1. ASSESSMENT OF PROGRESS ON REGIONAL INTEGRATION IN AFRICA
Stephen Karingi
OiC Regional Integration and Trade
May 2018
Addis Ababa, Ethiopia
2018 Conference of Ministers

2. AFRICA HAS MADE SIGNIFICANT STRIDES TOWARDS INTEGRATION
CHAPTER 1 | OVERVIEW 2
AFRICA HAS MADE SIGNIFICANT
STRIDES TOWARDS INTEGRATION
Regional integration is a longstanding priority for Africa
Continental initiatives on integration:
E.g. Agenda 2063, MIP, PIDA, BIAT;
Most recently, launch of the African Continental Free Trade Area;
At subregional level, eight Regional Economic Communities
Global rise in protectionism challenge for Africa’s structural transformation
Underlines the importance of regional integration
Assessment of progress on regional integration in Africa
UNECA.ORG

3. CHAPTER 2 | Status of integration3
LEVEL OF INTEGRATION VARIES
Three RECs have reached free trade area stage
A customs union (ECOWAS) and a single market (EAC)
2 economic and monetary unions: WAEMU and CEMAC
Level of integration varies also within RECs
Intra-African trade increased to 18% in 2016, from 9% in 2000
EAC and SADC best performers in terms of intra-REC trade
Yet, no REC recorded intra-REC trade of over 25%
Assessment of progress on regional integration in Africa
UNECA.ORG

4. CHAPTER 2 | Status of integration4
INDUSTRIAL DEVELOPMENT HINDERED BY
BY INFRASTRUCTURE GAPS
An estimated $93 billion/year needed to fill infrastructure gaps
Priority projects under PIDA alone require $68 billion up to 2020
Infrastructure development commitments $75 billion/year ( )
Under 10% of investment from private sector
Launch of the Single African Air Transport Market in January 2018
Expected to contribute to growth of African aviation industry
25 countries have acceded to the initiative
Assessment of progress on regional integration in Africa
UNECA.ORG

5. CHAPTER 2 | Status of integration5
NON-TRADE INTEGRATION STILL LIMITED
50 African countries have signed at least one African BIT
Majority have not entered into force
Pan-African Investment Code: continental investment regulation harmonization
Productive integration hindered by reliance on primary commodities
Underused potential for regional value chains
E.g. cotton-to-textile, cocoa-to-chocolate, coffee to by-products
Only 10 African countries offer liberal access (visa-free or visa-on-arrival)
Protocol on Free Movement of Persons signed by 30 countries
Assessment of progress on regional integration in Africa
UNECA.ORG

6. Agreement Establishing the African Continental Free Trade Area
CHAPTER 3 | African Continental FTA 6
AfCFTA A NEW MILESTONE IN AFRICA’S
INTEGRATION
Agreement Establishing the African Continental Free Trade Area
44 member States signed in Kigali, 21 March 2018
Agreement will enter into force after 22 ratifications
Outstanding issues include annexes to adopted protocols and the schedules
All outstanding work to be completed by Jan 2019
Second phase will begin late 2018, completed by Jan 2020
Investment, competition and intellectual property rights
E-commerce is also being mooted as a possible additional topic
Assessment of progress on regional integration in Africa
UNECA.ORG

7. AfCFTA AND INCLUSIVE DEVELOPMENT
CHAPTER 3 | African Continental FTA 7
AfCFTA AND INCLUSIVE DEVELOPMENT
All African countries expected to gain in the long term
Better access to affordable inputs and larger markets;
But diversity on the continent will drive differentiated impacts
More industrialized countries will be better placed to benefit
High share of agricultural labour can drive benefits
Inclusive gains will be contingent on supporting measures and policies
Both between and within countries
Assessment of progress on regional integration in Africa
UNECA.ORG

8. TOWARDS AN EFFECTIVE AFCFTA
CHAPTER 3 | African Continental FTA 8
TOWARDS AN EFFECTIVE AFCFTA
Measures to overcome short-term costs will be required
Countries with high initial tariffs on and levels of intra-African trade,
Less industrialized countries,
Vulnerable populations such as smallholder farmers
Exclusion lists can address some of the challenges
Implementation of BIAT will alleviate barriers to intra-African trade
Benefiting less advantaged countries and small-scale businesses
Strong institutional and M&E structures will enhance implementation
Assessment of progress on regional integration in Africa
UNECA.ORG

9. Prompt signing, ratification and implementation of AfCFTA will be key
CHAPTER 4 | Conclusions 9
RECOMMENDATIONS
Prompt signing, ratification and implementation of AfCFTA will be key
ECA and AUC cooperation in supporting the process remains important
AfCFTA should be complemented by investment regulations and policies
Pan-African Investment Code provides basis for investment chapter of AfCFTA
Impact assessments crucial to ensure that no one is left behind
Will also ensure that appropriate supporting measures put in place
Implementation of BIAT required to overcome barriers to intra-African trade
Such as infrastructure gaps and cumbersome procedures
Assessment of progress on regional integration in Africa
UNECA.ORG

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