African Development Bank Reinforces Its Commitment To Economic Integration Across the Continent -

By Prosper Makene, Senior Business Reporter

The Bank’s Integrate Africa portfolio for Eastern Africa, valued at $5.5 billion, is the largest in Africa, reflecting its dedication to fostering a more connected East Africa.

The African Development Bank (AfDB) has revealed that it has invested $55 billion dollars in regional connectivity over the past decade, emphasizing its commitment to enhancing regional connectivity across the African continent.

This was shared by Dr. Joy Kategekwa, Director of Regional Integration at AfDB Group, during the launch of the 2023-2024 East African Community (EAC) Common Market Capital, Services, and Goods (CSG) Scan.Speaking on the theme “Keeping the Promise to Integrate Africa,”

Dr. Kategekwa emphasized the Bank’s role as a strategic partner for East African development, highlighting its support for the EAC Common Market Protocol.

This protocol, she explained, aims to deepen economic integration by promoting the free movement of goods, services, and capital across the region.

The Bank’s Integrate Africa portfolio for Eastern Africa, valued at $5.5 billion, is the largest in Africa, reflecting its dedication to fostering a more connected East Africa.

“With 64 percent of the Integrate Africa portfolio directed toward transport infrastructure, the Bank has funded significant projects that will enhance regional trade.

Among them is the $3.9 billion electrified Standard Gauge Railway connecting Burundi, Tanzania, and the Democratic Republic of Congo, with $700 million provided by AfDB.

This railway will streamline trade and mobility across East African borders, supporting the region’s growing economic needs,” she highlighted.

Beyond infrastructure, Dr. Kategekwa mentioned that AfDB has invested in “soft” connectivity projects, such as the $20 million EAC Payment and Settlement Systems Integration Project.

“This initiative allows cross-border transactions in local currencies, reducing transaction costs and delays for businesses.

Additionally, the $11 million EAC Capacity Building Project aims to lower trade costs and address non-tariff barriers, enhancing East Africa’s competitiveness as a unified investment destination,” she added.

Dr. Kategekwa emphasized the significance of these investments not only for Eastern Africa but for Africa’s broader goals under the African Continental Free Trade Area (AfCFTA), which represents a $3 trillion market.

Highlighting the potential for regional industries such as agribusiness, electric vehicle manufacturing, and digital finance, she urged governments and private stakeholders to collaborate in transforming East Africa into a unified economic force.

“The challenges Africa face transcend borders, and so must our solutions,” Dr. Kategekwa remarked.

She reiterated AfDB’s commitment to supporting East Africa’s economic resilience through robust infrastructure and integration projects that will benefit millions across the continent.

In the area of industrial production, Dr. Kategekwa emphasized the importance of African enterprises and businesses investing in and building production capacity.

She highlighted that the concept of “Keeping the Promise” holds real significance if the private sector in Africa focuses on meeting the production needs of the African market.

She explained that this is vital for advancing the regional integration agenda, as African countries must be able to produce and trade with one another.

Furthermore, she stressed that production must meet the market standards in terms of quality to ensure its success.

Dr. Kategekwa stressed the importance of harmonizing policies, enhancing infrastructure, and reducing trade barriers, urging all stakeholders to commit to fully implementing the EAC Common Market Protocol.

“Together, we can create a prosperous region ready to seize the vast opportunities offered by the AfCFTA,” she concluded.