Abuja: In a monumental move that will redefine Africa’s economic landscape, three powerhouse institutions-the African Development Bank (AfDB), African Continental Free Trade Area (AfCFTA), and Africa50 have united in a $55 billion pact. This alliance is set to expedite regional integration, unlock digital trade, and construct the infrastructure that will bridge markets and minds across the continent.
The AfDB, in a statement on its website, said the tripartite pact was sealed at the Africa50 General Shareholders Meeting in Maputo.
It said the partnership would ensure cooperation in designing, constructing and maintaining critical infrastructure projects that would boost intra-African trade and unlock the full potential of the AfCFTA.
Solomon Quaynor, AfDB’s Vice President for Private Sector, Infrastructure and Industrialisation, said the agreement prioritised the development of multimodal transport corridors, logistics hubs, ports and airports.
According to Quaynor, this will reduce the cost of doing business across borders.
“It also seeks to harness the power of digital transformation by supporting the establishment of data centres and trade platforms that will enable African enterprises to compete in the global economy.
“The Bank has invested more than $55 billion -equivalent to approximately ₦82.5 trillion – in regional economic corridors and power pools over the last nine years.
“Specifically, the Bank invested over $8 billion in 109 cross-border infrastructure projects between 2014 and 2024 – roughly N12 trillion.
“The tripartite agreement underscores the paramount importance of realising the full potential of the AfCFTA single market with its combined annual GDP of 3.4 trillion dollars through transport infrastructure,” Quaynor said.
Thus, as it stands, the AfCFTA’s single market potential is valued at $3.4 trillion — about ₦5.1 quadrillion.
Alain Ebobissé, CEO of Africa50, expressed that this collaboration would not only support the development and financing of trade-enabling infrastructure but also significantly boost intra-African trade on the continent. His words carry the promise of a brighter economic future for Africa.
The chief executive officer described the partnership as one of the continent’s most significant endeavours.
Wamkele Mene, Secretary-General of the AfCFTA, said infrastructure development was central to the successful implementation of the free trade area.
He added that the partnership was a wake-up call for Africa to invest more in institutions, infrastructure and skills to double intra-African trade to 25 per cent by 2030.
Under the MoU, the partners will operate on six pillars.
Under the MoU, the partners have committed to six pillars, including a steadfast dedication to aligning with the AfCFTA Agreement, mobilising innovative finance, identifying bankable projects, and most importantly, integrating stringent environmental and social standards in project implementation. This commitment ensures the sustainability and ethicality of the initiative.
The three-year pact will be rolled out through joint work plans, technical working groups and specific agreements aligned with national and regional priorities.