The African Union Commission (AUC) and the United States have launched a new Strategic Infrastructure and Investment Working Group (SIWG) aimed at addressing Africa’s large infrastructure financing shortfall.
The initiative follows discussions between AUC Chairperson Mahmoud Ali Youssouf and U.S. Assistant Secretary of State Christopher Landau and was officially launched on Jan. 28, 2026.
Its goal is to mobilize investment in high-quality infrastructure that supports trade, encourages private-sector participation, and advances the African Union’s Agenda 2063 priorities.
The SIWG will bring together senior officials and technical experts from both the AUC and the U.S. government to identify viable investment opportunities and promote U.S. private-sector involvement in African Union–backed infrastructure projects.
Its focus areas include strengthening trade and logistics networks and accelerating digital transformation across the continent.
According to the U.S. State Department, the planned investments will combine African Union expertise with American capital and new financing tools.
The effort is designed to reinforce supply chains for critical minerals and raw materials, while also supporting the development of transport corridors, energy systems, and regulatory harmonisation across African markets.
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The African Development Bank (AfDB) has repeatedly highlighted infrastructure deficits as a major constraint on Africa’s industrial development, particularly in power generation, water supply, and transport systems.
The bank estimates that the continent requires between $130 billion and $170 billion annually for infrastructure development, leaving a financing gap of $68 billion to $108 billion each year.
Currently, Africa invests about 4% of its GDP in infrastructure, far below China’s 14%. The AfDB notes that closing this gap could raise Africa’s annual GDP growth by roughly two percentage points.
Infrastructure development is a core pillar of Agenda 2063, especially through the Programme for Infrastructure Development in Africa (PIDA).
The programme provides a framework for African Union member states to develop integrated transport, energy, digital, and transboundary water networks aimed at boosting trade, stimulating economic growth, and creating jobs across the continent.
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Image Credit: Commonwealth
