The Lagos-Abidjan highway, a 1,028-km road project that aims to connect five coastal countries in West Africa, is facing major challenges hamper trade and development in the region. According to a report by the African Development Bank (AfDB), the highway has 70 checkpoints that cause delays, corruption, and high costs for traders and travelers.
The report estimates that the region loses about $3.8 billion annually due to these trade barriers, which also affect the competitiveness of local products and services. The report calls for the removal of these checkpoints and the harmonization of customs procedures and standards among the countries involved: Nigeria, Benin, Togo, Ghana, and Côte d’Ivoire1.
The Lagos-Abidjan highway is part of the African Continental Free Trade Area (AfCFTA), a flagship initiative of the African Union (AU) that aims to create a single market for goods and services across 54 countries. The AfCFTA, which entered into force in 2019 and commenced trading in 2021, is expected to boost intra-African trade by 52% by 2022 and increase the continent’s share in global trade.
However, the AfCFTA faces many challenges, including poor infrastructure, security issues, political instability, and non-tariff barriers. According to the World Bank, Africa has the highest average tariffs and the longest delays at borders compared to other regions worldwide. The bank estimates that reducing these barriers could lift 30 million people out of extreme poverty and increase Africa’s income by $450 billion by 2035.
The AfDB and its partners have pledged to support the Lagos-Abidjan highway project with $15.6 billion in funding, which was mobilized during the Africa Investment Forum in 2022. The project is expected to have significant economic and social benefits for the region, such as creating jobs, enhancing regional integration, improving access to markets and services, and reducing poverty.
The leaders of the five countries involved in the project have expressed their commitment to accelerate its implementation and cooperate with the development partners and the private sector to mobilize resources. They have also established a committee to oversee the project and set up its headquarters in Côte d’Ivoire.
The Lagos-Abidjan highway project is a key opportunity for West Africa to harness its potential and leverage its strategic position in the AfCFTA. The project is also aligned with the AU’s Agenda 2063, which envisions a prosperous and peaceful Africa that is integrated and industrialized.
Source: Leadership Nigeria
