BY DANIEL ALEMAYEHU
The current waves of challenges happened around the world have caused various damages and inconveniences in different countries. Almost all countries all over the globe have experienced the challenges. In every corner, anyone can be a witness that the global pandemic, COVID-19 and the war between Ukraine and Russia created a skyrocket price strike on crude oil.
The two aforementioned global challenges have hit Africa hard enough in a way its people have suffered a lot in coping up the pressure induced by those problems.
In a similar vein, Africa has been tried to advance its economic progress to the higher level. The queries of developing in economic and social standards have been the core circles of the leaders of African nations. The continental organization the African Union has planned both short and long term objectives to create a continent under the theme ‘Africa We Want’
Under the big theme’s umbrella, African nations have crafted two goals in different time frames, the Agenda 2030 and Agenda 2063. In both periods, the continent strives to achieve its long-awaited goals and make the continent a favorable place for its citizens..
Despite the sole wish regarding accomplishing the plans, African nations have suffered a lot from various global shocks that hampered the overall progress of the continent. Though these challenges are existed, the continent has not stopped from finding an escape route from those hurdles and look for a better way to reach to the objectives.
When Africans think of creating a better continent that can live its name ‘Africa We Want’, the first question that should be answered is how the continent stands by its feet in relation to economic, social, and political stances in the eyes of the world
It is the fact that Africa has lived equally valued history with the rest of the world. Notwithstanding, Africans have stories to share with the world; the continent could not cope up the pressure that the new world system demands. To this end, the leaders of the continent coupled with responsible stakeholders should work on the possible ways to bring change
In promoting continental change in different aspects, increasing the regional integration among African states is vital. Creating African Continental Free Trade Area is one of the key achievements in the continent’s journey towards trade and market integration. African states have agreed to work for macroeconomic integration and the objectives.
Lately, the United Nations Economic Commission for Africa (UNECA) has organized the 2023 ECA Conferences of Ministers dubbed ‘Fostering Recovery and Transformation in Africa to Reduce Inequality and Vulnerabilities’. On the Forty- First meeting of the Committee of Experts of the Conference of African Ministers of Finance, Planning and Economic Development 2023, various issues of the continent have been raised and discussed. creating common market and monetary policy, enhancing infrastructure development are the key steps to achieve the objectives.
Lately, the United Nations Economic Commission for Africa (UNECA) has organized the 2023 ECA Conferences of Ministers dubbed ‘Fostering Recovery and Transformation in Africa to Reduce Inequality and Vulnerabilities’. On the Forty- First meeting of the Committee of Experts of the Conference of African Ministers of Finance, Planning and Economic Development 2023, various issues of the continent have been raised and discussed.
According to a report presented in the conference on Assessment of progress on regional integration in Africa by the Director, Regional Integration and Trade Division of the Economic Commission for Africa, Stephen Karingi, the African Union has recognized five of the eight regional economic communities to address inflation, budget deficit, public debt and current account deficit ceilings. Due to exceptional circumstances such as COVID-19 and other macroeconomic difficulties, each of the regional economic community faced major challenges in order to achieve one’s own objectives.
The report further mentioned that most states have taken their own action to cope up the negative impact of the supply and demand shocks posed by the above mentioned global pandemic. It also created a negative impact on growth in their fiscal deficits. Almost all states have encountered with major economic difficulties along with continuous geopolitical crises and supply chain disruptions fuelled inflation.
To support member States in their formulation and implementation of economic policy, ECA developed a prototype macroeconomic model and provided macroeconomic modeling support and training in 15 countries. Besides, regarding the fiscal side, “ECA supported taxation policy reform and revenue collection in Ethiopia, Kenya, the United Republic of Tanzania and Zambia by disseminating knowledge products, providing capacity-building services and other technical support, and facilitating peer-learning.”
In order to achieve the forecasted objectives of the continent Africa, the query of building and facilitating infrastructure comes first. The report further stated that ECA and member states have taken actions to promoting the infrastructure and energy sectors in the continent. Such sectors are very essential to realize the effective implementation of the African Continental Free Trade Area. Unfortunately, Africans could not fulfill the necessary infrastructure that is needed to implement the trade smoothly.
The report states, “Africa remains constrained by huge infrastructure gaps, with an estimated annual financing need of between USD 130 and 170 billion, and an annual financing gap of between USD 68 and 108 billion. Many African countries have made important investments in infrastructure, including in road, rail, air, water, energy and information and communications technology. These investments have played a key role in the continent’s growth performance over the past decade.”
It is important to remember that global situations mainly the pandemic and the war in Ukraine have caused huge lose in the world’s economy. Such challenges, the report revealed, have a direct impact on the investment that aims to develop infrastructures in Africa. In addition, the challenges have also imposed its negative pressure so that delays in the implementation and completion of infrastructure projects are observed. This also has a direct relation with the rising input and operation costs, among other problems
“In 2012, the continent endorsed the Program for Infrastructure Development in Africa. The first phase of the Program’s implementation, in line with its priority action plan, ended in 2020. It comprised 409 projects covering transport, energy, water and information and communications technologies, of which roughly 38 percent are under construction or are operational. The second phase was approved in 2021 and
will be implemented until 2030, with the focus on an integrated corridor approach to infrastructure development on the continent. Totally, 69 projects have been approved in the transport, energy, information and communications technology, and trans- boundary water sectors,” the report mentioned.
Apart from the development of infrastructure and energy sectors in the continent, the road infrastructure has a great impact on the realization of those objectives. The report noted that Sub-Saharan Africa has roads length approximately a third of the South Asia. “Continent-wide, the total length of the regional road network is around 194,000 km, of which nearly 35 per cent is located in North Africa and 21 percent in Southern Africa. Central Africa has the smallest regional road network, accounting for approximately 8 percent of the total regional road network in Africa.”
The report said African states’ leaders keep on supporting continental initiatives including transcontinental projects. Promoting trade through highway infrastructure development and management of road-based trade corridors is implemented by Trans-Africa Highways Network
“The Trans-Africa Highways Network comprises nine highways and a total of 56,683 km in length. The roads are about 60 per conducive for transportation, while about 40 percent is below the average standard. As of 2020, Egypt and Kenya registered, respectively, 20 percent and 80 percent completion in their segments of the Trans- African Highways Network, while Ethiopia, Cote d’Ivoire and Senegal recorded 100, 20 and 60 per cents completion, respectively,” the report noted.
On top of that, the rail transport is under construction in a member of states. The report revealed that starting from 2020; the existing African railway network totaled nearly 85,000 route-kilometers against a total surface of 30.2 million km2. There is around 48,000 km of regional railways in Africa, with significant regional heterogeneity.
THE ETHIOPIAN HERALD THURSDAY 6 APRIL 2023
