Germany Strengthens African Infrastructure Development with €18.4 Million Contribution to NEPAD-IPPF

NEPAD-IPPF, a multi-donor Special Fund hosted by the African Development Bank, plays a crucial role in the preparatory stages of transformative infrastructure projects across Africa.

In a significant boost to Africa's infrastructure development, the African Development Bank (AfDB) and the Kreditanstalt für Wiederaufbau (KfW), the German state-owned investment and development bank, have formalized an agreement for an additional contribution of €18.4 million to the NEPAD-Infrastructure Project Preparation Facility (NEPAD-IPPF) Special Fund. This latest funding elevates KfW’s total contributions to NEPAD-IPPF to $58.14 million, reinforcing Germany's commitment to sustainable development across the African continent.

The signing ceremony took place in Abidjan, Côte d’Ivoire, and was attended by Christoph Tiskens, KfW’s Director for Eastern Africa and the African Union, and Mike Salawou, the African Development Bank’s Director for Infrastructure and Urban Development. This agreement follows the German government's 2024 announcement to replenish the fund, aligning with key strategic goals under the second Priority Action Plan of the Programme for Infrastructure Development in Africa (PIDA PAP2), which runs through 2030.

A Catalyst for Sustainable Development

NEPAD-IPPF, a multi-donor Special Fund hosted by the African Development Bank, plays a crucial role in the preparatory stages of transformative infrastructure projects across Africa. By offering technical and financial assistance, NEPAD-IPPF ensures that regional infrastructure projects are not only bankable but also aligned with sustainable development priorities, including climate resilience, gender inclusivity, and regional economic integration.

Tiskens praised the achievements of NEPAD-IPPF, stating: "The NEPAD-IPPF Special Fund has had remarkable success throughout the year, demonstrating significant progress in advancing regional infrastructure development in Africa. This replenishment aims to support infrastructure development with a focus on areas such as climate change, gender, Agenda 2063, the African Continental Free Trade Area (AfCFTA), and a stronger focus on attaining the Sustainable Development Goals."

His remarks underscored the German government’s ongoing commitment to working alongside the African Development Bank to drive infrastructure-led economic transformation on the continent.

Scaling Up Infrastructure Development

With this renewed support, NEPAD-IPPF is set to accelerate the preparation of large-scale, cross-border, and climate-smart infrastructure projects. Salawou emphasized the importance of this financial boost, stating: "This replenishment marks a significant milestone in our long-standing partnership with Germany to advance infrastructure development and financing in Africa. With this support, NEPAD-IPPF will be better capitalized to scale up and speed up the preparation of transformational cross-border and climate-smart infrastructure projects, ensuring they are bankable and investment ready."

He further noted that the contribution would help fast-track the implementation of the AfCFTA, a game-changing initiative designed to boost intra-African trade and economic cooperation. "This is an important step in accelerating the implementation of the African Continental Free Trade Area (AfCFTA), regional integration, and economic growth. The Bank therefore values this partnership and will continue to strengthen it."

Addressing Critical Infrastructure Gaps

The NEPAD-IPPF Special Fund has played an instrumental role in tackling Africa's infrastructure deficit by supporting critical sectors such as energy, transport, water, and information and communication technology. By leveraging donor contributions, including those from Germany, the fund enables the preparation of viable projects that attract private-sector investments and development financing.

In alignment with PIDA PAP2, the fund is prioritizing climate-resilient infrastructure projects that promote sustainable urbanization, smart energy solutions, and efficient trade corridors. These projects not only improve connectivity within Africa but also enhance the continent's competitiveness in the global economy.

Germany’s Long-Term Commitment to Africa

Germany has been a steadfast development partner to Africa, particularly in areas related to infrastructure, climate change adaptation, and economic growth. Through institutions like KfW, the German government continues to channel significant resources into initiatives that align with Africa’s Agenda 2063, the continent’s strategic blueprint for transformation.

The replenishment of NEPAD-IPPF is part of a broader German-African cooperation framework aimed at fostering resilient economies, enhancing sustainable infrastructure, and promoting inclusive growth. The financial boost is expected to pave the way for more large-scale infrastructure initiatives that will benefit millions across Africa.

Looking Ahead

The strengthened partnership between the African Development Bank and KfW signals an optimistic future for infrastructure development in Africa. By ensuring that key regional projects are well-prepared and investment-ready, the NEPAD-IPPF Special Fund will continue to serve as a vital instrument in bridging Africa’s infrastructure gap and unlocking the continent’s economic potential.

As NEPAD-IPPF continues its mission, its focus on sustainability, gender inclusivity, and climate resilience will be critical in shaping the future of Africa’s infrastructure landscape. With continued donor support, the fund is poised to deliver more impactful projects that will drive long-term economic growth, enhance trade connectivity, and improve the livelihoods of millions of Africans.