Progress Report on Regional Integration in Africa
The document presents an assessment of progress on regional integration in Africa, highlighting challenges and achievements in advancing integration agendas. It emphasizes the importance of regional integration, particularly in the context of the AfCFTA, to foster economic transformation and resilience post-COVID-19. Key areas addressed include trade integration, macroeconomic convergence, infrastructure development, social integration, and governance issues. Recommendations call for coordinated efforts from countries, regional economic communities, and stakeholders to address integration challenges and leverage the AfCFTA for sustainable growth.
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Assessment of progress on regional integration in Africa (Doc Ref. No.: E/ECA/COE/41/6) Stephen Karingi, Director, Regional Integration and Trade Division 15 March 2023
Introduction: Key Messages from the Technical Report Global economic conditions have deteriorated considerably over the past three years (e.g., Covid- 19 and Ukraine-Russia crises), with negative implications for African countries. Regional integration remains key to the transformation of Africa s fragmented economies. Commendable Progress made in advancing integration agendas, but challenges persists. The beginning of trading under the AfCFTA in January 2021 is a key achievement in the continent s journey towards trade and market integration. African countries need to harness opportunities embedded in regional integration initiatives such as AfCFTA to foster post-COVID-19 economic transformation and strengthen the continent s resilience to current and future shocks.
Progress on Regional Integration Trade Integration Progress made to fast-track trading under AfCFTA e.g., progress on phases I and II negotiations; the guided trade initiative; launch of the PAPSS; growing intercontinental investment. However, Africa continues to trade less with itself than with the outside world. Among the RECs, SADC experienced the greatest decline in intraregional exports due to the pandemic, followed by the COMESA. Merchandise trade of Africa by partners (%), 2021 Intra-African exports as a percentage of total exports, 2020-2021 50 20 40 15 30 20 10 10 5 0 0 2020 2021 Source: UNCTADSTAT, 2021
Progress on Regional Integration (Contd.) Macroeconomic integration 5 RECs (COMESA, EAC, ECCAS ECOWAS and SADC) have primary macroeconomic conver- gence criteria. However, convergence compliance deteriorated in 2020 and 2021 due to the COVID-19 and the persistent geopolitical crises. Infrastructure deficit and progress on social integration Africa s integration and socioeconomic development impeded by huge infrastructure gaps. Through various initiatives, health-care integration is being implemented on the continent. Governance, peace and security Terrorism and violent extremism are among the primary threats. Series of recent unconstitutional changes of government and other forms of internal political upheaval weakened democracy and the rule of law.
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 countries, RECs, and key 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 continue to 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. Joint Initiatives including AfCFTA-anchored Pharma Initiative, Digital Trade Regulatory Integration initiative, are being implemented.
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