Project Management Institute (PMI) has urged the African Union (AU) to accelerate infrastructure development that would promote intra-continental trade among the member states.
In a statement made available to NATIONAL ECONOMY yesterday, the managing director, Sub-Saharan Africa, PMI, George Asamani, stated that, infrastructure is among the key elements essential to making the African Continental Free Trade Area (AfCFTA) work effectively.
Developing and improving power, transport, and communications infrastructure as well as establishing efficient road, air, port, and rail networks, he said, are crucial for enabling seamless trade facilitation and promoting economic integration.
This year marks the diamond jubilee of the Organisation of African Unity (OAU), now the African Union, the continental body representing 55 member states that make up Africa.
At the heart of this year’s celebration is the vision and implementation of the African Continental Free Trade Area (AfCFTA). The AU theme for 2023 is Acceleration of AfCFTA Implementation.
Adopting AfCFTA, PMI said, is expected to enhance mobility bringing transformative change and tremendous economic and business opportunities.
According to the World Economic Forum, AfCFTA will provide investors unparalleled access to a population of 1.7 billion people and consumer spending reaching $6.7 billion by 2030.
Hence, the PMI report highlights automotive; agriculture and agro-processing; pharmaceuticals; and transport and logistics as the four sectors expected to see a rapid acceleration in production and trade volumes, given they have a high potential to meet demand with local production.
Once fully implemented, he stressed that, the trade pact will create the world’s largest free trade area for goods and services across member states and deepen economic integration within the continent.
The trade area created by this agreement is expected to have a combined gross domestic product of approximately $3.4 trillion USD.
Intra-African trade accounts for approximately 14% of total trade in Africa, compared to significantly higher percentages achieved by Europe, North America, and ASEAN, of around 60%, 40%, and 30%, respectively.
To address this disparity, AfCFTA aims to facilitate the growth of intra-African trade by eliminating trade barriers, harmonising trade rules, and fostering synergies among African nations.
The African Development Bank estimated that Africa needs infrastructure financing of $130-170 billion annually (pre-Covid), given its rapid population growth and urbanisation.
“It is abundantly clear that AfCFTA is the cart, and infrastructure will be the horse that pulls it forward. Megaprojects will be crucial to the future of AfCFTA, but the problem is that these projects often go off the rails, either regarding budget or time—or both. For AfCFTA to succeed, Africa must engineer a skilling revolution. Never have the stakes been so high to ensure the timely execution of projects,” said Asamani.
He added that, “here is a pressing need for competent and qualified project managers to deliver projects to a high standard, as efficiently and effectively as possible. As these projects come to fruition, they will contribute to the acceleration of AfCFTA by facilitating smoother trade flows, enhancing connectivity, and driving economic growth in Nigeria and across the African continent.”
According to the latest report, effective project management practices have significantly improved project success rates.
The PMI Pulse of the Profession report highlights the value of project managers in navigating complexities, mitigating risks, and seizing opportunities, ultimately ensuring the seamless execution of initiatives.
