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Contenu Content 1- Éditorial Editorial 2- Dossier Infrastructure Infrastructure 3- Dernières Nouvelles Du Partenariat Latest News of the Partnership LINK! INSIDE THE AFRICA - EUROPEAN UNION PARTNERSHIP Lettre d’information de la Délégation de l’Union Européenne auprès de l’Union Africaine Contenu Content 1- Éditorial Editorial 2- Dossier Infrastructure Infrastructure 3- Dernières nouvelles du partenariat Latest news of the partnership Addis Abeba, Numéro 18, Septembre 2012 Addis Ababa, Number 18, September 2012 A lot is already being achieved but much more remains to be done. I believe that the Africa-EU Partnerships on Infrastructure and Energy both have a key role to play in helping to deliver the major infrastructure improvements EDITORIAL that Africa requires to meet its ambitious develop- ment targets. We look forward to continuing our close cooperation with AUC, AfDB and UNECA, the REC's, national governments, development financing institutions Ask any businessman in Africa what constraints affect The implementation of PIDA is crucial for the realisation and the private sector. them the most in producing and getting their goods and of the other major decision of last January’s AU Summit, services to market, and Infrastructure is likely to figure at the creation of a Continental Free Trade Area. Africa In this issue of LINK you will find interviews with EU or near the top of their list. This is why we have decided needs to maintain its favourable economic growth path Development Commissioner Andris Piebalgs and AU In- to devote this issue of LINK to look at how Africa and but to do so, it needs to boost trade and create many frastructure Commissioner Dr Elham Ibrahim and other Europe are working together to improve infrastructure more jobs. Increasing the size of the continental market leading personalities. I very much hope you will find connections across the Continent. through free trade is a vital ingredient for success. At the these articles both stimulating and informative same time, well functioning infrastructure is a precondi- The EU is a longstanding supporter of Africa’s infrastruc- tion for increasing trade. Hence the importance of PIDA. Thank you ture, having financed numerous infrastucture projects The PIDA Priority Action Plan sets out the top priority across Africa over recent decades. regional infrastructure needs up to 2020 estimated to cost US $ 68 billion. The PAP rightly points out that Afri- This support has been boosted since 2007 with the can countries will have to mobilise most of this financing Africa-EU Infrastructure and Energy Partnerships and the themselves from domestic public and private resources creation of the Africa-EU Infrastructure Trust Fund (ITF) as well as through foreign private investment. Aid will and Neighbourhood Investment Facility (NIF). These nevertheless continue to play an important role, but in instruments blend EU grants with loans from Develop- a period where aid budgets are coming under increasing ment Finance Institutions and the private sector to stress, we will have to follow innovative approaches and finance large scale infrastructure projects in Sub-Saharan use the aid to leverage investments from other sources. Africa and North Africa respectively. But PIDA is not just about capital investment. Govern- ments, regional and continental bodies need to take This blending business model has proved to be very ef- action to address the many barriers to trade and invest- fective. In just five years the ITF and NIF have together ment that hold back economic and social development. mobilised 500 million euros in grants blended with over Governments need to foster an attractive business and 9 billion euros in loans to finance 70 projects to improve regulatory climate, trade policies need to be imple- interconnectivity across Africa in transport, energy, mented effectively and bureaucratic hurdles need to be Photo water and ICT. removed. These reforms are every bit as important as the investments in infrastructure if their full benefit is to For the EU and its Member States and also for Africa, be realised. blending grants and loans has proved to be a big success in leveraging significant additional finance to support One of the key areas for PIDA is Energy, with a series some of the very large scale infrastructure programmes of projects to unlock Africa's hydropower potential and which are required to provide the interconnections that interconnect electricity networks. Both the Africa-EU Africa needs. Blending, together with more support to Infrastructure Trust Fund and the Energy Facility are the private sector in order to stimulate inclusive and already contributing to this process. In addition, the UN sustainable growth, are key elements of the EU's new Secretary General launched last year the Sustainable development policy, the Agenda for Change. Energy for All (SE4All) initiative and invited EU Devel- And Africa's infrastructure needs are certainly immense, opment Commissioner Andris Piebalgs to participate with major gaps in the continental transport, energy, in the High Level Group which is tasked to deliver an water management and ICT networks. This is the issue agenda for action. It has been agreed that the European now being addressed by the Programme for Infrastruc- Commission will take the lead in implementing SE4All in ture Development in Africa, endorsed by the AU Sum- Africa. mit in January 2012. The Sustainable Energy for All initiative links up well I would like to congratulate AUC, AfDB and UNECA with the Energy component of PIDA and we should for their joint work in making PIDA a reality. The EU is work together to ensure that all opportunities are taken pleased to have been able to support this process. We to maximise synergies between PIDA and Sustainable are also grateful to the AUC for having invited us to be Energy for All. members of the PIDA Steering Committee. Gary Quince Chef de la Délégation de l’Union Européenne auprès de l’Union Africaine Interview with... DOSSIER INFRASTRUCTURE INFRASTRUCTURE FOLDER Dr. Elham Ibrahim Commissioner, Infrastructure and Energy of the AUC P.5 INTERVIEW WITH DR. ELHAM IBRAHIM Link: The African Union Summit of July 2012 fo- can Economic Community. Its article 28 included the P.8 INTERVIEW WITH ANDRIS PiebalgS cusses on Intra African Trade. What are the cur- strengthening of existing / creating where they do not rent challenges of infrastructure developments in exist, the Regional Economic Communities (RECs) as Africa in this context? the building blocks of African integration with continental P.10 EU-AFRICA INFRASTRUCTURE TRUST FUND (ITF) integration and the African Economic Community to be Infrastructure plays a key role in economic growth and achieved by 2028. P.13 WHAT IS NEIGHBORHOOD INVESTMENT FaCILITY (NIF)? poverty reduction. Conversely, the lack of infrastructure affects productivity and raises production and transac- The Programme for Infrastructure Development in Africa tion costs, which hinders growth by reducing the com- (PIDA), a programme dedicated to facilitating conti- P.17 INTERVIEW WITH MR. ABOubakaRI BABA MOUSSA petitiveness of businesses and the ability of governments nental integration in Africa through improved regional to pursue economic and social development policies. infrastructure is designed to support implementation of P.19 PIDA NEEDS PUBLIC PRIVATE SECTOR-NEPAD the African Union Abuja Treaty and the creation of the The lack of infrastructure in Africa is widely recognized. African Economic Community. Deficits of infrastructure have a clear impact on African P.20 ABOUT THE INFRASTRUCTURE CONSORTIUM competitiveness: many of the African countries, par- PIDA provides a common framework for African stake- ticularly those south of the Sahara, are among the least holders to build the infrastructure necessary for more competitive in the world, and infrastructure appears to integrated transport, energy, ICT and trans-boundary FOR AFRICA be one of the most important factors holding them back. water networks to boost trade, spark growth and create jobs. Implementing PIDA will transform the way business P.21 LATEST NEWS OF THE PARTNERSHIP Because Africa’s economic geography is particularly chal- is done and help deliver a well-connected and prosperous lenging, regional integration is the best, perhaps the only, Africa. way for Africa to realize its growth potential, participate P.26 ARRIVAL AND DEPARTURE effectively in the global economy, and share the benefits The essential benefit of regional infrastructure is to make of globalization. possible the formation of large, competitive markets in The process of economic integration gained traction place of the present collection of small, isolated, and with the 1991 Abuja Treaty that established the Afri- inefficient ones. Shared regional infrastructure is the only 5 LINK! Number 18 / September 2012 DOSSIER INFRASTRUCTURE Infrastructure FOLDER INFRASTRUCTURE solution to problems of small scale and adverse loca- Experienced developers in the private and public sectors tion. An important benefit of regional infrastructure is have implemented successful regional projects. How- its effect on trade within Africa. As regional integration ever, even with a competent developer regional projects improves the competitiveness of African producers and encounter delays. One major cause is the time needed brings millions more consumers within their reach, Africa to establish a responsive and comprehensive contrac- will see a swelling of intra- and inter-regional trade as a tual framework-whether or not the private sector is share of all trade. Regional infrastructure also exploits involved. and advances
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