AfCFTA AND BORDERLESS AFRICA: IMPLICATIONS FOR

TRANSPORTATION IN NIGERIATRANSPORTATION IN NIGERIA

NWIABU, Legborsi

Trade Lawyer & Executive Director

Nigeria Private Sector Alliance (

AND BORDERLESS AFRICA: IMPLICATIONS FOR

TRANSPORTATION IN NIGERIATRANSPORTATION IN NIGERIA

Legborsi Nuka

Trade Lawyer & Executive Director

Nigeria Private Sector Alliance (NiPSA)

WHAT IS AGENDA 2063?

• It is a strategic framework for the socio-economicthe next 50 years. Its builds on, and seeksexistingcontinental initiatives for growth andexistingcontinental initiatives for growth and

• Some of the past and current initiativesAction, The Abuja Treaty, The MinimumInfrastructural Development in Africa (PIDA),Development Programme (CAADP),The(NEPAD), Regional Plans andProgrammes

• It is also built on national, regional, continental

WHAT IS AGENDA 2063?

economictransformation of the continent overto accelerate the implementation of pastandand sustainabledevelopment.and sustainabledevelopment.

initiatives it builds on include: the Lagos Plan ofIntegration Programme, the Programmefor

(PIDA), the Comprehensive AfricaAgriculturalThe New partnership for Africa’s Development

Programmesand National Plans.

continental best practices in its formulation.

AFCFTA BACKGROUND• The 18th Ordinary Session of the Assembly of Heads of

Ababa, Ethiopia in January 2012, adopted a decision to establishof 2017.

• The Summit also endorsed the Action Plan on Boostingaction clusters: trade policy, trade facilitation, productiveinformation, and factor market integration.information, and factor market integration.

• African leaders held an Extraordinary Summit on the African2018 in Kigali, Rwanda, during which the Agreement establishingthe Kigali Declaration and the Protocol to the Treaty EstablishingFree Movement of Persons, Right to Residence and Right

• In total, 44 out of the 55 AU member states signed theKigali Declaration and 30 signed the Protocol on Free Movement

AFCFTA BACKGROUNDof State and Government of the African Union, held in Addisestablish a Continental Free Trade Area by an indicative date

Boosting Intra-Africa Trade (BIAT) which identifies seven priorityproductive capacity, trade related infrastructure, trade finance, trade

African Continental Free Trade Area (AfCFTA) from 17-21 Marchestablishing the AfCFTA was presented for signature, along with

Establishing the African Economic Community relating to theRight to Establishment.

consolidated text of the AfCFTA Agreement, 47 signed theMovement.

WHAT SHOULD THE AFCFTA DELIVER AND HOW?The AfCFTA is an ambitious project. Article 3 of the AfCFTA Agreement1lists the following general objectives, which will be achieved incrementally:

• •a single market for goods, services, facilitated by movement of persons

• •a liberalisedmarket for goods and services through successive rounds of negotiations

• •the movement of capital and natural persons

• •facilitation of investments

• •building on the initiatives and developments in the State Parties and RECs

• •lay the foundation for the establishment of a Continental Customs Union at a later stage

• •promote and attain sustainable and inclusive socio-economic development

• •enhance competitiveness

• •promote industrial development

• •resolve the challenges of multiple and overlapping memberships and expedite the regional and continental integration process

WHAT SHOULD THE AFCFTA DELIVER AND HOW?Agreement1lists the following general objectives, which will be achieved

facilitated by movement of persons

market for goods and services through successive rounds of negotiations

•building on the initiatives and developments in the State Parties and RECs

•lay the foundation for the establishment of a Continental Customs Union at a later stage

economic development

•resolve the challenges of multiple and overlapping memberships and expedite the regional and continental integration processes.

A SUMMARY OF AFCFTA’S PROGRESS

• 52 countries have signed the AfCFTAagreement

• 22 countries have ratified the agreementas

• 15 countries have deposited theirinstruments

• 7 countries including Gambia havereceivedare yet to deposit instruments with AU.

• Eritrea, Nigeria and Benin are yet to signthe

• The AfCFTA Agreement will enter into force,ratifications have been deposited with theAU

A SUMMARY OF AFCFTA’S PROGRESS

agreement

asof April 2,2019

instruments of AfCFTA ratification with the AU

receivedparliamentary approval for ratification but

the AfCFTA agreement

force, 30 days after the required number ofAU.

WHY IS THE PRIVATE SECTOR IMPORTANT FOR THE AFCFTA?

• The private sector is a major engine for sustainablecreation and poverty alleviation in Africa and across

• In Africa, the private sector accounts for 80• In Africa, the private sector accounts for 80investment, and three quarters of credit, and employs

• In addition, 90 percent of the firms within theenterprises (SMEs).

• These businesses’ participation in cross-borderbarriers which include complex customs and tradetransportation costs and lack of access to information,

WHY IS THE PRIVATE SECTOR IMPORTANT FOR THE AFCFTA?

sustainable economic growth and development, jobacross the world.

80 percent of the total production, two thirds of80 percent of the total production, two thirds ofemploys 90 percent of the working age population.

the African private sector are small and medium

border trade is very limited due to tariffs, non-tarifftrade procedures, lack of access to finance, high

information, among others.

MoveAfrica

• The NEPAD Agency launched transport and logisticsto infrastructure initiatives, such as the OSBP project,BIAT programme and the framework on AIDABIAT programme and the framework on AIDA

• MoveAfrica aims to transform the African trans-boundarycosts and increase efficiency of logistics and FMCGwhile complementing the work stream and transport

• To improve investment attractiveness and improveneeds to pursue a deeper engagement with the privaterelated projects.

MoveAfrica

logistics initiative, MoveAfrica, to bring greater synergiesproject, trade-facilitation initiatives, including the AU’s

boundary transport and logistics sector. It seeks to lowerFMCG operators and manufacturers on the continent,

transport pillar of the CBN.

improve its transport and logistics environment, the continentprivate sector on developing transport and logistics-

KEY HIGHLIGHTS OF MOVEAFRICA

MoveAfrica was presented at TICAD VI Summit ina seminar on intra-African trade with JICA,discussed,included:

• the importance of free movementof peopleto facilitate• the importance of free movementof peopleto facilitate

• the importance of strong political commitment for

• political stability as the key basis for private-sector

The session concluded that it is critical to promotedevelopment in a more comprehensive manner,international, regional and national stakeholders,stakeholders.

KEY HIGHLIGHTS OF MOVEAFRICA

in Nairobi, Kenya. The NEPAD Agency co-hostedJICA, the WCO and the EAC. Key issues

facilitate trade;facilitate trade;

for corridor development and security; and

sectorbusiness.

promote a multi-sector approach for corridormanner, while forging stronger partnerships with

stakeholders, as well as public- and private-sector

TRANS AFRICAN HIGHWAY

• In 1971, the United Nations Economic Commissionfor(TAH), a network of nine highways that would span atotal

• If the Trans-African Highway Network is undertaken, ourthe most positive factor for unity

• Some of the planned routes on the TAH includeTripoli,Cairo, Egypt, to Dakar, Senegal,(8,636km/5366miles),Cairo, Egypt, to Dakar, Senegal,(8,636km/5366miles),these routes, the 4,500 km (2796 miles) Trans-Sahelianbeen completed with the help of China.

• Construction has been slow on the TAH, with differentconstruction

• inadequate funding for maintenance and upgrades

• crumbling of already constructed roads due to climateand

• civil conflicts

• Borrowing limits imposed by the IMF have been anprojects such as highways.

TRANS AFRICAN HIGHWAY

for Africa (UNECA) envisioned the Trans-African Highwaytotal of 60,000 km (37,282 miles) across the continent.

our continent will be placed in a strong position in termof

Tripoli, Libya, to Windhoek, Namibia, (9,610 km/5971miles),miles), and Algiers to Lagos (4504km/2799miles). Only oneofmiles), and Algiers to Lagos (4504km/2799miles). Only oneof

Sahelian Highway between Dakar and N’Djamena in Chadhas

construction standards across countries

and terrain conditions,

impediment to fast-tracking infrastructure development

TRANS AFRICAN HIGHWAYTRANS AFRICAN HIGHWAY

PROGRAM NAME DESCRIPTION

Abidjan-Lagos Coastal Transport Corridor Involves the modernisation and upgrading of

Regional Transport Infrastructure Network.

Abidjan-Ouagadougou-Bamako Multimodal

Transport Corridor

This programme would modernize and rehabilitate

in Côte d’Ivoire.

Beira-Nacala Multimodal Transport Corridors A modern railway systemwill be implemented between the ports of Nacala and/or Beira and the coal

exporting region of Moatize in Mozambique.

Central Africa Air Transport Programme This project will involve the creation of regional air hubs in ten Central African countries.

Central Africa Hub Port and Rail Programme A regional hub port and rail linkage master plan will be created, affecting 11 Central African countries.

Central African Inter-Capital Connectivity The aim is to fill the missing links on key inter-capital connector roads in Central Africa.

Central Multimodal Transport Corridor This project entails the upgrading and modernisation

Burundi and the Democratic Republic of Congo

Dakar-Bamako-Niamey Multimodal Transport

Corridor

Comprises the modernisation of the African Regional

the roll-out of a smart corridor system for both

Djibouti-Addis Transport Corridor Entails the upgrading of 710 kilometres of railwayDjibouti-Addis Transport Corridor Entails the upgrading of 710 kilometres of railway

Ethiopia and Djibouti.

Douala-Bangui Douala-N Djamena Multimodal

Transport Corridor

This programme would modernize the highest

facilitate travel for people and goods across

African Republic.

Kinshasa-Brazzaville Bridge Road and Rail

Project & Rail to Ilebo

A combined road and rail bridge and one-stop

connected with the Lumbumbashi-Ilebo line.

Trans-Maghreb Highway This smart corridor and one-stop border post

Maghreb Union states

Trans-African Highway Programme This is phase I of the continental connectivity programme

of the TAH missing links by 2030.

West Africa Air Transport Programme In order to increase the air transport service

establish one or more regional air hubs.

Yamoussoukro Decision Implementation The aim of this project is to achieve full acceptance

Skies’ Yamoussoukro Decision.

West Africa Hub Port and Rail Programme The programme consists of a regional hub port

countries involved.

Single African Sky Phase 1 This programme aims to create a high-level,

continent.

REGION

of the most travelled West African corridor on the African West Africa

rehabilitate the multimodal corridor that suffered during civil war West Africa

A modern railway systemwill be implemented between the ports of Nacala and/or Beira and the coal Southern Africa

This project will involve the creation of regional air hubs in ten Central African countries. Central Africa

A regional hub port and rail linkage master plan will be created, affecting 11 Central African countries. African Continent, Central Africa

capital connector roads in Central Africa. Central Africa, Southern Africa

modernisation of roads between Tanzania, Uganda, Rwanda,

Congo.

East Africa, Central Africa

Regional Transport Infrastructure Network in West Africa and

both road and rail transport.

West Africa

railway and the roll out of six smart corridor modules between North-Eastern Africarailway and the roll out of six smart corridor modules between North-Eastern Africa

highest priority multimodal ARTIN corridor in Central Africa and

across the borders between Cameroon, Chad and the Central

Central Africa

stop border post will be built, and the railway line will be Central Africa

will be created to speed up regional integration in the Arab North Africa

programme that focuses on completion and standardization Southern Africa, Central Africa,

North-Eastern Africa, North Africa,

West Africa

levels in West Africa, a regional process will be initiated to West Africa

acceptance by all African states which are signatories to the ‘Open

port and rail linkage master plan and port expansions in the West Africa

level, satellite-based air navigation system for the African

ROAD TRAFFIC INJURIES: THE FACTS

• DO YOU KNOW EVERY 24 SECONDSSOMEONE

• 1.35 MILLION ROAD TRAFFIC DEATHSEVERY

• ROAD TRAFFIC INJURIESARE THE 8th LEADING• ROAD TRAFFIC INJURIESARE THE 8th LEADING

• 13 % OF ALL DEATHS LOW-INCOME COUNTRIES

• 7 % OF ALL DEATHS HIGH-INCOMECOUNTRIES

• 54% OF DEATHS ARE PEDESTRIANS,CYCLISTS

• 1ST CAUSE OF DEATH AMONG CHILDRENAGED 15-29

ROAD TRAFFIC INJURIES: THE FACTS

SOMEONEDIES ON THE ROAD?

EVERYYEAR

LEADING CAUSEOFDEATH OFALL DEATHSLEADING CAUSEOFDEATH OFALL DEATHS

COUNTRIESBUT 1% OF THE WORLD’S VEHICLES

COUNTRIESBUT 40% OF THE WORLD’S VEHICLES

CYCLISTSAND MOTORCYCLISTS

CHILDREN AGED 5-14 AND AMONG YOUNG ADULTS

UNITED NATIONS ROAD SAFETY CONVENTIONS

• 1968 Convention on Road Traffic

• 1968 Convention on Road Signs and Signals

• 1958 Agreement concerning the Adoption of• 1958 Agreement concerning the Adoption ofVehicles, Equipment and Parts

• 1997 Agreement concerning the AdoptionofInspections of Wheeled Vehicles

• 1998 Agreement concerning theEstablishingVehicles, Equipment and Parts

• 1957 Agreement concerning the InternationalCarriage

There are 58 United Nations inland transport relatedregularly. Of the 58 instruments, six areconsidered

UNITED NATIONS ROAD SAFETY CONVENTIONS

of Uniform Technical Prescriptions for Wheeledof Uniform Technical Prescriptions for Wheeled

of Uniform Conditions for Periodical Technical

Establishing of Global Technical Regulations for Wheeled

Carriage of Dangerous Goods by Road (ADR)

related legal instruments administered andupdatedconsideredto be priorities for accession

TRANSPORT AND TOURISM

InterrelationshipsBetween Transport And Tourism• The concept of a tourist transport systemwasdevelopedthe interrelationships between different elementsin• Using a systemsapproach to the analysis of• Using a systemsapproach to the analysis ofinputs to the system(e.g. the demand andsupply)policy) and outputs (the tourist travel experience)TheTourist As A Consumer• Swarbrooke and Horner (2007) reiterate thetourism, since from a tourist transport perspectivedevelopments, –identify product opportunities, –setsegmentsand – the best marketing mediumto promote• Consumer behavior is one area that touristtransportto understand what motivates tourists to travel,and

TRANSPORT AND TOURISM

developedas a framework in which to understandin such systems.tourist transport highlighted the importance oftourist transport highlighted the importance of

supply) as well as controlling influences (e.g.governmentand the effect on the environment.

importance of consumer behaviour researchinperspective it allows businesses to –planinfrastructure

set price levels for products and –identifymarketpromote the product.transport operators will need to focus on if theyseek

and to select specific modes of transport.

BORDERLESS AFRICA

During the 27thAfrican Union (AU) summit inKigali,the AU passport was launched. The idea of a visa-freefor membersof the AU wasfirst establishedin 2013for membersof the AU wasfirst establishedin 2013of the 2063 Agenda which incorporates 7 majorgoalspromote a self-reliant continent. One of the primaryagenda is to guarantee integration and politicalunityand this passport will aid the body achieve that goal.Having a visa-free passport is instrumental to thecreationborderless Africa which will, in turn, acceleratesociogrowth. The passport is essential in order toboostrevenue and increase intra-African trade

BORDERLESS AFRICA

Kigali, Rwanda,freepassport

2013, asa part2013, asa partgoalsto help

goals of theunity in Africa

.creationof a

socio-economicboost tourism

VISA OPENNESSVISA OPENNESS

BELT AND ROAD INITIATIVE

• China is undertaking a global “Belt and Road” initiative,Road.”

• Regarded by China as the largest project of thetransportation and energy, is a network of railroadstransportation and energy, is a network of railroadsEurope, and Oceania.

• The countries in Belt and Road by now represent one

• Belt and Road initiative could cost $4 to $8 trillionand 40 percent of global economic output upon its scheduled

• Among some of Chinese projects across AfricaMombasa-Nairobi railway, and other projects underall with the promise of sustainable development

BELT AND ROAD INITIATIVE

initiative, also known as “One Belt, One Road” and “Silk

the century, this super-project, covering infrastructure,railroads and shipping lanes in 71 countries in Asia, Africa,railroads and shipping lanes in 71 countries in Asia, Africa,

one-third of the world’s GDP.

and encompass 62 percent of the world’s populationscheduled completion date in 2049.

Africa include an Addis Ababa-Djibouti railway line, theunder development in Congo, Tanzania and other nations,

WAY FORWARD

Africa needs to unite and work hard to reversethe extraction of profitable agricultural and mineralcommunities and the continent.

Africa need economic infrastructure to ease Africa need economic infrastructure to easecountry to country. That means connectingexorbitant air transport costs.

African continental free-trade agreement is acountries’ economies, it must also ensure thatfees, which vary fromone country to the next,areof the continent’s largest responsibilities isthatimplementation and a small number of themare

WAY FORWARD

reversecolonial infrastructure systems whichpromotedmineral wealth for export at the expense oflocal

the said movement of people and goods fromthe said movement of people and goods fromconnecting roads, railway networks, and reducing the

a major step forward in terms of strengtheningissues, such as axel-load restriction andcustoms

are harmonized throughout Africa. Currently onethat there are about 80 OSBPs in various stagesofare operational.

THANK YOU ALLLET US TAKE ADVANTAGE WHERE ONE EXIST

THANK YOU ALLLET US TAKE ADVANTAGE WHERE ONE EXIST