In a major initiative to strengthen the West African economy, the governments of Morocco and Nigeria have announced plans to jointly develop a new regional gas pipeline that will not only stretch out all the way towards Europe, but will also connect many African countries.

The Trans-African Pipeline project was announced by King Mohammed VI of Morocco and President Muhammadu Buhari of Nigeria during his visit to Nigeria.  

By accelerating the electrification of the region, the Trans-African Pipeline will improve access to energy across West Africa, said a statement from Ithmar Capital, the Moroccan sovereign wealth fund, which is collaborating on the project with the Nigeria Sovereign Investment Authority (NSIA).

The two funds announced the signing of a strategic partnership agreement (SPA) and a Memorandum of Understanding (MOU), which will see their countries cooperate on bilateral investment for the first time in recent history.

Under the deal, Ithmar Capital and NSIA will jointly pursue investment in strategic sectors including food security, renewable energy and infrastructure.

The duo will also 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, it stated.

Ithmar Capital said in West Africa, the Trans-African Pipeline is designed to support the creation of industrial hubs that attract foreign investment.

The project will therefore facilitate the expansion of sectors ranging from industry to food processing to fertilisers and improve the competitiveness of exports, particularly amongst African countries.

Nigerian Minister of Foreign Affairs Dr Geoffrey Onyema said: "This South-South open platform will accelerate the structural transformation of the national economies of the region, thereby putting the entire region on a higher growth path. The two Heads of State agreed to set up a Bilateral Coordination Body to monitor this important project and commended such a strategic cooperation in Africa."

According to him, the project will help address one of the region's most significant barriers to development, the lack of affordable energy.

In addition, it will strengthen energy exports to Europe, linking Nigerian gas to the European energy market through Morocco.-TradeArabia News Service