Africa should deepen regional integration

Africa should deepen regional integration to build stronger and more resilient economies
Masahudu Ankiilu Kunateh, Ghanadot

Accra, June 26, Ghanadot - Regional infrastructure, policy harmonization and increasing cross-border investment and labour mobility will help Africa benefit fully from economic opportunities provided by regional integration.

Indeed, the current global economic tsunami, which has reached the African continent, requires the re-examination of existing approaches to international development.

One vital response for Africa is deeper regional integration, which would address the long-standing structural weaknesses of African economies.

The United Nations Conference on Trade and Development (UNCTAD) 2009 report titled “Economic Development in Africa” argues that regional integration is essential for sustained development on the continent, especially within the context of the current crisis.

Better links between countries, ranging from paved roads to banking cooperation, are needed to spur mutual economic growth.

Indeed, weak physical and institutional infrastructure is the key obstacle to increasing intra-African trade and investment. This is why, at 9% of recorded flows of total external trade and 13% of recorded flows of total inwards foreign direct investment (FDI), Africa currently has the world’s lowest shares of regional trade and investment, explains 2009 report.

The report is subtitled “Strengthening Regional Economic Integration for Africa’s Development” and was launched in Accra, yesterday by the Third World Network, (TWN) Africa, a civil society organization noted that the 2009 edition of the UNCTAD annual report on Africa recognizes that over the last two decades Africa has made progress in creating sub-regional institutions dedicated to economic integration.

However, the Coordinator of TWN-Africa, Dr. Yao Graham observed that the establishment of regional economic communities has not substantially increased intra-African trade, investment and mobility of people as expected. Hence, relative to other regions, Africa has by far the most fragmented market.

As part of a broader, well-designed development strategy, regional integration could enhance productive capacity, intensify economic diversification and improve competitiveness. Pooled resources and economies of scale would allow African countries to participate more effectively in the global economy, Dr. Graham stressed.

To boost regional integration, African countries need to strengthen their regional physical infrastructure such as roads, railways, telecommunications and regional airlines.

Considering the high cost of infrastructure projects and in view of the limited financial capacities of individual African countries, planning at the supranational level and pooling resources to fund priority regional projects is the most realistic strategy for advancing regional integration.

Physical infrastructure would need to be complemented by improvements in soft infrastructure will need to be complemented by improvements in soft infrastructure, including policy harmonization at the regional level, trade facilitation, efficiency in border procedures and the adoption of national policies that help rather than hamper the process of integration.

Ghana’s Minister of Foreign Affairs and Regional Integration, Alhaji Muhammed Mumuni, who performed the launch, stressed the government was committed to the regional integration, hence the formulation of policies and programmes toward that endeavour.

Ghanadot