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The African Union Development Agency (AUDA-NEPAD) has crossed yet another milestone in the implementation of the mandate entrusted to her by the African Union Member states of undertaking the full range of resource mobilisation and serve as the continent’s technical interface on policy development recommendation and implementation with partners and stakeholders.
This was achieved by signing memoranda of understanding (MOUs) on three significant partnerships that are in direct alignment with the African Union’s Agenda 2063.
The agreements were signed at the III Financing Summit for Africa’s Infrastructure Development, which has drawn African Heads of State, investors, and development partners to Luanda, Angola, for three days of presentations and meetings.
The summit is co-hosted by AUDA-NEPAD, African Union Commission and the Government of Republic of Angola, under the theme “Capital, Corridors, Trade: Investing in Infrastructure for the AfCFTA and Shared Prosperity”. Agenda 2063 is the AU’s 50-year blueprint and master plan for transforming Africa into an integrated, prosperous, and peaceful continent and a dynamic force in the international arena.
AUDA-NEPAD and the Alliance of African Multilateral Financial Institutions (AAMFI), also known as the Africa Club, executed a declaration of intent that formalises their shared political and institutional commitment to advance Africa’s infrastructure transformation. The partnership will look to mobilise an initial target of up to US$1.5-billion, which includes US$100-million for project preparation financing.
The declaration lays the groundwork for the design, establishment and implementation of the AU-AAMFI Infrastructure Financing Facility. This facility is intended to serve as a transitional mechanism, or “bridge”, pending the approval of the African Union Development Fund.
The collaborative facility will serve to:
- Mobilise and channel financial resources from AAMFI members and other partners towards priority infrastructure projects aligned with Agenda 2063
- Act as a proof of concept for AUDA-NEPAD by testing joint resource mobilisation and cross-border infrastructure financing and monitoring mechanisms
- Demonstrate Africa’s capacity to finance its own development priorities, thereby strengthening continental financial sovereignty
- Identify economic infrastructure projects in areas vital for Agenda 2063, such as energy, water and sanitation, transport (roads, rail, maritime, air), and information and communications technology
- Mobilise public, private and diaspora capital using blended and innovative financing instruments by leveraging the financial capacity of AAMFI members and AUDA-NEPAD’s convening mandate
The declaration was signed by AUDA-NEPAD CEO Nardos Bekele-Thomas and AMMFI chairman Samaila Zubairu, who is also president and CEO of the Africa Finance Corporation.
Building on this commitment, AUDA-NEPAD and the Africa Social Security Association (ASSA) signed an MOU to strategically leverage Africa’s vast social security and pension funds for deepening the domestic capital market and infrastructure investment.
Key areas of collaboration outlined in this MOU include:
- Undertaking a feasibility study for an Infrastructure Development Fund for Africa (IDFA), to be capitalised and supported by ASSA members (African pension funds)
- Creating an ecosystem for the preparation and financing of priority infrastructure projects
- Mobilising political buy-in for enabling regulatory frameworks and policies to facilitate the establishment and operation of the IDFA
- Co-organising capacity building programmes to promote the IDFA and AUDA-NEPAD programmes
Rounding out the day’s signings was an MOU with CATA Energy, a consortium of renewable energy companies and financial partners, to drive Africa’s transition to sustainable energy.
This partnership aims to establish a strategic collaborative framework for leveraging public-private partnerships (PPPs) to attract private sector investment for Phase III of the Continental Power Systems Master Plan (CMP). This will be achieved through the launch of the Africa Green Transition PPP Fund, a blended finance vehicle.
Key focus areas of the collaboration include:
- Accelerating renewable energy deployment (solar, wind, hydro, battery storage) in mining corridors and industrial zones
- Enhancing infrastructure investment through smart grid and energy storage integration, aligning with the CMP and the Africa Single Electricity Market (AfSEM)
- Fostering capacity building, skills development and knowledge sharing on renewable energy financing and project structuring
Mrs. Bekele-Thomas and her respective partners, ASSA Secretary-General Meshach Bandawe and CATA Energy CEO Ukundi Vanessa Baldwin Mushi, will oversee the operationalisation of these two crucial MOU agreements.
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