Africa’s regional and continental transport system is deficient in terms of both quantity and quality of infrastructure and the level of services, and also in terms of investments and maintenance. Generally speaking, the system is very inadequate, and does not fulfil its function as a catalyst for the continent’s integration and trade facilitation. Transport costs are among the highest in the world, which increases the cost of trade and makes products uncompetitive on international markets. For landlocked countries, transport costs can reach up to 77% of the value of exports. The transportation of a car from Japan to Abidjan costs US$ 1 500 (inclusive of insurance costs) whereas the same operation from Addis Ababa to Abidjan costs US$ 5 000.
PIDA PAP 2 Transport Sector Approach
In accordance with the aspirations of the African Union Agenda 2063 also adopted as the strategic framework for development of the second phase of the Programme for Infrastructure Development Priority Action Plan (PIDA PAP 2), NEPAD-IPPF shall align its selectivity to this overall framework.
New NEPAD-IPPF project selectivity shall broadly be guided by the integrated corridor approach. As defined under the AU PIDA PAP 2 framework, the integrated corridor approach prioritizes projects that improve connectivity between urban and rural areas and link different infrastructure sectors together, which if developed together would cost less and develop cross-sectoral synergies. This approach also emphasizes projects that maximize job creation and climate friendliness.
For the transport sector this shall comprise infrastructure projects that enable connection of and interdependencies between regions and countries, promoting intra African and international trade, industrial development and facilitating movement of people, goods and services. Of specific focus will be projects that are amenable and attractive to the private sector for investment and operation under Public Private Partnership (PPP) arrangements.
Project Types
The following are examples of projects that fit this sector approach to be supported by the Special Fund:
- Road/highway sections and bridges that are part of or link to regional and continental corridors, with a higher priority given to tolled assets or those to be operated under a concession;
- Regional railway corridors linking hinterland countries to international seaports;
- Regional hub ports providing international sea access to landlocked countries;
- Regional or sub-regional airport hub infrastructure, and;
- Regional inland waterways linking landlocked countries to international seaports.
In all the above project types, higher priority will be given to assets that will be structured to attract private sector investments through PPP type arrangements, and those being or planned to be operated under concession contracts.