G-7 Leaders Commit to Transformative Infrastructure Investment in Africa

Co-chaired by US President Joseph Biden and Italian Prime Minister Giorgia Meloni, the summit focused on bolstering the continent's potential and enhancing global partnerships.

The G-7 summit held in Puglia, Italy, underscored a strong commitment to fostering economic transformation in Africa through substantial infrastructure investments. Co-chaired by US President Joseph Biden and Italian Prime Minister Giorgia Meloni, the summit focused on bolstering the continent's potential and enhancing global partnerships.

Key Developments:

Partnership for Global Infrastructure and Investment (PGII): Launched in 2022, PGII aims to mobilize $600 billion for infrastructure projects in emerging economies. The meeting reviewed PGII's progress and commitments, highlighting achievements since its inception.

Mattei Plan for Africa: Italy's Mattei Plan aligns closely with PGII, focusing on sustainable development across Africa. Italy pledged up to $320 million to enhance rail infrastructure along the Lobito Corridor, connecting mineral-rich regions of Angola, DRC, and Zambia.

African Development Bank's Role: Dr. Akinwumi Adesina, President of the African Development Bank, emphasized the bank's pivotal role as Africa's leading financier of infrastructure. Over the past eight years, the bank has invested $50 billion, supporting projects like the Ethiopia-Nairobi-Mombasa transport corridor and the Lobito corridor.

Challenges and Initiatives: Adesina highlighted challenges such as the lack of bankable projects but also announced initiatives like the Alliance for Green Infrastructure in Africa (AGIA). AGIA, backed by $500 million, aims to prepare projects and mobilize $10 billion for green infrastructure.

Global Commitments: The summit welcomed contributions from the European Union's EUR 300 billion through the Global Gateway initiative and celebrated philanthropic investments like the Global Energy Alliance for People and Planet (GEAPP), which pledged $100 million to catalyze $1 billion in private finance for renewable energy projects.

Strategic Partnerships: The US and EU are collaborating on clean energy, sustainable agriculture, and e-mobility projects in Kenya, demonstrating a broader commitment to sustainable development in Africa.

Infrastructure Projects: Besides the Lobito corridor, the African Development Bank is financing projects like the central rail corridor linking Tanzania, DRC, and Burundi, and energy infrastructure between Mauritania and Mali.

Future Prospects: The establishment of a PGII Secretariat aims to enhance investment coordination and implementation effectiveness, underscoring the ongoing commitment to Africa's economic growth.

In conclusion, the G-7 summit reaffirmed its dedication to Africa's development agenda, leveraging significant investments and partnerships to foster sustainable growth and prosperity across the continent.