PRIORITIZED ROAD CORRIDOR TRANSPORT PROJECTS

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1 PRIORITIZED ROAD CORRIDOR TRANSPORT PROJECTS Ali KIES African Development Bank ICA Senior Level Meeting January 18, 2007 Berlin, Germany

2 Why Regional Transport Infrastructure? REGIONAL AND INTERNATIONAL TRADE ARE CENTRAL TO ECONOMIC GROWTH AND DEVELOPMENT. Transport is at the heart of regional and market integration. Efficient infrastructure network attracts foreign direct investments and technology as well as generates new investments in other sectors. African countries, individually, too small to generate economies of scale found in larger markets. Weak infrastructure linkages condemns Africa to low competitiveness in the global market. Regional infrastructure leads to larger markets capable of attracting more private sector investments.

3 MAJOR REGIONAL TRANSPORT BOTTLENECKS 15 ouf the 31 landlocked countries are in Africa High percentage of missing links along the corridors (14% - 47% of the total) Considerable delays at border posts (up to 72 hours) Lengthy clearance times at ports Unharmonized Standards and cumbersome procedures Africa s transport systems are poorly integrated and inefficient Non compliance of bilateral/ multilateral agreements Inadequate safety and security

4 AFRICA S CURRENT TRANSPORT SYSTEM CONSTRAINS REGIONAL INTEGRATION Transport costs among the highest in the world - Transport costs are higher for the 15 landlocked African countries averaging 14% of the value of exports compared with 8.6% for all developing countries - reaching in many countries, such as Malawi (56%), Chad (52%), and Rwanda (48%). High cost premium on trade, travel and business - Trade within the continent is only at 8.4% of GDP - Generally less expensive to trade with countries outside Africa Crippling effect on Africa s trade competitiveness and its ability to participate in the world economy - Africa s total trade represents only 2% of the world trade

5 NEPAD TRANSPORT PROGRAM STRATEGIC OUTLOOK NEPAD aims at promoting regional integration and mainstreaming of Africa into the global economy. promoting an efficient and integrated regional transport system. Focusing on road corridors which is the dominant mode of transport carrying more 90% of traffic in Africa.

6 TRANSPORT CORRIDOR CONCEPT Transport Corridor concept is generally accepted in all the regions, as key to enhance competitiveness and improving access to regional and external markets Typical Road Corridor Requires: Physical Works Investment Road Upgrading/ Rehabilitation Joint Border Post Control Vehicle / Axle Load Control Freight Tracking Systems Facilitation Harmonization of Transport Rules Streamlining and Facilitation

7 AfDB ROAD CORRIDORS INTERVENTIONS

8 PRIORITY ROAD CORRIDORS & THEIR MISSING LINKS REC CORRIDOR COUNTRY COVERAGE LENGTH EST. DEV. (KM) COST COMESA Nairobi-Cairo Dodoma-Kigali Kenya-Ethiopia-Soudan- Egypt Tranzania-Burundi- Rwanda Lobito-Beira Angola-Zambia- Zimbabwe-Mozambique- DRC SADC North-South Trans-Kunene South Africa-Botswana- Zambia Namibia-Angola Nacala Mozambique-Malawi- Zambia Mtawara Mozambique-Tanzania Pointe Noire- Ndjamena Congo-DRC-CAR-Chad 550 CEMAC ECCAS Yaounde-Bangui- Kisangani-Bujumbura Cameroon-CAR-DRC- Burundi Yaounde-Brazza- Luanda Cameroon-Gabon-Congo- DRC-Angola ECOWAS Dakar-Lagos Alger-Lagos Senegal-Gambia-Guinee- Guinee Bissau-Sierra Leone- Cote d'ivoire, Togo, Benin, Nigeria Niger Dakar-Ndjamena Senegal-Mali-Burkina Faso-Niger-Nigeria-Chad GRAND TOTAL (UA) 7600 GRAND TOTAL (USD) 11400

9 IMPLEMENTATION CHALLENGES The Challenge is to deliver fast, be efficient, and ensure sustainability How to reduce the traditional project cycle How to reduce transaction costs for the the countries, the RECs, and donors How do to mobilize the required funds for the whole project cycle cost (capital & Maintenance)

10 THANK YOU FOR YOUR ATTENTION

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