Morocco, Nigeria announce Trans-African gas pipeline

The Kingdom of Morocco and Federal Republic of Nigeria have announced that they will jointly develop a new regional gas pipeline connecting the two countries, bringing the resources of Nigeria to Morocco, its neighbors and Europe. The Trans-African Pipeline project was announced during a Royal visit to Nigeria by His Majesty, King Mohammed VI, of Morocco, with President Muhammadu Buhari of Nigeria.

“By accelerating the electrification of the region, the Trans-African Pipeline will improve access to energy across West Africa,” the press release states. “This will help address one of the region's most significant barriers to development, the lack of affordable energy. In addition, the project will strengthen energy exports to Europe, linking Nigerian gas to the European energy market through Morocco.”

The project will facilitate the expansion of sectors ranging from industry to food processing to fertilizers and improve the competitiveness of exports, particularly amongst African countries. Currently intra-continent trade accounts for only 17% of African countries' international trade.

Under the Strategic Partnership Agreement (SPA), Ithmar Capital and NSIA have committed to jointly pursue investment in strategic sectors including food security, renewable energy and infrastructure. The SPA also commits the two institutions to share knowledge and expertise relating to the extractives sector, collaborate on research and best practices, and provide policy guidance in order to strengthen both countries' capacity to manage natural resources.

Similarly, the MOU provides for a broader alliance framework between the two entities.

It ensures Nigeria's active involvement in the Green Growth Investment Fund (GGIF) Africa, an initiative to catalyze Africa's transition to a green economy. GGIF Africa was launched during the UN Framework Convention on Climate Change Conference on Parties (COP22), held in November in Marrakech. It aims to accelerate regional growth by attracting foreign investors interested in Africa who seek responsible, sustainable opportunities.

Together, the two agreements will create a formal structure to build relationships and create new opportunities between businesses in Morocco and Nigeria. They also represent a major commitment by two of Africa's largest economies to collaborate on regional initiatives that will continue the continent's development.

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