By Railways Africa Magazine
Infrastructure remains the backbone of regional trade, investment, and national economic growth in Africa. During #PIDAWeek2024, the spotlight was on the Service Delivery Mechanism (SDM), an initiative designed to address the continent’s challenges in infrastructure development. SDM aims to fast-track infrastructure delivery, enhance project bankability and ultimately, propel Africa closer to the vision outlined in Agenda 2063.
Africa’s potential to foster regional value chains and reduce dependence on costly global supply networks is immense. By developing robust infrastructure, the continent can connect local industries to global value chains, integrating African economies into worldwide production networks. However, the path to achieving these goals has been riddled with challenges.
The delivery of infrastructure in Africa faces several barriers, including fragmented project preparation processes, limited access to financing, and gaps in aligning projects with the expectations of investors and development financiers. These obstacles have delayed critical projects and hindered progress towards regional integration and economic transformation.
The African Union Development Agency (AUDA-NEPAD) is at the forefront of efforts to overcome these barriers. Its mandate is clear: to coordinate and execute priority regional and continental infrastructure projects. Recognising the urgent need to streamline Africa’s infrastructure development, AUDA-NEPAD launched the SDM in 2014. This initiative was designed to facilitate the preparation of projects, attract investment, and ensure their successful implementation. By accelerating project readiness and aligning with international standards, the SDM serves as a critical tool in achieving Africa’s ambitious development agenda.
Among the most notable improvements is the integration of bankability requirements at the early stages of project preparation. This proactive approach ensures that projects are financially viable and more likely to attract investment. Additionally, the scope of SDM support has been expanded to include transport, energy, ICT, and water, while the introduction of a PIDA Quality Label certification guarantees that projects adhere to the highest standards.
The roadmap for SDM’s success is equally ambitious. It includes leveraging partnerships to bring in specialised expertise, collaborating with development partners to define roles, and establishing an SDM Project Development Fund to secure financing for Africa’s infrastructure. By aligning projects with financiers’ requirements from the outset, the revamped SDM process aims to streamline the path from planning to implementation.
The success of the SDM is not just about infrastructure but about the broader impact on economic growth, regional integration, and improved living standards across Africa. The initiative’s vision aligns seamlessly with the goals of Agenda 2063, a blueprint for transforming Africa into the global powerhouse of the future.
