Professional Documents
Culture Documents
Regional and Market Integration
Regional and Market Integration
Regional and Market Integration
UNION AFRICAINE
UNIO AFRICANA
OUTLINE
I.
II.
III.
IV.
V.
VI.
Conclusion
I.
INTRODUCTION
I.
INTRODUCTION
to counter the negative effects of its small, balkanized and globally marginalized
economies:
April 1980: Lagos Plan of Action and the Final Act of Lagos;
June 1991: Treaty Establishing the African Economic Community (AEC)
commonly known as the Abuja Treaty;
September 1999: Sirte Declaration;
July 2000: Constitutive Act of the African Union; and
July 2001: New Partnership for Africas Development (NEPAD);
2007: the Accra Declaration of on the creation of a Union; and
2004-2007 and 2009-2012: African Union Commission (AUC) Strategic Plans.
Stage one:
1994-1999
RECs
Strengthening
existing RECs
and creation
of new RECs
where they do
not exist
Coordination
and
harmonization
of activities
Gradual
elimination
of tariff and
non tariff
barriers
Free Trade
Area
Customs Continental
Establishment
Union
Customs Union of an African
Common
Market
Monetary and
Economic Union
study in
progress
in progress
Not yet
Stage four:
2018-2019
IGAD
SADC
CENSAD
in
progress
ECOWAS
2011
COMESA
ECCAS
2011
EAC
2011-
Not yet
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Background Paper: Regional and Market Integration
Stage five:
2020-2023
Stage 6
Stage 5
Continental Common
Market
Stage 4
Continental Customs
Union
COMESA
EAC
Stage 3
Stage 2
ECOWAS;
ECCAS;
SADC
Coordination and
harmonization of
activities
IGAD
CEN-SAD
Stage 1
Strengthening existing
RECs
1994
Strengthening
existing RECs
1999
2007
Coordination
and
harmonization
of activities
2010
2017
2019
Continental
Customs
Union
2023
Continental
Common
Market
2028-2034
Economic and
Monetary Union
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Background Paper: Regional and Market Integration
2000-2006
Density 2006
(km/100 sq
km)
186475
61.2
3.5
445018
476558
7.1
6.5
Northern
292790
347451
18.7
Southern
801751
853676
6.5
13.5
Western
409377
434910
6.2
2064603
2299070
11.4
7.6
Length (km)
% Change
Region
2000
2006
Central
115667
Eastern
Total
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Background Paper: Regional and Market Integration
Low coverage compared to other regions of the world - 89,000 km network for
an area of about 29.6 million sq. km, representing a density of 2.5 km per 1,000
sq. km. Europe, has 40km per 1,000 sq. km.
14 mainland countries in Africa do not have railway lines or
sections of international lines
Old and technically outdated railway network
Low share of rail freight in intra-African trade.
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Insufficiently utilized
Most poorly developed, small and very few incapable of handling large ships,
Capacity constraints and poor performance (in terms of port dwell time of
vehicles)
Lower than required level of container traffic
Poor exploitation of rivers and lakes as an alternative transport mode
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the gap
World Bank Africa Infrastructure Country Diagnostic Study
Summary of Main Findings
15
More than half of Africas recent improved growth performance has been to due to infrastructure
developments and it has the potential to contribute even more in the future;
Africas infrastructure networks are characterized by the absence of essential regional links and
stagnant household access. As a result, the Continents infrastructure lags increasingly behind
other developing countries;
Africas infrastructure services are twice as expensive as elsewhere, reflecting both diseconomies
of scale in production and high profit margins caused by lack of competition;
Power is by far Africas largest infrastructure challenge, with 30 countries facing regular power
shortages;
The cost of addressing Africas infrastructure needs is around $93 billion a year, about one-third
of which is for maintenancemore than twice the Commission for Africas (2005) estimate;
The infrastructure challenge varies greatly by country typefragile states face an impossible
burden and resource-rich countries lag despite their wealth;
A large share of Africas infrastructure is domestically financed, with the central government
budget being the main driver of infrastructure investment;
Even if major potential efficiency gains are captured, Africa would still face an infrastructure
funding gap of $31 billion a year, mainly in power; and
Africas institutional, regulatory, and administrative reforms are only halfway along, but they are
already proving their effect on operational efficiency.
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Continental level (Lagos Plan of Action (1980), the Abuja Treaty (1991) and the NEPAD
framework document (2001)
June 2009 and January 2010 AU Summits dedicated to the theme of infrastructure
development.
A number of initiatives developed aimed at addressing project preparation difficulties,
financing for project implementation and physical and financial needs:
NEPAD Short-Term Action Plan (STAP)
Infrastructure Consortium for Africa (ICA)
NEPAD Infrastructure Project Preparation facility (IPPF),
African Action Plan (AAP)
Programme for Infrastructure Development in Africa
(PIDA),
Institutional Architecture for Infrastructure Development
in Africa (IADA)
NEPAD Infrastructure Champion Initiative, chaired by the Republic of South Africa
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infrastructure connecting the Continent and its internal markets, small and often undiversified markets, and an undeveloped and under-invested agricultural sector.
Financial - scarce resources available to finance Africas integration agenda; AU and
RECs dependent on the same Member States and development partners for
resources, which can be fraught with difficulty
Institutional - differing progress amongst the RECs in attaining the integration stages
set out in the Abuja Treaty; overlapping membership of RECs leading to institutional
cacophony; absence in some cases of national coordination mechanisms; nonapplication of some protocols; inability to include integration objectives, plans and
programmes into national development plans; weak institutional architecture; and
sometimes lack of cohesion in the face of development partners; as well as a lack of
legislative powers to ensure decisions are binding and enforce their implementation
Partnerships - the existence of partnerships which could threaten to undermine
Africas integration endeavors (e.g. the Economic Partnership Agreements [EPA] of the
European Union)
Statistics - statistical data collection in the Continent, with often poor, unreliable and
unharmonized data produced at the level of Member States, which make difficult
efforts to adequately track progress on integration and development.
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VI. CONCLUSION
y The success of Africas integration will be determined by the redoubling of
y
y
y
y
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Merci
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