Chapter 9 Infrastructure

In: Yearbook on the African Union Volume 3 (2022)
Authors:
Tim Zajontz
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Mandira Bagwandeen
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1 Introduction

The Russian invasion of Ukraine in February 2022 had immense negative repercussions for Africa, with rising food, fertiliser, and energy prices contributing to higher living costs in many places across the continent (see Tim Murithi, this Yearbook, chapter 2). The African Union (AU) commissioner for infrastructure and energy, Dr Amani Abou-Zeid, stated in June 2022 that the conflict had created ‘a double crisis’ for Africa. It caused disruptions to global supply chains and further depressed economic growth at a time when African countries were just beginning to recuperate from the social and economic effects of the Covid-19 pandemic. The commissioner emphasised that soaring energy prices and higher costs of transport across Africa had negative knock-on effects for agriculture, industry, trade, tourism, and other economic sectors, while African treasuries faced increasing pressure to finance their budgets and service debts (African Union 2022f). The war in Ukraine also laid bare the extant capacity constraints in Africa’s energy and electricity sectors. AU officials, consequently, reiterated the importance of expediting regional and continental infrastructure programmes and reinforced efforts to solicit infrastructure finance for overcoming Africa’s industrial and transport infrastructure deficits and driving the ‘green’ energy transition. At the same time, European governments and companies turned to Africa in desperation to supplement their energy imports from Russia, thereby investing anew in African fossil fuel infrastructure. Repercussions of the war against Ukraine in Africa reiterate the centrality of infrastructure and its cross-sectoral impacts on the region and, simultaneously, underscore the intensifying geopolitics of infrastructure development on the continent.

This chapter first outlines key developments in AU decision-making and implementation structures in the infrastructure sector. Secondly, it documents AU efforts at ‘greening’ Africa’s infrastructure, focusing particularly on activities and positions at the 27th Conference of the Parties (COP 27) (Sharm el-Sheikh, Egypt, 6–20 November 2022) to the United Nations Framework Convention on Climate Change (UNFCCC). Relatedly, it also touches on the Alliance for Green Infrastructure in Africa (AGIA), which was launched on the margins of COP 27 (see Annual Interview, this Yearbook, chapter 3). Additionally, this section of the chapter also discusses developments throughout 2022 within the AU’s Programme for Infrastructure Development for Africa (PIDA) and the growing importance of infrastructure development in the context of the African Continental Free Trade Area (AfCFTA) and related AU policies aimed at industrialisation (see also Bruce Byiers, this Yearbook, chapter 11). Lastly, the third section of this chapter focuses on the AU’s external infrastructure partnerships and their increasing geopoliticisation.

2 Decision-Making and Implementation

The transition from the first (2017–2021) AU Commission (AUC), led by Chairperson Moussa Faki Mahamat, to the second (instated in February 2021) was marked by continuity at the top decision-making level thanks to Abou-Zeid’s reappointment as the commissioner for infrastructure and energy (see Yearbook on the African Union 2021, 121–122). Within the Institutional Architecture for Infrastructure Development in Africa, implemented in 2012, the AUC Department of Infrastructure and Energy (DIE) oversees infrastructure policies and coordinates decision-making on infrastructure-related matters for the Council for Infrastructure Development (CID). It is advised by the Infrastructure Advisory Group, which convenes infrastructure experts and high-level officials from relevant bodies at least biannually. The CID, for its part, is composed of top officials from the AUC, the eight officially recognised regional economic communities (RECs), the African Development Bank (AfDB), and the UN Economic Commission for Africa (UNECA). It provides programmatic guidelines for the sector, arbitrates and approves programmes and harmonisation measures, and advises the specialised technical committees (STCs) and the AU Executive Council, which in turn is answerable to the AU Assembly of Heads of State and Government (ibid., 129–131).

At the centre of the implementation structure in the infrastructure sector is the AU Development Agency, which emerged from the New Partnership for Africa’s Development (hence its composite acronym AUDA–NEPAD). AUDA–NEPAD coordinates the implementation of projects with key stakeholders, such as the RECs, the AfDB, UNECA, as well as various external development partners and specialised agencies. AUDA–NEPAD also monitors the progress of PIDA, which entered its Priority Action Plan 2 (PAP 2; 2021–2030) in 2021 (see Yearbook on the African Union 2021, 128–130). Considering AUDA–NEPAD’s central role in the implementation structure of the AU’s infrastructure policies and programme, the appointment of the agency’s new chief executive officer was a noteworthy event in 2022. Nardos Bekele-Thomas’s appointment was endorsed by the 35th Ordinary Session of the AU Assembly (Addis Ababa, Ethiopia, 5–6 February 2022). She took over the role from Dr Ibrahim Assane Mayaki on 1 May 2022. Bekele-Thomas was previously the senior director of the Office of the UN Secretary-General and served, among others, as resident coordinator for the UN in South Africa and as the UN Development Programme (UNDP) resident representative in Kenya and Benin (UN Africa Renewal 2022).

At the highest AU decision-making level, at the 40th Ordinary Session (Addis Ababa, Ethiopia, 2–3 February 2022), the AU Executive Council took several decisions related to the infrastructure sector. It adopted the Financing Strategy for PIDA PAP 2 (2021–2030). The PIDA Financing Strategy was developed by the AfDB and validated during the ministerial session of the STC on Transport, Transcontinental and Interregional Infrastructure, and Energy (STC–TTIIE) in June 2021. With this strategy, the AU hopes to address financial bottlenecks that have severely compromised the progress of many PIDA projects during the PIDA Priority Action Plan 1 (PAP 1) (see Yearbook on the African Union 2020, 133–136). It foresees strengthening coordination among stakeholders to foster an enabling environment and political support for the preparation of projects, and it aspires to mobilise alternative financing, not least from the private sector, throughout the entire life cycle of projects (see Yearbook on the African Union 2021, 130). Accordingly, the AU Executive Council, at its meeting in February 2022, ‘urge[d] Members States to increase financial commitment for infrastructure development especially for infrastructure project preparation’ (AU Council 2022a, §20). The AU Executive Council furthermore welcomed the introduction of the PIDA Service Delivery Mechanism Quality Label (PQL). The label is awarded to PIDA projects that excel in adhering to international best practices in infrastructure development (see Yearbook on the African Union 2021, 130). The AU Executive Council ‘encourage[d] [its] adoption and application across the regions and the infrastructure sub-sectors as Africa’s standard for early-stage appraisal of infrastructure project [sic!]’ (AU Council 2022a, §21). The PIDA steering committee was directed by the AU Executive Council to ‘consider the continuity and/or role of the [PIDA] Task Force going forward’ (ibid., §22). The PIDA task force comprises representatives from the AUC, AUDA–NEPAD, the AfDB, and UNECA.

Another decision by the AU Executive Council that will potentially have decisive effects on future developments in, as well as the governance of, Africa’s information and communications technology (ICT) sector is the council’s request for the AUC to develop a Continental Cybersecurity Strategy (AU Council 2022a, §38[1]ii). It seems appropriate – some would argue overdue – for the AU to take action in this respect, not only because (African) societies are increasingly facing security threats in cyberspace but also because norm-setting in the ICT sector should not be relinquished to external actors that provide ICT infrastructure across the continent. As discussed below, a race is underway between Western powers and China to build up the African ICT infrastructure. Implementing continent-wide standards and norms regarding digital governance and cybersecurity could avoid the manifestation of a regulatory patchwork and the misuse or weaponisation of ICT by deviant actors.

In the transport sector, the AU Executive Council adopted technical specifications for the African railway network, related norms and standards, and the roadmap towards developing the African common market of railways (AU Council 2022a, §12). Furthermore, the AU Executive Council deliberated on policy and regulatory instruments of the Single African Air Transport Market (SAATM), a flagship project of Agenda 2063.

3 Single African Air Transport Market (SAATM)

At the 40th Ordinary Session of the AU Executive Council, the council adopted key performance indicators based on the Yamoussoukro Decision1 of 1999, which constitutes the institutional framework for the liberalisation of air transportation in Africa and contains recommendations on reduction of air transport costs as well as the revised Windhoek Aviation Security and Facilitation Targets (the AU Executive Council urged the ‘remaining Member States’ to join the SAATM) (AU Council 2022a, §7). By 2021, 35 member states, representing 89 per cent of intra-African air traffic, had signed a solemn declaration to operationalise the SAATM (see Yearbook on the African Union 2021, 124). At the 41st Ordinary Session the AU Executive Council (Lusaka, Zambia, 14–15 July 2022), the council approved the SAATM Dispute Settlement Mechanism, and it ‘request[ed] the AFCAC [African Civil Aviation Commission] in collaboration with the Commission and other key partners to establish the SAATM Dispute Settlement Mechanism Administrative Council and Secretariat hosted by AFCAC and reporting to the YD [Yamoussoukro Decision] Monitoring Body’ (AU Council 2022b, §43[vi]). The policy guidelines for the negotiation of the Air Services Agreement between AU member states and non-African states and regions were also approved (ibid., §45).

Following the SAATM-related decisions of the AU Executive Council, air transport experts and officials of the AU member states, the RECs, the AFCAC, the African Airlines Association (AFRAA), and the International Civil Aviation Organisation (ICAO) met in Accra, Ghana, from 28 November to 2 December 2022. Participants deliberated on the implementation of regulatory instruments of the Yamoussoukro Decision (African Union 2022n). The workshop also provided a platform to gain input from partners to accelerate the implementation of the SAATM. In global comparison, air traffic penetration in Africa is low, and flight fares remain relatively high, while insufficient air transport infrastructure, infrequent or limited availability of services, and disruptions and delays are considered obstacles to growth in the market (ibid.).

At the Accra workshop, the AUC’s acting head of the Transport and Mobility Division, Eric Ntagengerwa, highlighted that the SAATM ‘aspires to establish a single African air transport market with a direct positive influence on the success of Africa’s regional integration agenda through the improvement of transport connectivity between African capitals, facilitating the free movement of people, goods and services, and serving as one of the key enablers for the of the African Continental Free Trade Area (AfCFTA)’ (African Union 2022n). Furthermore, by removing the need for Bilateral Air Service Agreements (BASAs) between countries, the SAATM is expected to improve and facilitate business and commercial traffic between countries, with expected spillover effects for socioeconomic development, job creation, investment, and innovation.

In November 2022, the AFCAC introduced a Pilot Implementation Project (PIP), which incorporates 18 AU member states2 with ‘favourable environments to accelerate the implementation of SAATM’ (African Union 2022n). Participating countries agreed to launch SAATM flights between their territories, and participating airlines signed a strategic partnership framework to reduce costs and increase the size of the available fleets. Overall, according to a study commissioned by the AU, the economies of signatory states are projected to gain $4.2 billion in gross domestic product (GDP), 596,000 new jobs, and a 27 per cent reduction in airfares if the SAATM is fully implemented (cited in Orucho 2022).

4 Continental Power System Master Plan

Another crucial infrastructure governance instrument in the energy subsector that saw some implementation progress in 2022 is the African Single Electricity Market (AfSEM). The AfSEM is expected to gradually harmonise policies, regulations, technical norms, and standards to address financing needs and market barriers, with the aim of having a fully integrated African electricity market by 2040 (see Yearbook on the African Union 2020, 132–133). In 2022, efforts were underway to develop a Continental Power System Master Plan, which aims at streamlining energy generation across all five regional power pools.3 The AfDB signed off on technical assistance support to the value of just over $2 million in February 2022 (AfDB 2023). The master plan will provide a roadmap for the establishment of an integrated continental power transmission network in the context of Agenda 2063 and for the gradual integration of the AfSEM, officially launched in June 2021 (see Yearbook on the African Union 2021, 126–128). According to the AfDB, the master plan’s primary objectives are to ‘identify subsystems of a stable and reliable intra-regional and inter-regional power systems network and ensur[e] their orderly development to form the physical foundation to the envisaged’ (AfDB 2022a).

Africa has increased overall electricity generation over the past decade, rising from 16,144 megawatts (MW) in 2013 to 31,690 MW in 2021 (AUC and AUDA–NEPAD 2022, 33), and AU member states have increased the number of MW on their national grids. For example, between 2020 and 2021, Senegal added 234.5 MW of electricity to its national grid, while Rwanda and Sierra Leone added 238.4 and 67 MW, respectively (ibid.). During the same period, Egypt and Côte d’Ivoire added 3,140 MW and 275 MW of electricity, respectively (ibid.). Furthermore, work on the Ethiopia–Kenya electricity highway is underway. Various interventions, such as investments in renewable energy projects to support industrial development, explain the increase in electricity generation (ibid.). At the same time, further massive investment in energy infrastructure is deemed vital in order to close the remaining wide energy access gap, as will be discussed in the following section on major developments in the infrastructure policy field in 2022.

5 Major Developments in 2022

The war in Ukraine was a significant concern in AU decision-making circles, including in those concerned with the infrastructure sector. At the 2nd Extraordinary Session of the STC–TTIIE (virtual, 14–16 June 2022), the STC approved a document titled ‘Implications of the Russia-Ukraine Crisis on the African Energy and Infrastructure Sectors’. This contained recommendations for member states on how to mitigate the crisis and manage emerging risks while simultaneously taking advantage of emerging opportunities (Africa–EU Energy Partnership 2022). For Abou-Zeid, the impacts of the war in Ukraine on global energy markets underlined the need to accelerate the implementation of AU initiatives in the energy sector and related infrastructure projects. She stated that ‘Africa can step in as an alternative source energy market through its number [sic] of projects under the Programme for Infrastructure Development in Africa (PIDA) and other similar initiatives like the African Single Electricity Market (AfSEM) that can be expedited to first address Africa’s energy needs and [then] export to other regions’ (quoted in African Union 2022f).

The impacts of the Russia-Ukraine crisis on the infrastructure and energy sectors were also a significant concern of the AU Executive Council during its meeting in Lusaka in July 2022. The council requested from the

Commission, in collaboration with specialized Pan-African institutions and all relevant stakeholders, to continue monitoring the evolving situation of the Russia-Ukraine crisis and its impact on infrastructure and energy sectors and advise Member States on appropriate mitigation measures and intensify the development of data systems on energy consumption and behaviour in the Continent.

AU COUNCIL 2022B, §42

It also requested the AUC and specialised agencies to coordinate the implementation of several recommendations aimed at mitigating the effects of the war against Ukraine. These recommendations included the development of the African Energy Security and Financing Plan, meant to promote intra-African trade and increase African oil production; accelerating the development of regional gas and electricity projects and infrastructure in Africa to support Africa’s energy transition, industrialisation, clean cooking, agriculture, petrochemicals, and export of natural gas to other markets; the integration of the electrification of railways and other sustainable transportation systems into current development plans to reduce the impact of fluctuations in oil and gas prices on transport costs; the creation of interconnected multi-modal logistics zones to facilitate the movement of goods and to reduce transport and distribution, as well as storage and costs; and the acceleration of the implementation of key projects under PIDA PAP 2 and the AfSEM ‘to strengthen intra-Africa interconnectivity and tap into the opportunities for energy trade that the Russia-Ukraine Crisis provides for Africa’ (AU Council 2022b, §43). But it was not only the acute energy crisis caused by the war that made energy a crucial theme in the AU’s infrastructure policy realm in 2022. Throughout the year, AU institutions and agencies deliberated on initiatives and policies that prioritised a gradual energy transition towards renewable energy sources and implementing climate-resilient infrastructures.

5.1 Efforts at ‘Greening’ Africa’s Infrastructure

Preparations for COP 27 informed AU policy-making on environmental issues, climate change mitigation, and renewable energy throughout 2022. The AU commissioner for infrastructure and energy, Abou-Zeid, herself an Egyptian national, said in June 2022, ‘Africa should achieve the best possible outcomes from COP 27 dubbed as the “African COP”’ (quoted in African Union 2022g). The 2nd Extraordinary Session of the STC–TTIIE approved a Common African Position on Energy Access and a Just Energy Transition for COP 27. Commissioner Abou-Zeid was cited at the meeting, saying that ‘[t]he world needs to recognize Africa’s unique realities and support its efforts to close the huge energy access gaps without being straight-jacketed into approaches that do not match our circumstances’ (quoted in African Union 2022f). The statement reflects a gradual approach to the transition towards fossil-free energy sources, which is widely supported among African decision-makers. Not only do several African economies remain heavily dependent on the export of fossil fuels, sufficient investments in renewable energy infrastructure to effectively close Africa’s energy access gap have hitherto also failed to appear. Abou-Zeid expressed her concerns that achieving Goal 7 of the UN Agenda 2030, that is to say access to affordable, reliable, sustainable and modern energy for all, was at risk if innovative approaches and collaborative efforts failed to materialise (ibid.).

Preparations for COP 27 also informed the agenda of the Bureau of the STC on Communication and Information and Communications Technology (STC–CICT), which held an ordinary session on 22–23 June 2022. The bureau, which serves for two years, convened the ministers of communication or of ICT from Congo (Brazzaville), South Africa, Niger, Rwanda, and Egypt. The session was chaired by Congo and focused on the role of digitalisation in the continent’s recovery from the Covid-19 pandemic, the mitigation of adverse impacts of climate change, and the enhancement of energy access and transition. At the ministerial session of the Bureau of the STC–CICT, Commissioner Abou-Zeid stressed that ‘[t]he opportunities that digital agriculture and digital energy present to transition to clean and sustainable energy systems, increased productivity, food security and mitigate the risks stemming from climate change and global warming should clearly be explored and solutions put forward’ (quoted in African Union 2022g). Furthermore, the bureau emphasised the importance of a well-coordinated and common African approach ahead of COP 27 in Sharm el-Sheikh.

The AU consolidated its agency in global climate governance through a number of activities. The AUC, together with the AfDB, UNECA, and the NEPAD Planning and Coordinating Agency, hosted the Africa Pavilion, which, since the 2011 COP 17 in Durban (South Africa), serves as the central venue for discussion and exchange on African concerns and priorities in global climate negotiations. Furthermore, the AU organised several side events, including an Africa Day, a side event titled ‘Global Energy Crisis and Security: Opportunities to Accelerate the African Single Electricity Market (AfSEM) and Continental Power System Masterplan (CMP)’, and a High-Level Forum on Financing Energy Transition in Africa (African Union 2022a). At the latter, which was co-hosted by the International Energy Agency (IEA), the executive director of IEA, Fatih Birol, reminded attendees that 600 million Africans, or 43 per cent of the continent’s population, still lacked access to electricity, and nearly 1 billion Africans did not have access to clean cooking (African Union 2022i). The AU commissioner Abou-Zeid criticised the situation that Africa only received 3 per cent of global climate finance, ‘leaving an annual financing gap of US$ 90 billion for its energy access and transition goals’, which crucially depends on the development of the required infrastructure (ibid.). With the intention to close this financing gap, the AU entered into new partnerships in 2022.

5.2 Alliance for Green Infrastructure in Africa

Throughout 2022, the AU liaised with international partners to advance (financial) cooperation to mitigate the negative impacts of climate change and leverage investment in green energy sources and technologies on the continent. A joint article by Macky Sall, AU chairperson, and Charles Michel, president of the European Council, published just before the 6th EU–AU Summit (Brussels, Belgium, 17–18 February 2022), emphasised that ‘[t]he EU will provide public and private investment capacity, as well as expertise with the green infrastructure and technologies that are vital to our common fight against climate change and to transforming African economies’ (European Council 2022b). On 9 November 2022, on the margins of COP 27, the Egyptian government, the AU, the AfDB, and the infrastructure investment platform Africa50, in partnership with several global organisations, launched the Alliance for Green Infrastructure in Africa (AGIA). The collaborating global partners are the European Investment Bank, the European Bank for Reconstruction and Development, the French Development Agency, the Rockefeller Foundation, the United States (US) Trade and Development Agency, the Global Center on Adaptation, the Private Infrastructure Development Group, and the African Sovereign Investors Forum (African Union 2022j). According to the AU, the mission of the AGIA is to raise capital to accelerate Africa’s just and equitable transition to net-zero emissions. The actors involved identified four pillars for collective action: (1) project preparation and development to support the transformation of projects from the conceptualisation stage to bankable propositions; (2) technical assistance and capacity-building regarding project ratings to establish green eligibility criteria and project rating guidelines for infrastructure projects; (3) co-financing and de-risking instruments to mobilise equity and debt financing for green infrastructure from AGIA members and other sources; and (4) the facilitation and mobilisation of funds from global and African institutional investors and the leveraging of such funding at African and international capital markets through green bond issuances and private investments.

The AfDB, in its African Economic Outlook Report (2022), estimated that the cumulative financing needs for Africa to respond appropriately to climate change range between $1.3 and $1.6 trillion, averaging $1.4 trillion in 2020–2030 (AfDB 2022b). Broken down annually, $127.8 billion is needed. However, this is hardly sufficient as adaptation costs are estimated at $259–407 billion. Furthermore, if the international-to-domestic commitment ratio of 2020 remains constant, the adaptation financing gap in Africa from international sources will range between $66 billion and $260 billion in 2020–2030 (ibid.). The AfDB president, Akinwumi Adesina, noted that ‘the needs in Africa are simply enormous. Only by working together and pooling our resources together can we make transformative impacts and set Africa on a clear path to achieving NetZero emissions and to mitigate climate change’ (African Union 2022j).

The AGIA aims to raise $500 million to provide capital for early-stage project development (African Union 2022f). This aligns with calls made at the 7th PIDA Week (Nairobi, Kenya, 28 February–4 March 2022) for prioritising more financing for the early stages of infrastructure development (as discussed below). AGIA funds will assist in creating a pipeline of bankable green infrastructure projects that could generate $10 billion worth of investments (ibid.). The AGIA will prioritise infrastructure developments in energy, transport, water and sanitation, healthcare, and ICT. Another declared focus is linking rural and urban areas through connectivity infrastructure. In addition, large-scale green energy initiatives, such as mega-solar or green hydrogen projects, and smaller venture capital initiatives, like cleantech projects, energy storage, or e-mobility solutions, will also be supported, according to the AU (ibid.).

5.3 Programme for Infrastructure Development in Africa

The 7th PIDA Week was held under the theme ‘Putting Africa on a Firm Footing for Recovery, Growth, and Resilience Through Infrastructure’ (African Union 2022d). The conference prioritised assessing and taking stock of the financial investments in Africa’s infrastructure development. The event brought together various African stakeholders to critically examine infrastructure development against the backdrop of the impact of Covid-19 on African economies and, simultaneously, deliberate on financial prospects for future infrastructure projects. Representing then president Uhuru Kenyatta at the opening of the event, Kenyan cabinet secretary James Macharia highlighted that

[a]s African countries, we need to focus on policies and strategies that will promote and increase domestic resource mobilization, attract private investment and create an environment that attracts the growth of quality infrastructure projects. I, therefore, urge for deeper engagement between PIDA, the private sector, and development partners.

AFRICAN UNION 2022D

Under Agenda 2063, AU members prioritised developing ‘world-class infrastructure [that] crisscrosses Africa’ to stimulate and promote regional integration, trade, and economic transformation (AUC and AUDA–NEPAD 2022, 31). External finance and a diverse range of foreign actors have gotten heavily involved in Africa’s infrastructure development, notably China, which steadily emerged over the 2010s to become Africa’s largest bilateral infrastructure financier (see Yearbook on the African Union 2020, 137–140). At the same time, African governments and African development finance institutions (DFIs) have also substantially increased their spending on infrastructure (African Union 2022n). Under PIDA PAP 2 (2021–2030) (see Yearbook on the African Union 2021, 128–130), 69 infrastructure projects were selected by AU member states, representing a collective aggregate capital expenditure of $160 billion (African Union 2022d).

However, Raila Odinga, the former Kenyan prime minister (2008–2013) and, since 2018, the AU high representative for infrastructure development, emphasised in his address at the 7th PIDA Week that Africa’s data on infrastructure remains ‘humbling and disturbing’ as 80 per cent of the continent’s infrastructure projects are failing at the feasibility and business-planning stages (African Union 2022c). Moreover, data on Africa’s performance on global transport and energy indices remained dismal compared to other developing regions such as Asia and South America. Ultimately, Odinga noted, ‘in a nutshell, [that] all our best efforts of recent decades are not good enough’ (ibid.). He stressed the need to learn from the mistakes of PIDA PAP 1 (see Yearbook on the African Union 2020, 133–136). For PIDA PAP 2 projects to be successful, financing for project scoping, feasibility, designing, and planning should be prioritised. Commissioner Abou-Zeid affirmed that PIDA PAP 2 was carefully developed to address challenges relating to project bankability. She said, ‘Africa has infrastructure projects that meet investment criteria. The projects are inclusive, sustainable, and gender smart and will certainly better the lives of fellow Africans’ (African Union 2022d).

Odinga recommended that the NEPAD Infrastructure Project Preparation Facility at the AfDB, the AU Service Delivery Mechanism, and the specialised agencies for cross-border projects can serve as valuable financing sources for project preparation and implementation (African Union 2022c). Furthermore, he stressed that PIDA PAP 2 needs a financing strategy that prioritises private sector involvement and public-private partnerships (PPPs). Similarly, Commissioner Abou-Zeid appealed to ‘private sector financiers, donors, and partners to invest in … projects that produce a win-win outcome’ (ibid.). AUDA–NEPAD and the AfDB identified five necessary enabling factors for successfully implementing PIDA PAP 2 projects: (1) national ownership over infrastructure projects by African governments and citizens, with regional projects being included into national development plans; (2) regional commitment whereby the RECs should deliberate carefully and include prioritised regional projects in their regional infrastructure master plans; (3) capacity-building for transnational project management to improve the coordination and management of stakeholders involved in large-scale, complex projects; (4) strong advocacy from regional institutions, such as the AUC, AUDA–NEPAD, UNECA, AfDB, and Afrieximbank, which should play a more dominant role in mobilising resources for projects; and (5) enhanced project quality standards to ensure high-quality infrastructure assets and services (ibid.).

5.4 Infrastructures for Industrialisation and Economic Diversification

In the context of the AfCFTA, the political quest for continental and regional coordination of infrastructure development has seen further impetus (see Zajontz 2024). Besides reducing tariffs and non-tariff barriers, ‘adequate infrastructure’ is seen as a key prerequisite for boosting regional trade and industrialisation and even features in the preamble of the 2018 Kigali Agreement, which established the AfCFTA (African Union 2018). Indeed, the lack of sufficient economic infrastructure, not least transnational transport infrastructure, has driven up costs of doing business on the continent, with economists showing that logistics and transport costs in Africa are three to four times higher than in other world regions (Plane 2021). As the AfCFTA secretary-general, Wamkele Mene, underlined during the 7th PIDA Week, ‘infrastructure development, at the national, regional and continental levels, has become pivotal to the success of the trade pact’ (Mene 2022). Infrastructure was also a central issue at the 17th AU Extraordinary Summit on Industrialisation and Economic Diversification (Niamey, Niger, 25 November 2022). The summit was part of the Africa Industrialization Week’s annual commemorative activities, convened under the theme ‘Industrialising Africa: Renewed Commitment Towards an Inclusive and Sustainable Industrialization and Economic Diversification’. The AU recognises that

[t]o achieve the aspirations of the AfCFTA, Africa’s industrialisation and transformation agenda needs to be supported at the highest national, regional, continental, and global levels. Such a focus will be key to accelerate efforts in a selected number of key policy areas – such as energy and road infrastructure, trade facilitation, financial sector development, education development, agro-industrial transformation, green industrialisation and technological innovation and transformation. Advancing the AfCFTA and Africa-Industrialization side-by-side with deliberate efforts to realize the mutually reinforcing interdependences between the two will provide Africa’s critical success pillar and condition for Agenda 2063.

AFRICAN UNION 2022K

African leaders reiterated their determination to ensure that the continent’s industrialisation and economic diversification is financed through secure financial sources. Additionally, emphasis was placed on urgently identifying and addressing impediments to productivity and growth through infrastructural development, energy, access to finance, digitalisation, innovation, and skills development (African Union 2022l). Additionally, in collaboration with development partners, the AU will develop and disseminate among member states an annual African Industrial Development Report based on an African Industrial Development Index, and it will speed up the construction of the African Industrial Observatory (ibid.).

In terms of concrete economic infrastructure for industrialisation, the development of special economic zones (SEZs) and industrial parks (IPs) was among the ten key commitments made at the summit. These facilities are considered to be crucial instruments for ‘economic reforms, promot[ing] quality Foreign direct investments (FDIs), and accelerat[ing] industrialization across the continent’ (African Union 2022l). According to the African Economic Zones Outlook (edition 2021), more than 200 SEZs are operational in Africa, and 73 projects are nearing completion in 47 countries (Africa Economic Zones Organisation 2021, 6). Not only will new SEZs be developed, but support will also be extended to existing SEZs and IPs as a means to overcome existing industrial infrastructure constraints (African Union 2022m). It is envisioned that these facilities will eventually become hubs for regional value chain integration. Furthermore, nearly 150,000 hectares of land have been demarcated to implement economic zones across the continent. And $2.6 billion in investments has been mobilised for agro-processing, manufacturing, and services (ibid.). Despite this, research suggests, at best, mixed development results, with Andrés Rodríguez-Pose and colleagues (2022, 456) recently showing that, while ‘African SEZs are on a steep upward trend and are changing in nature’, their ‘ability … to attract industrial activity, proxied by firms, and generate employment remains limited’, and ‘African SEZ governance policies (over)rely on fiscal incentives and performance requirements’.

Following the African Industrialization Week, the AU and the African Economic Zones Organisation (AEZO) held the 5th AU Symposium on SEZs during the 7th AEZO Annual Meeting (Abuja, Nigeria, 30 November–2 December 2022). The events were convened under the theme ‘African Special Economic Zones: Engine for Resilience and Accelerator for Sustainable Industrial Value Chains Development’. The events coincided with the 30th anniversary of Nigeria’s SEZ scheme and brought together over 400 participants and stakeholders (African Union 2022m). Discussions highlighted cross-cutting issues related to the role of SEZs in accelerating sustainable industrial value chain development (in alignment with Agenda 2063).

6 AU External Partnerships and the Geopolitics of Infrastructure

Infrastructure development has become central to Africa’s external relations, including those of the AU. The latter cooperates with a myriad of external actors on infrastructure programming, financing and project implementation. Besides so-called traditional donors, such as the US, the European Union (EU), and Japan, China has become Africa’s biggest bilateral infrastructure financier (see Yearbook on the African Union 2020, 137–142). Thereby, the AU has taken on the role of an increasingly important supranational ‘broker’ that has institutionalised its cooperation in the infrastructure sector with various external actors. Simultaneously, there has been growing competition between Western actors and China for influence in Africa’s infrastructure sector, which has been tangibly expressed through competing connectivity initiatives, notably China’s Belt and Road Initiative (BRI), the EU’s Global Gateway, and the US-led Partnership for Global Infrastructure and Investment (see Yearbook on the African Union 2021, 130–135). In 2022, the AU engaged with its external partners on various occasions.

6.1 The Rise of AU–EU Infrastructure Inter-Regionalism

At the 6th EU–AU Summit, heads of state and government as well as government officials from AU and EU member states agreed on a ‘joint vision for a renewed partnership’, which, among several commitments, foresees an Africa-Europe Investment Package of €150 billion under the umbrella of the EU’s Global Gateway initiative, which was launched in 2021 (European Council 2022a). The package hopes to leverage public and private investments in the following areas: energy, transport, and digital infrastructure; energy transition; green transition; digital transformation; sustainable growth and decent job creation; transport facilitation and efficiency of connected transport networks; and mobility and employability of students. It is expected to complement additional instruments in the health and education sectors. While a share of this finance constitutes already budgeted EU funds, which are now ‘rebranded’ with the Global Gateway label, the fact that the EU earmarks half of all projected Global Gateway investments (€300 billion between 2021–2027) to Africa underlines the geopolitical and economic importance of the latter for the EU. The EU considers the AU a key partner in implementing the Global Gateway initiative, and the initiative’s clear focus on infrastructure development has consolidated what can be called infrastructural inter-regionalism between the two regional organisations (see also Ulf Engel, this Yearbook, chapter 12). Both institutions emphasise, in the summit declaration titled ‘A Joint Vision for 2030’, synergies between the Global Gateway and Agenda 2063, with ‘due consideration to the priorities and needs of the African countries’ and ‘investment in energy, transport and digital infrastructure aligned with the PIDA PAP II’ (African Union 2022l).

On the margins of COP 27, the AU and the EU announced a cooperation initiative on Climate Change Adaptation and Resilience in Africa as part of the Global Gateway Africa-Europe Investment Package. According to official EU statements, the initiative will streamline existing and new climate change adaptation programmes that are worth over €1 billion and will improve coordination and reinforce policy dialogue on climate adaptation strategies between the EU and AU (European Commission 2022a). At COP 27, during a ministerial side event focusing on the initiative, the executive vice-president of the European Commission, Frans Timmermans, pledged that the EU would ‘raise further investments for clean, secure and climate resilient infrastructure’ (quoted in European Commission 2022b). He named the ‘Great Green Wall’, the EU–AU transboundary water management initiative, and strategic corridors as examples of cooperation in developing climate-resilient infrastructure (ibid.). However, despite EU commitments to intensify cooperation with the AU and its member states in expediting Africa’s energy transition and mitigating the effects of climate change, Russia’s war against Ukraine lay bare Europe’s, and not least Germany’s, energy vulnerability and, in turn, sparked renewed interest among European firms and governments in African oil and gas deposits (see Browning et al. 2022). According to estimates from the IEA, Africa could, for instance, substitute up to one-fifth of Russian gas exports to Europe by 2030 (ibid.). This, of course, will require investments in necessary infrastructures, such as additional pipelines and terminals to export liquified natural gas (LNG). While this might align with the gradual approach in transitioning towards renewables mentioned above, it arguably contradicts some of the more ambitious objectives regarding Africa’s green energy transition (which have featured prominently in AU–EU infrastructure inter-regionalism).

6.2 The Geopolitical Race to Build African ICT Infrastructure

At the 11th African Internet Governance Forum (Lilongwe, Malawi, 19–21 July 2022), Commissioner Dr Abou-Zeid emphasised the importance of digital infrastructure and technologies in building resilient and sustainable economies. She stressed the need to ensure that ‘digitalisation is deep-rooted’ in African economies to work towards creating ‘a single digital market for a united Africa’ (African Union 2022h). The forum was held under the theme ‘Digital Inclusion and Trust in Africa’. It prioritised four major thematic areas: affordable and meaningful internet access; cybersecurity, privacy and personal data protection; digital skills and human capacity development; and digital infrastructure (ibid.). In addition, Abou-Zeid underlined ‘the need for Africans to collectively devise ways to keep pace with the increasing demand for digital infrastructure, bridge connectivity gaps, especially the urban-rural disparity and address the gender digital divide and create decent jobs for Africa’s younger population’ (ibid.). She also called on ‘regional and international partners to invest in bankable and impactful projects under [the] Programme for Infrastructure Development in Africa (PIDA), which packages regional and continental priorities in the energy, transport and digital sectors’ (ibid.).

In recent years, a growing interest in Africa’s ICT sector and related infrastructure projects is discernible among European and US decision-makers, which is not least a reaction to geopolitical concerns arising from the dominant position Chinese firms have established in the sector. Thus, the development and governance of digital infrastructure has gained increasing importance within AU–EU infrastructural inter-regionalism. Not long after the 6th EU–AU Summit, the Africa–Europe Digital for Development (D4D) Hub Multi-Stakeholder Forum was held on 18 March 2022 under the theme ‘Digital Transformation for Sustainable Development in Africa’. The AUC and the European Commission co-hosted the event to promote exchanges and collaboration with the private sector, enterprises, civil society organisations, and experts in the digital field from both continents (African Union 2022e). The declared aim was to develop an operational digital cooperation plan for Africa’s sustainable development. The AU and EU agree that digital technologies are necessary to drive inclusive job creation and sustainable development. In December 2018, both parties launched the EU–AU Digital Economy Task Force to identify policy recommendations and actions to address the primary barriers to developing and accessing digital infrastructure and services and to increase cooperation in the digital field. The recommendations of the task force are mirrored in the AU Digital Transformation Strategy for Africa (2020–2030) and have informed the design of cooperation projects such as the AU–EU D4D Hub (ibid.). The Bureau of the STC–CICT (22–23 June 2022) urged member states to work towards implementing the strategy. It aims to create an integrated and inclusive African digital society and economy (African Union 2022g).

With only 33 per cent of African people connected to the internet, compared to the world average of 63 per cent, closing the digital divide and ‘connecting the unconnected’ is a declared top priority of AU–EU infrastructure inter-regionalism (African Union 2022k). Cooperative efforts especially need to ensure that women, rural populations, and young people reap the benefits of the continent’s digital transformation (African Union 2022e). At the Africa–Europe D4D Hub Multi-Stakeholder Forum in March 2022, the AU commissioner Abou-Zeid pointed out that:

These exceptional times have also shown the urgency to invest in secured [sic!] and affordable Africa’s [sic!] digital infrastructure, digital skill [sic!], digital identity, data management and build on Africa’s innovation potential and entrepreneurship. The African Union welcomes the enhanced partnership with the European Union that is based on respect, transparency, equal opportunity, [a] win-win approach and agreed tangible outcome [sic!] and further engagement with African and European stakeholders to accelerate the digital transformation of our continent.

AFRICAN UNION 2022E
In a similar manner, the US government has markedly stepped up its efforts to facilitate US investments in African ICT infrastructure and services. On 14 December 2022, at the US–Africa Business Forum in Washington, DC, which was part of the US–Africa Leaders Summit (13–15 December 2022), attended by 49 African heads of state and government and the AUC chairperson, the US president Joseph Biden announced the launch of the Digital Transformation with Africa (DTA) initiative. The DTA ‘intends to invest over $350 million and facilitate over $450 million in financing for Africa in line with the African Union’s Digital Transformation Strategy and the U.S. Strategy Toward Sub-Saharan Africa’ (White House 2022). According to the White House, the DTA will

foster an inclusive and resilient African digital ecosystem, led by African communities and built on an open, interoperable, reliable, and secure internet. This initiative will also seek to empower women and other marginalized people through and within the digital ecosystem. DTA aims to help countries rebuild economies impacted by the COVID-19 pandemic and advance U.S. national security, diplomatic, commercial, and development priorities. It will also advance commitments to invest in global infrastructure, including digital connectivity, under the Partnership for Global Infrastructure and Investment.

WHITE HOUSE 2022

As this excerpt demonstrates, security concerns are a crucial driver of US efforts to step up cooperation with African partners in the ICT sector, revealing another dimension of the increasing geopoliticisation of infrastructure development in Africa. The Chinese firm Huawei, for instance, is currently estimated to control 70 per cent of African 4G networks and is busy installing 5G infrastructure across the continent (Howell 2022). The market dominance of Chinese firms has not only economic but also potential security and human rights implications. A fortiori, the implementation of the AU Digital Transformation Strategy for Africa, adopted on 9 February 2020, as well as the drafting of a Continental Cybersecurity Strategy, can be expected to be – at least indirectly – affected by intensifying competition among Western actors and China for African ICT infrastructure and service markets. Ultimately, both Western and Chinese actors are setting technological norms in this growing sector by developing the necessary infrastructure and providing ICT-related technology (see Qobo and Mzyece 2023). At the same time, they are ‘exporting’ digital governance norms and standards with potentially far-reaching implications for African societies.

6.3 China’s Continuous Role in Africa’s Infrastructure Sector

In 2022, the Forum on China–Africa Cooperation (FOCAC) convened neither at the summit nor at the ministerial level. A BRI Forum did not occur either. These are usually the events where the Chinese government publicly announces significant cooperation plans in the infrastructure (and other) sectors with partner countries and regions. In recent years, the Chinese government and the AU have intensified their cooperation in the infrastructure sector, emphasising the synergies that both sides expect from aligning China’s BRI with continental and regional priority projects (see Yearbook on the African Union 2021, 133–134; Zajontz 2024). The Coordinators’ Meeting on the Implementation of the Follow-up Actions of the 8th FOCAC Ministerial Conference (virtual, 18 August 2022) was chaired by the then Chinese foreign minister Wang Yi and attended by, among other African officials, the deputy AUC chairperson, Monique Nsanzabaganwa. At the meeting, the African and the Chinese sides offered a joint statement:

While strengthening traditional areas of cooperation such as infrastructure, investment and financing, agriculture, manufacturing and telecommunication, both sides will deepen cooperation in new fields including energy, digital economy, health, marine economy, vocational education, and women and youth development. Build-Operate-Transfer (BOT) and Public-Private Partnership (PPP) will be encouraged to help Africa realize industrialization and enhance its status in the global industrial and supply chains.

FOCAC 2022

The statement furthermore recalled the Declaration on China-Africa Cooperation on Combating Climate Change, which was introduced at the 8th FOCAC Ministerial Conference (Dakar, Senegal, 29–30 November 2021). It reiterated that it ‘call[s] on the international community not to level down support and input to Africa because of the Ukraine issue, but to actively help African countries address food security, climate change, energy crisis and other global issues’ (FOCAC 2022). This shows that China has been responsive to some of the priorities expressed by the AU in the infrastructure sector, including the leveraging of infrastructure finance, the industrialisation-infrastructure nexus, and climate-resilient and ‘green’ infrastructure.

In a by-line article on the occasion of the 20th anniversary of diplomatic relations between China and the AU, the head of the Chinese mission to the AU, Ambassador Hu Changchun, lauded various achievements of the last twenty years of Sino-African cooperation. He also wrote,

we need [to] speed up practical cooperation in various fields.… We need to push forward the synergy of the BRI, Global Development Initiative, FOCAC Nine Programs and the AU Agenda 2063 as well as African development agendas, in order to continuously strengthen our creative cooperation in the area of health & disease control, trans-regional infrastructure, energy & climate change, digital economy, food security & loss, trade & investment, etc.

CHINESE MISSION TO THE AU 2022

Ambassador Hu also referred to (geo)political controversies that have arisen over China’s role as Africa’s biggest infrastructure financier (see Yearbook on the African Union 2020, 140–142; Bagwandeen et al. 2023), expressing that ‘[u]ltimately, it is for the Chinese and African people to judge the results of China-Africa cooperation’. Hu further stated that ‘[s]ome forces disregard facts, smear China-Africa cooperation, and fabricate disinformation such as ‘debt trap’. Their true intention is to deny the friendship between China and Africa and the well-being of African people’ (Chinese Mission to the AU 2022). The AU’s external partnerships in the infrastructure realm are evidently affected by intensifying competition and contestation between Western powers and China.

7 Outlook

Infrastructure will remain a priority for AU bodies in 2023. The 42nd Ordinary Session of the AU Executive Council is expected to be concerned with, among other things, the development of the second ten-year implementation plan for the Agenda 2063. Several of the latter’s flagship projects are in the infrastructure sector, including the African Integrated High-Speed Railway Network, an integrated e-economy, and the SAATM. Hence, deliberations on the next Agenda 2063 implementation plan will set the course for these projects. We can also expect the infrastructure-industrialisation nexus to be further articulated and deliberated on, considering the AU theme for 2023 being ‘Acceleration of AfCFTA Implementation’. As discussed in this chapter, the success of the AfCFTA itself is, in official (AU) discourse, often closely associated with the development of regional infrastructure.

As we have elaborated on in this and in previous Yearbooks on the African Union, a myriad of external actors are engaged in Africa’s infrastructure sector, and AU policies and projects are often dependent on cooperation with external partners, not least regarding their financing. The 2nd Dakar Financing Summit for Africa’s Infrastructure Development, scheduled for February 2023, will be an important yardstick for the mobilisation of infrastructure finance for PIDA PAP 2. We can furthermore expect a high-level delegation from the AU to attend the 3rd Belt and Road Forum for International Cooperation, which the Chinese government announced to hold in 2023 (see Wang et al. 2022). The forum will give important indications as to the future of the BRI and, more concretely, as to how the Chinese government intends to foster overseas equity investment in infrastructure, considering that sovereign loan financing has become economically and politically risky in certain countries and regions, including in Africa (see Carmody et al. 2022; van Wieringen and Zajontz forthcoming). In the light of the intensifying geopoliticisation of infrastructure in Africa, as discussed above, infrastructure is also likely to top the agenda in the AU’s relations with the US government as well as in AU–EU inter-regionalism throughout 2023.

References

Sources

Academic Literature

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  • Carmody, Pádraig, Zajontz, Tim and Reboredo, Ricardo 2022. ‘From “debt diplomacy” to donorship? China’s changing role in global development’, Global Political Economy 1 (2): 198217.

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  • Plane, Patrick 2021. ‘What Factors Drive Transport and Logistics Costs in Africa?’, Journal of African Economies 30 (4): 370388.

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  • Rodríguez-Pose, Andrés et al.2022. ‘The challenge of developing special economic zones in Africa: Evidence and lessons learnt’, Regional Science Policy & Practice 14 (2): 456481.

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  • van Wieringen, Kjeld and Tim Zajontz (forthcoming). ‘From loan-financed to privatised infrastructure? Tracing China’s turn towards public-private partnerships in Africa’, Journal of Current Chinese Affairs.

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  • Zajontz, Tim 2024. ‘Chinese Globalism, African Regionalisms and State Spatial Strategies: The Intricacies of Regionalising Africa’s Railway Renaissance.’ In T. Zajontz et al. (eds.) Africa’s Railway Renaissance: The Role and Impact of China. Abingdon: Routledge.

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News Reports

  • Browning, Noah, Ron Bousso, and Wendell Roelf 2022. ‘Analysis: Ukraine war rekindles Europe’s demand for African oil and gas’, Reuters [London], 22 July. URL: <https://www.reuters.com/business/energy/ukraine-war-rekindles-europes-demand-african-oil-gas-2022-07-22/> (accessed: 30 June 2023).

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  • Orucho, Bonface 2022. ‘Open Skies: African nations to pilot single air transport market’, The Independent [London], 1 December. URL: <https://www.independent.co.ug/open-skies-african-nations-to-pilot-single-air-transport-market/> (accessed: 30 June 2023).

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  • Wang, Cong, Bai, Yunyi and Yang, Ruoyu 2022. ‘Xi announces 3rd Belt & Road forum to be held in 2023, calls on Asia-Pacific to up cooperation to new height’, Global Times [Beijing], 18 November. URL: <https://www.globaltimes.cn/page/202211/1279916.shtml> (accessed: 30 June 2023).

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1

The Yamoussoukro Decision is a treaty adopted by most AU members states that establishes a framework for the liberalisation of air transport services between African countries, as well as fair competition between airlines. The treaty was signed by 44 African states in 1999 and became binding in 2002.

2

Cape Verde, Cameroon, Congo, Côte d’Ivoire, Ethiopia, Gabon, Ghana, Kenya, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, South Africa, Togo, and Zambia.

3

The five power pools are the Central African, East African, Southern African, and West African Power Pools as well as the Maghreb Electricity Committee.

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