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Regional infrastructure is key to NEPAD objectives for Africa’s growth
The challenges – and the progress
vendredi 31 août 2007
par adi

Infrastructure — energy, water and sanitation, transport, information and communications technology (ICT) — stands at the heart of NEPAD objectives of poverty reduction through economic growth and full participation in the world economy.

The goal of NEPAD is to develop infrastructure services that are adequate, efficient and of minimum cost and are, therefore, able to support the development of trade and economic growth needed for achieving the NEPAD aim of reversing Africa’s marginalisation in the global economy.

Because African economies considered individually are typically too small, the coordinated development of regional infrastructure has been identified as a critical element in fostering regional integration and trade competitiveness.

Collaboration and joint action at the sub-regional and regional levels are, in turn, necessary for the development of regional infrastructure to allow economies of scale through pooling and joint facilities, and to overcome the limitations of small markets and enhance competition.

The NEPAD Infrastructure Short-Term Action Plan (STAP), produced in May 2002, has evolved and today the project portfolio constitutes a selection of infrastructure programmes or projects that support regional integration, with a value estimated to be $20bn.

It does not contain all the projects proposed by the Regional Economic Communities (RECs). The mandate of the Short-Term Action Plan ends in 2007 and will be replaced by a Medium to Long-term Strategic Framework (MLSTF), expected to be finalised at the end of 2007.

The RECs are considered as the “pillars of integration”, and the driving forces for helping to implement regional programmes.

To speed up preparation and implementation of regional infrastructure projects improvement is required in two main areas :

Clear roles, task assignment and coordination between the various actors and ;

Selective capacity strengthening of the individual actors, keeping in mind the overall goal of simplification and efficiency improvement.

Largest economies must help poorer countries Africa’s Ten Largest Economies (ATLEs) contribute 77% of Africa’s GDP which indicates that the rest are too small to survive on their own. These Ten Largest Economies (ATLEs) (South Africa, Algeria, Egypt, Nigeria, Morocco, Libya, Tunisia, Sudan, Angola, and Cameroon) are important destinations for exports and sources of imports and their physical connectivity will feature prominently in Africa’s infrastructure development plans.

There is need to put in place strategies that will use the economic activity in the ATLEs to catalyse development in the poorer smaller countries for which improved access to regional markets will be key to economic success.

The efficiency of cross-border infrastructure will be an important determinant of Africa’s prospects for economic growth, employment creation, poverty reduction, and social improvements.

The regional projects, because of their large scale, usually require high up-front project preparation costs. The NEPAD Short Term Action Plan requires an investment of over US$ 7 billion and 10% of this figure for preparation of these projects calls for US$700 million.

NEPAD is tackling the problem through the establishment of the Infrastructure Project Preparation Facility at the African Development Bank, but the support for the facility has been very slow from cooperating partners.

The private sector, particularly the South African, has a significant role to play in the delivery of cross-border infrastructure on the continent. The private sector brings additional financial and technical resources for cross-border infrastructure and shares the risk with governments.

Presently, the majority of African countries are considered International Development Assistance (IDA) or African Development Foundation (ADF) countries by the World Bank and African Development Bank respectively, limiting them to soft loans. This condemns these countries to perpetual poverty since they cannot borrow bank resources.

There are many Public Private Partnership (PPPs) projects successfully implemented in South Africa which are being duplicated elsewhere in Africa. It is NEPAD’s hope that South African business will take a longer-term view and continue to invest in other African countries in infrastructure development despite the huge investment in the run up to the 2010 World Cup.

Both the African Development Bank and the World Bank have responded positively to NEPAD through their increase in resources for regional projects and putting in place internal institutional arrangements in response to NEPAD. In the last three years, they have mobilised financing amounting to US$2.2 billion of which they have provided about US$900 million with a pipeline of projects under consideration.

Progress with regional projects Three regional projects – a collaboration of the African Development Bank and the World Bank under the NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) – are well under way :

Togo-Benin-Ghana power interconnection

Date of IPPF approval : 27 October 2004 Physical project costs estimate : USD118 million The objective is to support the Governments of Benin, Togo and Ghana through their power utilities to update the feasibility study and detailed designs of the Benin-Togo-Ghana electricity interconnection, and the development of a detailed environmental impact assessment for the project.

Kenya Uganda oil pipeline

Date of IPPF approval : 5 November 2004 Physical project estimated costs : USD 75 million The objective of the grant for which the NEPAD-IPPF was approved is to support the Governments of Uganda and Kenya in the solicitation process for a private sector investor in the project.

This entailed the preparation of the tender process leading to bidding, evaluation, negotiation, award and contract for a joint venture with a private sector investment partner, and assistance to the Governments of Uganda and Kenya in securing financing for the project.

Zambia-Tanzania-Kenya power interconnector

Date of IPPF approval : 17 December 2004 Physical project estimated costs : US$860 million The scope of activities of the Zambia-Tanzania-Kenya electricity interconnection supported by the NEPAD-IPPF Special Fund consists of four distinct phases : pre-development phase, investor selection phase, concession negotiation phase and financial closure phase.

The IPPF support is to facilitate the engagement of a private sector participant in the project and achievement of financing for physical implementation.

Gas pipeline completed in West Africa The $1.1billion West African gas pipeline covering 1,000km onshore and offshore from Nigeria’s Niger Delta region to its terminus in Ghana has been completed.

Four nations, Nigeria, Ghana, Togo and Benin signed a 20-year agreement on the implementation of the pipeline which provides for a comprehensive legal, fiscal and regulatory framework, as well as a single authority for the implementation of the project.

And in the Democratic Republic of Congo, the NEPAD Secretariat has hosted an international roundtable seeking ways to make progress on the Inga hydro-electric development.

It attracted some 120 participants from African and regional institutions in the public and private sectors, electricity companies, non-governmental organisations, civil society and the media.

The speakers stressed the integrating nature of the Inga project, as well as the need to find the best ways of determining the options for updating and finalising the feasibility study on the development of the Inga site, including Inga 3 and Great Inga.

Great Inga will have a generation capacity of 39 000 megawatts, offering the DRC the possibility of exporting electricity to the sub-region and North Africa. It will accelerate regional integration by providing adequate power supply to many African countries.

The DRC currently obtains its electricity supply from the Inga 1 and 2 stations built in 1972 and 1982, respectively. It currently has 1,775 megawatts of generating capacity at its Inga hydroelectric facility.

The Inga 3 site if implemented could supply the whole sub-region, especially countries of the Southern African Development Community.

The NEPAD Spatial Development Programme For the future, 12 new Spatial Development Initiatives (SDIs) that could form the initial core of a NEPAD Spatial Development Programme have been identified in an assessment report prepared by the Regional SDI Programme Support Unit and MINTEK, a South African-based global consultancy.

Using Spatial Development methodology, the report covers an investigation of potential development corridors in Africa with the greatest prospects for success — economically, socially and politically.

By focusing on defined geographic areas, usually along existing transport or development corridors, the Spatial Development methodology allows for the creation of a critical mass of integrated private sector and infrastructure development necessary to kick-start a sustainable economic development process.

In identifying a portfolio of 12 possible new SDIs the report gives an overview of each SDI reflecting its name, location, geographic description, underlying rationale and the main infrastructure and economic drivers that justified its inclusion :

North Africa The Magherb Coastal DC (Morocco, Algeria, Tunisia, Libya, Egypt) focused on enhancing regional economic co-operation and integration through clustered industrial development based on abundant hydrocarbon and other mineral deposits

The Red Sea-Nile DC (Egypt, Sudan) focused on promoting integrated economic development through the development of natural resources along the Nile River valley and Red Sea coast

West Africa The Niger (Dakar-Port Harcourt) DC (Senegal, The Gambia, Mali, Niger, Nigeria) focused on integrating minerals development and the utilisation of diverse sources of energy for the development of heavy industry as a platform for multi-sectoral economic growth across the interior of West Africa

The Sekondi/Takoradi-Ouagadougou DC (Ghana, Burkino Faso) focused on providing viable transport choices to enhance the competitiveness of the land-locked Burkino-Faso economy

The Conakry-Buchanan DC (Guinea, Liberia, Cote D’Ivoire) focused on improving transport links and integrating economies based on the mineral potential of the region

The Gulf of Guinea DC (Nigeria, Benin, Togo, Ghana, Cote D’Ivoire and Liberia) focused on promoting the integration of West African economies through the development of a transport and energy orientated economic development corridor

Central Africa The Douala-N’djamena DC (Cameroon, Chad) focused on promoting access to the coast for landlocked Chad

The Libreville-Lomie DC (Gabon, Republic of Congo, Cameroon) focused on achieving economic and regional integration through complementary minerals developments

The Bas-Congo DC (Democratic Republic of Congo, Angola) focused on harnessing energy potential for Africa’s development and supporting mining and industrial development in the Bas-Congo region

East Africa The Djibouti DC (Ethiopia, Djibouti, Eritrea and Somaliland) focused on providing Addis Ababa access to the coast to facilitate trade and investment and integrating Ethiopia with its southerly East African neighbours

The Mombasa DC (Kenya, Uganda, Democratic Republic of Congo, Sudan) focused on utilising established infrastructure links to unlock stranded natural resources in DRC and southern Sudan

Southern Africa The Madagascar DC (Madagascar) focused on unlocking natural resources as a platform for sustainable economic growth and development Of the 12 possible new Development Corridors/SDIs that were evaluated, seven were identified as having the greatest aggregate economic potential and it is proposed that these should form the core of a first phase of a NEPAD SD Programme.

* From the outset, the overall task of evaluating the prospects for a NEPAD SD Programme was expected to be a two-phase process. Phase 1(a), the indicative assessment of the scope for such a programme has now been completed. In order to define the full scope and extent of the programme a more detailed scoping study will be carried out as Phase 1(b) of the overall assignment. Once this is complete it will be possible to proceed with Phase 2, the establishment and operationalisation of the NEPAD SD Programme.

 

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  241. NEPAD Calendar of events
    26 novembre 2007

  242. NEPAD TV schedule
    30 novembre 2007

  243. NEPAD Nigeria busy on wide range of projects and programmes
    30 novembre 2007

  244. Connect Africa launched to boost ICT projects backed by $55-billion
    30 novembre 2007

  245. Central Africa ready for scaling-up rice and cassava production
    10 décembre 2007

  246. NEPAD-Spanish fund for the empowerment of women calls for proposals
    7 décembre 2007

  247. NEPAD Calendar of events
    10 décembre 2007

  248. International support for top-level conference on budgeting in Africa
    14 décembre 2007

  249. NEPAD Calendar of events
    17 décembre 2007

  250. NEPAD : a look at seven years of achievement – and the challenges on the way forward
    25 janvier 2008

  251. NEPAD Calendar of events
    25 janvier 2008

  252. NEPAD Calendar of events
    1er février 2008

  253. Private sector spells out support for African Union
    1er février 2008

  254. BRAINCHILD OF NEPAD BUSINESS FOUNDATION
    8 février 2008

  255. NEPAD TV schedule
    8 février 2008

  256. Japan to host TICAD IV in May 2008, the G8 Summit in July 2008 and the 10th APF on 7-8 April 2008
    9 février 2008

  257. NEPAD : Vacancy for gender consultant
    17 février 2008

  258. Update on the African Fertilizer Summit and the way ahead for the Green Revolution
    15 février 2008

  259. Success of the NEPAD programme and its contribution to Africa
    22 février 2008

  260. NEPAD Calendar of events
    22 février 2008

  261. NEPAD TV schedule
    3 mars 2008

  262. NEPAD-Spanish Women’s Fund
    3 mars 2008

  263. NEPAD TV schedule
    7 mars 2008

  264. Uganda completes the final stages of its Peer Review
    7 mars 2008

  265. NEPAD-Spanish Fund : Progress
    14 mars 2008

  266. NEPAD Calendar of events
    14 mars 2008

  267. NEPAD Calendar of events
    20 mars 2008

  268. International media summit on the re-branding of Africa
    20 mars 2008

  269. NEPAD-Spanish Fund : progress with interviews
    29 mars 2008

  270. African Bank chief puts top priority on water access and sanitation
    29 mars 2008

  271. Soaring food prices pose serious threat to food and nutrition security
    29 mars 2008

  272. Important role for Africa’s media in the development of the continent
    4 avril 2008

  273. NEPAD “training the trainer” seminar
    4 avril 2008

  274. NEPAD TV schedule
    11 avril 2008

  275. NEPAD Calendar of events
    11 avril 2008

  276. NEPAD Calendar of events
    21 avril 2008

  277. Soaring food prices stress urgency of increasing fertilizer use by African farmers
    21 avril 2008

  278. NEPAD e-Schools praised as the key to bridging the digital divide in Africa
    25 avril 2008

  279. NEPAD Calendar of events
    25 avril 2008

  280. Regional training workshop on science and technology
    6 mai 2008

  281. NEPAD Calendar of events
    6 mai 2008

  282. NEPAD looks at African agriculture for answers to crisis problems of high food prices
    16 mai 2008

  283. NEPAD conference shows the way to promote tourism in Africa
    16 mai 2008

  284. Africa Day - 25 May, 2008 : Message from the AU and NEPAD
    23 mai 2008

  285. Strengthening the links between Canada, NEPAD and the AU
    23 mai 2008

  286. NEPAD TV schedule
    30 mai 2008

  287. NEPAD Calendar of events
    30 mai 2008

  288. African Ministers to discuss NEPAD Environment Plan
    6 juin 2008

  289. "Green Revolution" aims to double Africa’s rice production in next 10 years
    6 juin 2008

  290. Historic moment” : first meeting to integrate NEPAD into AU
    13 juin 2008

  291. Donors increase financial support for NEPAD infrastructure facility
    27 juin 2008

  292. Chairman outlines reforms to boost performance of the AU Commission
    4 juillet 2008

  293. NEPAD Secretariat and AfDB discuss closer collaboration
    11 juillet 2008

  294. NEPAD’s CAADP is key in Africa’s response to high food prices
    18 juillet 2008

  295. NEPAD Calendar of events
    28 juillet 2008

  296. Helping African countries achieve their development objectives through CDSF
    1er août 2008

  297. Aid - who accounts to whom and on whose terms ?
    15 septembre 2008

  298. Work starts on NEPAD submarine cable to be ready for FIFA 2010
    20 septembre 2008

  299. New President of South Africa takes over from Thabo Mbeki
    29 septembre 2008

  300. AU chief calls for more CAADP financing and fast-tracking
    10 octobre 2008

  301. As daily life improves at the grassroots NEPAD is there
    11 octobre 2008

  302. Africa’s partners must not renege on development support, says UN General Assembly chief
    18 octobre 2008

  303. UN underlines commitment to AU-NEPAD priority programmes
    25 octobre 2008

  304. EAC, SADC,COMESA to merge into African Economic Community
    2 novembre 2008

  305. Boost for fisheries governance and trade through NEPAD-led Pan-African partnership
    10 novembre 2008

  306. Key role for African media to focus on agriculture and CAADP
    14 novembre 2008

  307. Africa, G8 and OECD identify actions to keep Africa on growth track despite global downturn
    21 novembre 2008

  308. Nigeria investing $85-million to boost local rice production
    28 novembre 2008

  309. President Museveni promises investors free land in Uganda
    12 décembre 2008

  310. NEPAD : Dr. Ibrahim Assane Mayaki, former Prime Minister of Niger, now NEPAD CEO, takes office
    21 avril 2009

  311. Gaddafi spells out his vision for NEPAD
    13 mai 2009

  312. Dr. Ibrahim Assane Mayaki leads NEPAD delegation to APF
    4 juin 2009

  313. African Ministers renew their commitments to CAADP
    27 juin 2009

  314. AU/NEPAD integration on track for finalization by July 2009
    7 juillet 2009

  315. A new African Civil Society network to promote SLM
    28 juillet 2009

  316. Togo signs CAADP Compact
    31 juillet 2009

  317. Mayaki calls on Ghana to align country’s priorities with NEPAD’s capacity development framework
    11 août 2009

  318. Addis Ababa : High-level session of Africa Partnership Forum (APF)
    27 août 2009

  319. NEPAD kick-starts project aimed at improving businesses that are run by women
    20 septembre 2009

  320. NEPAD zeroes in on Skills Development
    15 septembre 2009

  321. NEPAD : Global Financial Institutions must be Democratized, South Africa says at UN debate
    23 septembre 2009

  322. NEPAD’s biosafety receives boost from the Gates Foundation
    15 octobre 2009

  323. NEPAD : “Our Focus is on implementation “ , says Mayaki
    19 octobre 2009

  324. The NEPAD Transport Summit & Africa Expo
    28 octobre 2009

  325. Le 3eme Forum UE-Afrique soutient l’initiative des e-Ecoles
    15 octobre 2009

  326. NEPAD’s biosafety receives boost from the Gates Foundation
    15 octobre 2009

  327. Liberia signs CAADP Compact
    16 octobre 2009

  328. Africa-wide Conference to Discuss Strategies to Boost Agricultural Development
    23 novembre 2009

  329. NEPAD - Transport Summit in South Africa
    24 novembre 2009

  330. African leaders strengthen NEPAD – as it transforms into an implementing Agency
    3 février 2010

  331. Action plan to boost African countries’ progress in pharmaceutical innovation
    22 février 2010

  332. Commission for Social Development, Concluding Session, Adopts Text On Social Dimensions of NEPAD
    11 mars 2010

  333. NEPAD : Uganda signs Africa Agriculture Development Programme (CAADP) Compact
    31 mars 2010

  334. Kampala : Ouverture sous haute sécurité du XVe sommet de l’UA
    25 juillet 2010

  335. Dure fin de sommet de l’Union africaine à Kampala
    3 août 2010

  336. The NEPAD Transport Infrastructure Summit, 13-15 October, 2010 Johannesburg (South Africa)
    12 juillet 2010

  337. The New Partnership for Africa’s Development is 10 years old - NEPAD at the Crossroads
    9 mars 2011

  338. Union africaine : Nkosazana Dlamini-Zuma : un nouveau départ ?
    21 mai 2013

  339. 3rd EU- Africa Business Forum Supports the e-Schools Initiative
    15 octobre 2009