Expansion of the regional grid making progress

African countries will need to work far more closely and harmonise regulations if cross-border infrastructure projects are to unlock trade across the continent. Speaking during a panel discussion on regional infrastructure development at Infrastructure Africa, Satu Kahkonen, World Bank country director, said countries could not operate as isolated markets if they hoped to realise the vision of a single African market. “Countries are not islands,” she said. “If we want to create a functioning single market, it requires constant dialogue and cooperation between governments.” Kahkonen said infrastructure development had to go hand in hand with regulatory alignment. “The harmonisation of policies and regulations is a major area of work that has to happen in parallel with – or even ahead of – infrastructure development.” She pointed to developments in the Southern African Power Pool as an example of where cross-border cooperation was showing results. “We are already seeing expansion of the regional grid,” she said. “For example, we are currently discussing the expansion of electricity interconnections between Namibia and Angola. Angola has already built parts of the infrastructure, but both sides need to coordinate to make these connections work.” Kahkonen said multilateral institutions such as the World Bank could help facilitate cooperation between neighbouring countries. “As an independent organisation operating across many countries, we are often able to bring governments together and support the dialogue required to move these projects forward.” However, concerns were raised over many regional infrastructure projects that had remained on development lists for years without progressing. Nombulelo Nyathela of Infrastructure South Africa said the continent was continuing to struggle with fragmented governance systems and weak coordination across borders. “Over the past two years we have tried to coordinate at a technical level within the SADC, but it has not been easy,” she told delegates. She said stronger discipline was needed to prepare projects properly before they could attract financing. “Many projects have been on the table for years. If preparation is not done properly at an early stage, they will remain on lists indefinitely.” She said cross-border projects required governments to align approvals and regulatory processes. “If environmental approvals or regulatory processes happen at different speeds on either side of a border, one country ends up waiting for the other. That can stall projects for years.” According to Duncan Bonnett, a partner at Africa House, growing demand from the mining sector is increasing pressure for cross-border infrastructure. “There are up to 400 critical mineral mines currently operating in southern Africa, and many new projects are being developed,” he said. Increasingly, mining companies are developing their own power solutions due to unreliable grid supply. Kahkonen said mobilising private sector capital would be critical to finance large regional infrastructure projects. “If we want Africa’s free trade area to succeed, we have to mobilise funding and unlock the infrastructure that supports trade across the continent.” LV