The G-7 summit in Puglia, Italy, saw a recommitment by leading nations to invest in Africa’s infrastructure. This renewed focus on African development comes as the continent seeks to unlock its economic potential and achieve sustainable growth.
A special meeting co-chaired by US President Joseph Biden and Italian Prime Minister Giorgia Meloni specifically addressed infrastructure development. Discussions centered on the G7’s Partnership for Global Infrastructure and Investment (PGII) and its alignment with Italy’s Mattei Plan for Africa. Representatives from the private sector in both Italy and the US, with a strong presence in Africa, also participated in the discussions.
Italy made a major announcement, promising to contribute an extra $320 million to the Lobito Corridor project. This vital railway network connects Southern and Central Africa to East Africa and the Atlantic Ocean, passing through resource-rich areas of Zambia, the Democratic Republic of the Congo, and Angola. The project is a prime example of the kind of large-scale infrastructure projects that the African Development Bank (AfDB) advocates as essential to Africa’s economic revival and poverty alleviation.
AfDB President Dr. Akinwumi Adesina, present at the summit, highlighted the Bank’s extensive experience in infrastructure financing, exceeding $50 billion invested in Africa over the past eight years. However, he emphasized the substantial funding gap – estimated at $68-108 billion annually – that hinders Africa’s full economic potential.
Further bolstering the G7’s PGII goal of mobilizing $600 billion in infrastructure investments for developing economies, a coalition of US investors pledged renewed commitments for substantial private investments aligned with PGII priorities.
The summit resulted in a joint statement welcoming Italy’s renewed dedication to fostering African development through the Mattei Plan. This plan emphasizes partnerships with African nations. The statement also underscored a commitment to enhance coordination between PGII, the Mattei Plan, and the EU’s Global Gateway initiative. This collaborative effort aims to maximize the collective impact in developing transformative economic corridors across Africa.
The Italian private sector echoed the call for increased investment in Africa. The Mattei Plan, in line with this growing focus, launched new financial instruments in collaboration with the AfDB, open to contributions from international partners.
European Commission President Ursula von der Leyen acknowledged the recent establishment of the PGII initiative, launched just two years ago in response to the global food crisis and pandemic triggered by Russia’s aggression in Ukraine. She emphasized the initiative’s potential to contribute significantly to Africa’s development goals.
The G-7 summit’s renewed commitment to infrastructure development in Africa signifies a crucial step towards achieving sustainable economic growth and progress on the continent. Collaborative efforts between governments, international organizations, and the private sector hold the key to unlocking Africa’s vast potential.
