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G7 leaders reaffirm their support for Africa’s development

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G7 leaders reaffirm their support for Africa’s development

G7 leaders, meeting at their summit in Italy, have reaffirmed their support for multi-billion dollar infrastructure projects across Africa. The goal is to unlock the continent’s economic potential and drive its transformation.

Italy joins G7 Africa investment programs

The G7 summit reviewed the achievements and commitments of the IIMP since its launch in 2022. Attendees included CEOs from Italian and American companies in the financial, energy, and digital sectors, all with extensive portfolios in Africa.

Italy announced its commitment to join the USA and EU in promoting sustainable development along the Lobito Corridor. Italy pledged to strengthen collaboration and contribute an additional 320 million USD to support basic rail infrastructure and related projects.

The Lobito Corridor features a railway that traverses the mineral- and oil-rich regions of Angola, the Democratic Republic of Congo, and Zambia. This corridor links Southern and Central Africa, provides access to East Africa, and offers a route to the Atlantic Ocean.

Insufficient financing, according to the AfDB

Infrastructure megaprojects supported by the African Development Bank are driving Africa toward its goals of comprehensive economic transformation, sustainable development, and poverty eradication.

Expressing his gratitude for the invitation to the prestigious G7 summit, Bank President Dr. Akinwumi Adesina highlighted the investments made by the African Development Bank. Over the past eight years, the AfDB has invested more than 50 billion USD in African infrastructure, solidifying its position as the continent’s leading infrastructure financier.

However, Dr. Adesina cautioned that « Africa faces an infrastructure financing gap of between 68 billion USD and 108 billion USD annually. This gap must be addressed for Africa to achieve its ambitions, strongly supported by the G7, of becoming a major global economic power ».

Deepening partnerships with foreign investors

In support of the G7’s Global Infrastructure and Investment Partnership (GIIP) goal of mobilizing 600 billion USD for infrastructure in emerging economies, a coalition of US investors is leading the charge. This group plans to commit several billion dollars to large-scale infrastructure projects in emerging markets in Africa, aligned with IIMP priorities.

In a joint statement, the co-chairs welcomed Italy’s renewed commitment to African development, particularly through its Mattei Plan. They stressed the need for greater coordination between the PGII, the MPA, and the EU’s Global Gateway to maximize their collective impact.

President William Ruto’s wishes heard

At the G7 summit in Italy, President William Ruto’s call for increased support for African development received a positive response. President Ruto urged G7 leaders to lead reforms in the international financial system to promote equity and inclusion.

He emphasized that these reforms would provide Southern countries, particularly Africa, with access to concessional, long-term, and flexible financing, while enhancing their participation in global decision-making processes. In response, the G7 committed to modernizing the international financial architecture to better address current global challenges.

As part of their resolutions, the G7 pledged support for initiatives like the G20 Compact with Africa and the Paris Pact for People and Planet (4P). These efforts aim to foster sustainable development and economic growth across Africa and beyond.

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