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Africa must urgently upgrade its maritime and logistic infrastructure in order to successfully promote the continent’s trade, especially intra-African trade, the African Export-Import Bank (Afreximbank), has said.
In an address at the Africa Shipowners Summit in Seychelles, Kanayo Awani, Managing Director of Afreximbank’s Intra-African Trade Initiative, speaking on behalf of Bank President Dr. Benedict Oramah, described weak maritime and logistic infrastructure as being particularly harmful to African trade, noting that the continent currently had the world’s highest transportation and transaction costs.
Awani pointed out that only a few of the African countries with access to the sea had established the right infrastructure for marine transport even though Marine transport accounted for 92 per cent of Africa’s external trade and 92 per cent of the continents imports were seaborne.
She said that Africa currently handled only six per cent of global seaborne traffic, out of which 50 per cent of the volume was handled by Egypt and South Africa. Lamenting that most African countries did not have national vessels, Awani said that it was estimated that Kenya lost about USD 3 billion annually in money paid to foreign shipping lines.
She recommended that there should be incentives to encourage African businesses to support the development of local shipping lines and called for investment in national/domestic fleet through gradual and staggered vessel acquisition, terminal management, freight forwarding and logistics.