12 °c
London
Saturday, August 13, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Logistics

Africa banking on transport sector to grow economy – AfCFTA

The Exchange by The Exchange
June 27, 2022
in AfCFTA, Africa, Logistics
Reading Time: 4 mins read
814 8
0

Aviation industry in Africa is one of the most crucial sector in the economy for most countries: Photo by Europa CEO

Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

South Africa, Nigeria, Kenya and Tanzania have build strategic roads that connect their nations with neighboring countries, expanding economy

  • Kenya and Ethiopia have one of the most iconic aviation industries in Africa
  • Tanzania has strategic inter-region roads that feed cargo to landlocked nations
  • South Africa has the most road network in the region

Africa is the move in the air, on water, and terrestrial.

Roads in Tanzania empower farming communities’ economies. East Africa is now advancing with state-of-the-art airports, and the newly constructed standard gauge railway in Kenya and Tanzania is transforming how people move over space and time.

The Entebbe airport stands to transform Uganda’s movement over time as it advances to become an oil economy alongside Tanzania.

South Africa, one of the wealthiest countries, has the largest road network, 750,000kms, while Tanzania, East Africa’s competitive economy, has more than 86,000km of roads.

Also read: The 10 most electrified countries in Africa

In the current economic scenario, where uncertainty brought by economic shocks from the pandemic and political tensions force nations to expand their horizon of influence, the past years have shown why African infrastructures must be robust and conducive to enhancing value creation.

Whoever moves fast and swiftly dominates the economic conversation. South Africa, Kenya, Namibia and Nigeria are among the top African nations with more robust economies.

However, in the Tanzanian context, road transport is the most widely used form of transport in Tanzania, carrying around 90 per cent of the passengers and 75 per cent of the freight traffic in the country (Tanzania Invest).

Africa has moved past the days of playing catch up with the developed world. The region is now expanding its own sustainable and tailored economic system that suits its environment and demands over space and time.

In that line, transport systems are now evolving. Gone are the days when road networks were the only means of movement over space and time. Kenya and Tanzania are changing that narrative as advanced railways and aircraft move people and cargo 24/7, saving time and enhancing productivity,

Africa is ready

The African Continental Free Trade Area (AfCFTA) is one of Africa’s customized approaches in the region’s economic arsenal. It is expected to increase intra-African trade in transport services by nearly 50 per cent, according to Economic Commission for Africa (ECA) estimate.

Also read: Africa determined to eradicate poverty, build shared prosperity

The United Nations (UN) notes that the AfCFTA requires at least 1,844,000 trucks for bulk cargo and 248,000 for container cargo by 2030. This gap is necessary for the region to revitalize its roads, railway, waterways and air networks to bank on the latter.

The ECA estimates indicate that with AfCFTA, over 25 per cent of intra-Africa trade gains in services would go to transport alone, and nearly 40 per cent of the increase in Africa’s services production would be in transport.

It is not rocket science that crude and inefficient infrastructure is a roadblock for African economies to flourish, especially for emerging economies. Hence attaining global value from all fronts of development requires robust infrastructure networks.

With the latter on the table, Africa can bank on its transport economy potential and become a strategic investment portal worldwide.

What do the numbers say?

Africa has the potential to become a sensational economic powerhouse. According to the World Bank (WB), African regional trade remains hugely under-utilized.

“Trade between African countries currently represents only 12 per cent of total economic activity in the region, compared to 60 per cent in Europe and 40 per cent in Asia,” notes the World Bank.

The WB is one of Africa’s closet development partners and has been working its way to improve the region’s infrastructure since 2010 via a $228 million project that goes directly into modernizing transport and customs infrastructure along the Abidjan-Lagos Corridor.

The region is building its way to the top standing on a US$2.7 trillion collective GDP, and developing an infrastructure network that functions like clockwork is essential.

The United Nations estimates that approximately 60 per cent of the continent’s population lacks access to modern infrastructure, divorcing communities, limiting access to health care, education and jobs, and more importantly impedes economic growth.

According to Tralac, a South African independent think-tank, inadequate transport adds around 30 to 40 per cent to the costs of goods traded along with African nations.

As 16 nations exist in landlocked geographic locations, countries such as Tanzania, Uganda, and Kenya are developing infrastructures, particularly roads and railways transporting people and cargo to locked nations such as Burundi and Rwanda.

Also read: Crypto integration incentivizes Africa fintech transition

On the other side of the aisle, projects waved by WB are tackling critical angles such as reducing border crossing times and the quality of the roads.

“A new US$470 million project that will promote regional integration and economic opportunities in Burkina Faso, Niger, and Togo has just been launched”, according to WB.

However, it is not only about improving road networks across the region it is about sustainability and efficiency. Border crossing causes a lot of trouble in West Africa—as it is slow and complicated, particularly for West Africa.

Attending to this problem is essential as it cuts the dead-wood in the entire road transport landscape for such long-distance corridors, such as Dakar-Lagos.

Ethiopian Airlines, Kenyan Airways and South African Airlines have demonstrated how vital infrastructures that function well boost local economies, hence replicating the latter in other nations is crucial.

Related

Source: The Exchange
Tags: africaAfrica banking on transport sector to grow economy - AfCFTAAfrican infrastructuresaviation industries in AfricaBurkina FasodevelopmentEthiopian AirlinesKenyaKenyan AirwaysLogisticNigerNigeriaRailwayroadsSouth AfricaSouth African AirlinesTanzaniaTogoTralacwaterwaysафрикаأفريقياアフリカ非洲
ScanSendShare329Tweet206Share58Pin74Send
The Exchange

The Exchange

News analysis and comment from the The Exchange, a leading publication providing economic news and analysis on the capital markets of Africa, with a specific interest in Kenya, Uganda, Tanzania, Rwanda, Burundi, Ethiopia and Congo. We provide features in banking, capital markets, energy, mining, manufacturing and industrial development.

Related Posts

Culture

Meet 3 Richest African Immigrants in the US Millionaires Club

by See Africa Today
August 13, 2022
Culture

7 Africa’s Longest Serving Presidents

by See Africa Today
August 13, 2022
Economy

Mozambique’s 22% tax cuts among 20 measures for economic acceleration

by The Exchange
August 13, 2022
Tech

NFTs and blockchain crucial in concept of an African Metaverse

by Web3Africa
August 13, 2022
The new currency notes in Ethiopia
Finance

Development Bank of Ethiopia to provide 10 Billion Birr loan for SMEs

by FurtherAfrica
August 12, 2022
Angola Oil & Gas 2022
 
AFSIC 2022
 
Great Limpopo Transfrontier Park
 
MozParks

Translate this page

Read the Latest

Culture

Meet 3 Richest African Immigrants in the US Millionaires Club

by See Africa Today
August 13, 2022
0

The US is always a top choice for immigrants, and it remains unchanged for decades, giving existence to the richest...

Read more

7 Africa’s Longest Serving Presidents

August 13, 2022

Mozambique’s 22% tax cuts among 20 measures for economic acceleration

August 13, 2022

NFTs and blockchain crucial in concept of an African Metaverse

August 13, 2022
The new currency notes in Ethiopia

Development Bank of Ethiopia to provide 10 Billion Birr loan for SMEs

August 12, 2022

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 99,392 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?