AfDB, AfCFTA, and Africa50 Join Forces to Drive Africa’s Trade Infrastructure

The African Development Bank Group (AfDB), the African Continental Free Trade Area (AfCFTA) Secretariat, and Africa50 have signed a landmark Memorandum of Understanding (MoU) to accelerate infrastructure development across Africa, creating the backbone for a stronger, more integrated continental market.

The agreement, signed during the Africa50 General Shareholders Meeting in Maputo, establishes a tripartite partnership to identify, design, finance, construct, and maintain critical infrastructure projects that will boost intra-African trade, accelerate regional integration, and advance digital transformation.

With a market of 1.3 billion people and a combined annual GDP of $3.4 trillion, the AfCFTA represents the largest free trade area in the world since the founding of the World Trade Organization (WTO). Yet, intra-African trade remains just 15–18% of total African trade, lagging far behind Europe (68%) and Asia (59%).

This new partnership aims to bridge Africa’s infrastructure deficit and transform its trading landscape.

Closing the Infrastructure Gap

The agreement prioritizes multimodal transport corridors, cross-border infrastructure, logistics hubs, ports, and airports, which are essential for reducing trade costs and ensuring smooth movement of goods, services, and people.

Recognizing the digital revolution as a critical enabler of competitiveness, the three partners will also invest in state-of-the-art data centres and digital trade platforms. These will enable African businesses to participate more effectively in the global digital economy while modernizing the continent’s trade systems.

AfDB’s Role and Achievements

Over the past decade, the AfDB has been at the forefront of regional integration through infrastructure development. Between 2014 and 2024, the Bank invested over $8 billion across 109 cross-border economic corridors and infrastructure projects.

In total, the Bank has committed more than $55 billion in nine years toward building road corridors, ports, railways, and expanding power pools to interlink African economies.

“The tripartite agreement underscores the paramount importance of realizing the full potential of the AfCFTA single market,” said Solomon Quaynor, AfDB Vice President for Private Sector, Infrastructure & Industrialization. “Transport and trade infrastructure will be decisive in unlocking Africa’s $3.4 trillion economic powerhouse.”

Driving Trade-Enabling Infrastructure

Alain Ebobissé, CEO of Africa50, highlighted that the agreement is a major step toward scaling up investment in infrastructure that directly supports trade. “This partnership will support the development and financing of trade-enabling infrastructure to boost intra-African trade—one of the continent’s greatest endeavours,” he said.

Wamkele Mene, Secretary-General of the AfCFTA, also emphasized the urgency: “Africa faces unprecedented challenges in the global context. But this challenge is a unique opportunity for us. Infrastructure development is at the heart of trade and a prerequisite to doubling intra-African trade to 25% by 2030.”

Strategic Pillars of the Agreement

The MoU will operate on six key pillars:

1. Alignment with AfCFTA Agreement and regional policies.

2. Joint identification of bankable projects across sectors.

3. Mobilisation of capital through innovative finance mechanisms.

4. Robust monitoring and tracking systems for accountability.

5. Stakeholder dialogue to ensure inclusivity and alignment with national goals.

6. Integration of environmental, social, and governance (ESG) standards throughout the project lifecycle.

The agreement will run for three years, operationalized through joint work plans, technical working groups, and implementation agreements that set out clear projects, timelines, and financing structures.

Toward a More Integrated Africa

The AfCFTA, launched in 2021, aims to create a single African market by progressively eliminating trade barriers. However, experts agree that without significant infrastructure investments, the agreement’s potential cannot be realized.

By focusing on both physical and digital infrastructure, the tripartite partnership seeks to lay the groundwork for seamless trade, enhanced industrialization, and stronger regional value chains.

If successful, the initiative could transform Africa’s economic geography—turning fragmented markets into an integrated engine of growth capable of lifting millions out of poverty and making Africa a more competitive player in the global economy.