1. Policy Recipe for Fostering Regional Integration through Transportation Development and Coordination in West Africa
Mariama Deen-Swarray, Bamidele Adekunle
&
Gbadebo Olusegun Odularu
Regional Policy Analyst, FARA;
Policy Recipe for Fostering Regional Integration through Transportation Development and Coordination in West Africa
CREPOL – ACRIA 3-
Dakar, July 2012

2. Outline Introduction Some Stylized Facts & Literature Review
Conclusion - Strengthening regional integration through transportation policy coordination.

3. Introduction Importance of fostering Regional Integration and Trade
Role of Infrastructure - Transportation Development
Study Objectives:
To discuss the transportation modes in West Africa.
To present policy options for optimizing transportation for regional integration in West Africa

4. Literature Review
Positive relation between transportation investment and productivity growth
Benefits of quality transportation- economic development, reduced trade & transaction costs etc.
Common language and similar culture influence bilateral/regional trade patterns;
Modern ICT-based economy - good access to efficient transportation infrastructure

5. Literature Review Continues
Distance and high transport cost - challenge to (West) Africa’s competitiveness.
Quality of infrastructure is positively related to trade volume and negatively to trade costs.
Shipment from Nigeria to Liberia – a month rather than days.
Improved infrastructure quality in domestic country can raise exports (14.5%) and imports (19.6%); higher in the case of the transit-country export increases (52%) - Grigoriou (2007).

6. Literature Review Continues
Transport cost incidence for exports in SSA was 5 times more than the tariff cost incidence.
Poor infrastructure accounts for 40% and 60% of transport costs for coastal and landlocked countries respectively.
Lack of capacity at border posts, delays and lack of adequate transportation facilities inflate prices.
Trend in infrastructure stock growth can be better explained by the political economy.

7. Literature Review Continues
Major causes of poor state of infrastructure are mainly structural (low economic density and geography) - AfDB (1999).
Review indicates that though there are varying views and findings, in general the availability and quality of transportation infrastructure promotes regional trade and economic growth.

8. Some Stylized Facts
Cross-border infrastructure projects can be very costly.
Lack of adequate financing for such projects
Need for Alternative means of financing (PPP, Long-term)
Lots of missing regional and trans-West African links
Lack of existing road and rail links and the poor connectivity to ports within the region
Countries in the sub-region mainly engage in the export of primary commodities

9. Some Stylized Facts
On average, 45% of major roads within ECOWAS are in good condition (AICD, 2010).
7major corridors in ECOWAS are almost entirely paved; some are in bad condition; Corridors exclude Gambia, Sierra Leone, Liberia, Guinea Bissau and Guinea;
Trade vol.:US$ 4 to US$ 20 bn ( );
Nigeria and Cote D’Ivoire accounted for 23.2% and 28.8%; Cape Verde,the least - 0.1%.
Nigeria and Cote D’Ivoire export more than they import; Others import more than they export

10. ECOWAS Countries Roads and their Condition – Source: AICD, 2010
Country
Condition
Type
Good (%)
Fair (%)
Paved (%)
Benin
35.8
1.8
96.8
Burkina Faso
58.2
33.6
100
Cape Verde
Cote d’Ivoire
16.1
47.1
90.3
Gambia
89.4
47.4
Ghana
70.3
23.6
Guinea
22.2
20.7
89.1
Liberia
39.4
55.9
47.5
Mali
66.6
21.7
99.6
Niger
31.2 31 88
Nigeria
55.6
29.7
Senegal
39.8
15.1
99.8
Sierra Leone
19.5
58.4
Togo
49.7
ECOWAS
45.1
28.4
92.5

11. Inter-regional Comparison

12. Some Stylized Facts – Volume of ECOWAS Trade

13. Some Stylized Facts – Countries’ Shares in Total Trade

14. Country’s share of intra-regional exports and imports

15. Some Stylized Facts
Container transport is growing - average annual growth rate of 13.8%; region contributes 1% and 2% to total global and Africa container traffic
Inter-connections difficult and often expensive; Nigeria offers the most number of connections
No central air transport hub; need for smaller jets
Telecommunication costs are getting less expensive due to competition.
Rail networks are the least developed
25 significant ports – none among the 70 largest in the world

16. Rail, Roads and Airports networks in ECOWAS

17. Main telephone line (Landlines) per 100 inhabitants

18. Cellular subscribers per 100 inhabitants

19. Internet users per 100 inhabitants

20. Rationale for a FARA FARA was created to:
Enhance coordination of agric. research at continental level
NASRO
ASARECA
CORAF/WECARD
CCARDESA
Advocate for investments & best practices and broker partnerships
Mission - The creation of broad-based improvements in agricultural productivity, competitiveness & markets by strengthening the innovation capacity of Africa’s agricultural research and development systems
AFAPP – African Food and Agric Policy Platform - to enhance the effectiveness of policy support to the African agriculture growth agenda.

21. Conclusion – Policy Recipe for Fostering Regional Integration through Transportation Development and Coordination in West Africa
Regional integration and transportation policies should be systematically harmonised at national and regional levels.
Reg transportation policies should be further strategically mainstreamed into regional integration plans so that transportation policies respond and adapt to the needs of regional integration policies and not the other way round.

22. Conclusion – Policy Recipe for Fostering Regional Integration through Transportation Development and Coordination in West Africa
West African governments should ensure that transportation policy frameworks effectively promote the regional integration efforts. This could be achieved by:
(i) providing incentives for transportation development initiatives that promote regional integration;
(ii) strengthening relevant institutions for transportation development.

23. Conclusion – Policy Recipe for Fostering Regional Integration through Transportation Development and Coordination in West Africa
Transportation policies should provide opportunities and alternatives to West African businesses and also promote the use of relevant institutions and tools (e.g. risk management instruments, ICT-based market information systems, et cetera.) that foster regional integration.

24. Conclusion – Policy Recipe for Fostering Regional Integration through Transportation Development and Coordination in West Africa
Joint venture initiatives between public and private sector, such as public-private partnerships (PPP), should be supported in order to leverage transportation and regional integration programmes for regional development.
Successful promotion and sustainable development of transportation sector in West Africa require strong policy and institutional support.

25. Thank you for the attention