The EU and the major transport projects in Africa

The serious lack of transport in Sub-Saharan Africa is a challenge that the EU and Africa are tackling together, through their Partnership on Infrastructure.

This partnership provides a strategic framework to improve the interconnection of transport networks across the continent. It is supported by the European Development Fund through its traditional instruments – such as the National and Regional Indicative Programmes – and the EU-Africa Infrastructure Trust Fund, which was specially created for large regional infrastructure networks. The partnership functions alongside other major initiatives such as the Infrastructure Consortium for Africa (ICA), PIDA (Programme for Infrastructure Development in Africa) – a joint initiative of the African Union Commission – NEPAD, the African Development Bank, and the SSATP (Sub-Saharan Africa Transport Policy Programme) – which unites 35 African countries and their regional communities, with support from 11 donors.

 Transportation corridors: the backbones of development

“Transport is primarily a matter of connectivity”, explains Paulus Geraedts, Head of Sector, Infrastructure Networks and Urban Development at EuropeAid, the directorate-General responsible for development and cooperation at the European Commission. “The aim is to connect countries with other countries, regions with other regions, and Africa with the world. The EC is focusing on the trans-African corridors and on funding the missing links that are also a priority for the African Union Commission. It also supports national programmes, either by focusing on sections of regional corridors or, at the request of individual countries, by developing their local networks, improving road access in rural areas and urban mobility.”

The European Commission provides the African transport sector with around €600M in donations every year. In cooperation with financial institutions in Europe, it uses the EU-Africa Infrastructure Trust Fund for large cross-border projects such as the Beira Corridor, the Great East Road, the development of the Pointe Noire port, theenlargement of the Walvis Bay Port, the extension of the Kenyatta International Airport, and the Namibia Integrated Transport Master Plan.

The Zambian section of the Great East Road Nacala Corridor project, which links the Mozambican port of Nacala to Zambia via Malawi, covers 360 kilometres at a cost of €250M. “It is a great example of European coordination. It involves the EIB, the French Development Agency, the European Commission, and the EU delegation in charge of the dialogue with the Zambian authorities,”said Juergen Kettner, a transport policy and infrastructure specialist at EuropeAid. It is also an example of an international partnership involving numerous parties funding its different sections, including the African Development Bank – which is involved in the Mozambican project – , and the Japan International Cooperation Agency (JICA).

The national authorities – specifically the ministries of Transport, Finance, and Public Works – are responsible for the implementation of the projects and for negotiating with donors, and “it is important,” says Paulus Geraedts, “to coordinate national, regional and continental policies. We support the AU Commission in its efforts to establish a cohesive overview and vision, to develop strategic programmes such as PIDA through which it seeks to influence the continent as a whole and to play a coordinating role in developing its transportation corridors. Additionally we support the African regional organisations in their work to achieve regional integration and trade facilitation, the harmonisation of standards, for example, or the construction of juxtaposed customs posts in West Africa.”

But public resources (whether national African resources or those provided via public development aid) are insufficient given the magnitude of the requirements. In accordance with the new priorities set out in the recent Green Paper on Development Policy[1], the EC wants to encourage the private sector, which is the main engine of growth, to become a development partner. “Private investors may be interested in the market but they are scared off by political risks, currency risks, and governance issues. We are developing ways of working with them, for example by combining our financial contributions with their long-term funding. The private sector could benefit indirectly from projects co-financed by European financial institutions using the Trust Fund,”says Paulus Geraedts.

The Chinese presence: a challenge for the EU and Africa

Chinahas invested billions of dollars in the infrastructure sector in Africa: the Infrastructure Consortium for Africa's annual report said Chinese investment amounted to around US$5 - 6 billion in 2010. “This clearly presents a challenge. Europe provides a full package, including the political dialogue and partnership that goes along with donations and investments,”says Paulus Geraedts. It could be said that the Chinese, for their part, offer to build roads in exchange for access to primary materials. “It’s up to the Africans to choose, which is also a challenge for them,” he notes. “Governments have sometimes indicated that on particular projects, they prefer to work with the Chinese. That's life. But the requirements are so significant that there's room for everyone, however it seems to me that it is necessary to establish a sort of ‘fair play’. ” The EC believes that Africa, China, and the EU should work together to identify a number of areas where trilateral cooperation may be beneficial, and is attempting to get this dialogue going. “In Zambia for example we are already in contact with the Chinese,”says Juergen Kettner. “The challenge is to enter into a dialogue with our Chinese colleagues in order to come to an agreement on common priorities with the government and to channel funds appropriately. We prefer to work with partners rather than in isolation.”

India, Brazil, and Japan are also involved. “It's a fascinating time and the game plan is still not clear”, says Paulus Geraedts. “The G20 could play a significant role in bringing together developed and emerging economies, as donors with developing economies such as the African countries, as beneficiaries.”

Marie-Martine Buckens

[1]The Green Paper on EU development policy in support of inclusive growth and sustainable development  : visit http://ec.europa.eu/europeaid/how/public-consultations/5241_en.htm to see the results of the public consultation and background documents