Assessment of Progress on Regional Integration in Africa: Key Messages and Recommendations

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Regional integration in Africa remains vital for economic transformation, with progress and challenges highlighted in a technical report. The African Continental Free Trade Area (AfCFTA) is a significant milestone for boosting trade and market integration on the continent. Efforts are needed to address macroeconomic integration, infrastructure deficits, and promote productive integration towards fostering post-COVID-19 economic recovery. Key policy recommendations emphasize the importance of implementing the AfCFTA and supporting African countries to withstand future economic shocks.

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Assessment of progress on regional integration in Africa Stephen Karingi, Director, Regional Integration and Trade Division Dakar, 11 May 2022

Introduction: Key Messages from the technical Report Regional integration remains key to the transformation of economies. Africa s fragmented Performance of regional economic communities on the five dimensions of regional integration 0.8 Commendable advancing challenges remain. Progress made in 0.7 integration agendas but Regional Integration Index score 0.6 0.5 The launch of the AfCFTA an important milestone for trade and market integration in the continent. 0.4 0.3 0.2 African opportunities integration initiatives such as AfCFTA to foster post-COVID-19 economic recovery and transformation. countries need to in harness regional 0.1 embedded 0 EAC AMU ECCAS IGAD ECOWAS CENSAD COMESA SADC Macroeconomic integration Productive integration Free movement of people Trade integration Infrastructural integration Source: Data from the Africa Regional Integration Index (ECA, 2019).

Progress on Regional Integration Trade Integration Progress made in boosting intra-African trade e.g. adoption of industrialization policies and strategies. However, Africa continues to trade more with the outside world than with itself Macroeconomic integration Macroeconomic integration essential to accelerating intra-regional trade 5 RECs (COMESA, EAC, ECCAS ECOWAS and SADC) have primary macroeconomic convergence criteria Infrastructure deficit and low productive integration Africa s integration and socioeconomic development impeded by huge infrastructure gaps. Production integration on the continent remains uneven and weak Intra - and extra - regional exports, 2020 120 100 Percentage of total exports 80 and convergence 60 40 20 0 Africa North America Latin America Asia Europe Oceania Intra-regional exports Extra-regional exports Source: UNCTADSTAT, 2021

Conclusion and Key Policy Recommendations Accelerating Regional Integration in Africa RECs and AU member States have made progress in implementing integration agendas Efforts required from RECs, key partners and stakeholders to tackle integration challenges Implementing the AfCFTA AfCFTA expected to strengthen resilience of African countries to withstand future economic shocks and maintain sustainable growth in the post-COVID-19 era RECs and key partners should support AU member States in implementing the AfCFTA ECA Support ECA will continue supporting member States, RECs, AUC, and AfCFTA Secretariat in the implementation of AfCFTA and other integration frameworks such as BIAT, FMPs Protocol. ECA supported preparation/implementation of national/sub-regional AfCFTA strategies, and technical reports including ARIA X, Common Investment Area and AfCFTA-RECs interface reports