Africa: African Union Commissioner hails the Renaissance Dam as a model of self-financing infrastructure in Africa

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The African Union Commissioner for Infrastructure and Energy, Lerato Matabugi, described the Grand Ethiopian Renaissance Dam as an outstanding example of Africa’s ability to finance and deliver transformative infrastructure using its own resources.

Speaking at a press conference on accelerating Agenda 2063, promoting digital transformation and implementing the Africa Infrastructure Development Programme, the Commissioner said the dam represents strong evidence of mobilizing local resources into action.

“The self-construction of the Renaissance Dam is a great success that can serve as an example for Africans,” she said, urging countries across the continent to adopt similar approaches in financing priority infrastructure projects through domestic resources.

Matabugi noted that the rising global cost of capital is putting increasing pressure on African countries seeking to finance large-scale projects.

“The cost of capital is increasing globally, and this has become a major challenge for Africa in financing infrastructure,” she said.

She added that climate change increases the tightness of fiscal space, noting the impact of droughts and floods on infrastructure systems and national economies throughout 2026.

According to the Commissioner, global strategic priorities are also shifting beyond traditional minerals to vital natural resources, with water emerging as a key asset for regional stability and development.

In this regard, she revealed that the theme of the African Union for the year 2026 will focus on water and sanitation, which is an issue currently under discussion within the Union. She stressed that water and sanitation should be considered basic economic infrastructure.

“Access to clean water and sanitation is indispensable for accelerating industrialization, operating factories efficiently, and building a healthy workforce,” she said.

Matabugi revealed that 300 million people across Africa lack access to safe drinking water, while 780 million people lack adequate sanitation services. She added that bridging the water investment gap will require an estimated 30 billion US dollars, noting that many programs are being implemented to address this shortage.

She stressed that narrowing the infrastructure gap in Africa requires sustainable resource mobilization and long-term planning, citing Ethiopia’s construction of the Renaissance Dam as a notable achievement in this regard.

Besides infrastructure financing, the Commissioner also highlighted Ethiopia’s water supply to Djibouti as a practical example of regional cooperation. She stressed that continental integration must extend beyond trade in goods to include the exchange of strategic resources between African countries.