ITC: Infrastructure hurts sub-Saharan African exports
A U.S. International Trade Commission report published Friday found that poor infrastructure conditions for land and maritime transport continue to undermine the export competitiveness of many sub-Saharan African industries.
The ITC report said these transport conditions increase costs and export times and can compromise product quality, rendering both sub-Saharan African exports less competitive than global competitors.
“Poor infrastructure conditions also increase costs and add delays on the import side for necessary production inputs, such as textiles for apparel production in Kenya or chemicals for leather production in Ethiopia,” the report said.
The ITC report noted that many sub-Saharan African roads are poorly maintained and often unpaved. Truck fleets generally consist of aging, inefficient units, which are “often overloaded and contribute to further road degradation.”
The report added: “Rail networks in SSA (sub-Saharan Africa) are limited and generally even less reliable than trucks. In addition, excessive check points, burdensome administrative procedures, and inefficient processing at border crossings often cause long delays.”
The ITC said in its report that the region’s maritime ports are inefficient and lack sufficient cargo capacity, resulting in increased port charges and marine transport costs, and delays for exports.
However, the report pointed out an array of infrastructure improvements underway throughout the region. For instance, in Mozambique, the government has granted a concession to a private sector consortium to operate the port of Mapu, while retaining regulatory authority over port assets. Swaziland is using a new technology to streamline customs procedures to facilitate truck traffic across its borders, while Kenya has deployed electronic data interchange systems to reduce customs clearance times at the port of Mombasa, the ITC said.
The complete report, Sub-Saharan Africa: Effects of Infrastructure Conditions on Export Competitiveness, Third Annual Report, (Investigation No. 332-477, USITC Publication 4071, April 2009) will be available on ITC’s Internet site.
ITC: Infrastructure hurts sub-Saharan African exports
