Marrakech – The development of integrated infrastructure networks is a prerequisite for the creation of regional value chains, stressed His Majesty King Mohammed VI, emphasizing that the continent’s infrastructure deficit is one of the main factors preventing Africa from realizing its economic growth potential in full and achieving its development goals.
“The disparity in infrastructure between African countries and other parts of the world is particularly striking when we compare infrastructure development indicators,” said the Sovereign in a message addressed on Wednesday to participants at the Fourth Africa Investment Forum, being held from November 08 to 10 in Marrakech, under the theme “Unlocking Africa’s Value Chains”.
“The infrastructure gap between Africa and other parts of the world we hear so much about is a matter of concern to us all,” added HM the King in the message, which was read out by Omar Kabbaj, Advisor to His Majesty the King, adding that the gap must be quickly filled in order to promote regional value chains that can accelerate the productive transformation of African countries.
Of note, in this regard, is the energy sector, which is one of the most telling examples of areas where Africa is lagging behind in terms of infrastructure development, said the Sovereign, noting that although the continent’s energy potential – in both fossil fuels and renewable energy – is considerable, the electrification rate remains very low compared to other regions of the developing world.
It is essential, stressed His Majesty the king, to recognize the magnitude of this problem and to commit to resolving it in a decisive way. Indeed, quality infrastructure not only contributes to economic growth, but it also enhances human development as it increases access to health and education services and boosts the productivity of SMEs.
In addition, the Sovereign pointed out that the current international context, coupled with the actual and potential impacts it has on the African continent, “mean that we need to strive doubly hard to increase our national productive capacities and build stronger, more resilient continental value chains”.
HM the king added that as the experience of some countries has shown, notably in East Asia, the development of integrated regional value chains makes it possible to boost productive investment in these regions and increase corporate competitiveness, thanks to better resource allocation.
“Feedback from promoting regional value chains as a means for the achievement of economic and social development shows that the creation of a regional production-sharing system has a catalytic effect on the growth and rapid transformation of developing economies,” said the Sovereign, underlining that African countries are called upon to adopt an integrated approach to development in Africa in order to allow for the gradual creation of a common production system based on shared platforms.
In this regard, HM the king commended the work done by pan-African institutions concerning the setting up of the African Continental Free Trade Area (AfCFTA), which is fully in line with the Sovereign’s vision for an integrated and prosperous Africa.
“As this African dream comes true, it will help us pave the way for the creation of regional value chains. The latter are needed to increase the continent’s resilience to exogenous shocks and unlock its potential for production and for prosperity,” wrote HM the king in the message.
Recalling the many challenges facing African countries, which considerably reduce their ability to strike a balance between economic and social development requirements and the imperative to preserve internal and external budgetary balances, the Sovereign indicated that given the unprecedented situation and the scale of development financing needs in Africa, the role of the private sector has been gaining greater importance in achieving African countries’ development objectives.
“State budgets alone cannot cover all the investment needed, especially in high-potential, job-intensive sectors,” noted His Majesty the king, stressing that considering the great many investment opportunities it offers private operators, Africa needs, now more than ever, bold, innovative initiatives to encourage private entrepreneurship and unleash the full potential of our continent.
“That is why initiatives such as the African Investment Forum, which is sponsored by the African Development Bank, are commendable because they help direct private investment towards the most promising economic sectors, thus reinforcing the integration of African economies into global value chains,” according to His Majesty the king.
Source: Agency Morocaine De Presse