G7 Commits $420 Million Investment to Drive Africa’s Infrastructure and Green Energy.
By Caroline Ameh
At the 50th summit in Italy on Friday, leaders from the G7 nations announced a collective commitment of $420 million aimed at bolstering infrastructure development and advancing clean energy initiatives across Africa.
Comprising Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, and the European Union (EU), the G7 leaders emphasized the significance of this investment in supporting economic corridors and sustainable development in Africa. The pledge forms part of the “G7 Partnership for Global Infrastructure and Investment.”
Key aspects of the commitment include $100 million allocated directly and an additional $320 million mobilized through partners. These funds are earmarked for transformative projects that will enhance economic connectivity and infrastructure quality across Africa, the Middle East, and Europe.
Italy, in collaboration with the US and EU, announced its commitment to strengthen the Lobito Corridor, focusing on enhancing rail infrastructure and related projects. This initiative aims to align with the Alliance for Green Infrastructure in Africa (AGIA) and drive sustainable development.
The G7 also welcomed the Africa Green Industrialisation Initiative (AGII), led by the African Development Bank (AfDB) and the African Union Commission (AUC). AGII seeks to catalyze up to $10 billion in green infrastructure opportunities through private sector partnerships.
Recognizing the urgent need to address energy deficits in Africa, the G7 highlighted the importance of universal access to affordable clean energy. They pledged to accelerate investments in clean energy sources, promoting energy security and resilience while supporting the continent’s transition towards sustainable development goals and climate targets.
Additionally, the G7 announced the upcoming launch of the “Energy for Growth in Africa” initiative. This initiative aims to develop viable clean energy projects, attract private investments through public finance mechanisms, and facilitate concessional finance to overcome investment barriers in clean energy across Africa.
AfDB President Adewumi Adesina emphasized the importance of moving away from resource-backed loans, criticizing them as exploitative and detrimental to Africa’s economic sovereignty. He highlighted Africa’s natural assets, such as its savannahs, rainforests, rivers, and oceans, estimating their collective value at $6.8 trillion and advocating for their recognition in GDP calculations.
The G7’s commitment underscores a collaborative effort to support Africa’s sustainable development goals, engage with diverse stakeholders, and ensure coherence with existing initiatives to maximize impact without duplication.
