ECA - CEAECA - CEAAssesAssessment of Progress on Regional sment of Progress on Regional

Integration in AfricaIntegration in Africa

Robert M. OkelloRobert M. OkelloDirector, NEPAD and Regional Integration DivisionDirector, NEPAD and Regional Integration Division

Conference of African Ministers of Finance, Planning and Conference of African Ministers of Finance, Planning and Economic Development/Fortieth Session of the Commission Economic Development/Fortieth Session of the Commission

Addis Ababa, 29 March – 4 April 2007Addis Ababa, 29 March – 4 April 2007

Economic Commission for AfricaEconomic Commission for Africa

ECA - CEAECA - CEA

OutlineOutline

• IntroductionIntroduction

• Recent major Decisions by the RECsRecent major Decisions by the RECs

• Challenges of Regional Integration Challenges of Regional Integration

• ECA’s planned activities on Regional ECA’s planned activities on Regional IntegrationIntegration

• Way ForwardWay Forward

ECA - CEAECA - CEA

IntroductionIntroduction

• In July 2006, the AU Banjul Summit, endorsed the In July 2006, the AU Banjul Summit, endorsed the repositioning of the ECA. repositioning of the ECA.

• The Summit also reaffirmed the role of ECA as a The Summit also reaffirmed the role of ECA as a key African institution to assist the AU and the key African institution to assist the AU and the RECs in advancing the development agenda on RECs in advancing the development agenda on the continentthe continent.

• In the repositioned ECA will concentrate on fully In the repositioned ECA will concentrate on fully supporting the AU’s efforts to accelerate the supporting the AU’s efforts to accelerate the political and socio-economic integration of the political and socio-economic integration of the continent.continent.

ECA - CEAECA - CEA

Recent Major Decision by the RECsRecent Major Decision by the RECs

ECOWASECOWAS• January 2007 Ouagadougou Summit decided January 2007 Ouagadougou Summit decided

to transform the Executive Secretariat to a to transform the Executive Secretariat to a CommissionCommission

• Reaffirmed the introduction of the second Reaffirmed the introduction of the second monetary zone in 2009 and called on member monetary zone in 2009 and called on member States to comply with the macroeconomic States to comply with the macroeconomic convergence criteriaconvergence criteria

• Member States should fully implement the Member States should fully implement the Protocol on Free Movement of Persons, the Protocol on Free Movement of Persons, the right of residence and establishmentright of residence and establishment

ECA - CEAECA - CEA

Recent Major Decision by the RECs (Cont’d)Recent Major Decision by the RECs (Cont’d)

COMESACOMESA• November 2006 Djibouti Summit commended November 2006 Djibouti Summit commended

Comoros and Libya for joining the COMESA Comoros and Libya for joining the COMESA FTA and called on all non-participating FTA and called on all non-participating members to join.members to join.

• COMESA would launch its Customs Union in COMESA would launch its Customs Union in 2008.2008.

• Endorsed the creation of Monetary Institute Endorsed the creation of Monetary Institute to prepare the zone for the future monetary to prepare the zone for the future monetary unionunion

• Endorsed the creation of the COMESA Fund Endorsed the creation of the COMESA Fund to support infrastructure development in the to support infrastructure development in the zonezone

ECA - CEAECA - CEA

Recent Major Decision by the RECs (Cont’d)Recent Major Decision by the RECs (Cont’d)

EACEAC

• In November 2006, the Arusha Summit of the In November 2006, the Arusha Summit of the EAC admitted Rwanda and Burundi as full EAC admitted Rwanda and Burundi as full Members, effective from 1 July 2007.Members, effective from 1 July 2007.

• Approved the establishment of EAC as a Approved the establishment of EAC as a Customs Union. Customs Union.

• Extended preferential tariff treatment for Extended preferential tariff treatment for goods originating from COMESA and SADC goods originating from COMESA and SADC countries until the end of 2008.countries until the end of 2008.

• Endorsed the cooperation between EAC, Endorsed the cooperation between EAC, COMESA and SADC in harmonizing their COMESA and SADC in harmonizing their policies and programmes.policies and programmes.

ECA - CEAECA - CEA

Recent Major Decision by the RECs (Cont’d)Recent Major Decision by the RECs (Cont’d)

SADCSADC

• The Maseru, in August 2006, decided to The Maseru, in August 2006, decided to make the Community a Free Trade Area make the Community a Free Trade Area (FTA) by 2008 and a Customs Union by (FTA) by 2008 and a Customs Union by 2010. 2010.

• The Summit also called on member States The Summit also called on member States to resolve the issue of their multiple to resolve the issue of their multiple memberships of RECs.memberships of RECs.

• Endorsed the establishment of the SADC Regional Development Fund to finance development projects.

ECA - CEAECA - CEA

Recent Major Decision by the RECs (Cont’d)Recent Major Decision by the RECs (Cont’d)

CENSADCENSAD

• In June 2006, the Summit in Tripoli, In June 2006, the Summit in Tripoli, mandated the current Chairman of CEN-mandated the current Chairman of CEN-SAD to work towards the merging of CEN-SAD to work towards the merging of CEN-SAD, Arab Magreb Union (AMU), and the SAD, Arab Magreb Union (AMU), and the Economic Community of West African Economic Community of West African States (ECOWAS) in order to accelerate the States (ECOWAS) in order to accelerate the creation of the African Economic creation of the African Economic Community. Community.

ECA - CEAECA - CEA

Challenges of Regional IntegrationChallenges of Regional Integration

• No enforcement mechanisms to deal with No enforcement mechanisms to deal with member States that decide not to adhere to member States that decide not to adhere to protocols and treaties they are signatories toprotocols 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 The multiple memberships of countries in

various RECs, and the resulting overlap and various RECs, and the resulting overlap and duplication of functions of the RECsduplication of functions of the RECs

• Weak macroeconomic and financial environment.

ECA - CEAECA - CEA

ECA’s planned activities on Regional ECA’s planned activities on Regional IntegrationIntegration

• 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 - CEAECA - CEA

ECA’s planned activities on Regional ECA’s planned activities on Regional Integration (Cont’d)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 - CEAECA - CEA

ECA’s planned activities on Regional ECA’s planned activities on Regional Integration (Cont’d)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.

ECA - CEAECA - CEA

Issues for ConsiderationIssues 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

ECA - CEAECA - CEA

Issues for Consideration (Cont’d)Issues for Consideration (Cont’d)

• Support for the Financing Infrastructure

• Support for establishing dispute resolution mechanism

ECA - CEAECA - CEA

MANY THANKS FOR MANY THANKS FOR YOUR YOUR ATTENTIONATTENTION