G-7 Summit Pledges Boost to African Infrastructure Investment
At the G-7 summit in Puglia, Italy, global leaders reaffirmed their commitment to bolstering Africa’s infrastructure to spur economic growth and development on the continent.
Co-chaired by US President Joseph Biden and Italian Prime Minister Giorgia Meloni, a special meeting focused on infrastructure development under the G7’s Partnership for Global Infrastructure and Investment (PGII), aligning closely with Italy’s Mattei Plan for Africa.
Private sector representatives from Italy and the US, heavily invested in African ventures, also participated, emphasizing the importance of public-private collaboration.
Italy made a significant announcement, pledging an additional $320 million towards the Lobito Corridor project. This strategic railway network links Southern and Central Africa to East Africa and the Atlantic Ocean, passing through resource-rich regions in Zambia, the Democratic Republic of the Congo, and Angola.
Such large-scale infrastructure projects are pivotal for Africa’s economic rejuvenation and poverty reduction, as advocated by the African Development Bank (AfDB).
Dr. Akinwumi Adesina, President of AfDB, highlighted the Bank’s substantial role in infrastructure financing, having invested over $50 billion in Africa over the past eight years. However, he underscored the ongoing funding gap of $68-108 billion annually, hindering Africa’s full economic potential.
Supporting the PGII’s objective to mobilize $600 billion in infrastructure investments for developing economies, US investors committed to increased private investments aligned with PGII priorities.
The summit concluded with a joint statement welcoming Italy’s renewed commitment to African development through the Mattei Plan, emphasizing partnerships with African nations.
The statement also stressed enhanced coordination between PGII, the Mattei Plan, and the EU’s Global Gateway initiative to maximize impact in developing transformative economic corridors across Africa.
The Italian private sector echoed the call for enhanced investment in Africa, with the Mattei Plan launching new financial instruments in collaboration with AfDB, open to international contributions.
European Commission President Ursula von der Leyen recognized the PGII’s potential to significantly contribute to Africa’s development goals, underscoring the importance of collaborative efforts between governments, international organizations, and the private sector.
The G-7 summit’s renewed commitment to African infrastructure development marks a critical stride towards sustainable economic growth and progress on the continent, highlighting the pivotal role of global cooperation in unlocking Africa’s immense potential.
