Freeing up African trade: Private sector's crucial role

Private sector investment is playing a crucial role in enhancing cross-border commerce and addressing key challenges in intra-African trade. Sylvester Kasuku, CEO of the African Center for Transport, Infrastructure & Regional Integration, highlighted the significant progress being made in Africa through private sector engagement. The drafting of Agenda 2063 in 2012 kickstarted a wave of private investment in infrastructure projects across the continent. Under the Programme for Infrastructure Development for Africa (PIDA), 52 priority projects were identified, with a budget of $360 billion allocated for implementation by 2040. A notable aspect of this private sector involvement is the substantial investment in ports. Ports like Alexandria, Tangier, Dakar, Abidjan, Apapa, Tinkang, Kalaba, Walvis Bay, Maputo, Lamu, and Djibouti have attracted multi-billion dollar projects. Beyond ports, mega projects like the Kenya Standard Gauge Railway, Ethiopian Djibouti Railway, Tangier-Casablanca High-Speed Railway, Tanzanian Railway, Kazumula Bridge, Lampset Corridor, and the construction of highways have demonstrated the scale of private sector investment in Africa's infrastructure. Out of the $360 billion required for priority infrastructure development by 2040, over $200 billion has already been allocated and spent. With 16 years remaining to complete the regional integration and infrastructure component of Agenda 2063, it is expected that even more funding will be absorbed. Projects like the Grand Inga Dam, a hydroelectric power station, are also attracting significant private sector interest, indicating a shift towards renewable energy initiatives in Africa. Sylvester Kasuku emphasized that while progress has been made within the 52 PIDA projects, several other infrastructure projects have been successfully completed outside this framework. The private sector's involvement in these projects not only drives economic development but also facilitates connectivity and trade across borders in Africa. With ongoing investments and a focus on infrastructure development, Africa is poised to further enhance its position in the global market.