A two-day visit to Chicago by African transportation ministers, held just ahead of this week’s historic U.S.-Africa Leaders Summit in Washington, D.C., underscores U.S. intent to play a driving role in the development of the Africa’s transport infrastructure.
Opportunities for investment and trade in Africa’s transportation sector will be a focus topic at business gatherings taking place this week in Washington while heads of state from more than 40 African countries are in town as guests of President Obama. Two of the most talked-about gatherings are the U.S.-Africa Business Forum, co-hosted on Aug. 5 by the U.S. Department of Commerce and Bloomberg Philanthropies, and the Dialogue with African CEOs, hosted on Aug. 6 by U.S. Rep. Gregory W. Meeks and the Congressional Black Caucus Africa Task Force.
In an undisguised pitch for U.S. technology, systems and equipment, the U.S. Trade and Development Agency and the U.S. Department of Transportation hosted transportation ministers from five of Africa’s largest economies, along with the secretary general of the Common Market for Eastern and Southern Africa, from July 30 to Aug. 1 in Chicago, home to the Union Pacific Proviso Yard, the largest of Union Pacific’s four major intermodal terminals in Illinois, and O’Hare International Airport, one of the world’s busiest airports.
The ministers, who hailed from Algeria, Angola, Ethiopia, Nigeria and South Africa—countries that recently announced plans for significant near-term expansions in rail and aviation infrastructure—shared their plans for upgrading and expanding these sectors with U.S. federal, state and local experts and U.S. business executives. Their visit to Chicago was billed as the African Leaders Visit: Transport
“African economies are liberalizing; they have put into place institutions and policies that facilitate public-private partnerships,” observed COMESA Secretary General Sindiso Ngwenya. “These fast-growing African markets are eager to partner with the United States in building the next generation of their transportation infrastructure.”
While in Chicago, the delegation toured the Union Pacific Proviso Yard and O’Hare, where they saw live demonstrations of state-of-the-art equipment and technologies manufactured in the United States, and discussed transportation systems with U.S. experts.
Africa’s road, rail and aviation systems are in dire need of rehabilitation in order to make transporting people and products across the continent safer, cheaper and more efficient. Current conditions drive up the cost of transportation for commuters and freight alike, negatively impacting labor productivity and competitiveness. Indeed, Africans spend more than 30 percent of their time and income on their daily commutes.
The proportion of paved roads on the continent today is five times less than those in developed countries. Road access rate is only 34 percent, compared with 50 percent in other parts of the developing world, making road transport costs in Africa higher by up to 100 percent.
Most of the railways, built by mining companies during colonial times to connect mines and other natural resources to ports, reflect a half-century of neglect, according to the International Monetary Fund. The cost of fixing them is huge. Just upgrading East Africa’s railway network to standard gauge is anticipated to cost $29 billion.
Africa is a fertile market for the growth of general, commercial and business aviation, as well as for the growth of airport infrastructure. By 2040, all airports on the continent will need to be expanded or supplemented by additional airports so as to handle the anticipated growth of 350 percent to 600 percent over current air passenger levels in air traffic. The business-jet fleet per 100 million population expected to reach 142 from 64 over the next 20 years. Major manufacturers forecast 810 deliveries of business aircraft and 550 new commercial aircraft in the same period.
Speaking recently at the Aviation Club in London, Ethiopian Airlines CEO Tewolde Gebremariam warned of the danger of reliance on global carriers to Africa’s aviation industry.
“We are growing very fast but we have a serious challenge when considering that 80 percent of traffic between Africa and the rest of the world is controlled by non-African carriers,” International Meetings Review quotes him as saying. “All of us—Kenya Airways, Ethiopian, South African, Egyptair, Air Morocco, TAG Angola, CAM Air, Rwandair, Arik Air and so on—put together, we only have 20 percent of the market. This is a big, big challenge if we don’t do something to at least maintain 50 percent of the market. Otherwise we are going to be swallowed and they are going to have us for their lunch.”
From Oct. 9-11, Ghana will host African Air Expo, the first global aviation exhibition for Africa, dedicated to general, business and commercial aviation and airports suppliers.
The “African Leaders Visit: Transport” was one of only two commercially focused events to take African leaders outside of Washington, ahead of the U.S.-Africa Leaders Summit. The second event, The “African Leaders Visit: Energy,” took place concurrently in Houston, Texas, and was hosted by USTDA and the U.S. Department of Energy.
