Page 23 - Logistics Update Africa March - April 2024 issue for Website

a 27,000-kilometer highway system
connecting major cities, is nearing
completion in many areas. However,
there's still a significant gap in rural
areas. To bridge this gap, Public-Private
Partnerships (PPPs) are emerging as
a successful model for financing road
construction and maintenance.
Recognising the critical role of efficient
Financing Africa’s trade routes, Africa is undergoing a
significant infrastructure development
infrastructure is push. The AfDB plays a key role,
still a big challenge upgrading crucial arteries like the Abidjan-
faced by many Lagos Corridor connecting economic
powerhouses Côte d'Ivoire and Nigeria. This
countries on the project aligns with the goals of the African
continent. To bridge Union's Programme for Infrastructure
the infrastructure Development in Africa (PIDA) and the
Economic Community of West African
gap, public-private States' (ECOWAS) Vision 2050 to create a
partnerships more integrated region.
are essential for RAILWAYS
infrastructure While road networks are crucial,
development in railways offer a more cost-effective and
Africa. environmentally friendly mode of transport.
However, Africa's rail network remains
DR ROBERT LISINGE underdeveloped. The African Continental
UN ECONOMIC COMMISSION FOR AFRICA
Free Trade Area (AfCFTA) recognised this
challenge and outlined plans for a unified
Conference 2023. According to the United capacity of 2.5 million TEUs (Twenty-foot continental railway network. The AfDB
Nations’ Africa Dialogue Series 2023, the Equivalent Units) in 2022. East Africa loaned $40 million to Mozambique in 2024
continent’s private sector loses up to 30% is also seeing a boost in port capacity. to upgrade their railways. This will improve
to 60% of its productivity due to poor The Kenyan government announced a efficiency and lower transport costs. The
infrastructure. The notion that Africa’s $2.1 billion expansion of Mombasa Port, project aims to boost foreign earnings
infrastructure deficit reflects its relatively aiming to increase its capacity by 450,000 by $135 million by 2036 and strengthen
low income levels does not hold because TEUs by 2027. This expansion will cater to regional trade. Mozambique's improved
the infrastructure deficit exceeds those of the growing demand for cargo handling in rail system will become a more attractive
other developing countries with similar the region. “The productivity of this port is transport option for neighbouring countries
levels of per capita income. directly linked to the state of our economy, like South Africa and Zambia, allowing
The solution lies in building the arteries improving efficiency will help us create them to efficiently export and import goods.
of a thriving economy: modern ports, well- jobs, boost export volumes and stimulate Moreover, the Africa Finance
maintained roads, reliable railways, and economic growth. We need investments to Corporation (AFC) and the AfDB joined
advanced airports. Strategic investments create opportunities, uplift communities with the United States Government, the
in these areas will not only facilitate and strengthen the economy. This will European Union, and the governments
the seamless flow of goods and reduce significantly boost our Blue Economy and of Angola, the Democratic Republic of
logistical costs but also allow Africa to enhance our exploration for possibilities Congo and Zambia to sign a Memorandum
actively engage in the global marketplace. of trade and investment in the Oceans,” of Understanding (MoU) to develop the
said Kenyan President William Ruto at the Lobito Corridor connecting northwest
PORTS Port Reforms Working Group Consultative Zambia to the Benguela rail line in Angola
With a vast coastline exceeding 30,000 Forum in 2023. and ultimately to the port of Lobito.
kilometers, numerous natural harbours “There is an urgent need for transport
offer immense potential for trade. To keep ROADS infrastructure on the continent and
pace with the projected 4.2% GDP growth Looking beyond the coastlines, several this project presents a transformative
in 2025 (AfDB), several port upgrade initiatives aim to improve connectivity opportunity to enhance regional
projects are underway. across the continent's vast landmass connectivity, unlock the critical minerals
Nigeria completed the Lekki Deep of 30.3 million square kilometers. supply chain, promote trade, create local
Sea Port, a modern facility boasting a The Trans-African Highway network, jobs, and drive economic growth in Africa,”

MARCH - APRIL 2024 LUA 21