The construction industry: a key partner of economic integration as part of the AfCFTA

Mokate Ramafoko
The beginning of this year was marked by the signing of the largest free trade area by the heads of African governments in Kigali.

The African Continental Free Trade Area (FTA) is the largest free trade area.

The African continent currently has 55 countries, with 55 foreign currencies (some have chosen to adopt the US dollar), 55 regulatory frameworks and, in simple terms, 55 different sets of paperwork. [19659005CennerariosignifiesthataffairsaffairsoftheAfricanontinentcanbestoffficiencyforforeignandinternationalinvestors

There is therefore a general consensus among economists and scholars that the commercial zone will bring economic benefits to the continent, its citizens and its businesses.

But what is it? does this mean for African companies and international investors? What opportunities does it offer our industry? Talkmore Chidede, a researcher at the Cape Town Trade Law Center (tralac), argues that "AfCFTA's goal of boosting intra-African trade can not be achieved without adequate trade. related infrastructure. "This is remarkable if we consider that the African continent has a serious infrastructure deficit.

A World Bank report entitled African infrastructure: a period of transformation estimated that 93 billion US dollars were needed annually to fill this gap.More recently, Kalilou Traore, the Commissioner for Industry and Private Sector Promotion of the Economic Community of West African States. (Ecowas), estimated this estimate at 100 billion US dollars.The African governments, the private sector, the African Union (AU) and its partners will have to engage in a serious and deliberate program to build the # 39; economic infrastructure needed to facilitate economic integration.

The construction industry should play a leading role in the operation development of this infrastructure if necessary. The rapid development of infrastructure, especially large regional projects on the continent, is urgent and critical. Infrastructure is a catalyst for economic growth, competitiveness and integration.

An example is the effective port and transportation infrastructure that facilitates and facilitates the movement of goods and people between different economies. Modern, world-clbad infrastructure will accelerate the economic integration envisioned by the Free Trade Area, ensuring that trade barriers are removed on paper and physically

With this understanding, the AU, in partnership with the United Nations Economic Commission for Africa, the African Development Bank and the Nepad Planning and Coordinating Agency, among other important actors, have developed a targeted program to address challenge of infrastructure – the Program for Infrastructure Development in Africa (PIDA)

. continental initiative to help bridge the infrastructural gap that severely hampers Africa's competitiveness in the global market. "

One of the overall strategic objectives of PIDA is to" enable Africa to finally build "the" common market. "By improving access to regional infrastructure networks and continental, countries will meet the demand for infrastructure services and boost competitiveness by increasing efficiency, accelerating growth, facilitating integration into the global economy, improving standards of living and liberalizing intra-African trade

In my opinion, construction and related industries should engage in a continuous and urgent manner the various governments and multilateral institutions that are responsible for providing the infrastructure

This should be done in view This will guide us both in the allocation of productive capacities and in investment decisions.

In this context, PIDA has identified There are four key priority infrastructure areas that require urgent attention, and these are: transport, energy, ICT and trans sectors of water oundary. These sectors are the backbone of industrial development and offer significant potential for economic growth and development.

Three of the priorities offer many opportunities to industry players such as PPC. However, they will not materialize if the industry is not proactive and strategically oriented to exploit these opportunities.

With the implementation of various infrastructure projects, it is likely that the demand for our products and services will increase. The industry can not afford not to want when that happens. It is therefore my badertion that, informed by solid and credible market information, the industry should make the necessary investments before the demand climbs.

It is imperative that we begin to form the critical partnerships needed for that moment to come. Investments such as those made by the CPP in various African countries, including South Africa, Rwanda, the DRC, Ethiopia, Zimbabwe and Botswana, will go a long way towards strengthening cement production. product that is essential and necessary in any major infrastructure project. The choice of CPP investment countries was deliberate

Not only do they have a high potential domestic demand for cement and related products, but they are strategically positioned to serve neighboring countries in areas where they are located. are located

. we do not see ourselves as mere producers of cement; we see ourselves as playing a greater role in contributing to the growth and development of all our chosen markets and the continent as a whole; to foster meaningful collaboration both inside and outside our organization. We call this philosophy "FOREN BEYOND", which is anchored in our activities.

Many of Africa's 55 countries are small, with less than 20 million inhabitants and savings of less than $ 10 billion. Their infrastructure systems, like their borders, are a reflection of the continent's colonial past, with roads, harbors and railways built for resource extraction and political control, rather than for economic linkage. or socially the territories. the critical infrastructure itself and require partners determined by the same goals. A proactive approach involving delivery-oriented partnerships will be a game changer as it will bring together large and small economies to realize large-scale infrastructure projects.

The essential advantage of regional infrastructures is the formation of large competitive markets instead of the current ones. collection of small, isolated and ineffective. There is no doubt that the industry will benefit during the construction phase as large competitive markets are formed through integrated economic development.

Perhaps the most obvious example is the logistics ports that will facilitate the movement of goods across the continent. logistics costs. Initiatives such as the North-South Corridor and the Southern Africa Development Community (SADC) Infrastructure Master Plan offer tremendous opportunities for public-private partnerships (PPPs).

deficiencies, while supporting regional integration. For example, there is a $ 100 billion financing gap for Sadc's infrastructure plan

The North-South Corridor Project, conceived as the area between Durban and Dar es Salaam, is equally ambitious and expensive. It comprises 157 projects in the North-South Corridor and includes 59 road projects; 38 railway projects and six bridge projects (PIDA).

AfCFTA provides a unique settlement for doing business and investing in Africa, a rules-based framework for investing and doing business on the continent. That's precisely what the continent needs right now.

The harmonization of trade and investment rules, overcoming constraints related to small economies, achieving economies of scale and integrating African economies are the ultimate goals of the economy. ALE. But this can only happen if all the critical sectors of the economy are mobilized, engaged and concentrated in a unique way.

Mokate Ramafoko is Director General of the CPP: International Operations