THE latest report from the UN Economic Commission for Africa (UNECA) highlights the continent’s sluggish advancement in regional integration and infrastructure development. Released on Friday, the report underscores persistent challenges despite notable achievements in key areas.
According to the report, Africa’s share of global trade remains below 3 percent, primarily due to continued reliance on external trade partners rather than intra-African trade. While the continent’s regional integration agenda is making progress, the pace is slow, with African countries falling short of macroeconomic convergence criteria.
Infrastructure development, facilitated by the Programme for Infrastructure Development in Africa (PIDA), has yielded mixed results. While roads and information and communications technology have seen advancements, rail transport and energy infrastructure have lagged behind. Infrastructure financing remains a significant challenge for Africa, with the continent facing a substantial annual financing gap estimated between $130bn and $170bn.
The report also assesses the implementation of the AU’s 50-year continental development blueprint, Agenda 2063. While some progress has been made, including the adoption of the African Continental Free Trade Area (AfCFTA) agreement and the establishment of the Single African Air Transport Market, intra-African trade has yet to see significant improvements. Despite the official commencement of trade under AfCFTA in January 2021, intra-African trade declined, indicating a need for further efforts to boost regional trade.
Additionally, the report highlights disparities in bridging the gender digital divide, with only 32 percent of the female population in Africa using the internet compared to 42 percent of males in 2023. This lags behind the global average of 65 percent for females and 70 percent for males.
To address these challenges, the report recommends innovative infrastructure financing instruments, including blended finance, green bonds, and debt-for-nature swaps. These measures aim to mobilize resources for infrastructure development and bridge the financing gap.
The report’s release coincides with the UNECA Conference of Ministers of Finance, Planning, and Economic Development, taking place from February 28 to March 5 in Victoria Falls, Zimbabwe. Under the theme Financing the transition to inclusive green economies in Africa, the conference provides a platform for policymakers to discuss imperatives, opportunities, and policy options for financing Africa’s sustainable development goals.