The New Partnership for Africa’s Development (NEPAD) – African Union’s economic development program, gathered international investors and CEO-level business leaders, yesterday, for the launch of its 5% Agenda campaign.
The launch took place five years after a January 2012 African Union Summit adopted the Program for Infrastructure Development in Africa (PIDA) which sets out 51 cross-border infrastructure programs and more than 400 actionable projects in four sectors.
According to the World Bank, the continent needs to spend 93 billion US dollars annually (44% for energy; 23% for water and sanitation; 20% for transport; 10% for ICTs; and 3% for irrigation) until 2020 to bridge its infrastructure gap, which is currently removing an estimated 2% of GDP growth every year.
On the other hand, Africa only managed to close 158 project finance deals with debt totaling 59 billion US dollars over the decade 2004-2013, which represents only 5 percent of infrastructure investment needs and 12 percent of the actual financial flows.
The 5% Agenda campaign highlights that only a collaborative public-private approach can efficiently tackle these issues and calls for allocations of institutional investors to African infrastructure to be increased to the declared 5% mark.
Speaking at the launch event in New York, Ibrahim Assane Mayaki, NEPAD Chief Executive Officer, commented: “Infrastructure plays a leading role in supporting growth on the continent. At the same time, it can represent an innovative and attractive asset class for institutional investors with long-term liabilities.
By launching the 5% campaign in New York today, we invite investors to take advantage of the wide-ranging opportunities Africa has to offer and to move forward with what can only be a win-win partnership”.
The launch of the campaign gathered high-level international investors and business leaders, including members of the PIDA Continental Business Network (CBN) which is spearheaded by NEPAD and constitutes a CEO-level private sector infrastructure leaders dialogue platform on PIDA.