Trade routes across Southern and East Africa could soon be transformed by an ambitious transport initiative being launched by three of Africa’s main Regional Economic Communities (RECs), supported by the British government’s Department of International Development (DFID) and other international agencies. The project aims to create a reliable and efficient transport network and reduce bottlenecks along the main trading routes through eight African countries namely – South Africa, Zimbabwe, Zambia, Tanzania, Democratic Republic of Congo, Malawi, Botswana and Mozambique. Presidents Mwai Kibaki of Kenya, who is also the COMESA chairman, Yoweri Museveni of Uganda and representing the EAC, Kgalema Motlanthe South African President and SADC Chairman, EU Trade Commissioner Catherine Ashton, World Trade Organization Director General Pascal Lamy, President Donald Kaberuka of the African Development Bank, World Bank Vice President Obiagele Ezekweseli and Erastus Mwencha, Deputy Chairman of the African Union will attend the conference in Lusaka. Zambian President Rupiah Banda will host the meeting. Faster border crossings and improved railways and highways will improve the access of producers, especially in landlocked countries, to regional and international markets, stimulating economic growth and investment. In addition to upgrading infrastructure and simplifying customs and regulatory procedures, the integrated series of projects will also include measures to improve power supply and transmission in the 12 Southern Africa Power Pool members. The extensive North South Corridor project is being driven by the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC) and Southern African Development Community (SADC). The Corridor, which is a pilot Aid for Trade programme, comprises two priority NEPAD Corridors:
• The Dar es Salaam Corridor linking the Dar es Salaam port with the Copperbelt in Zambia and Democratic Republic of Congo; and
• The North-South Corridor, which links the Copperbelt to South Africa’s ports. The key stakeholders will work with funders and businesses on a programme to reduce transport time and costs along the North South Corridor.
The estimated total cost of implementing all projects and programmes is about US$1 billion over a five to 10 year period. Some of this will be in grants and concessionary loans but there are also many opportunities for private investment. EAC Secretary General Juma Mwapachu, who is the current chair of the RECs’ Tripartite Task Force, says: “Deepening regional integration and partnering with the private sector are key to addressing the challenges of resource mobilisation and improving competitiveness. “Infrastructure is what unlocks the economic space so if it is not delivered, we cannot optimise the large market space we have created. For too long there has been the notion that financing infrastructure is a white elephant and a process riddled with corruption. But times have changed – we now have proper governance structures in all our economies.” The UK’s International Development Minister, Gareth Thomas, commented:“The UK’s Department of International Development is pleased to be backing this initiative and I would welcome other donors to join this unprecedented commitment to deliver infrastructure improvements on a scale that will put the region on a path to sustained growth and competitiveness, generating the jobs and opportunities necessary to tackle poverty. “The drive to free up the transport blockages could be worth tens of millions of pounds a year to African economies and will strongly increase the incentives for more investment in the region." World Trade Organization Director General Pascal Lamy says: “Aid for Trade is essential to support Africa's own economic growth agenda. The North South Corridor is an example of a highly innovative regional Aid for Trade approach that can transform competitiveness and enhance regional trade flows. The Corridor projects will promote development and poverty alleviation in the Southern African region and promote deeper regional integration. Such initiatives have never been more urgent than in the current global economic climate.”