Luanda: The African continent marks this Sunday, May 25, 62 years since the creation of the OAU, in a year in which Angola presides, for the first time, the successor African Union, with a focus on industrialization and other complex political, economic, and social challenges. Despite the wealth of mineral, water, and forest resources, Africa's problems are numerous and long-standing.
According to Angola Press News Agency, the continent is struggling to overcome them, especially the challenge of ending or at least mitigating poverty, because it has few infrastructures, and even the existing ones are the worst in the world, according to a study released by the World Bank (WB). Electricity, water, roads, and information and communication technologies are the continent's most needed infrastructure to leverage manufacturing. The lack of this equipment reduces productivity in Africa by up to 40%, and inadequate access to energy is the biggest impediment to the continent's economic growth.
The lack of energy affects 30 of the 54 African countries. Additionally, the generating capacity of 48 sub-Saharan countries is 68 gigawatts-less than that of Spain. Of the total generated, 25% is not available due to old structures and scarce maintenance. In relation to infrastructure related to water resources, problems such as inadequate storage, high demand, and lack of cross-border cooperation threaten the sector on the continent.
Less than 60% of Africa's population has access to safe drinking water. In the last 40 years, only 4 million hectares of irrigation have been developed, compared to 25 and 32 million in China and India. Regarding transport, the main problems of the continent have to do with the lack of efficiency in the connections between the different means of transport (air, land, and sea), due to the lack of equipment in ports, railway stations, as well as inadequate access to roads.
In this context, the African Union Development Agency (AUDA-NEPAD) was mandated in 2022 to lead the creation of the African Union's Agenda 2063 Development Fund, to mobilize financial resources, both public and private, to support the continent's development efforts. The President of Angola, Joo Louren§o, upon assuming the responsibility of leading the continent's destinies for 12 months, elected for his mandate the theme 'Importance of investment in infrastructure, as a factor for Africa's development'.
The first window pointed out by the current president of the African Union was to relate the problem of industrialization to the operationalization in a practical way of the question regarding 'justice for Africans and African descendants through reparations.' The Angolan statesman understands that the combination of these two aspects can lead Africans to build a communication and dialogue channel with international partners, which makes them understand the importance and advantage of cooperating with developed, industrialized Africa.
The 4th International Conference on Development Financing, taking place in Seville, Spain, from June 30 to July 4 this year, will be a historic opportunity to redefine global funding rules based on economic justice and inclusion. Topics such as tax justice, debt relief, climate financing, renovations in global financial institutions, and social inclusion should deserve the attention of countries to adopt a common position that ensures the continent to reinforce their influence on global financial governance, a reduction in indebtedness costs, and access to the resources necessary to achieve sustainable development.
To attack the problem of industrialization ahead, Angola intends to launch a vast plan of investment attraction and capture of significant financial resources with the major international partners. Angola decided to host, in October this year, the III Summit on infrastructure financing in Africa, which will take place in Luanda. The event will be organized by the African Union, with the engagement of Auda-Nepad, and aims to address the lack of financing and investment in infrastructure in Africa, focusing on areas such as highways, ports, airports, energy, and telecommunications, as well as in the elimination of commercial barriers.
Another important door that Angola points to attracting investment for the industrialization of the continent is the US-Africa Summit, whose 17th edition the country hosts, from the 22nd to the 25th of next month. The summit will discuss and promote opportunities for investment, innovation, and partnerships between the public and private sectors, with a focus on areas such as infrastructure, energy, technology, agriculture, and industry.
Aware that access to reliable energy sources is the key factor in boosting Africa's industrialization, increasing productivity, and creating job opportunities on the continent, Angola has invested in energy production, making the surplus available to mitigate the needs of several countries in this field. For some years now, the country has invested heavily in the production of hydroelectric power. To safely meet the demand for electricity, even in years of lower water inflow, Angola will have around 9.9 GW of installed power by the end of this year, with a strong focus on hydro and natural gas.
Angola has given another clear and effective signal regarding the infrastructure of the continent by promoting the operationalization of the Lobito Corridor, which includes the Port of Lobito, the Benguela Railway, and other national and international infrastructures. This corridor represents an important transport route connecting the Atlantic Ocean to the Indian Ocean, constituting a boon for landlocked African countries such as Zambia and the Democratic Republic of Congo. It is not only a trade route but also a vital gateway that opens these countries to global markets, facilitating the export of minerals, agricultural products, and manufactured goods.
They offer a higher load capacity per trip, are more fuel efficient per ton of load, and have a lower risk of accidents and breakdowns, thus reducing the likelihood of delays and damage to the carga.
