Africa should improve infrastructure while waiting for AfCFTA to take effect.

Published: January 24,2022

African nations need to establish and/or reinforce their infrastructure to meet the looming implementation of the Africa Continental Free Trade Agreement (AfCFTA), a panel of speakers participating in the UK-Africa Investment Conference said.

Workers build a highway in Cairo, Egypt, on Nov. 2, 2021. Egypt will be transformed by 2024 into one of major global hubs for transport and logistics through a massive 10-year plan to modernize its transport infrastructure, Egyptian Minister of Transport Kamel al-Wazir has said. /Xinhua

“For the African free trade area to function effectively, the goal would be [to have] effective infrastructure, transport, energy and digitalization,” said Africa Union infrastructure, energy and information and communications technology commissioner, AmaniAbou-Zeid.

She added that Agenda 2063 – which is the African agenda for integration and the blueprint and master plan for transforming the continent into a global powerhouse of the future – would facilitate the AfCFTA, as well as other integration projects.

“I am happy to say that, as we speak, we have large programs for regional and transcontinental infrastructure, including transport. Same thing for energy. Last June, we launched the African single electricity market. “Along with that, we have the African single air transport market, and as I speak, 39 countries have joined that market and we are in the process of creating that new market,” said Abou-Zeid.

Diageo Africa supply chain director Colin O’Brien said that, through the AfCFTA, the opportunity to be able to export competitively and sustainably from African markets into other markets in the region is “really attractive”.

Photo taken on Oct. 14, 2020 shows the Nairobi Expressway under construction at Bellevue in Nairobi, capital of Kenya. (Xinhua/Charles Onyango)

However, he said infrastructure, and particularly transport infrastructure, as well as the ability to move products freely from one market to another, will be very attractive for Diageo and will build on the efficiencies of operations it has in some of its big markets.

“The other big opportunity we see is around electricity and renewable energy in particular and creating grids where markets [with] big renewable energy potential can export electricity across the region,” said O’Brien.

He added that having the potential to avail that renewable energy in markets that are a little more challenged in terms of having electricity, is hugely important.

Unilever Africa finance VP MikatekoTshetshe cautions that the European version of AfCFTA took over 30 years to establish and that AfCFTA will take just as long.

She says serious investment and a mindset of using what Africa already has in place as it develops the required infrastructure will help AfCFTA to “actually operate optimally”.

“The investment we need from the community on this particular platform is investing in road, rail and air transportation. Investing in systems that will enable Africa to integrate and obviously also providing any best practices and knowledge to help ensure we are creating an effective market that is well integrated for technology”.

Xinhua