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Key Developments

African Union Unveils $170 Billion Annual Infrastructure Drive, Earmarks $30 Billion for Aviation Modernization

This week in Luanda, Angola, the African Union (AU) held its third high-level summit, uniting African transport ministers, airline CEOs, and representatives from the World Bank and European Commission.

During the meeting, the AU announced a $30 billion investment plan to modernize aviation infrastructure across the continent.

Opening the summit, Angolan President João Lourenço, who also chairs the AU, urged African leaders to move beyond discussions and take decisive steps toward implementation.

He emphasized that Africa needs between $130 billion and $170 billion annually to achieve sustainable growth, saying: “We must move from words to action.”

Driving the Single African Air Transport Market (SAATM)

The newly announced investment aligns with the AU’s Single African Air Transport Market (SAATM) initiative, which seeks to create a unified continental aviation space.

Lerato D. Mataboge, the AU Commissioner for Infrastructure and Energy, said aviation is “a key driver of integration” under Agenda 2063 and the African Continental Free Trade Area (AfCFTA).

She stressed that Africa’s growth depends on modern, safe, and efficient aviation systems.

The Infrastructure Gap and Investment Breakdown

A recent Continental Aviation Infrastructure Gap Analysis, conducted with AFCAC, ICAO, and the World Bank, found that Africa must invest $25–30 billion over the next decade to close critical infrastructure gaps.

Passenger traffic is expected to triple—from 160 million in 2024 to nearly 500 million by 2050—underscoring the urgency of new investments.

Key allocations in the AU plan include:

  • $10 billion for airport and aerodrome upgrades.

  • $8 billion for modernizing communication, navigation, and meteorological systems.

The AU intends to raise $10 billion in public catalytic finance to attract an additional $20 billion from private and institutional investors, working closely with AUDA-NEPAD and development finance institutions.

Technology and Green Aviation

The modernization blueprint includes smart systems such as Airport Collaborative Decision-Making (A-CDM) and System-Wide Information Management (SWIM) to streamline operations.

It also integrates renewable energy solutions at airports to reduce carbon emissions and attract green investment.

Mataboge noted that all projects will align with global environmental standards to make African aviation appealing to climate-conscious investors.

Concrete Deals Signed

The Luanda summit produced several tangible agreements, including:

  • A partnership between AUDA-NEPAD and the African Social Security Association to channel pension funds into infrastructure.

  • A $500 million endowment by Qatar Airways for renewable energy and climate-friendly industrialization.

  • The launch of the Angola Export and Trade Facility aims to boost regional trade cooperation.

AUDA-NEPAD CEO Nardos Bekele-Thomas confirmed that since the last summit in Dakar, African institutions have already mobilized $1.5 billion for key cross-border projects.

She also highlighted the Alliance for Green Infrastructure in Africa’s Project Development Fund, managed by Africa50, which has reached a first close of $118 million.

Building Africa’s Economic Sovereignty

AU Commission Chairperson Mahmoud Ali Youssouf emphasized that infrastructure investment goes beyond engineering—it is central to Africa’s economic independence and competitiveness.

He urged African nations to adopt a unified approach to development financing, shifting “from a logic of assistance to a logic of alliance” based on African priorities.

“What we are building here are not just roads and airports,” he said. “We are building an Africa that is connected, confident, and sovereign.”

Special sessions at the summit focused on project due diligence and accelerating financial closure for infrastructure deals.

The event marked a decisive moment for Africa’s development agenda, signaling the continent’s determination to finance its own growth and achieve the connectivity and integration envisioned in Agenda 2063.

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