MBALULA URGES EFFORTS TO OVERCOME INEFFICIENCIES, INFRASTRUCTURE BACKLOGS

Transport Minister Fikile Mbalula has made a strong call to correct
inefficiencies and tackle infrastructural backlogs.

“We must accept that the way we have been working
is not working. We must grow Africa’s economy and connect our economies fast.
Time is against us,” he warned at the opening of the African Ports and
Rail Evolution Forum, in Durban, on Tuesday.

Rather than repeating what had been said at
previous conferences about Africa’s natural endowments and underdevelopment,
Mbalula cut to the chase with a call for all stakeholders to work together to
connect Africa to the rest of the world and Africa to Africa using a “sustainable
and people first economic trajectory”.

Despite its vast market and potential, Africa did
not trade with itself, Mbalula pointed out. This was in stark contrast to the
rest of the world.

In the European Union, for example, 80% of trade
with the so-called ‘rest of the world’ happened within the same customs union.
In the Southern African Development Community region, only 3% of so-called
‘world trade’ happened within the region.

Turning to the African Continental Free Trade Area
Agreement (AfCFTA) which had been agreed to by 54 heads of government in 2018,
he said: “Despite its significance, the potential for the transport sector to
contribute to full integration of the region is constrained by serious
operational and infrastructure inefficiencies . . . with 54 countries, over 190
international boundaries and 350 border crossings, it is indeed a process to
coordinate [operations] and add uniform standards,” he noted.

However, Mbalula believes this is not an
unachievable goal.

He said that, in addition to dealing with
operational delays and congestion at border crossings, which added to the
inefficiencies of the cross-border system, it was important to establish a
regional authority that could set and enforce systems and standards.

In addition, he said, there was an urgent need to
deal with port inefficiencies and to mobilise resources to modernise ports
across Africa so that turnaround times could be improved. The high cost of
berthing due to long dwell times also needed to be addressed.

Mbalula said substantial investment would also be
needed to address serious infrastructural backlogs on continental road and rail
corridors.

Because investment and the integrity of
infrastructure were at such low levels in Africa, the continent had lost 25% in
total potential economic growth over a period of 20 years. If foregone
opportunities for job creation and other multipliers were taken into account,
this percentage would probably be higher.

He said countries in the region also needed to
reconsider their tariff regimes and find ways to make it easier to do business
in Africa.

One of the most difficult tasks would be mobilising
private sector funders to help AfCFTA signatories to develop cross-border
infrastructure and create jobs in the region.

He called on the private sector to realise Africa’s potential and called on government to seek partnerships with the private sector. http://www.engineeringnews.co.za/article/mbalula-calls-for-efforts-to-overcome-inefficiencies-infrastructure-backlogs-2019-10-16