Assessment of Progress on Regional Integration in Africa Robert M. Okello Director, NEPAD and Regional Integration Division Conference of African Ministers of Finance, Planning and Economic Development/Fortieth Session of the Commission Addis Ababa, 29 March – 4 April 2007 Economic Commission for Africa

Outline IntroductionIntroduction Recent major Decisions by the RECsRecent major Decisions by the RECs Challenges of Regional IntegrationChallenges of Regional Integration ECA’s planned activities on Regional IntegrationECA’s planned activities on Regional Integration Way ForwardWay Forward

Introduction In July 2006, the AU Banjul Summit, endorsed the repositioning of the ECA.In July 2006, the AU Banjul Summit, endorsed the repositioning of the ECA. The Summit also reaffirmed the role of ECA as a key African institution to assist the AU and the RECs in advancing the development agenda on the continentThe Summit also reaffirmed the role of ECA as a key African institution to assist the AU and the RECs in advancing the development agenda on the continent. In the repositioned ECA will concentrate on fully supporting the AU’s efforts to accelerate the political and socio-economic integration of the continent.In the repositioned ECA will concentrate on fully supporting the AU’s efforts to accelerate the political and socio-economic integration of the continent.

Recent Major Decision by the RECs ECOWAS January 2007 Ouagadougou Summit decided to transform the Executive Secretariat to a CommissionJanuary 2007 Ouagadougou Summit decided to transform the Executive Secretariat to a Commission Reaffirmed the introduction of the second monetary zone in 2009 and called on member States to comply with the macroeconomic convergence criteriaReaffirmed the introduction of the second monetary zone in 2009 and called on member States to comply with the macroeconomic convergence criteria Member States should fully implement the Protocol on Free Movement of Persons, the right of residence and establishmentMember States should fully implement the Protocol on Free Movement of Persons, the right of residence and establishment

Recent Major Decision by the RECs (Cont’d) COMESA November 2006 Djibouti Summit commended Comoros and Libya for joining the COMESA FTA and called on all non-participating members to join.November 2006 Djibouti Summit commended Comoros and Libya for joining the COMESA FTA and called on all non-participating members to join. COMESA would launch its Customs Union in 2008.COMESA would launch its Customs Union in Endorsed the creation of Monetary Institute to prepare the zone for the future monetary unionEndorsed the creation of Monetary Institute to prepare the zone for the future monetary union Endorsed the creation of the COMESA Fund to support infrastructure development in the zoneEndorsed the creation of the COMESA Fund to support infrastructure development in the zone

Recent Major Decision by the RECs (Cont’d) EAC In November 2006, the Arusha Summit of the EAC admitted Rwanda and Burundi as full Members, effective from 1 July 2007.In November 2006, the Arusha Summit of the EAC admitted Rwanda and Burundi as full Members, effective from 1 July Approved the establishment of EAC as a Customs Union.Approved the establishment of EAC as a Customs Union. Extended preferential tariff treatment for goods originating from COMESA and SADC countries until the end of Extended preferential tariff treatment for goods originating from COMESA and SADC countries until the end of Endorsed the cooperation between EAC, COMESA and SADC in harmonizing their policies and programmes.Endorsed the cooperation between EAC, COMESA and SADC in harmonizing their policies and programmes.

Recent Major Decision by the RECs (Cont’d) SADC The Maseru, in August 2006, decided to make the Community a Free Trade Area (FTA) by 2008 and a Customs Union by 2010.The Maseru, in August 2006, decided to make the Community a Free Trade Area (FTA) by 2008 and a Customs Union by The Summit also called on member States to resolve the issue of their multiple memberships of RECs.The Summit also called on member States to resolve the issue of their multiple memberships of RECs. Endorsed the establishment of the SADC Regional Development Fund to finance development projects.

Recent Major Decision by the RECs (Cont’d) CENSAD In June 2006, the Summit in Tripoli, mandated the current Chairman of CEN- SAD to work towards the merging of CEN- SAD, Arab Magreb Union (AMU), and the Economic Community of West African States (ECOWAS) in order to accelerate the creation of the African Economic Community.In June 2006, the Summit in Tripoli, mandated the current Chairman of CEN- SAD to work towards the merging of CEN- SAD, Arab Magreb Union (AMU), and the Economic Community of West African States (ECOWAS) in order to accelerate the creation of the African Economic Community.

Challenges of Regional Integration No enforcement mechanisms to deal with member States that decide not to adhere to protocols and treaties they are signatories toNo enforcement mechanisms to deal with member States that decide not to adhere to protocols and treaties they are signatories to. The lack of a compensation mechanism for the losers of the integration process. Weak Infrastructure on the continent. Weak Infrastructure on the continent. The multiple memberships of countries in various RECs, and the resulting overlap and duplication of functions of the RECsThe multiple memberships of countries in various RECs, and the resulting overlap and duplication of functions of the RECs Weak macroeconomic and financial environment.

ECA’s planned activities on Regional Integration The regional integration agenda would be implemented through a strong partnership arrangement with the AU and AfDB. This agenda includes:  promotion of policies and programmes that speed up the formation the African Economic Community  promotion of intra-African trade  harmonization and coordination of policies and programmes of the RECs  promotion and development of infrastructure policies and programmes.

ECA’s planned activities on Regional Integration (Cont’d) Specific activities include:  ARIA III, to be published in 2007, to focus on the achievements of RECs in the areas of monetary cooperation and macroeconomic convergence.  Work, in collaboration with the AUC to review the Abuja Treaty. The findings of the review would be presented at the July 2007 AU Summit in Accra, Ghana.  Promoting intra-African Trade: through the SROs, support the RECs in their transformation into either Free-trade Zones or Customs Union or Common Market.

ECA’s planned activities on Regional Integration (Cont’d)  Provide technical assistance to member States, the AU and the RECs in building their capacities to implement the Abuja Treaty and the integration objectives of NEPAD as well as assisting RECs to integrate their programmes towards establishing the African Economic Community (AEC)  Establish a Peer-Learning Group on natural resources management to share experiences and identify best practices.  Would align its programmes and activities to NEPAD’s infrastructure initiatives by providing strategic support with the review of existing feasibility studies in transport, energy, water resources, and natural resources.

Issues for Consideration Support for the publication of the report on Assessing Regional Integration in Africa Support to mainstreaming regional integration in national policies Support for the promotion of intra-African trade

Issues for Consideration (Cont’d) Support for the Financing Infrastructure Support for establishing dispute resolution mechanism

MANY THANKS FOR YOUR ATTENTION