Civil Engineering April 2021 | Vol 29 No 3

Civil Engineering April 2021 7 of operations and in-country technical capability, lack of commercial acumen and project risk, use of agents, corruption and bribery, as well as a volatile client struc- tures influenced by elections. In addition, mega-projects have come on the back of government-to-government transactions seemingly monopolised by African-Chinese agreements. While these have yielded significant infrastructure capacity as it applies to rail, air, seaports and mining, to name a few, many are still to give the desired socio-economic and financial returns, and in so doing raised sovereign debt levels to become unsus- tainable in many cases. The upside is that, as a continent, we have infrastructure that we did not previously have. The opportu- nity lies in integrating such infrastructure into market development initiatives. Such market development initiatives can be derived by linking local geographic or country-level strategies with the AfCFTA to realise the economic value of infrastructure already in place. This would apply from ports in West Africa to rail systems in East Africa, supported by air and road transport options available to create new or enhance existing cor- ridors. Support of freight forwarders and transporters has a role to play in growing and developing such corridors. BOOSTING TRADE Many African countries have their chosen trading arrangements (imports and exports). Closer analysis shows that these are with Europe (31%), China (16%) and other African countries (11% to 16%). It suggests that we have an opportunity to derive large economic gains if Africans can change existing buying and selling arrangements to allow for greater intra- African dominance. While non-tariff barriers and red tape are two stumbling blocks, the adoption of the AfCFTA will seek to address these in future. Meanwhile, infrastructure, which is the third barrier, presents our construction sector with opportunities to either enhance existing or create new supply chains to gain market access. South Africa needs to become a lot more strategic in developing further business with Africa Inc. than we have been in the past. While we prioritise local issues, the geopolitical landscape is already changing to what may become a post-Covid norm, with the establishment of new trading arrangements. We should not forget that the world is seeing Africa as a growth market. While the AfCFTA has the po- tential to assist with inter-Africa trade, we as South Africans need to act on definite initiatives towards realising the potential of the agreement before we are too late. Our intention to form and grow social compacting, for example, is where govern- ment and business can collaborate. Our economic objective of stimulating growth by way of social compacting may have an improved chance of success if we embark on new initiatives such as incentivising exploitation of the AfCFTA as opposed to re-engineering existing markets and supply chains (SDG 9) in the medium term. South Africa continues to have the best infrastructure to support industrialisation, which remains an objec- tive of the AfCFTA. There are further questions on Africa’s sustainability should we perpetuate the current status quo of an export-based continent. To date, Africa remains a predominantly resource-based economy that is highly exposed to commodity price volatility. Manufactured goods are less prone to price shocks, hence the opportunity remains to grow manufac- turing and processing capabilities on the continent to maintain a higher level of economic stability. As part of the Economic Recovery and Reconstruction Plan, South Africa has prioritised industrialisation and agricultural development, among others, as key drivers for local economic growth. With a market of over one billion people, paired with rising consumer affluence and easier mobility of capital, Africa is setting the scene for local firms to revisit their growth aspirations in domestic and international markets. In keeping with our focus on struc- tural reforms, it remains for the authori- ties to urgently enable trade by reducing admin and transaction costs to allow for transportation and communication infrastructure to improve connectivity between and within African countries. I started this article with a comment suggesting an altruistic mindset which I may forgo for being strategic. There are certainly many more hurdles that will prevent intra-Africa trade from growing aggressively. Strategic leadership, political volatility, and implementors figuring out the ‘nuts and bolts’ of the agreement could hinder cooperation. Success will require willingness from member states and for leaders to take action, firstly by under- standing how AfCFTA will affect the economy and livelihoods and secondly by putting in place mechanisms to mitigate potential negative risks. CONCLUSION In summary, this article was intended to illustrate new thinking based on some of the current realities that create the opportunity to explore new markets, such as a low GDP scenario, diminishing fiscal reserves, the need to structurally reform, formation of social compacts, and our reducing ability to service ballooning debt, to name a few. We are aligned at the strategic level as our current markets are not going to de- liver the fundamentally new value needed to grow in the short term. We have untapped opportunities on our doorstep while remaining Africa’s most advanced economy – a key capability that has to be leveraged sooner rather than later on the back of the AfCFTA that opens a door to intra-Africa trade. I think success needs political will and individuals that are capable and prepared to make the effort to remove barriers to entry to domestic and international markets. Many of the barriers are created by us and can easily be undone, should we choose to do so. A dream of a united Africa, growing sustainably with resilient communities living safely and being economically active while learning with meaning, will certainly be the envy of many and lies in the hands of the current African leadership and our communities. It is a dream that may be altruistic, but it is a dream we need to work towards for our own sustainability in South Africa.  We have an opportunity to derive large economic gains if Africans can change existing buying and selling arrangements to allow for greater intra-African dominance South Africa continues to have the best infrastructure to support industrialisation, which remains an objective of the AfCFTA