICT, transport & logistics and the digital economy.
This calls for substantial investments in infrastructure, that will yield even greater rewards, enabling our efforts to create a larger pool of good jobs with good pay. We stand at a critical juncture in history, where unlocking prosperity, now more than ever, depends on prioritising investment in infrastructure, connecting our people through infrastructure, and integrating our economies to create and spread opportunities and prosperity to every community”.
Africa he averred, has the world’s fastest-growing population projected to almost double to 2.5 billion people in the next 25 years. Again, it has the world’s youngest population with 70% of sub-Saharan Africa under the age of 30; it has the world’s largest free trade area adding that, Africa boasts of an enviable wealth of natural resources. “Imagine what our Africa will be like in 20 years’ time if we choose to get it right in this our time?”.
APN Mr. Otchere-Darko mentioned, envision an Africa where every bridge built serves as a flyover to opportunity, and every road paved leads to prosperity. “Our intention is to use the next APDs to show what is being done, what has to be done and what we must commit to having done in the areas of infrastructure to facilitate the free movement of people, goods and services”
