Leaders of the Group of 7 (G7) countries, in collaboration with Italian and United States private sector representatives, have committed to a $420 million investment towards African countries. This announcement was made in a statement published on Thursday on the website of the government of Italy, the host of the ongoing 50th G7 summit.
The statement, titled “G7 Partnership for Global Infrastructure and Investment Side Event Co-Chair Statement,” disclosed that the G7 co-chairs welcomed commitments of $100 million and $320 million from partners. These investments aim to address the infrastructure and development needs of Africa through private sector engagement. Nigeria is strategically positioned to benefit from these commitments.
The G7, an informal association of seven of the world’s advanced economies (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, along with the European Union), includes several of Nigeria’s biggest trading partners in Q1 2024. Data from NBS and Naralytics show that France, the US, Canada, and Italy were among Nigeria’s top ten export trading partners during this period.
Flagship Projects and Economic Corridors
G7 leaders have agreed to support flagship projects aimed at developing transformative economic corridors for quality infrastructure and investments spanning Africa, the Middle East, and Europe. A coalition of U.S. investors highlighted and committed billions of dollars in private investment for scaled infrastructure in emerging markets. This move supports the G7’s Partnership for Global Infrastructure and Investment (PGII) goal of mobilizing $600 billion in infrastructure investment in emerging economies.
Italy and EU’s Commitment
The statement highlighted Italy’s collaboration with the U.S. and EU to promote sustainable development along the Lobito Corridor, committing to mobilize up to $320 million in investment for core rail infrastructure and related projects. This initiative aims to create synergies with the Alliance for Green Infrastructure in Africa (AGIA).
“The Co-chairs welcomed the Africa Green Industrialization Initiative (AGII) as a key platform for collaboration on infrastructure investment in Africa and celebrated the Global Energy Alliance for People and Planet (GEAPP) commitment of up to $100 million in philanthropic catalytic investment capital to unlock an additional $1 billion in private finance,” the statement reads.
Collaboration with African Development Bank
The AGIA, led by the African Development Bank (AfDB) and the African Union Commission (AUC), seeks to generate, finance, and execute projects with the private sector, aiming to catalyze up to $10 billion in green infrastructure opportunities for private sector investment.
In line with this, the G7 revealed that the Italian private sector, through the Mattei Plan for Africa, launched new financial instruments in collaboration with the AfDB, open to international partners‘ contributions. The G7 co-chairs welcomed Italy’s renewed commitment to boost development in Africa by deepening partnerships with African nations. They stressed the importance of increased coordination to maximize collective impact by developing transformative economic corridors in Africa.
Nigeria’s Strategic Position
With France, the United States, and Canada as key partners, Nigeria is well-positioned to benefit from their financial commitments to Africa. From 2022 to 2024, Nigeria was Canada’s largest bilateral merchandise trading partner in Africa, highlighting the strong economic ties that could be further strengthened by the new investments.
The meeting confirmed the commitment to launching and scaling investments around PGII economic corridors globally, including in Asia, Africa, and a corridor connecting Europe to Asia through the Middle East. The G7 leaders expressed appreciation for the wide range of current and future investments by private companies in strategic sectors, such as green energy and digitalization.