Energy-to-Transport Disparity Heralds Unprecedented Chance to Unlock Growth:
Africa Finance Corporation (AFC) State of Africa's Infrastructure Report

EQS-News: Africa Finance Corporation (AFC) / Key word(s): Miscellaneous
Energy-to-Transport Disparity Heralds Unprecedented Chance to Unlock Growth:
Africa Finance Corporation (AFC) State of Africa's Infrastructure Report

17.05.2024 / 14:29 CET/CEST
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Study calls for urgent reassessment of outmoded pit-to-port models and uses
new metrics to respond to full scale of continent's infrastructure
opportunity

Africa has an unprecedented opportunity to accelerate development by
aligning its abundant renewable energy resources with solutions for its
infrastructure deficiencies. This is a key conclusion from a new annual
study on the State of Africa's Infrastructure initiated by the Africa
Finance Corporation ( www.AfricaFC.org).

The report highlights critical gaps in key sectors including power,
transport, logistics, digital communications, and commodity-based value
chains. It aims to quantify the extent of Africa's infrastructure
opportunities and provide strategic guidance for prioritizing investments
essential for sustainable growth.

Among the key findings: despite decades of progress, Africa's infrastructure
development has not kept up with the growing needs of its population. The
continent's dependence on outdated pit-to-port models is hindering economic
growth. However, global economic shifts in supply chains and the transition
to green energy present an opportunity for Africa to redefine its economic
role by leveraging its rich raw materials and youthful population.

For Africa to capitalise on this pivotal moment, decisive and urgent action
is required to develop the infrastructure and value chains that will enable
industrialisation and climate-adaptive development.

Focusing on energy access as a cornerstone to development, the report
highlights the disparity in access to electricity as the most significant
barrier to industrial growth. For this reason, progress in the crucial area
of energy access should be measured not just by reductions in household
energy poverty, but also by the capacity to provide sustainable energy
solutions that support industrial and economic development. The potential
for growth by bridging Africa's energy deficit is illustrated using new
metrics such as the Modern Energy Minimum, and application to the processing
needs for commodities like bauxite and copper.

Taking Guinea as a case study, the report observes that despite possessing
the world's largest bauxite reserves and being a top producer, Guinea cannot
fully capitalize on its resources without receiving significant investments
to boost its energy systems and processing facilities. By contrast,
Australia, with similar bauxite volumes, extracts more than twice the
economic value thanks to advanced refining and smelting capacities supported
by a robust natural gas-powered energy infrastructure. This disparity
underscores the urgent need for West Africa to develop robust energy systems
and processing infrastructure. Investments in cross-border electricity and
gas networks, leveraging existing ECOWAS treaties, could enable the region
to build new industrial supply chains and move beyond raw material
extraction.

Coordinating transport and logistics networks is crucial to reducing high
transportation costs, which currently inflate the price of goods by up to
40%. Significant investments in port infrastructure need to be matched by
improvements in connecting road and rail networks. The report identifies
opportunities to support trade corridors with new cross-border rail and road
networks and to expand cargo handling at airports.

"This report is not just about identifying challenges; it's about unlocking
the immense potential that lies within our collective resolve," said AFC
President & CEO Samaila Zubairu. "The State of Africa's Infrastructure
Report is a call to action for stakeholders across the continent to
collaborate for a smarter, more targeted, and better coordinated investment
approach."

Read the full report here ( https://apo-opa.co/3ywnOW2).

Distributed by APO Group on behalf of Africa Finance Corporation (AFC).

Media Enquiries:

Yewande Thorpe

Communications

Africa Finance Corporation

Mobile: +234 1 279 9654

Email: yewande.thorpe@africafc.org

About AFC:

AFC was established in 2007 to be the catalyst for private sector-led
infrastructure investment across Africa. AFC's approach combines specialist
industry expertise with a focus on financial and technical advisory, project
structuring, project development, and risk capital to address Africa's
infrastructure development needs and drive sustainable economic growth.

Seventeen years on, AFC has developed a track record as the partner of
choice in Africa for investing and delivering on instrumental, high-quality
infrastructure assets that provide essential services in the core
infrastructure sectors of power, natural resources, heavy industry,
transport, and telecommunications. AFC has 43 member countries and has
invested US$13 billion across Africa since inception. www.AfricaFC.org

Download Image 1: https://apo-opa.co/3yoEDCn


---------------------------------------------------------------------------

17.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

---------------------------------------------------------------------------

1906099 17.05.2024 CET/CEST