PANAPRESS
Panafrican News Agency
Jonathan explains Africa's inability to realise full economic potential
Lagos, Nigeria (PANA) - "Inadequate and poor infrastructure in Africa remains a major constraint to the continent's realisation of its full economic potential," Nigeria's President Goodluck Jonathan declared Wednesday in Cape Town, South Africa, in a speech he delivered at the opening session of the Infrastructure Summit at the World Economic Forum, Africa 2013.
A copy of the speech, obtained here by PANA, quoted President Jonathan as saying "Due to the relatively poor infrastructure and low connectivity on the continent, we have the lowest level of inter-regional trade."
He said "While we account for about 12% of the world's population, our share of global trade is just about 2% and this is also a reflection of the fact that our economies are less diversified compared to other global regions."
According to President Jonathan, poor infrastructure served as additional burden and cost to businesses, making it difficult for them to compete, and accompanied by structural and high level of unemployment.
"To effectively tackle these challenges, diversify our economies, reduce poverty and provide employment opportunities for our bulging youth population," he said "we must build necessary infrastructure in Africa across transport, communication and energy sectors."
Noting that over the course of the past decade, African stakeholders have recognised the need to plug the gaps in infrastructure on the continent, President Jonathan said "From studies and reports on the subject, it is estimated that Africa requires about US$100 billion annually for the next decade, whereas only a quarter is being spent today."
He said that due to limited fiscal resources, Governments alone cannot build the infrastructure that Africa needs, "Therefore, as we look to solving our infrastructural challenge, the underlying binding factor is finance. We must therefore continue to develop new innovations and ways of achieving this.
"Besides finance, our experience has shown that without a common framework as a basis for collaboration, little progress will be made. I am especially delighted then that Programme for Infrastructure Development in Africa (PIDA) is building on the plans already established under different initiatives such as the NEPAD Medium to Long Term Strategic Framework and the AU Infrastructure Master Plans."
President Jonathan disclosed that as part of the infrastructure initiative, "Nigeria is leading the efforts to construct the Nigeria – Algeria Gas Pipeline Project to run from Nigeria, through the Sahara desert to Algeria.
The initial preparatory work, he said, is underway, adding that in the light of the recent developments in the global gas industry and the collapse of gas prices, the project concept is now under review to determine its viability.
He said "My expectation is that this plan will hasten Africa's integration through trade and migration which has been a priority and central element of the continent's development strategy.
"This is more so considering that inter-regional trade within the continent is just about 10%. On our part, we are committed to the integration of Africa's infrastructure and its development."
He said that In the ECOWAS sub-region, for instance, appreciable progress has been made, making bold to say "I can safely say that ECOWAS policies on free movement of people and the right of establishment have contributed in no small measures to the increasing success of multi-national companies in the region.
"Thankfully, PIDA is also aligned to the vision of the ECOWAS community that promotes the free movement of people, goods and services."
According to President Jonathan, "We share the commitment to the full realisation of the Lagos – Abidjan West African road corridor and the Trans – West African Coastal link road.
"In addition, we are sustaining effort in the development of the gas sub-sector, not only for our growing number of power plants, but in line with the regional initiative of West African Gas Pipeline for the West African market.
He briefed participants on some of the domestic initiatives embarked upon to improve Nigeria's infrastructure, including a number of reforms especially in the Power and Energy Sectors, Road Construction and Infrastructural Development.
"Just in the last two weeks, he said, "my government completed the biggest transfer of power assets in Africa to private investors," adding that "By this act, the power sector in Nigeria is now totally privatised, except for the transmission company, which is concessioned to a private firm to manage."
President Jonathan said "We expect an annual US$10 billion investment to follow for the next decade regarding these reforms."
He said that as part of the reforms relating to infrastructure, the Petroleum Industry bill (PIB), which seeks to streamline the regulatory oversight of the industry is being considered by the Nigerian National Assembly with the expectation that it will be passed into law during this parliamentary session.
He expressed gratitude to the World Economic Forum and all the critical stakeholders for supporting Africa's progress towards the building of 21st century infrastructure across the continent in order to support its future growth.
On the outcome of the summit, President Jonathan said "I will be pleased to hear at the end of this summit that effective programmes and action plans that include roles for our development partners and international investors have been defined for the infrastructural goals that we have all set, and seek to achieve."
He also expressed appreciation to the African Union Commission (AUC), the United Nations Economic Commission for Africa (UNECA), the African Development Bank (AfDB) and the NEPAD planning and coordinating Agency for establishing the infrastructure plan for Africa, appropriately christened "Programme for Infrastructure Development in Africa (PIDA)".
President Jonathan said that in the last decade, Africa had come a long way from being mainly associated with economic stagnation, high inflation, high external debts, and civil strife.
"Today, the situation has changed due to significant macroeconomic, structural, and political reforms. Economic growth on the continent averaged 5% annually in the last 10 years."
-0- PANA PR/VAO 8May2013
A copy of the speech, obtained here by PANA, quoted President Jonathan as saying "Due to the relatively poor infrastructure and low connectivity on the continent, we have the lowest level of inter-regional trade."
He said "While we account for about 12% of the world's population, our share of global trade is just about 2% and this is also a reflection of the fact that our economies are less diversified compared to other global regions."
According to President Jonathan, poor infrastructure served as additional burden and cost to businesses, making it difficult for them to compete, and accompanied by structural and high level of unemployment.
"To effectively tackle these challenges, diversify our economies, reduce poverty and provide employment opportunities for our bulging youth population," he said "we must build necessary infrastructure in Africa across transport, communication and energy sectors."
Noting that over the course of the past decade, African stakeholders have recognised the need to plug the gaps in infrastructure on the continent, President Jonathan said "From studies and reports on the subject, it is estimated that Africa requires about US$100 billion annually for the next decade, whereas only a quarter is being spent today."
He said that due to limited fiscal resources, Governments alone cannot build the infrastructure that Africa needs, "Therefore, as we look to solving our infrastructural challenge, the underlying binding factor is finance. We must therefore continue to develop new innovations and ways of achieving this.
"Besides finance, our experience has shown that without a common framework as a basis for collaboration, little progress will be made. I am especially delighted then that Programme for Infrastructure Development in Africa (PIDA) is building on the plans already established under different initiatives such as the NEPAD Medium to Long Term Strategic Framework and the AU Infrastructure Master Plans."
President Jonathan disclosed that as part of the infrastructure initiative, "Nigeria is leading the efforts to construct the Nigeria – Algeria Gas Pipeline Project to run from Nigeria, through the Sahara desert to Algeria.
The initial preparatory work, he said, is underway, adding that in the light of the recent developments in the global gas industry and the collapse of gas prices, the project concept is now under review to determine its viability.
He said "My expectation is that this plan will hasten Africa's integration through trade and migration which has been a priority and central element of the continent's development strategy.
"This is more so considering that inter-regional trade within the continent is just about 10%. On our part, we are committed to the integration of Africa's infrastructure and its development."
He said that In the ECOWAS sub-region, for instance, appreciable progress has been made, making bold to say "I can safely say that ECOWAS policies on free movement of people and the right of establishment have contributed in no small measures to the increasing success of multi-national companies in the region.
"Thankfully, PIDA is also aligned to the vision of the ECOWAS community that promotes the free movement of people, goods and services."
According to President Jonathan, "We share the commitment to the full realisation of the Lagos – Abidjan West African road corridor and the Trans – West African Coastal link road.
"In addition, we are sustaining effort in the development of the gas sub-sector, not only for our growing number of power plants, but in line with the regional initiative of West African Gas Pipeline for the West African market.
He briefed participants on some of the domestic initiatives embarked upon to improve Nigeria's infrastructure, including a number of reforms especially in the Power and Energy Sectors, Road Construction and Infrastructural Development.
"Just in the last two weeks, he said, "my government completed the biggest transfer of power assets in Africa to private investors," adding that "By this act, the power sector in Nigeria is now totally privatised, except for the transmission company, which is concessioned to a private firm to manage."
President Jonathan said "We expect an annual US$10 billion investment to follow for the next decade regarding these reforms."
He said that as part of the reforms relating to infrastructure, the Petroleum Industry bill (PIB), which seeks to streamline the regulatory oversight of the industry is being considered by the Nigerian National Assembly with the expectation that it will be passed into law during this parliamentary session.
He expressed gratitude to the World Economic Forum and all the critical stakeholders for supporting Africa's progress towards the building of 21st century infrastructure across the continent in order to support its future growth.
On the outcome of the summit, President Jonathan said "I will be pleased to hear at the end of this summit that effective programmes and action plans that include roles for our development partners and international investors have been defined for the infrastructural goals that we have all set, and seek to achieve."
He also expressed appreciation to the African Union Commission (AUC), the United Nations Economic Commission for Africa (UNECA), the African Development Bank (AfDB) and the NEPAD planning and coordinating Agency for establishing the infrastructure plan for Africa, appropriately christened "Programme for Infrastructure Development in Africa (PIDA)".
President Jonathan said that in the last decade, Africa had come a long way from being mainly associated with economic stagnation, high inflation, high external debts, and civil strife.
"Today, the situation has changed due to significant macroeconomic, structural, and political reforms. Economic growth on the continent averaged 5% annually in the last 10 years."
-0- PANA PR/VAO 8May2013
