Considering its role as the Development agency of the African Union, the NEPAD welcomes the Compact with Africa put forward by the G20. First because it acknowledges that the aid model is not the solution to meet our continent’s development challenges. This is not a question of saying whether aid is good or bad. Aid is simply not enough. Just one figure to substantiate this: we believe that Africa needs between US$130bn and US$170bn to develop its infrastructure each year. But the total aid it receives each year does not amount to much more than US$60bn. In this sense, the Compact is in line with Africa’s objective to attract more private investment.
There is one other essential dimension in the Compact with Africa, which is to consider projects on a regional scale. The NEPAD has long been advocating that optimal solutions are found at the regional level and not at the national one. We must think in terms of cross- border corridors, be it in energy or communication corridors. The regional dimension is vital and must get greater attention. Infrastructure covering several countries in the same region is also more attractive to investors (both public and private) because it allows the pooling of costs and promotes integration.