New African Union Coordination Hub to Fast-Track 130 Transnational Projects Worth Billions

Africa Science News

A Bridging Africa’s Infrastructure execution gap report by Boston Consulting Group (BCG) reveals that the continent’s portfolio of approximately 130 transnational projects across energy, transport, digital, and water sectors will rapidly be accelerated through innovative coordination and strategic private sector partnership, with the potential to unlock up to $6 billion in GDP value for every $1 billion invested,

Analysis undertaken by BCG demonstrates that Africa possesses all the fundamental building blocks for infrastructure success—political commitment, identified projects, available financing mechanisms, and proven delivery models. With strategic coordination and targeted interventions, the continent can transform its development trajectory whilst creating 74 million new jobs and generating $500 billion in additional economic value.

“Africa’s infrastructure opportunity is extraordinary and entirely achievable,” says Thomas Kingombe, Manager Director and Partner at BCG Johannesburg, and co-author of the report. “We’re seeing remarkable progress across multiple regions with the challenge now being in scaling these proven models continent-wide through better coordination and enhanced private sector engagement.”

Key regional achievements showcased in the report provide blueprints for continental expansion. North Africa’s electrification success demonstrates what’s possible when infrastructure delivery is prioritised, whilst East Africa’s progress in trade facilitation has delivered tangible results, Kenya’s post-2010 trade value growth outperformed regional peers through harmonised customs systems and one-stop border posts. These successes prove that strategic infrastructure investments can rapidly transform economic prospects when properly coordinated.

The private sector opportunity is particularly compelling. While current private participation in major continental projects stands at 3%, other emerging regions have successfully achieved participation rates exceeding 15% representing a potential five-fold increase in available capital for African infrastructure. This potential, combined with growing investor interest in the continent’s long-term prospects, creates key opportunities for public-private partnerships.

“The transformation we’re witnessing in projects like the Lobito Corridor shows exactly what’s possible when coordination, innovation, and partnership come together,” noted Thomas. “We’re not looking at theoretical solutions—we have proven models that are already delivering results.”

The Lobito Corridor is a critical example of Africa’s infrastructure potential realised. After years of underutilisation, coordinated action in 2023 through the Lobito Corridor Transit Transport Facilitation Agreement delivered remarkable results. Rail transit times for copper shipments reduced from 25 to just six days, freight costs fell below road alternatives, and the corridor attracted over $500 million in blended financing. Demonstrating how strategic coordination can rapidly unlock dormant infrastructure assets.

Building on these successes, the report proposes sharper coordination from the apex to serve as Africa’s infrastructure acceleration engine. Building on the lessons of the Presidential Infrastructure Champion Initiative, the African Union Commission for Infrastructure, Energy and ICT would coordinate cross-border initiatives, enhance project bankability, structure innovative funding pathways, and drive accountability across multi-stakeholder projects. This would leverage private sector expertise whilst building on existing AU institutional strengths.

Regional opportunities are available across all corners of the continent. Sub-Saharan Africa’s 51% electrification rate, whilst below North African levels, represents key growth and investment return opportunities. The continent’s 27% internet penetration rate signals potential for digital infrastructure expansion that could leapfrog traditional development pathways. Transport infrastructure improvements can unlock agricultural productivity and manufacturing competitiveness, positioning Africa as a global supply chain hub.

The skills development opportunity is equally promising. The continent’s need for 5 million additional infrastructure professionals, including engineers, technicians, and artisans, represents a generational opportunity to build world-class local capabilities. The AU’s Skills Initiative for Africa (SIFA), partnering with AUDA-NEPAD and international development agencies, is already laying foundations for systematic capability-building that will ensure sustainable, locally driven infrastructure delivery.

“Africa’s infrastructure story is fundamentally one of opportunity, not deficit,” emphasised Trudi Makhaya co-author and Partner at BCG. “We have the projects, the financing mechanisms, the regional success stories, and increasingly, the political alignment needed for transformation.”

The timing for this infrastructure acceleration could not be better. Key stakeholders across the continent are aligned on the need for coordinated action. Standard Bank Group CEO Sim Tshabalala, Chair of the B20 Finance and Infrastructure Task Force, champions stronger project preparation and streamlined regulatory processes. While AU Commissioner for Infrastructure, Energy, and ICT, H.E. Lerato Mataboge, brings execution-focused leadership and a commitment to enhanced private sector participation.

The report identifies clear pathways to success through three strategic levers: targeted private sector participation to unlock funding and capability, strengthened cross-border regulatory harmonisation, and enhanced project bankability through improved risk management. These levers, working in combination, can transform Africa’s infrastructure landscape within the current decade.

“Africa’s moment has arrived,” concludes Trudi. “Through strategic coordination, innovative financing, and enhanced partnership, the continent can realise its infrastructure potential and unlock decades of sustainable, inclusive growth. The question is no longer whether transformation is possible, but how quickly we can make it happen.”

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