Strategic logistics are an important consideration in the long term planning and
development of Africa’s regional transport infrastructure. Big data analysis show
that seven key African corridors represent 3% of land, yet account for 20% of the
population and 17% of all economic activity on the continent. These same corridors
account for two-fifths of consumers, one-third of youth and of those employed, and
at least one-half of those with bank accounts.
The importance of logistics to trade and competiveness cannot be overemphasized.
ECA’s research, shows that trade facilitation – defined as an increase in the efficiency
of customs procedures combined with a reduction of the time that merchandise spends
at African ports – can significantly enhance the impact of the African Continental Free
Trade Area (AfCFTA). Evidence shows that, if the establishment of the AfCFTA is
accompanied by the adoption of a more efficient system of trading across borders, the
share of intra-African trade will increase by more than two-fold between 2010 and
2022, rising from 10.2% to 21.9%. As a share of total exports, African exports to their
partners from the continent would grow at a similar pace for agriculture and food
products (57.6%) and for services (52.9%), and at a much higher pace for industrial
products, from 11.6% in 2010 to 25.0% in 2022 (a growth rate of 126.1%).
But Africa will only reap these benefits if it is able to improve its infrastructure
network and overcome its proximity gap, which is the cumulative result of long distances
to markets, being landlocked, and sub-optimal agglomeration patterns, which impacts
on transport costs.
We know that there is a relationship between geography, infrastructure, transport
costs and trade. A deterioration of infrastructure raises transport costs and reduces traded
volumes, especially for landlocked countries. Research shows that improving road
conditions from fair to good could reduce transport costs by 5 per cent. Countries like
Chad can increase their exports by 79.3% by improving infrastructure quality to a level
half that in South Africa.
Regional and international cooperation and investment in transport infrastructure
and trade facilitation are necessities. Initiatives such as the Trans-Africa Highway
network (TAH) are informed by the role of transport infrastructure in enhancing
competiveness. TAH, when complete, is expected to see a system of roadways that
extend 57,300km combined across the continent.
The Belt and Road Initiative (BRI) can play a major role in closing some of the
missing links of major transport corridors, including the TAH, and speeding up the
implementation of priority projects of the Programme for Infrastructure Development
in Africa (PIDA) and flagship projects of the African Union’s Agenda 2063 such as
the African integrated high-speed railway network. Improvement in these strategic
logistics projects could have a significant impact on livelihood, cross border traffic
and trade in Africa. Anchoring the BRI to existing corridors and opening new corridors
in Africa could multiply such outcomes. Creating the African single market and the
Single African Air Transport Market (SAATM) are all steps Africa is taking to
improve logistics and, well positioned, the BRI could help accelerate the process.
