Article
citation information:
Mindur, M. Economic and transport
aspects of the African Union. Scientific
Journal of Silesian University of Technology. Series Transport. 2018, 100, 143-156. ISSN: 0209-3324. DOI: https://doi.org/10.20858/sjsutst.2018.100.12.
Maciej MINDUR[1]
ECONOMIC
AND TRANSPORT ASPECTS OF THE AFRICAN UNION
Summary. The paper addresses the
changes on one of the largest continents, Africa, in aspect of transport
systems and the economy. The African Union is a chance to integrate this area
from many points of view. Infrastructure, the economic grow rate and transport
development were also analysed.
Keywords: African Union;
transport.
1. INTRODUCTION
Africa is the second-largest
continent in the world, yet the economy of most African countries should be
characterized as underdeveloped. In 2016, the overall GDP of Africa was as low
as 1.5% [24], while the GDP per capita was the lowest among all continents (USD
1,809). Some exceptions to the above rule are the cases of the North and South African
regions, where one can observe diversified production. Despite numerous
challenges, such as terrorism, drought and pandemics, many African countries,
especially those located in the sub-Saharan region, focus on upgrading their
economies by implementing adequate policies intended to stimulate retail trade,
transport, telecommunications and production. Owing to such efforts, the
average GDP growth in the decade 2004-2015 equated to about 5% [7], although
2016 saw an economic slump in Africa, mainly in countries strongly dependent on
the export of minerals and energy-producing raw materials, where the value of
this kind of export was conditioned by prices in global markets. In this day
and age, nearly half of all African countries have already oriented themselves
towards the diversification of national economies [26].
One should also bear in mind that,
even though the African continent is particularly abundant in natural
resources, more than 60% of its population is involved in agriculture (the
share of agriculture in Africa’s GDP is about 32% [10]).
Table 1
Breakdown
of continents according to GDP per capita in 2016 [18]
|
Continent |
GDP
per capita (USD) |
|
North America |
37,477 |
|
Oceania |
35,087 |
|
Europe |
25,851 |
|
South America |
8,520 |
|
Asia |
5,635 |
|
Africa |
1,809 |
|
Global average |
10,300 |
Direct trade between African
countries accounts for as little as 14% of the total trade in goods. It is a
relatively low percentage value compared to the Association of South East Asian
Nations (ASEAN) or the EU, whose intra-regional trade comes to 25% and 60%,
respectively.
In terms of population, Africa is
only outranked by Asia: in 2016, inhabitants of Africa accounted for 16.4% of
the global population (59.8% attributed to Asia) [12].
2. AFRICAN UNION
Despite the economic and
political instability of African countries, most of their leaders strive for
improved dynamism in integration for the sake of a more profound pursuit of the
idea of pan-Africanism. There are numerous
regional organizations currently operating in Africa, also referred to as
regional economic communities, incorporating different countries, with a single
country able to participate in several such organizations. Their collaboration
pertains to the unconstrained transport of goods and people or free trade
zones.
One of the most
important among such international organizations in the past, with nearly all
African countries except for Morocco as members, was the Organization of
African Unity (OAU) established in 1963 in Addis Ababa, Ethiopia, which ceased
to exist in 2002. It was replaced by the
African Union (AU), which was founded for numerous purposes including
acceleration of the process of economic and political integration of the whole
continent. Its main challenge is to maintain unity and peace in
African countries, and further its principal tasks include fighting poverty and
pursuing major economic improvements on the continent [8]. The AU’s
vision is an “integrated, prosperous and peaceful Africa, driven by its
own citizens and representing a dynamic force in the global arena”, while
its main objectives are the following:
· promoting the idea of
democracy and democratic institutions (contrary to the above, believed to be a
club of dictators)
·
intensified protection of human rights on the
African continent
·
implementation of mechanisms of mutual
influence, aimed to put an end to military conflicts and prevent them in the future
·
building and sustaining an all-African outlet
market (by following the global trend of large trade blocs being established)
·
reducing trade with former colonial powers in
favour of intra-continent trade (fighting dependence)
·
increasing the inflow of foreign capital
The AU is composed of
all African countries. It was decided at the AU summit held in 2017 in Addis
Ababa to readmit Morocco to the organization. It used to be the only African country that neither participated in the
OAU, nor in the AU, after it withdrew from the latter in 1984 as a consequence
of the dispute over Western Sahara, a former Spanish colony. Morocco considers
Western Sahara to be its province, while the OAU recognized its independence.
The most important AU
body is the Assembly of the AU, comprising heads of individual governments,
heads of states as well as their representatives. The assembly is convened at
least once a year to decide on the organization’s future endeavours.
Other bodies functioning under the AU are:
· Executive Council -
composed of ministers or authorities appointed by governments of member states
and reporting to the assembly
· Pan-African Parliament
and supporting bodies - intended to ensure empowerment of African peoples as
well as their participation in economic development and integration of the
African continent (a detailed protocol concerning the composition,
prerogatives, functions and organization of the Pan-African Parliament has been
signed by the member states and is currently ratified)
· Economic, Social and
Cultural Council - an advisory body composed of representatives of diverse
social and professional groups from the AU member states
· Court of Justice
· Specialized Technical
Committees (STCs) - operates at the interface with different ministries: i.e.,
STC on Agriculture, Rural Development, Water and Environment; STC on Finance,
Monetary Affairs, Economic Planning and Integration; STC on Trade, Customs and
Immigration; STC on Industry, Science and Technology, Energy, Natural Resources
and Natural Environment; STC on Transport, Communication and Tourism; STC on
Health, Labour and Social Affairs; and STC on Education, Culture and Human
Resources.
The constitution of the
AU stipulates that three financial bodies should be established: the African
Central Bank (commissioned to build a single monetary policy and a single
African currency as the means to accelerate economic integration), the African
Monetary Fund (intended to facilitate economic integration of African economies
by eliminating restrictions in trade and ensuring more improved monetary
integration) and the African Investment Bank (assumed to support economic
growth and accelerate economic integration in Africa).
Systematic and efficient
implementation of the AU’s programmes requires adequate, foreseeable and
regular financing. Each year, the AU member states deposit about 67% of the
estimated contribution. However, there is still a discrepancy between the
budget and the actual financing needs resulting from either incomplete or
non-existent contribution payments by about 30 member states, which makes the
AU’s operations all the more difficult. In 2016, it was decided that all
member states were obliged to contribute 0.2% of their respective import value,
and that the funds thus obtained were to be transferred to the AU budget.
3. CONDITION OF
INFRASTRUCTURE VS. ECONOMIC GROWTH RATE
The transport and power
industries are sectors of key importance to the development of infrastructure
in Africa. In order for them to grow in a relevant manner, they require far
more extensive investments than are observed nowadays. According to the 2016
Africa Infrastructure Development Index (AIDI), a ranking prepared by the
African Development Bank [25], despite the progress observed all over the
continent, the growth rate reported by individual countries was inconsiderable.
Compared to the 2013
AIDI index, the top 10 ranking highlighting the countries with the most highly
developed infrastructure had not changed. These are the Seychelles, Egypt,
Libya, the Republic of South Africa (RSA), Mauritius, Tunisia, Morocco,
Algeria, the Republic of Cabo Verde and Botswana, although their individual
indicators have changed from time to time. The 10 countries ranked last are:
Mozambique, Sierra Leone, Madagascar, Eritrea, the Democratic Republic of
Congo, Ethiopia, Chad, Niger, South Sudan and Somalia (Figure 1). The most
considerable acceleration was observed in the area of ICT (e.g., owing to the
development of telephony, Mali went up nine places in the ranking, i.e., from
44th in 2013 to 35th in 2016, while Tanzania advanced by two places - from 45th
to 43rd place).
4. DEVELOPMENT OF
TRANSPORT
AU member states are
characterized by relatively low-level transport development; however, the
transport infrastructure has suffered heavy stagnation over recent decades in
Africa. The deficiencies in transport infrastructure hamper the growth and
decentralization of dynamically developing industries, increase transport costs
and reduce the capacity to build a sustainable chain of food supply, thus
generating waste in sellable goods and causing delays in delivery.
The African network of
roads is very poorly developed. The road accessibility index of this continent
is as low as 34% (in other developing regions of the world, it is 50%) [22]. In
many countries, concentration of roads is only typical of urban areas or direct
vicinities of seaports whose trade were routes created in colonial times for
the purposes of goods shipment overseas. Far fewer roads connect adjacent
countries to form regional networks [5]. In this respect, the current status of
the RSA, North Africa, Nigeria and Zimbabwe seems most positive. However, there
are many parts of Africa where 85% of roads are unfit for use during the rainy
season.
Over recent years, road
conditions have improved in most African countries as an outcome of various
policies implemented by governments aimed at increasing the density of roads
and performing institutional reforms. Extraordinary effort has been invested in
the development of institutions dedicated to the management and maintenance of
African roads, yet they are still largely insufficient in many countries [1].
Fig. 1. Status of
infrastructure development in African countries (transport, electricity, ICT,
water supply and sewage disposal systems) [16]
In 1971, the initiative
of the UN Economic Commission for Africa (UNECA), supported by the African
Development Bank and the OAU (as the African Union equivalent up to 2002),
launched a project of construction for a network of transcontinental roads
(trans-African highways), also known as trans-African corridors, comprising
nine routes designed to link capital cities and other large urban and
industrial centres (Figure 2).
According to original
assumptions, the network of transcontinental roads was to be 59,100 km long
[27]. However, in 2011, 21% remained undeveloped, while, in midland countries,
this ratio came to 65%. Since 2014, none of the existing transport routes has
had a link through Central Africa. Among the main obstacles to the
construction of the roads were the rain forests and equatorial climate, where
air humidity tends to exceed 90%.
The importance of the
African railway network has dwindled over the last 30 years due to the
liberalization of rail transport in individual countries and the improvement to
road infrastructure. One can actually speak of a properly operating railway
network only with regard to certain contemporary countries of South Africa (RSA
and Zimbabwe), North Africa (Egypt and Morocco) and West Africa (Kenya and
Tanzania). In individual cases, the small traffic volume results from low
demand, while, in others, it is due to rolling stock deficiency, particularly
in terms of locomotives. The predominant type of railway is the narrow-gauge
system (1,067 mm) with low permissible axle loads.
As railway traffic has
dropped in volume, very few carriers can generate revenues high enough to cover
the necessary investments. Revamping the ageing railway networks and adequately
restoring their technical condition would require a one-time injection of funds
equal to USD 3 billion. In 1993, several governments started granting
concessions for the use of railway lines, which was directly linked with a
revitalization programme financed by international institutions. However,
insofar as the concessions have led to significant improvements in the quality
of services and helped to reverse the trend of traffic volume decline, they
have not generated high enough revenues to cover the railway network upgrading,
that is so desperately needed. The only railway lines truly meaningful to the
African economy are those used to transport minerals from mines to seaports
[2].
More than 90% of imports
to and exports from the AU is handled by sea. In terms of sea transport, the
RSA plays the most crucial part. Since the mid-1990s, both bulk and container
cargo transferred through African ports have grown threefold in terms of
volume. However, further growth will require additional investments, since the
capacity of these ports still remains considerably below international
standards. Although a decisive majority of ports have been deregulated, many AU
countries have maintained high tariffs for harbour charges [3].
The busiest and largest
African ports are: Durban in the RSA (the largest container terminal receiving
about 4,500 vessels a year with total turnover exceeding USD 45 billion),
Mombasa in Kenya (providing connections with about 80 ports all over the world,
where about 500,000 TEU are handled per annum), Djibouti (connecting East Africa
with Europe and Asia), Lagos in Nigeria, Abidjan in the Republic of Côte
d’Ivoire (with an annual throughput of 610,000 TEU), the 163-m long Suez
Canal in Egypt (total tonnage in 2014 came to 962.7 million tonnes, with
revenues of USD 5.45 billion) and Tangier, Morocco [20]. The largest container
terminals handling general cargo shipments are compared in Table 2.
The multitude of
projects aimed at facilitating the development of African ports may imply some
positive prospects concerning the region’s increasing production
capacity, but the hampering factor is the considerable uncertainty of economic
growth.
Air transport has
significantly developed over recent years in the AU, yet, even in this sector,
one may observe large disproportions between individual regions. Availability
of air transport services has particularly contributed to the growth of
exports. However, air transport is expensive and connections are irregular in
Africa, while safety is an additional issue due to such problems as low
standards of pilot training and air traffic control and supervision. In many
countries, air connections have been significantly limited in numbers on
account of the abruptly growing operating costs related to increasing prices of
fuels. The political efforts undertaken by national governments include the
tightening of regulatory oversight and pursuing full liberalization of the air
transport sector [4].
Fig. 2. Trans-African
road transport corridors [17]
The largest African airports are: Oliver Tambo in Johannesburg (RSA),
Cairo International Airport (Egypt), Cape Town International Airport (RSA),
King Shaka International Airport near Durban (RSA), Sharm El Sheikh
International Airport (Egypt), Hurghada International Airport (Egypt),
Casablanca Mohammed V International Airport (Morocco), Murtala Muhammed in
Lagos (Nigeria), Jomo Kenyatta International Airport in Nairobi (Kenya) and
Port Elizabeth International Airport (RSA).
Africa holds its largest
petroleum deposits in the northern and south-western part of the continent,
while it is most abundant in natural gas in North Africa. Both kinds of fuel
are transported to maritime trans-shipment hubs by pipelines (Figure 4).
Most pipelines cut
through Algeria (27,042 km), Egypt (15,088 km), Nigeria (12,590 km) and Libya
(10,748 km) [13].
Fig. 3. Railway system
in Africa [23]
Algeria is the largest
natural gas producer in Africa. The mid-1980s saw the commissioning of an
important partially undersea gas pipeline leading from the Algerian deposits in
Sahara, through Tunisia, the Strait of Sicily and the Strait of Messina to
Italy. Another connection between Africa and Italy is the Greenstream pipeline
supplying gas from Libya. This fuel is also transferred by two pipelines to
Spain, one which cuts through Moroccan territory and the other laid on the
bottom of the Mediterranean Sea
The extraction and sale
of power-producing raw materials contribute to the good economic results
attained by the AU countries. The development of East Africa has been boosted
over recent years by the discovery of rich deposits of petroleum in Uganda and
Kenya as well as equally extensive deposits of natural gas in Tanzania. Ghana
has also already attempted the construction of infrastructure required to
utilize the natural gas deposits at hand, while it plans to increase the rate
of its economic growth by consistent implementation of fully integrated and
cost-effective operations of the gas industry [14].
Table 2
Largest
container terminals handling general cargo shipments in the AU
|
Port name |
Country |
Location |
Annual
transfer capacity |
Characteristics |
|
Durban Container Terminal |
RSA |
Durban Port |
3.6
million TEU (target capacity: 4 million TEU) |
- Currently under
expansion works aimed at dredging to 16 m -
Only African terminal with container cranes capable of lifting 80-tonne
loads, which enable servicing of ships with 24 containers on board |
|
Suez Canal Container Terminal |
Egypt |
Port Said - northern entrance to the Suez Canal |
About 2.8 million TEU (target capacity: 5 million
TEU) |
-
Currently under expansion to enable handling of the largest container ships:
dredging to 16.5 m, installation of 23 Post-Panamax container cranes |
|
Tangier Med |
Morocco |
Tangier Port |
2.5 million TEU |
-
State-of-the-art container cranes -
Dredged fairway |
|
Alexandria International Container Terminals |
Egypt |
Alexandria Port |
1.5 million TEU |
-
Facility comprising two terminals: in Alexandria and in El-Dekheila |
|
Cape Town Terminal |
RSA |
Cape Town |
900,000 TEU (target
capacity: 1.6 million TEU) |
Equipped
with special cooling containers for transportation of frozen fruit and other
products |
Fig. 4. Pipelines in Africa [19]
Table 3
Length of
pipelines in African countries in 2013 in km
|
Country |
Gas pipelines |
LPG
pipelines |
Petroleum pipelines |
Pipelines
for transport of petroleum refining products |
Total |
|
North Africa |
|||||
|
Algeria |
16,415 |
3,447 |
7,036 |
144 |
27,042 |
|
Egypt |
7,986 |
957 |
5,250 |
895 |
15,088 |
|
Libya |
3,743 |
|
7,005 |
|
10,748 |
|
Sudan |
156 |
|
4,070 |
1,613 |
5,893 |
|
Tunisia |
3111 |
|
1,381 |
453 |
4,945 |
|
Cross-border pipelines: Algeria-Italy
(2,592 km), Algeria-Morocco, Algeria-Spain (200 km), Algeria-Tunisia (775
km), Egypt-Jordan (260 km), Libya-Italy (516 km), Libya-Tunisia (260 km),
Morocco-Spain (257 km), Nigeria-Algeria (4,400 km) |
|||||
|
West Africa |
|||||
|
Côte
d’Ivoire |
256 |
|
118 |
|
374 |
|
Gabon |
807 |
|
1,639 |
|
2,446 |
|
Angola |
352 |
85 |
1,065 |
|
1,502 |
|
Democratic Republic of
Congo |
62 |
|
77 |
756 |
895 |
|
Chad |
|
|
582 |
|
582 |
|
Cameroon |
53 |
5 |
1,107 |
|
1,160 |
|
Ghana |
394 |
|
20 |
361 |
775 |
|
Nigeria |
4,045 |
164 |
4,441 |
3,940 |
12,590 |
|
Cross-border
pipelines: Angola-Democratic
Republic of Congo, Chad-Cameroon (1,045 km), Ghana-Côte d’Ivoire,
Nigeria-Ghana (1,033 km) |
|||||
|
East Africa |
|||||
|
Kenya |
|
|
4 |
928 |
932 |
|
Uganda |
|
|
|
No data |
No data |
|
Tanzania |
311 |
|
891 |
8 |
1,210 |
|
Zambia |
|
|
771 |
|
771 |
|
Cross-border
pipelines: Kenya-Uganda (320 km), Tanzania-Zambia |
|||||
|
South Africa |
|||||
|
RSA |
1,293 |
|
992 |
1,460 |
3,745 |
|
Mozambique |
972 |
|
|
278 |
1,250 |
|
Zimbabwe |
|
|
|
270 |
270 |
|
Cross-border
pipelines: Mozambique-Zimbabwe |
|||||
5. DEVELOPMENT
PERSPECTIVES
All AU member countries
have fully recognized the importance of sustainable infrastructure for economic
and social growth; therefore, individual national governments actively strive
for the appropriate coordination of state interventionism, which contributes to
the improvement of internal trade and boosts economic results in trade
worldwide.
In 2010, the AU launched
a common initiative referred to as the Programme for Infrastructure Development
in Africa (PIDA), intended to support the development and implementation of
investment schemes in the areas of regional and continental infrastructure
(energy, transport, ICT as well as cross-border water resources) from a short-,
medium- and long-term perspective until 2020 [6]. The programme was approved in
2012, while the institution appointed to implement it is the African
Development Bank Group.
Numerous road and
railway construction projects are currently being delivered across the AU under
the PIDA scheme. An example of such endeavours is the construction of more than
9,400 km of motorway connecting Algiers and Lagos (Nigeria), also known as the
Trans-Sahara Motorway. The transport corridor cutting through the desert, the
completion of which is scheduled for 2018, will facilitate trade between North
Africa and sub-Saharan Africa by linking Algeria, Tunisia, Mali, Niger, Chad
and Nigeria [9].
Another transport
project planned for implementation in East Africa is the Lamu Port-South
Sudan-Ethiopia (LAPSSET) corridor, including standard railway and road
connections between the largest Kenyan port of Lamu and Ethiopia and South
Sudan. It also covers construction of a pipeline for the transport of petroleum
and petroleum derivatives, the construction of a refining plant and the
expansion of the Kenyan airports of Lamu, Isiolo and Lokichogio [21]. The RSA
has also joined the project and, by building a road from Johannesburg, strives
for a prospective connection with Cairo.
Assuming that all the
projects planned will be successfully completed, it is highly probable that the
AU’s economic growth will rocket upwards. For instance, one can observe
a sudden growth in the number of projects implemented in West Africa,
these being mainly driven by Chinese investments in infrastructure. Expansion
of the second-largest port in Ghana, Tema, is scheduled for completion by the
end of 2019, with the project comprising the construction of a new deep-water port
capable of servicing ships of the latest generations (up to 18,000 TEU). The
investment to be completed under the public-private partnership format, with
the participation of Meridian Port Services, a joint venture company
incorporating Bolloré Transport & Logistics, APM Terminals and the
government of Ghana operating via the Ghana Ports and Harbours Authority, is
expected to consume USD 1.5 billion [11]. Yet another Ghanaian port, Takoradi,
is currently being modernized. The investment of USD 197 million is co-financed
by the governments of Ghana and China, while the implementation itself is
supervised by Chinese engineering companies [15].
There are also numerous
uncertain projects, hindered by the general economic and political situation,
as well as the obstacles to container trade. Although some of them will
probably be completed, others may require further foreign capital support,
especially from carriers expected to invest in the railway infrastructure.
6. CONCLUSIONS
The deficiency in
infrastructure in Africa is a widely recognized problem. Member states of the
AU are among the least competitive countries in the world, while their
infrastructure seems to be one of the most significant factors that hamper
their economic and social development. The latter issue, however, applies to
the entire AU and thus requires a pan-continental solution.
There are many small
African countries with populations below 20 million and budgets of less than
USD 10 billion. Their infrastructural systems, similarly to their borders, are
reflections of the continent’s colonial past, while their roads, ports
and railways were built for raw material extraction purposes and as means of
political control, rather than for the sake of economic and social
consolidation of different territories. Regionally shared infrastructure seems
to be the only efficient solution to the problems of small size and
unfavourable location. The positive valued added by African regional
infrastructure is in its effect on trade, while the common goal, in terms of
stimulating economic growth, is to develop the technologically advanced
transport corridors.
Therefore, whether or
not Africa will maintain the current growth trend depends, to a large extent,
on how quickly it will be able to move from its dependence on traditional
commodity markets towards a modern economy based on technological development.
Such is the task set by African countries for themselves and the rationale
behind the establishment of the AU.
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Received 03.04.2018; accepted in revised form 30.08.2018
Scientific
Journal of Silesian University of Technology. Series Transport is licensed
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