On July 9, 2020, the OECD Development Centre and the African Centre for Economic Transformation (ACET) released a report entitled "Quality Infrastructure for 21st Century Africa". The report stresses the absolute necessity for Africa to develop and improve its infrastructure to cope with population growth. Aware of this challenge, the African Development Bank (AfDB) has been investing in this sector for several years. Here are 4 major projects partly financed by the AfDB.
The Kinshasa-Brazzaville bridge
The 1,575-meter-long bridge, which will link the world's two closest capitals, will be both road and rail, with a border checkpoint on each side. It's a long-standing project, long put on the back burner and now back on the agenda thanks to partial financing from the ADB. The project is estimated to cost $550 million, of which $210 million will be provided by the ADB.
Currently, 750,000 people and 340,000 tonnes of freight transit between the two capitals every year, by boat or plane. Once the bridge is built, traffic is expected to reach 3 million people and 2 million tonnes of freight by 2025.
This infrastructure will enable the development of economic zones on both sides, benefiting both the Democratic Republic of Congo and Congo-Brazzaville.
The Mozambique gas project
Several gas projects are currently under development in Mozambique. The largest of these, Mozambique LNG, is managed by Total and represents the largest foreign investment ($23 billion) in Africa to date.
The ADB is to invest $400 million in this project. These funds will be used to finance the construction of the liquefied natural gas production plant, as well as a domestic gas supply infrastructure, an export terminal, a pipeline and offshore extraction facilities.
The AfDB's objective is to enable the local population to benefit from the gas project and the resulting economic development.
The Mombasa-Nairobi-Addis Ababa corridor
The 895-kilometer road corridor comprises two sections: a 504-kilometer section on the Kenyan side linking Merille to Turbi, and a 391-kilometer section linking the Ethiopian towns of Hagere Mariam, Yabelo and Mega. The AfDB financed 64% of this project, investing $670 million.
Thanks to this corridor, trade between Kenya and Ethiopia is set to increase 5-fold, from $35 million to $175 million. What's more, this infrastructure will significantly reduce the cost of transporting and shipping goods.
Construction of the Jorf Lasfar Phosphate Hub in Morocco
The ADB has invested $450 million in this project toimprove phosphate production. Specifically, it involves a 1,800-hectare industrial platform built to accommodate 10 fertilizer plants, manufactured from phosphate rock and exported worldwide.
To finance this project, the ADB granted a first loan of $250 million in 2012, and a second loan of $200 million at the end of 2018 to expand the platform. By the end of 2016, the program had created over 20,000 direct jobs, and generated over $175 million in dividends received by the Moroccan government.
Morocco is now the world's second-largest phosphate producer and Africa's leading exporter.