Canada does not have an Africa strategy, and one is desperately needed. If we don’t, we risk being left behind as the continent becomes increasingly important economically and geopolitically.
The Federal Government certainly recognizes Africa’s strategic priorities. In his 2021 mandate letter to the Minister of International Trade, Prime Minister Justin Trudeau emphasized the need to develop a “pan-African economic cooperation strategy.” Then, in 2023, Global Affairs strengthened the government’s commitment to annual sector planning.
However, a formal strategy has not yet materialized. The government has succeeded in developing a comprehensive Indo-Pacific strategy. Now is the time to develop and release a strategic approach for Africa focused on infrastructure and engineering.
Canada’s engagement with the continent currently lacks breadth, nuance, and coordination. Despite public consultations held throughout 2023, Canadians and the African diaspora have lamented the lack of progress and repeatedly called on the government to take action.
Recent public consultations by Global Affairs signaled new developments, with Foreign Minister Mélanie Joly promising to announce a new strategy by the end of the year.
This progress is essential because Canada cannot afford to sit still while the entire world has a stake in the continent’s success.
By 2050, more than a quarter of the world’s population will be in Africa, and the continent’s working-age population will steadily increase while the rest of the world will decline.
As implementation of the African Continental Free Trade Agreement progresses, the continent will soon become the world’s largest single market, ripe with opportunities for investment, partnership and cooperation.
Africa will also be a major player in a carbon-neutral world, as it has the majority of the world’s solar power generation potential, vast reserves of minerals essential for renewable energy technologies, and significant natural capital and carbon-reducing ecosystems.
Ottawa should pay particular attention to the opportunities presented by the continent’s infrastructure and its unique value proposition in this area.
Canada is home to some of the world’s largest engineering companies and many of the world’s best engineering and technology universities. Africa’s infrastructure needs are huge. The potential match is clear.
Canada’s infrastructure and engineering sectors are among the best in the world and offer unique opportunities that are still often overlooked.
Although there is a lot of competition, Canada can uniquely position itself as a complementary partner to G7 countries by providing early-stage strategic planning, engineering and transactional advisory support.
Our role has to be in the early stages of project development, as we cannot match the major capital expenditures of China or the United States. That means supporting projects to get off the ground and making sure local benefits and sustainability are built in from the start.
In Africa, 80% of planned infrastructure projects do not progress past the feasibility stage, and only half of them are financially completed.
This is a significant gap where Canadian expertise in public-private partnership delivery models and new progressive and collaborative delivery models is uniquely valuable. The preparatory stage of a project is where the greatest risks and uncertainties exist, as well as where the greatest opportunities lie.
Africa also faces a critical funding gap for project preparation. With this goal, Canada can leverage its project development expertise to position Canada and its engineering companies as key partners for African governments and infrastructure owners.
Strengthening partnerships with key institutions such as the African Union, the African Development Bank Group, and regional development banks across the continent is the first step to realizing this opportunity.
Canada already supports several multilateral initiatives focused on infrastructure development in Africa. For example, Global Affairs recently joined the Private Infrastructure Development Group with a $45 million investment to support private sector mobilization in Africa and Asia.
Canada’s 2025 G7 Presidency provides an opportunity to address two key areas
As China woos Africa, Canada needs to rethink its Africa strategy
Canada needs to start looking at Africa as a collaborator.
Strengthening Export Development Canada (EDC) and the Canadian Commercial Corporation (CCC) to expand their presence in Africa and support Canadian infrastructure and engineering services companies will be key to developing the continent’s infrastructure market.
EDC and CCC can play a critical role in sourcing market opportunities for Canadian companies on the continent, providing catalytic financing to de-risk infrastructure projects and foster Canadian investment.
There is a growing movement within the G7 to support infrastructure in Africa. The Partnership for Global Infrastructure Initiative, the G7’s response to China’s Belt and Road Initiative, aims to mobilize “hundreds of billions” of dollars to support infrastructure development in low- and middle-income countries.
The U.S.-led initiative has already spurred investment in infrastructure projects in Africa, particularly the Lobito Corridor. Canada should use this to shape G7 policy on infrastructure investment and foster opportunities for Canadian companies to participate.
Canada’s value as a strategic partner lies in its long-term, sustainable approach. While other players leverage their economic strength and deep capital, Canada must use its soft power, reputation and unique approach to build relationships and stimulate regional economies.
Canada’s brand is strong in Africa, but underutilized. Our unique value proposition enables us to position ourselves as an important partner to the continent’s leaders through our sustainable, neighborly and respected approach to business, trade and development.
Doing so means investing in Africa for the long term, not just in capital infrastructure, but also in education, research and innovation.
To that end, Canada needs to foster research partnerships and knowledge transfer between leading academic institutions and African organizations.
Similarly, the expertise of leading institutions such as Infrastructure Ontario, Infrastructure BC and Canada Infrastructure Bank can be shared with African institutions through knowledge exchange and strengthened partnerships.
But without an effective Africa strategy, we will continue to operate without unity or direction, sending a signal to Africa and its leaders that Canada is not a reliable partner.
As Canada holds the G7 Presidency in 2025, we have a unique opportunity to demonstrate that Africa is a strategic priority and use that forum to shape G7 policy on African infrastructure.
thisarticleteeth,Policy optionsFirst published in and republished here under a Creative Commons license.
