How does transport respond to regional integration demands and ...
How does transport respond to regional integration demands and ...
How does transport respond to regional integration demands and ...
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<strong>How</strong> <strong>does</strong> <strong>transport</strong> <strong>respond</strong> <strong>to</strong> <strong>regional</strong><br />
<strong>integration</strong> <strong>dem<strong>and</strong>s</strong> <strong>and</strong> changing trade<br />
patterns<br />
Presentation <strong>to</strong><br />
Infrastructure Consortium for Africa Annual Meeting<br />
Berlin, January 18, 2007<br />
Hachim Koumare<br />
Chairman of the SSATP Board<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
Africa’s <strong>regional</strong> <strong>integration</strong> <strong>and</strong> trade<br />
<strong>dem<strong>and</strong>s</strong> in terms of <strong>transport</strong><br />
• Physical <strong>integration</strong> of markets<br />
• Physical links between capital cities<br />
• Linking the fifteen l<strong>and</strong>locked countries <strong>to</strong> the sea<br />
• Industrial development<br />
• Increasing the production<br />
• Moving productions <strong>to</strong> the markets at a lower cost<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
Africa’s <strong>regional</strong> <strong>integration</strong> <strong>and</strong> trade<br />
<strong>dem<strong>and</strong>s</strong> in terms of <strong>transport</strong> (continuation)<br />
• Reduce cost <strong>and</strong> duration of <strong>transport</strong> in corridors<br />
• Ensure Africa’s contribution <strong>to</strong> the globalization of trade<br />
• Fast circulation of goods <strong>and</strong> persons<br />
• Improve facilitation of transit <strong>transport</strong><br />
• Improve the quality of <strong>transport</strong> services<br />
• Provide safe, reliable, efficient <strong>and</strong> affordable <strong>transport</strong> system<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
Key Transport Related Problems <strong>to</strong> Africa’s<br />
Market Integration <strong>and</strong> Development<br />
• Trade among member states <strong>and</strong> market <strong>integration</strong> is bitten<br />
by excessive barriers (4 <strong>to</strong> 7 road blocks per km <strong>and</strong> 36 h of<br />
delay at border)<br />
• Low level of trade <strong>and</strong> Africa not yet integrated in global<br />
market (inta-African tade st<strong>and</strong>s at less than 10% <strong>and</strong><br />
Africa’s share in the world market is about 2%)<br />
• Many missing links on the African road network in addition,<br />
only 27.6% of the 2 millions Km of roads are asphalted<br />
• High <strong>transport</strong> cost: 14% of value of goods on average, but,<br />
in l<strong>and</strong> locked countries it gets over 50%<br />
• P<strong>and</strong>emic of HIV/AIDS on transit corridors is alarming<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
Key Transport Related Problems <strong>to</strong> Africa’s<br />
Market Integration <strong>and</strong> Development (continuation)<br />
• Difficulties in mobilizing resources for <strong>regional</strong> projects<br />
• Some African countries are not eligible <strong>to</strong> financing window<br />
of donor due <strong>to</strong> policy regulation<br />
• Weak physical links between production <strong>and</strong> consumption<br />
areas<br />
• Continent with 15 l<strong>and</strong>locked countries<br />
• Inadequate <strong>transport</strong> equipment<br />
• Concept of using <strong>transport</strong> as a <strong>to</strong>ol <strong>to</strong> instigate spatial<br />
development is not well developed<br />
• Transport regulations within <strong>and</strong> between RECs are not<br />
harmonized<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
What <strong>to</strong> DO?<br />
• Put in place appropriate policy <strong>and</strong> institutional framework<br />
such as corridor management committee under RECs<br />
• Improve existing network through maintenance <strong>and</strong> upgrading<br />
• Fill in the missing links on the road network as identified by the<br />
RECs <strong>and</strong> don´t forget rural <strong>transport</strong> dem<strong>and</strong><br />
• Strengthen application of trade facilitation measures through<br />
application of appropriate conventions <strong>and</strong> decisions of RECs <strong>and</strong><br />
international organizations<br />
• Revisit or introduce criteria that qualify a bankable <strong>regional</strong><br />
projects<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
What <strong>to</strong> DO? (continuation)<br />
• Coordination between partners on corridor management<br />
initiatives (code of conduct)<br />
• Development of new financing mechanism or incentive for<br />
renewing road, maritime <strong>and</strong> air <strong>transport</strong> equipment (over<br />
liquidity of some banks; oil revenue; etc)<br />
• Assist l<strong>and</strong>locked countries <strong>to</strong> implement the Almaty program<br />
on transit<br />
• Include health <strong>and</strong> governance issues in <strong>regional</strong> <strong>and</strong> sub<br />
<strong>regional</strong> <strong>transport</strong> programs. The AU/NEPAD can play a role<br />
through APRM<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
An example of <strong>regional</strong> program: the SSATP<br />
The objectives of SSATP (Partnership between around<br />
10 donors <strong>and</strong> Sub Saharan African countries) :<br />
http://www.worldbank.org/afr/ssatp<br />
• Bolster trade facilitation initiatives in corridors<br />
• Facilitate initiatives <strong>to</strong> develop new links/missing links <strong>and</strong><br />
develop policy for road maintenance<br />
• Facilitate the creation/strengthening of knowledge <strong>to</strong> integrate<br />
<strong>transport</strong> with industrial development- spatial development <strong>and</strong><br />
poverty reduction strategy<br />
• Facilitate the strengthening of knowledge in private sec<strong>to</strong>r<br />
participation<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
An example of <strong>regional</strong> program: the SSATP (continuation)<br />
SSATP: REGIONAL TRANSPORT INTEGRATION ACTIVITIES<br />
Corridor Performance<br />
Indica<strong>to</strong>rs<br />
Corridor management<br />
arrangements, Transit<br />
<strong>transport</strong> facilitation<br />
Development/assessment of<br />
interstate <strong>transport</strong> legal<br />
frameworks<br />
Coherence with AU/NEPAD <strong>transport</strong><br />
strategies, Engagement with RECs<br />
Policy development instrument<br />
Vehicle for Inter-REC Coordination<br />
Transport Corridor impacts on HIV/AIDS,<br />
Safety <strong>and</strong> Security<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
The SSATP Corridors of Focus <strong>and</strong> the TAH Network<br />
Fostering Africa’s s interconnectivity & Trade Competitiveness
Fostering Africa’s s interconnectivity & Trade Competitiveness
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