In the year 2018, one of the most remarkable event which can go a long way to propel a significant shift in expectations for intra-African trade was the signing of the Kigali Declaration in March. Trade and cooperation among Africa countries is now considered a priority notable with the coming of the agreement on the Continental Free Trade Area (AfCFTA) which has already been ratified by several countries.
Information released by the United Nations Economic Commission for Africa (ECA) has suggested that AfCFTA could lead to an increase in intra-African trade by as much as 52% by the year 2022.
Some African countries have taken the lead to champion intra-Africa collaboration such as Egypt which announced some initiatives aimed at improving investment, economic integration and greater cooperation among African states. It is thus true that there is a growing awareness on the continent as far as the impact of intra-regional trade and collaboration is concerned.
Beneficial trade relations and development initiatives were undertaken in 2018 between some countries, and such partnership alliance will be the subject of our review.
- ETHIOPIA AND SOMALIA INVEST IN 4 SEAPORTS ON THE RED SEA
In mid-2018, Somalia’s President Mohamed Abdullahi Farmaajo and Ethiopia’s Prime Minister Abiy Ahmed revealed that they will be jointly investing in 4 seaports, a move which was aimed at attracting foreign investment to the countries.
Dahir Mohamud Guelleh, Information Minister in Somalia had also informed that the ports will be jointly constructed by engineers from both countries. This project could be very vital for Egypt, a landlocked country, as it may be a means to ensure the exportation of its good through the red sea. This was a great realization for Ethiopia which has been trying to invest in Somalia’s seaport in Berbera and Bossaso.
- EGYPT AND TANZANIA SIGNED DEAL FOR A $3 BILLION DAM PROJECT
Tanzania shoved aside international contractors to award the project for the construction of its hydro-electric dam to Egypt. This mega project involves the building of a hydroelectric plant in Tanzania with an installed capacity of 2,115 megawatts worth USD 3 billion. Such agreement is a show of confidence towards African nations, who have in the past preferred to hand over such contracts to foreign contractors.
- MOROCCO AND NIGERIA SIGNED A GAS PIPELINE DEAL
This partnership agreement though signed between Morocco and Nigeria has a wider effect across the region. It is noted that the project is conducive for economic integration in the region and will help West African countries meet their energy needs. More to that, experts consider this remarkable partnership as an ideal means to open the way for more fruitful South-South cooperation in Africa.
Both countries had agreed to the pipeline deal in 2016 and went further to launch feasibility studies which was concluded with a plan to construct the pipeline both onshore and offshore
- KENYA AND ETHIOPIA SIGNED BILATERAL AGREEMENTS
Among the 5 bilateral deals inked by the two countries was a deal on the construction of an oil pipeline that will run through the two countries.
Kenyatta recognized Ethiopia as an invaluable partner for Kenya indicting that the two countries were working closely on the Lamu Port-Southern Sudan-Ethiopia Transport Corridor project. They also vowed to deepen their cordial bilateral relations so as to spur growth within their various countries.
After several years of foreign influence in several sectors of the economy, African nations are now continuously finding common grounds to partner and work together. This can be noted with the high level interest to jointly run projects of common interest which in most cases turn to benefit all parties involved.
Article from AFRIC Editorial