Economic Integration of Low Africa – Report

Company News of Tuesday, March 26, 2019

Source: Myjoyonline.com

2019-03-26

Preliminary findings from the upcoming 2019 Regional Integration Index for Africa (ARII) suggest that regional integration in Africa remains weak.

The results indicate that the African Continental Free Trade Area (AfCFTA) marks a milestone for Africa.

The preliminary findings of the next 2019 African Regional Integration Index were published at the current Ministerial Conference in Morocco.

The index, known as ARII, was created to monitor and badess the state of economic integration of African countries and provides member states with a basis for monitoring their progress.

The results reveal that the Southern African Development Community (SADC) is the most integrated region in terms of trade, with South Africa being the most integrated country on the continent.

Five areas were badyzed: trade integration, regional infrastructure, productive integration, free movement of people and macroeconomic integration.

South Africa is at the top of the ranking, with South Sudan being the least integrated, mainly because of its modest performance in regional infrastructure and financial integration.

Integration in services accounted for more than 53% of the continent's GDP, but ratification of the protocol on free movement of people has been slow, despite the launch in 2016 of the Joint e-Pbadport for African biometrics and the Protocol AU on the free movement of persons. People.

The continent's large infrastructure deficit remains a major obstacle to intraregional trade.

"It is up to Africans themselves to ensure that this initiative benefits them through the hard work and effective implementation of the CFTA mechanisms," said David Luke, Coordinator of the Africa Trade Policy Center, Division. regional integration and trade of the Economic Commission. Africa (CEA).

Leila Mokadem, country director and resident representative in Morocco for the African Development Bank (AfDB), added that despite "considerable" political support to AfCTFA, significant challenges remain in terms of implementation and continuation of the program to achieve the goal. the increase in intra-African trade to 25% by 2023, between 15% and 18% currently.

She cited weak production capacity in Africa, high production costs, large infrastructure deficits and other issues that have affected Africa's competitiveness.

Added to this is the number of small markets and 16 landlocked countries.

"We can not ignore the challenges, but it is important to emphasize the fact that Africa can not continue as if nothing had happened."

The final ARII report and the report IX on the badessment of regional integration in Africa that accompanies it will be published later in the year.