SOUTH Africa assumed the G20 Presidency at a time when the world faces multiple crises and challenges, exacerbated by rising geopolitical tensions and trade fragmentation. Addressing these challenges requires bold and collective action. Under the theme of Solidarity, Equality and Sustainability, our G20 Presidency aims to lead positive change for the benefit of shared prosperity and humanity.
In these moments of fragmentation, Africa needs to unite. It is precisely in these moments that we should remember the unifying grand vision of African leaders such as Kwame Nkrumah, who dreamt of the United States of Africa.
An integrated, prosperous and peaceful Africa is a necessary condition for solving Africa’s problems and enabling Africa’s positive contribution to the world. The aspirations of the Africa we want, as expressed in Agenda 2063, are advanced through the developmental approach we have taken in the G20, whose outcomes will echo for years to come.
Addressing Growth and Development Impediments
The Finance Track has proposed a structured framework for G20 engagement to support African countries and the continent as a whole. This is a multi-year undertaking that builds on previous and current initiatives and will culminate in an African Engagement Framework spanning 2026-2030.
The focus is on:
- Addressing macroeconomic vulnerabilities
- Strengthening public institutions
- Enhancing infrastructure development
- Creating a conducive environment for private sector contribution to growth and development in African countries
Africa is the world’s youngest and fastest urbanising continent with substantial untapped potential. Yet it faces significant growth and development challenges. Effectively addressing impediments to growth can be transformative and requires multiple, coordinated and cross-cutting interventions.
The Infrastructure Challenge
Let me examine infrastructure as one of the key impediments to economic growth and development. Africa contends with inadequate transportation networks, unreliable energy supply and limited logistics systems, all of which constrain productivity, raise the cost of doing business and hinder access to both regional and global markets.
Closing the massive infrastructure gap can contribute significantly to lifting growth and improving living standards. The African Development Bank estimates Africa’s infrastructure financing gap at between US$130-170 billion annually.
At the same time, climate change and nature losses have disproportionately affected Africa, underscoring the urgent need to adapt and build resilience.
The Infrastructure Working Group of the G20 is focused on addressing these issues by exploring how greater private sector participation in public infrastructure can be mobilised. Its priorities under the South African Presidency are:
- developing an investable infrastructure pipeline
- scaling up sustainable infrastructure investment through blended finance
- delivering cross-border infrastructure for regional development
These priorities are important for fast-tracking infrastructure development in support of sustainable and inclusive economic growth.
Cross-Border Infrastructure: Unlocking the AfCFTA
Let me now focus on the cross-border infrastructure priority, which is critical for supporting the full operationalisation of the African Continental Free Trade Area (AfCFTA). Building cross-border infrastructure and operationalising the AfCFTA are consistent with the themes and dreams of our Pan-African leaders, such as Kwame Nkrumah.
Cross-border connectivity through roads, bridges, railways, water and transmission lines is vital for:
- fostering trade
- enhancing competitiveness
- lifting the living standards of our people
Regional cooperation and economic integration underpin Africa’s long-term growth. An integrated Africa is a prosperous Africa.
However, providing cross-border infrastructure presents unique challenges:
- coordination complexities
- divergent stakeholder incentives
- Asymmetry in costs and benefits between the countries involved
- differences in legal, regulatory and institutional capacity
- funding coordination among countries with varying financial market maturity
These challenges are significant but not insurmountable.
The Practical Toolkit Solution
Building on the G20’s conceptual framework developed under Brazil’s Presidency, we are developing a practical toolkit to guide countries, regional bodies and other stakeholders in overcoming major barriers to planning, financing, implementing and managing cross-border infrastructure projects.
The toolkit leverages three pillars of the conceptual framework:
- economic rationale planning
- Political support and governance
- finance and management
Developed from an African context, the toolkit’s design will be easily adaptable for wider application. The toolkit will offer:
- a clear methodology for planning cross-border infrastructure aligned with national and regional development goals
- Facilitation of greater private sector participation
- Promotion of synergies between government agencies and ministries involved in cross-border infrastructure
This work is jointly led by the African Development Bank, the Asian Infrastructure Investment Bank and the World Bank.
The Legacy Project
To ensure effective implementation of the toolkit in Africa, we have partnered with the AfDB to:
- Raise awareness about the project
- Gather input on how the project can be strengthened
- develop a joint action to continue advocacy for the project
Today’s gathering marks a significant step in a journey that extends well beyond this meeting and South Africa’s G20 Presidency.
By integrating the Ubuntu initiative into the G20 Infrastructure Working Group’s agenda, South Africa, together with our partners, has placed Africa’s development priorities at the core of the global infrastructure agenda.
South Africa is committed to collaborating with the African Union, the AfDB and regional bodies to advocate for the institutionalisation of the Toolkit and encourage broader application by G20 and non-G20 countries.
Our shared vision is to unlock and accelerate cross-border infrastructure development, support the goals of the AfCFTA, and place long-term growth and development of the African continent and the world at the forefront.
This will require unity of the world and Africa in particular. As President Julius Nyerere once said: “Unity will not end our weakness, but until we unite, we cannot even begin to end that weakness.”
- David Masondo is the Deputy Minister of Finance in South Africa. This is an edited version of his keynote address delivered at the Africa Consultative Meeting on South Africa’s Legacy Initiative to Accelerate Cross-Border Infrastructure in Africa: The Ubuntu Approach.
