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FOCUS

Logistics infra

ACHILLES HEEL OF

AFRICAN TRADE

The attention and intention with which the ports, terminals and connectivity infrastructure
are built and financed in Africa are quite visible right now across its political, economic
and regulatory landscape. However, to have AfCFTA implemented effectively, there is a lot
more the continent needs to do collectively, reports Libin Chacko Kurian.

n September 22, 2022, UNCTAD trade needs even with the implementation investor CDC Group to invest around $1
(United Nations Conference of The African Continental Free Trade billion in ports and logistics across Africa.
on Trade and Development) Area (AfCFTA). “One of the problems in Africa is
OSecretary-General Rebeca “If you produce the goods and there is infrastructure investment. Infrastructure is
Grynspan gave an example of how West no transport and logistics it is as good as the obstacle that makes it so expensive for
Africa already lost a sowing season due not producing at all. Because there is a need people to receive cargo and deliveries and
to issues in the global distribution of for goods to reach the final destination. that's why we are doing something about
fertilisers including the price rise and the There is a great percentage of funding that it with our plans in Africa,” noted Sultan
global disruption of supply chains while must go into logistics,” he said during the Ahmed bin Sulayem, group chairman and
addressing the annual summit of the Global TechCabal webinar in August 2022. CEO, DP World.
Maritime Forum in New York. He stressed the need for governments Nick O'Donohoe, chief executive
Even though she was talking about the to allocate resources and fund the trade- officer, CDC, said, If you can't reach the
food availability crisis that the world may related infrastructure, especially logistics to market, you can't sell your goods. And you
face, it also goes to show how Africa is improve trade in the free trade area. can be the best in some of these countries,
dependent on the maritime supply chain for “There are two pillars that need great the best producers of goods in the world,
its economy and food security. attention to have the trade to be working but if you haven't got access to a port
She continued, “Let me finish with one well under AfCFTA: trade-related infrastructure then you are cut off from a
last plea: please help us get the grain and infrastructure and trade facilitation. It is large piece of your potential market. Ports
fertilisers out of Ukraine and Russia. We about how you finance these infrastructures don't just serve the individual country,
need you. The world needs you. The seas are which include logistics. Logistics is broad they can serve a region.”
rough. Let’s brave them together.” and in all the pillars of logistics we are For exactly the same reason, ports
One of the important impediments to lagging behind.” he said. not only require bigger terminals and
Africa’s route of economic progress has However, the positive in this situation extensive handling capabilities but also
been the lack of infrastructure, particularly is that the business community, not just wider connectivity to the hinterland and in
in the maritime trade and it is visible in the in the continent but also the foreign Africa’s case to landlocked countries as well.
ports and terminals across Africa compared entities, is well aware of this drawback and For example, recently the minister of
to that in other continents. investments are trickling in to fill this gap in transport and logistics of the landlocked
Louis Yaw Afful - Executive Director, the last few years. country Zambia, Frank Tayali spoke
AfCFTA Policy Network, recently called For example, last year DP World about the greenfield railway projects
transport and logistics the Achilles heel announced a partnership with UK's in the country aimed at enhancing the
for Africa when it comes to fulfilling its development finance institution and impact connectivity to its neighbouring countries

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