Africa facing ‘Difficulties’ in political, economic integration

A new report by the African Union and the United Nations Economic Commission for Africa has revealed that the African continent is facing numerous difficulties as it attempts to fast track its political and economic integration.

The report, which measures the progress towards regional and continental integration in Africa, said the African integration process has been ongoing for a long time, and that its success will be determined by the implementation of decisions agreed by African member states.

It noted that despite the progress made, the slow pace of implementation of recommendations and decisions pertaining to the continent’s integration hinder its ability to consolidate these efforts.

The report was presented at the just-concluded Fourth Joint Annual Meetings of the AU Conference of Ministers of Economy and Finance and ECA Conference of African Ministers of Finance, Planning and Economic Development, held in Addis Ababa, Ethiopia.

According to the report, the difficulties, among others, include persistence of tariff and non-tariff barriers; lack of adequate physical infrastructure connecting the continent and its internal markets; small and often un-diversified markets dependent on unprocessed raw materials rather than higher value-added goods and services.

The report noted that the resources available for financing Africa’s integration agenda are scarce, with both the AU and the Regional Economic Communities (RECs) largely depend on financing from the same member states, who in themselves have limited resources.

“There are also institutional challenges, with differing progress amongst the RECs in attaining the integration stages set out in the Abuja Treaty; overlapping membership of the RECs leading to institutional cacophony; and the existence of certain partnerships could also threaten to undermine Africa’s integration endeavors without adequate cohesion and coordination,” the report stated.

In the case of free movement, the report added that specific challenges include, among others, national security issues; protection of national employment; protection of infant industries; lack of adequate mechanisms to facilitate and manage labor mobility within a community and beyond; lack of reliable labour market information; and non recognition of different education/professional certificates within the region.

“Free movement of goods, persons, services and capital is essential for regional in information; and non recognition of different education/professional certificates within the region.

“Free movement of goods, persons, services and capital is essential for regional integration. There is need to create, where they do not exist, and enhance concrete measures for the implementation of free movement of persons, labour and services as well as the right of establishment and residence of the citizens,” the report further noted.

The report also revealed that despite the prominent focus given to regional integration in the continent, significant achievements in terms of trade development seem to be lower than expected compared to other parts of the world.

“Despite the abundance of natural resources, mineral and human capital in the continent, Africa continues to be marginalized in the global economy, and has gained very little from economic globalization processes,” it said.

The report further stated that effective regional infrastructure is a prerequisite to accelerate regional integration in Africa, in particular for trade facilitation, poverty reduction, and movement of goods from one country to another. Well developed infrastructure, it added, will significantly contribute to increase volumes of intra African trade.

However, it added that the current status of infrastructure developments remains mixed, with continued deficiencies, particularly in the area of transport, communications and hydro-energetic supply with a number of the continent’s railways and roads often leading to marine ports rather than linking countries across with one another.

“The current situation in the continent is by and large unsatisfactory characterized by insufficient and low quality infrastructure on the one hand, and inefficient and expensive services on the other,” it said, adding that in the air sector, the global share of Africa’s air transport remains modest, relying only on three major hubs namely, Johannesburg, Nairobi and Addis Ababa.

On the prospects of achieving integration in the continent, the report stated that despite the challenges, prospects for achieving accelerated integration remain positive as effective lasting solutions have been and are being made available from a policy, institutional and financial perspective.

The report, which measures the progress towards regional and continental integration in Africa, said the African integration process has been ongoing for a long time, and that its success will be determined by the implementation of decisions agreed by African member states.

It noted that despite the progress made, the slow pace of implementation of recommendations and decisions pertaining to the continent’s integration hinder its ability to consolidate these efforts.

The report was presented at the just-concluded Fourth Joint Annual Meetings of the AU Conference of Ministers of Economy and Finance and ECA Conference of African Ministers of Finance, Planning and Economic Development, held in Addis Ababa, Ethiopia.

According to the report, the difficulties, among others, include persistence of tariff and non-tariff barriers; lack of adequate physical infrastructure connecting the continent and its internal markets; small and often un-diversified markets dependent on unprocessed raw materials rather than higher value-added goods and services.

The report noted that the resources available for financing Africa’s integration agenda are scarce, with both the AU and the Regional Economic Communities (RECs) largely depend on financing from the same member states, who in themselves have limited resources.

“There are also institutional challenges, with differing progress amongst the RECs in attaining the integration stages set out in the Abuja Treaty; overlapping membership of the RECs leading to institutional cacophony; and the existence of certain partnerships could also threaten to undermine Africa’s integration endeavors without adequate cohesion and coordination,” the report stated.

In the case of free movement, the report added that specific challenges include, among others, national security issues; protection of national employment; protection of infant industries; lack of adequate mechanisms to facilitate and manage labor mobility within a community and beyond; lack of reliable labour market information; and non recognition of different education/professional certificates within the region.

“Free movement of goods, persons, services and capital is essential for regional in information; and non recognition of different education/professional certificates within the region.

“Free movement of goods, persons, services and capital is essential for regional integration. There is need to create, where they do not exist, and enhance concrete measures for the implementation of free movement of persons, labour and services as well as the right of establishment and residence of the citizens,” the report further noted.

The report also revealed that despite the prominent focus given to regional integration in the continent, significant achievements in terms of trade development seem to be lower than expected compared to other parts of the world.

“Despite the abundance of natural resources, mineral and human capital in the continent, Africa continues to be marginalized in the global economy, and has gained very little from economic globalization processes,” it said.

The report further stated that effective regional infrastructure is a prerequisite to accelerate regional integration in Africa, in particular for trade facilitation, poverty reduction, and movement of goods from one country to another. Well developed infrastructure, it added, will significantly contribute to increase volumes of intra African trade.

However, it added that the current status of infrastructure developments remains mixed, with continued deficiencies, particularly in the area of transport, communications and hydro-energetic supply with a number of the continent’s railways and roads often leading to marine ports rather than linking countries across with one another.

“The current situation in the continent is by and large unsatisfactory characterized by insufficient and low quality infrastructure on the one hand, and inefficient and expensive services on the other,” it said, adding that in the air sector, the global share of Africa’s air transport remains modest, relying only on three major hubs namely, Johannesburg, Nairobi and Addis Ababa.

On the prospects of achieving integration in the continent, the report stated that despite the challenges, prospects for achieving accelerated integration remain positive as effective lasting solutions have been and are being made available from a policy, institutional and financial perspective.