EQS-News

Energy-to-Transport Disparity Heralds Unprecedented Chance to Unlock Growth: Africa Finance Corporation (AFC) State of Africa’s Infrastructure Report

EQS-News: Africa Finance Corporation (AFC) / Key word(s): Miscellaneous Energy-to-Transport Disparity Heralds Unprecedented Chance to Unlock Growth: Africa Finance Corporation (AFC) State of Africa’s Infrastructure Report 17.05.2024 / 14:29 CET/CEST The issuer is solely responsible for the content of this announcement. Study calls for urgent reassessment of outmoded pit-to-port models and uses new metrics to respond to full scale of continent’s infrastructure opportunity

Africa has an unprecedented opportunity to accelerate development by aligning its abundant renewable energy resources with solutions for its infrastructure deficiencies. This is a key conclusion from a new annual study on the State of Africa’s Infrastructure initiated by the Africa Finance Corporation (www.AfricaFC.org).

The report highlights critical gaps in key sectors including power, transport, logistics, digital communications, and commodity-based value chains. It aims to quantify the extent of Africa's infrastructure opportunities and provide strategic guidance for prioritizing investments essential for sustainable growth.

Among the key findings: despite decades of progress, Africa’s infrastructure development has not kept up with the growing needs of its population. The continent's dependence on outdated pit-to-port models is hindering economic growth. However, global economic shifts in supply chains and the transition to green energy present an opportunity for Africa to redefine its economic role by leveraging its rich raw materials and youthful population.

For Africa to capitalise on this pivotal moment, decisive and urgent action is required to develop the infrastructure and value chains that will enable industrialisation and climate-adaptive development.

Focusing on energy access as a cornerstone to development, the report highlights the disparity in access to electricity as the most significant barrier to industrial growth. For this reason, progress in the crucial area of energy access should be measured not just by reductions in household energy poverty, but also by the capacity to provide sustainable energy solutions that support industrial and economic development. The potential for growth by bridging Africa’s energy deficit is illustrated using new metrics such as the Modern Energy Minimum, and application to the processing needs for commodities like bauxite and copper.