March 3, 2024
Africa’s regional integration agenda is progressing, though slowly, the Economic Commission for Africa (ECA) report on Assessment of progress on regional integration in Africa says.
The ECA, in a statement on Sunday, said that in spite the progress in monetary and financial integration, member states had not met the macroeconomic convergence criteria.
The report is to herald the ministerial segment of the Conference of Ministers of Finance, Planning and Economic Development (COM2024) to hold on March 4, and March 5.
Stephen Karingi, ECA Director, Regional Integration and Trade Division presented the report to experts.
According to Karingi, the African share of global trade remains at less than three per cent, driven largely by merchandise trade.
He said this was an indicator that countries on the continent traded more with the rest of the world more than among themselves.
He said infrastructure development through the Programme for Infrastructure Development in Africa achieved mixed results.
“While roads and ICT advanced, rail transport and energy infrastructure progressed little. Infrastructure financing remains a challenge.
“The report indicates that there has been some progress in the fulfilment of the first 10-year implementation plan (2014–2023) of Agenda 2063.
“ The Africa We Want, of the African Union, including the adoption of the Agreement Establishing the African Continental Free Trade Area (AfCFTA) and the creation of the Single African Air Transport Market,’’ he said.
Karingi said there had been progress in other areas crucial to the success of the agreement establishing the AfCFTA such as the ratification of the Protocol to the Treaty Establishing the African Economic Community relating to Free Movement of Persons.
He said there was also progress on the Right of Residence and Right of Establishment, and fostering peace, good governance and security, had been less encouraging.
“The rising number of unconstitutional changes of government highlights the ongoing challenges afflicting African countries, including weak governance, persistent poverty and limited employment opportunities.
“The second 10-year implementation plan of Agenda 2063 will need to address those challenges directly.
“States should, therefore, continue to take the necessary measures to ensure that the regulatory environment is conducive to the mobilisation of sustainable financing of infrastructure by the private sector,” he added.
According to the director, regional integration remains critical in Africa’s efforts to achieve productive and sustainable development.
Karingi said implementing the agreement effectively would determine how Africa derived the benefits of free markets and trade integration for the overall benefit of the people on the African continent.
On trade Integration, the director said Intra-African trade as a share of global trade declined from 14.5 per cent in 2021 to 13.7 per cent in 2022.
Karingi said inflation was above 10 per cent in 19 countries on the continent.
“ General government gross debt in 2023 averaged 65.2 per cent of Gross Domestic product (GDP) for Africa, compared with the 2022 average of 64.6 per cent,’’ he said.
On infrastructure financing, he said Africa still faced, a massive annual infrastructure-financing gap estimated between 130 and 170 billion dollars.
According to Karingi, the report recommends that the second 10-year implementation plan of Agenda 2063 should address those challenges directly.
He said:“ Aspiration one of the second 10-year implementation plan will be aimed at having every member of the African Union achieve at least middle-income status by 2034.
“ The second 10-year implementation plan is being finalised in a volatile global economic context.’’
