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WHERE IS AFRICA IN TERMS OF INTERCONNECTIVITY INFRASTRUCTURE DEVELOPMENT? – The African Continental Free Trade Area (AfCFTA): A Turning Point for Africa

The launch of the African Continental Free Trade Area (AfCFTA) marks a significant milestone in Africa’s development journey. This initiative aims to transform the continent into a single market, allowing free movement of people, goods, and services across borders. Historically, colonial rulers subdivided Africa into countries and imposed artificial boundaries that have since hindered trade and development. The AfCFTA seeks to reverse this trend by fostering economic integration.

While the policy framework for AfCFTA is in place, the major challenge remains the infrastructure needed to facilitate this interconnectivity. Without adequate transport and communication networks, the vision of a borderless Africa that thrives on trade and collaboration cannot be realized.

For Africa to fully reap the benefits of AfCFTA, the continent requires a well-planned and developed infrastructure network. The key priority areas include:

•         Railway Networks: Major transcontinental railway lines such as Cape Town to Cairo, the Horn of Africa to Dakar, and Casablanca to Cairo would form the backbone of an efficient transport system. These main lines would be supplemented by regional and national railway networks to ensure smooth connectivity.

•         Road Networks: Expanding and upgrading highways to facilitate easier cross-border transportation.

•         Water Transport: Developing ports and inland waterways to enhance trade efficiency.

•         Telecommunication and Internet Services: Strengthening digital infrastructure to support business transactions and communication.

One example of infrastructure prioritization challenges is the Standard Gauge Railway (SGR) connecting Kenya and Uganda. While Kenya completed its SGR up to Naivasha, the connection to Uganda at Malaba was delayed. This lack of synchronization stalled Uganda’s SGR project, highlighting the need for coordinated continental infrastructure planning.

A major obstacle to infrastructure development in Africa is the prioritization of national needs over regional and continental projects. To address this, Africa requires an institution dedicated to overseeing key interconnectivity projects. The African Union (AU) has played a pivotal role in AfCFTA’s establishment, and through it, a specialized agency could be formed to drive infrastructure projects.

Most African countries struggle with financing large-scale infrastructure projects, often relying on expensive foreign loans. However, Africa has the potential to generate its own funds through innovative financial strategies like leveraging social security funds. Many African countries, including Uganda through the National Social Security Fund (NSSF), have schemes where employees contribute a percentage of their earnings, matched by their employers.

Consider this scenario:

•         Africa’s population is approximately 1.49 billion, with around 30% in formal employment, totaling 360 million workers.

•         If each employee contributes $5 monthly and employers add $10, a total of $15 per worker per month is saved.

•         The total monthly savings would amount to $5.4 billion.

•         If 50% of these funds were invested in the African Development Bank (ADB) for infrastructure development, it would yield $2.7 billion per month.

•         Over five years, this would accumulate to $162 billion—enough to finance major connectivity projects.

This self-reliant financing model would reduce dependency on foreign loans, increase job opportunities, and boost economic activity across the continent. With funds available, the next challenge would be selecting priority projects. The AU, in collaboration with professional bodies such as FIDIC Africa, should oversee the identification and execution of key infrastructure developments like;

1.       Rail Transport – Efficient railway systems to ease movement of goods and people.

2.       Bridges and Road Networks – To connect landlocked regions and facilitate trade.

3.       Water Transport Infrastructure – Strengthening ports and inland waterways.

4.       Internet and Communication Networks – Enhancing digital connectivity for business growth.

The major hurdles in Africa’s infrastructure projects include are lack of financing and delayed project funding, lengthy and inefficient procurement processes, delayed payments to service providers, shortage of experienced technical staff and high project costs due to delays and inefficiencies.

By implementing a self-financed infrastructure fund, Africa can overcome these challenges and build a robust interconnectivity system that will accelerate economic growth. Some may view this vision as unrealistic, but history has proven that Africa is capable of transformation. In the early 20th century, colonialists dismissed Africans as incapable of self-governance. Today, Africa boasts a pool of highly skilled professionals capable of leading the continent’s development.

With strategic planning, coordinated infrastructure projects, and innovative financing solutions, Africa can create an interconnected future that drives trade, development, and prosperity for its people.

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