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Ernest V, Mbuli, OHRLLS Consultant

The benefits of an intergovernmental

agreement for the Trans African Highway

Summary Of OHRLLS study

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Trade

Intra-African trade is a 9% of total trade compared to 40% for N. Africa and 60% in Western Europe.

More transaction costs - less margins for African trade Surface transport - a major obstacle to trade. Africa has 29 km of road per 1,000 square km

compared to 120 km pr 1000 square km in Asia. Continent has no East to West or South to North paved

roads. Poor connectivity between centres of production and

consumption within country and between countries. Intra African trade also hampered by a multitude of

non-physical barriers related to cumbersome customs and administrative procedures and formalities.

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TAH AS A REGIONAL INTEGRATION INSTRUMENTA. Traditional routesAfrican traditional routes designed in the

colonial past link the hinterland of the continent with the sea to ensure supplies of raw materials to overseas markets.

In West and Central Africa, the routes run from North to South while in East Africa they take the East West direction.

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TAH AS A REGIONAL INTEGRATION INSTRUMENTB. TAH Network revolution• The TAH network is designed to change the

traditional route pattern in order to develop linkages between African countries to promote intra African trade.

•  With a population of 1 billion, the African market if developed, will unlock economies of scale

• Africa will be an important destination of Foreign investment, and economic growth.

• In this context, the development of TAH is not only indispensable but very urgent.

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TAH DEVELOPMENT NEEDS BETTER COORDINATIONA. Identification of TAH roads • The TAH network has been identified.• However, developments on the ground

indicate the need for review and alignment.

• Some action has been or is being taken.• The Agreement will facilitate

coordination in the proposed changes in the TAH network – as these would be negotiated and agreed upon.

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TAH DEVELOPMENT NEEDS BETTER COORDINATIONB. Norms and Standards for TAH roads

• The TAH should be of High standard of construction for safe and unhindered flow of traffic.

• The establishment of minimum standards to be attained over a reasonable period of time is necessary.

 

C. Identification of signing for TAH • Since the TAH traverses many African states, its

identity becomes a matter of critical importance.

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Trade facilitation

• Expeditions and cost effective transport require the elimination of physical and non-physical barriers.

• The development of TAH will need to be accompanied with regional measures designed to harmonize and simplify customs and administrative procedures and formalities.

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Institutional coordination.

• The negotiation, adoption and implementation of the intergovernmental Agreement on TAR will require close and effective institutional coordination mechanisms among the supporting regional institutions ECA, AU/NEPAD, RECs, AfDB and supporting international organisations eg. OHRLLS and World Bank.

• Respective roles of all actors should be clarified and spelt out.

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TAH INTERGOVERNMENTAL AGREEMENT,- Further steps

• Negotiating Process – must be inclusive of all African countries and stakeholders

• Ratification and Entry into force – need to provide governments with the assistance they may require so as to promote early entry force and implementation

• Resource mobilization – Agreement will allow for co-ordinated resource mobilization

• Implementation and follow up

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Thank you