1 status of the integration process in africa: recent developments african union union africaine...

1

STATUS OF THE INTEGRATION STATUS OF THE INTEGRATION PROCESS IN AFRICA: RECENT PROCESS IN AFRICA: RECENT

DEVELOPMENTSDEVELOPMENTS

AFRICAN UNION UNION AFRICAINEAFRICAN UNION UNION AFRICAINE

UNIÃO AFRICANAUNIÃO AFRICANA

AFRICAN UNION UNION AFRICAINEAFRICAN UNION UNION AFRICAINE

UNIÃO AFRICANAUNIÃO AFRICANA

Presented by: Dr. René N’Guettia KouassiPresented by: Dr. René N’Guettia KouassiDirector of Economic AffairsDirector of Economic AffairsAfrican Union Commission African Union Commission Fax: +251 11 551 92 49Fax: +251 11 551 92 49Email: Email: [email protected]: Email: [email protected]

.

mailto:[email protected]

mailto:[email protected]

PRESENTATION OUTLINEINTRODUCTION

I- OVERVIEW OF THE IMPLEMENTATION OF THE ABUJA TREATY1. Status of integration according to REC2. Agreements between RECs: the COMESA-EAC-SADC Tripartite Arrangement as a model to be popularized 3. Difficulties encountered: remedial action through synergy

II- RESPONSES FROM THE AFRICAN UNION COMMISSION 1. Policy decisions: From the AU Commission to the Authority2. Other initiatives3. Diversification of partners

III- MOST RECENT INITIATIVE: THE MINIMUM INTEGRATION PROGRAMME (MIP) AS THE MAINSPRING OF THE INTEGRATION PROCESS1. Definition2. What is meant by the concept “Minimum”: a minimum number of projects or activities to be implemented, not a minimum number of sectoral priority programmes 3. Objectives4. Fields of application: sectors and sub-sectors concerned5. Stakeholders6. Funding problems: the raison d’être of the African Integration Fund7. Possible constraints to its implementation8. Content of the initial phase of the MIP

IV- RECOMMENDATIONS OF THE 2ND AU/RECs/AfDB/ECA COORDINATION MEETINGV - PRINCIPAL RECOMMENDATIONSCONCLUSION

2

INTRODUCTION

• 25 May 1963 : creation of the Organization of African Unity (OAU)• 1980 : Advent of the Lagos Plan of Action and of the Final Act of Lagos,

preceded by the Monrovia Conference (Liberia) in 1979.• 1991 : advent of the Treaty Establishing the African Economic Community

(AEC), commonly known as the Abuja Treaty, which came into force in 1994.• In September 1999, adoption of the Sirte Declaration, aiming basically to

accelerate the implementation of the Abuja Treaty, in particular the reduction of stages and the implementation of institutions such as the African Central Bank, the Court of Justice, …

• In 2000, adoption of the Constitutive Act of the African Union at the Lomé Summit.

• In July 2001, in Lusaka, Zambia, advent of the African Union (to be launched in Durban, Republic of South Africa, in July 2002) and adoption of the New Partnership for Africa’s Development (NEPAD).

• However, in spite of the adoption and the implementation of these initiatives, the results achieved with respect to regional integration are not particularly successful.

3

INTRODUCTION (cont.)• While certain RECs have recorded tangible results in some specific sectors,

others show relatively disappointing balance sheets with respect to the objectives of the Abuja Treaty.

• The AU, principal architect and guarantor of the success of the African integration process, is still not able to fully fill the role given to it, namely that of coordinating, harmonizing, monitoring and assessing the implementation of the activities, projects and programmes intended to boost the process of regional and continental integration.

• The RECs, considered to be the indisputable pillars of this noble integration project, are, in some cases, in a bad way. The ground covered thus far lacks any foresight enabling a clear assessment to be made. Obstacles linked to funding, lack of human resources, multiple membership of countries, duplication of mandates, insufficient cooperation between RECs, poor coordination and harmonization of policies, weak institutional infrastructure, inconsistent policies of pan-African institutions, etc, remain unresolved; all of which paralyzes any progress on the road towards regional and continental integration.

4

INTRODUCTION (cont.)

• Development partners, particularly donors, generally are not able to fully understand priority regional and continental activities, projects and programmes because of the institutional and organizational chaos that typifies the main players present on the African integration market. Taking advantage of the chaos, certain development partners, experts in fishing in murky waters, pit players against each other. This has the result of weakening and undermining the very foundations of the integration process. The example of the APEs is a perfect illustration of this situation.

• To bring an effective and sustainable solution to this situation which tends to persist, the Commission, the executive organ of the AU, has undertaken a series of initiatives, one of which is the Minimum Integration Programme in close cooperation with the RECs.

5

I. OVERVIEW OF THE IMPLEMENTATION OF THE

ABUJA TREATY

6

1. Status of integration according to REC

Source : African Union Commission, Questionnaire on the MIP*Period set for accomplishment of this stage 7

2. Agreements between RECs: the COMESA/EAC/SADC Tripartite Arrangement as a model to be popularized

• The Heads of State and Government of COMESA, EAC and SADC met in Kampala on 22 October 2008, and in their communiqué, conveyed urgency in calling for the establishment of a single Free Trade Area covering the 26 countries of COMESA, EAC and SADC;

• In April or May 2010, the Heads of State and Government will clearly pronounce themselves on the way forward for establishing the single FTA ;

• Establish the FTA on a tariff-free, quota-free, exemption-free basis by simply combining the existing FTAs of COMESA, EAC and SADC;

• By 2012, all these FTAs will not have any exemptions or sensitive lists ;• There should be a preparatory period for consultations at the national, regional and tripartite

level from early 2010 up to June 2011;• By June 2011, there should be a finalized Agreement establishing the Tripartite FTA, ready for

signature in July 2011. When signed, Member States will have about six months up to December 2011, to finalize their domestic processes ;

• The Tripartite FTA should be launched in January 2012;• Tripartite economic space will also assist to address some current challenges resulting from

multiple membership by advancing the ongoing harmonization and coordination initiatives .

8

2. Challenges and constraints encountered

Lack of financial and human resources; Some RECs are still dependent on external funding;Multi-membership of several RECs; Persistence of tariff and non tariff barriers; Inadequate physical infrastructure;Lack of coherence and links between sectoral cooperation programmes and macro-economic policies implemented by RECs; Absence of national coordination mechanisms: Non application of protocols with respect to economic integration; Lack of political will; Inability to include integration objectives, plans and programmes in national development plans; Weakness of institutional infrastructure; Insufficient coordination between pan-African institutions; Lack of cohesion in the face of several development partners; Tentative cooperation between pan-African organizations;Poor involvement of partners in the integration process. 9

II. RESPONSES FROM THE AFRICAN UNION COMMISSION

10

1. Recent major policy decisions: from the AU Commission to the Authority

Adoption in January – February 2009 of the decision transforming the Commission into an Authority. Authority whose content was adopted by the Sirte Assembly.

As changes to the current structure of the Commission, must be added, amongst others:

The Secretariat: coordination of the common defence policy (coordination of the Continent’s common defence policy).

Secretariat: Political affairs and coordination of common positions in the area of foreign policy (political cooperation, coordination of common positions in the area of foreign policy, human rights…

Transformation of the Commission into an Authority aiming to strengthen the Union’s institutional framework in order to enable it to play its part in accelerating the Continent’s political and socio-economic integration towards the creation of the United States of Africa.

11

2. Other InitiativesIn order to bring an effective and lasting solution to this seemingly persistent

situation, the Commission, executive organ of the AU, has initiated the following: – rationalization of the RECs which has led to the recognition of the 8 RECs; – quantification of rationalization scenarios (study in progress);– elaboration and adoption of the African Charter on Statistics (signing and

ratification by countries in progress);– Development of the strategy for statistical harmonisation;– establishment of financial institutions (Article 19 of the Constitutive Act);– adoption of the founding texts of the AIB (Protocol and Statutes → signing and

ratification in progress);– The founding texts of the AMF (elaboration underway). The related Technical

Steering Committee is already functioning in Yaoundé;– The ACB: the Technical Steering Committee is gradually being established in

Abuja, Nigeria. It will be mandated, among other things, to prepare a road map to facilitate the advent of a single African currency;

– Adoption of the African Charter on Democracy;– Adoption of PIDA (Programme for Infrastructure Development in Africa).

12

3. Diversification of partners

• Africa-Europe Dialogue, the Joint Strategy and the related Action Plans

• Partnership between Africa-China• Partnership between Africa-India• TICAD Initiative with Japan• Partnership between Africa-South America• Partnership between Africa-Turkey• Partnership between Africa-South Korea

13

III. MOST RECENT INITIATIVE: THE MINIMUM INTEGRATION PROGRAMME (MIP) AS THE

MAINSPRING OF THE INTEGRATION PROCESS

14

1. Definition• The Minimum Integration Programme is composed of different activities, different projects and programmes on which the RECs will agree in order to accelerate and bring the regional and continental integration process to completion.

• The MIP is therefore perceived as a mechanism for REC convergence, that should focus on a number of key areas of concern at regional and continental level; areas in which the RECs could enhance the cooperation and benefit from comparative advantages and the success stories of all the RECs in the area of integration.

• The MIP incorporates attainable objectives within the timeframe of the AU Strategic Plan (four years), and is accompanied by a monitoring and evaluation mechanism. It is to be implemented by the RECs, Member States and the AUC, in collaboration with Africa’s various development partners.

• The MIP was developed with the variable geometry integration approach according to which the RECs are expected to progress at different paces in the integration process. In fact, the RECs will continue implementing their respective programmes (considered as their priority programmes) and at the same time endeavour to work towards achieving other activities contained in the MIP.

15

2. What is meant by the concept of “Minimum Integration Programme”

• Two types of definition are to be considered:a) The concept “minimum” should be understood as a one to four projects

to be undertaken by each REC with the obligation of implementing them within a four-year timeframe, a period that corresponds to one phase of the MIP;

b) The concept “minimum” should not mean a limited number of priority sectors because:

* The RECs are not in the same boat with respect to the implementation of the Abuja Treaty. Therefore, the inactivity of some RECs should be avoided if they had already accomplished the minimum projects accepted.

* Consequently – retain all the sectors and sub-sectors considered as priority areas by the RECs.

• Therefore retain within these sectors and sub-sectors a minimum number of projects or activities to be implemented. Such an approach is dynamic.

• The concept “minimum” should therefore be understood as a limited number of projects or activities per priority sector according to the level of integration attained by each REC with respect to the Abuja Treaty. 16

3. ObjectivesThe MIP has several objectives, amongst which are the following: • situate the RECs in relation to the implementation of the Abuja Treaty;• highlight the regional and continental priority programmes initiated by the

Commission and whose implementation, according to the principle of subsidiarity, falls within the competence of national or regional authorities;

• identify the regional and continental projects within the AUC and the RECs, implementation of which reposes on the principle of subsidiarity;

• bolster ongoing economic cooperation initiatives between the RECs, and identify the measures likely to accelerate integration in specific sectors or priority areas;

• identify priority sectors that call for bold coordination and harmonization measures, within and among the RECs;

• emulate successful integration experiences in certain RECs and apply them to all the other Communities;

• help the RECs to identify and implement the priority activities with a view to attaining the integration stages defined in Article 6 of the Abuja Treaty;

• help the RECs to implement the MIP using a clearly defined calendar; • develop and implement other support measures to facilitate the creation of a

single market around the key sectors;• identify projects and programmes whose implementation is based on inter-REC

relations.

17

4. Fields of application: sectors and sub-sectors concerned

The RECs have almost unanimously accepted the following sectors as priority sectors. Overall, they are:

• Free movement of persons, goods, services and capital (100%);• Peace and security (100%);• Infrastructure and energy (100%);• Agriculture (100%); • Trade (86%);• Industry (86%);• Investment (86%);• Statistics (86%).

In addition to the priority sectors mentioned above, the RECs have considered it imperative to undertake certain urgent activities described as necessary support measures in the following areas:

• Political affairs (71%);• Science and technology (57%); and• Social affairs (57%).

18

4. Fields of application: sectors and sub-sectors concerned (cont.)

In order of importance, the priority sub-sectors retained within the framework of the MIP are as follows: •Tariff barriers (100%);•Non-tariff barriers (100%);•Customs procedures (100%);•Free movement of persons, goods, services and capital (100%);•Transport (100%);•Energy (100%);•Information and Communication Technologies (100%);•Harmonization of statistics (100%);•Conflict prevention and resolution (100%);•Establishment and operation of an early warning system for conflicts, and observation and monitoring situation rooms (100%);•Border programmes (100%);•Small arms and light weapons (100%);•Anti-terrorism (100%);•Capacity building and development (100%); 19

3. Fields of application: sectors and sub-sectors concerned (cont.)

• Establishment and operation of an African Standby Force (ASF) and regional brigades (86%);

• Investment (86%);• Rules of origin (86%);• Education (86%);• Gender (86%);• Processing of agricultural products (71%);• Science and technology for socio-economic development (71%);• Industry (71%);• Post-conflict reconstruction and development (PCRD) (71%);• Animal husbandry (57%);• Fishing (57%);• Culture (57%);• Water (57%);• Environment and climate change (57%);• Election observation (57%);• Conflict prevention (57%);• Promotion of democratic institutions (57%); and• Health (57%).

20

5. Stakeholders in the implementation of the MIP

• The players involved in the implementation of the MIP are Member States, Regional Economic Communities, and the African Union Commission.

• The MIP also has the advantage of offering to donors, partner institutions of the United Nations System, as well as to other development partners, more visibility and cohesion in the actions to be undertaken.

• The multiple partnerships that the AU enters into with the rest of the world should have their « MIP component » or should fit partially or totally into the MIP mould.

21

5.1 - Division of MIP activities, projects and programmes between stakeholders according to their implementation responsibility

•Sign partnership agreements between RECs (ECOWAS and ECCAS, ECCAS and COMEAS and CEN-SAD and ECCAS)•Recognize community passports between RECs

•STAP•PIDA•CAADP•Plan of Action for the Accelerated industrial Development of Africa•Plan of Action for the Second Decade of Education•Africa’s Science and Technology Consolidated Plan of Action •African Health Strategy•Establish and operate an early warning system for conflicts and situation rooms for observation and monitoring•Establish and operate an African Standby Force and regional brigades•Implement the African Union Border Programme•Harmonisation of the different regional investment protocols•Capacity building

AUCAUC

•Accelerate effective establishment of regional protocols on the free movement of persons, right of residence and establishment •Facilitate free movement for Africans holding diplomatic and service passports•Establish guarantee mechanisms for free movement•Establish mechanisms which facilitate free movement of goods, services and capital in the regions•Establish an external Customs Tariff in the RECs that have not yet done so •Establish a special fund for agriculture in every REC•Create a regional system, where there is non, an information management system on agricultural markets•Establish a protocol for the promotion of industrial policies in every REC•Establish a peer review mechanism in each REC•Establish regional investment protocols•Sign a Cooperation Agreement in each REC in the area of trafficking in human beings, especially women and children

RECs

RECs

REC Groupings:•COMESA, SADC, EAC and IGAD;•ECOWAS, ECCAS, CEN-SAD and AMU

REC Groupings:•COMESA, SADC, EAC and IGAD;•ECOWAS, ECCAS, CEN-SAD and AMU

•African financial institutions•African Charter on Statistics and harmonization of statistics in Africa•Elaboration of a continental investment code•Strengthening and harmonization of regional initiatives for combating HIV/AIDS at regional and continental level

•Set up instruments for security and enhance cooperation on security as well as the fight against terrorism between regions•Harmonize car insurance schemes between RECs•Harmonize axle load limits and vehicle dimensions between RECs •Harmonize road transit charges between RECs•Harmonize the various regional food security programmes •Establish links between the different regional systems for managing agricultural information•Sign a Multilateral Agreement on cooperation between the RECs for combating trafficking in human beings, especially women and children

22

Cooperation between RECs:

SADC, COMESA, EAC and IGAD

ECOWAS, ECCAS, CEN-SAD and AMU

- Implementation of the African Charter on Statistics;- Establishment of African financial institutions;- Implementation of PIDA;- Implementation of CAADP;- Implementation of the Strategy for implementing the Plan of Action for

the Accelerated Industrial Development of Africa; - Implementation of the African Charter on Democracy;- Implementation of the Plan of Action for the Second Decade of

Education ; - Implementation of the Plan of Action for Micro-Finance; - Free movement of persons, goods, services and capital.

-Creation of Customs Union;-Creation of Common Market;-Creation of the economic and monetary union;- EPA negotiation ;-Free movement of persons, goods, services and capital; -Implementation of PIDA

Source: Speech by AUC Chairperson Jean Ping at the Conference of African Ministers of Economy and Finance and Governors of Central Banks, held in Tunis in November 2008

5.2 – PYRAMID OF ACTIVITIES OR PROJECTS OF THE MIP

23

6. The problems of MIP funding: the raison d’être of the African Integration Fund

In general, three main sources of funding are proposed, namely:

• Internal sources (statutory contributions from Member States, and alternative funding sources that are in the process of being identified);

• Contributions from African financial institutions (AfDB, African Central Banks);

• External sources (mainly from development partners);

• But in order that the implementation of the MIP does not suffer any funding constraints, we propose the creation of an “Integration Fund” dedicated to funding the MIP and which could be lodged either in the African Development Bank or in the future African Investment Bank which is in the process of being established.

24

6. The problems of MIP funding: the raison d’être of the African Integration Fund

(cont.)In addition, the AUC will undertake a series of consultations with the RECs in order to develop a strategy for funding the MIP. To this end, the strategy will have to: •identify the financing sources of the different RECs;•identify the funds used by the RECs for implementing ongoing activities and projects contained in the MIP;•identify existing funds within the AUC allocated to ongoing activities of the MIP;•estimate the amounts needed for implementing each activity or project contained in the MIP; •Establish a strategy for the mobilizing of financial resources from development partners; •propose the necessary measures for the creation, functioning and management of the Integration Fund; and•determine the relations between the specialized regional funds in the RECS and the proposed Integration Fund.

25

7. Challenges and constraints in the implementation of the MIP

Source: African Union Commission, MIP Questionnaire 26

6. Content of the Initial Phase of the MIPSummary Table of the MIP (2009-2012)

27

Priority sectors of the First Phase of the MIP (2009-2012)

Sub-sectors of the First Phase of the MIP (2009-2012)

Objectives of the First Phase (2009-2012)

Projects, activities and programmes to be implemented to achieve the objectives of the First Phase (2009-2012)

Trade

Tariff barriers (TB) Gradual elimination of tariff barriers (TB) in all RECs

Speeding up the implementation of programmes for the elimination of TB in every REC

Non-tariff Barriers (NTB) Elimination of non-tariff barriers (NTB) at the level of RECs

Establishment/operationalization of computerized systems in all RECs for detecting and eliminating non-tariff obstacles to trade

Rules of origin Simplification and harmonization of rules of origin

Simplification and harmonization of rules of origin in and between all RECs

FTZ Signing of partnership agreements between RECs

Signing partnership agreements between RECs

Harmonizing REC programmes

Customs Gradual harmonization of customs procedures and creations of a customs union with a common external tariff (CET)

Accelerate the completion of the Customs Unions in the RECs

Tackle the problem of Member States belonging to more than one REC by encouraging the establishment of a cooperation framework between Communities with a view to eventually creating customs unions between REC groupings

Summary Table of the MIP (2009-2012) cont.

28





Free movement

Free movement of persons Total free movement of persons in the regions and partial between regions

•Accelerate effective implementation of regional protocols on free movement of persons, right of residence and establishment;•Visa exemption for African holders of diplomatic and service passports;• Facilitate obtaining visas for certain categories of businessmen, researchers and academics;• Put security instruments in place and improve security cooperation and the fight against terrorism within and between RECs.

Free movement of goods Free movement of goods in the regions

• Set up mechanisms facilitating free movement of goods within regions

Harmonization of a few instruments between regions for facilitating free movement of goods within regions

Free movement of services and capital

Gradual free movement of services and capital in the regions

Establish a legal framework (Protocol) in each REC for free movement of services and capital.

Summary Table of the MIP (2009-2012)

29





Peace and Security

All sub-sectorsConflict prevention and resolution, and post-conflict development in Africa

Establishment and operation of an early warning system for conflicts and situation rooms for observation and monitoring

Establishment and operation of an African Standby Force and regional brigades

Implementation of the African Union Border Programme

Promote preventive diplomacy in the area of conflict resolution

Infrastructure and EnergyTransport/Energy /ICT Infrastructure development in

Africa

Accelerate the implementation of the STAP

Ensure effective participation by RECs in the PIDA development process

Assist RECs in building their capacities to elaborate infrastructure development projects


30





Agriculture

All sub-sectors Speed up implementation of the Comprehensive Africa Agriculture Development Plan (CAADP)

Harmonization of the various regional food security programmes;

Establishment of an information management system on agricultural markets where there is none;

Exchange of experiences between RECs; and

Establishment of a special fund for agriculture in each REC

IndustryAll sub-sectors Development of the industrial

sector in Africa Develop a legal

framework for the promotion of industrial policy (protocol) in each REC

Operationalization in every REC of the strategy for implementing the Plan of Action for Industrial Development in Africa


31





Investment

Investment policies Establish a regional and continental platform to promote investment

Establishment of regional investment protocols;

Harmonization of the different protocols;

Elaboration of a continental investment code;

Acceleration of the establishment of the African Investment Bank

Science and Technology Education Development of the education system in Africa

Encourage RECs and Member States to implement the Plan of Action for the Second Decade of Education for Africa

Science andTechnology

Promote the use of Science and Technology for poverty eradication in Africa

Encourage RECs and Member States to implement the Africa’s Science and Technology Consolidated Plan of Action


32





Social Affairs

Health Increase access for Africans to basic healthcare

Implementation of the African Health Strategy (2007-2015)

Gender Promote the participation of women in economic development

Creation of regional associations of business women

Political Affairs

Elections, promotion of democratic institutions

Promote democratic elections and rotation of political power between parties

Ratification and implementation of the African Charter on Democracy, Elections and Governance

Governance Improved governance in RECs

•Creation in each REC of a peer review mechanism• Encourage all RECs to adhere to the APRM

StatisticsHarmonization of statistics Establish instruments for

harmonization of statistics in Africa

Ratification of the African Charter on Statistics by Member States

Preparation of continental guides for data collection, harmonization of measurement standards etc…


33



Objectives of the First Phase (2009-2012


Capacity Building

All sub-sectors Strengthen capacities of RECs, the AUC and Member States

•Organize training sessions in the various MIP sub-sectors for officials of RECs, AUC and Member States;• Build the institutional capacities of RECs and the AUC;• Develop a programme for exchange of experiences and good practices among RECs

Fiscal policyInflation/ interest rate/ fiscal deficit

Harmonization of fiscal policy at regional level

Support the harmonization of fiscal policies at regional level

MonetaryPolicy

Payment systems/ macroeconomic convergence / banking sector

Intensification of actions for the establishment of the African Central Bank (ACB) and the African Monetary Fund (AMF)

Speed up the establishment of the African Central Bank and the African Monetary Fund

Development of the financial market

Stock exchanges Establishment of an African Stock Exchange

Create a favourable environment for the development of national and regional financial markets

IV. Recommendations of the 7th AU/RECs/AfDB/ECA Coordination Meeting

Minimum Integration Programme (MIP):• Convene sectoral meetings;• Invite all stakeholders;• Elaborate road maps at sectoral level.

Financing integration:• Urge Member States that have not yet done so to endow the

AU and the RECs with mechanisms to enable them to generate funds for their operation and implementation of projects.

34

• The AUC should take all necessary steps aimed at mobilizing the internal and external resources needed for the implementation of the MIP;

• The AUC, in collaboration with the RECs, should encourage Member States to partly finance the major integration projects and to integrate the MIP in national and regional Development Plans;

• The AUC, in collaboration with the RECs, should host donors round tables with a view to mobilizing the funds needed for financing the MIP;

• The African Union Commission should raise the awareness of Member States on the advantages of integration;

• The AUC and the RECs should raise the awareness of Member States on the need to implement MIP activities on time;

• Strengthening existing institutions and, if need be, establishing appropriate institutional arrangements with a view to facilitating coordination between the different organizations in charge of implementation and the external partners.

35

V - PRINCIPAL RECOMMENDATIONS

V - PRINCIPAL RECOMMENDATIONS (cont.)

• The AUC should intensify consultations with the RECs and use the coordination meeting with them to good effect in order to coordinate, monitor and evaluate the MIP;

• Opening AU representational offices in the RECS will facilitate communication with the latter and ensure effective monitoring of the implementation of the MIP;

• Within the framework of their cooperation, the AUC and the RECs should exchange officials with each other in order to benefit from experience gained;

• The AUC, in collaboration with the RECs, should host sectoral training courses with a view to building the capacity of their personnel; and

• The development of a monitoring and evaluation framework to track the progress made towards achieving the integration objectives, and to evaluate the results of programmes and projects directed towards those objectives.

36

CONCLUSION

• The Minimum Integration Programme (MIP) is the missing link in the big loop for the implementation of the Treaty Establishing the African Economic Community (AEC) animated by Member States, the Regional Economic Communities (RECs), the African Union Commission (AUC) and development partners.

• While it is accepted that the RECs are working in specific environments with projects and programmes which are adapted to their situation, the MIP is an essential requirement to which the RECs, as pillars of the AEC, must direct their actions; it is the coordination and harmonization of their activities around jointly negotiated priority programmes that are designed to speed up the integration of the African continent.

• The success of the MIP will depend on the will and determination of each stakeholder to play its part and to effectively translate into reality the part of the programme for which it is responsible.

37

Annexes: MIP content: Phases 1, 2 and 3Priority sectors of the MIP

Sub-sectors of the MIP

N°

First Phase Objectives (2009-2012)

Second Phase Objectives (2013-2016)

Third Phase Objectives (2017-2020)

Projects, activities and programmes to be implemented during the First Phase (2009-2012)

Trade Tariff Barriers (TB) 1 Gradual elimination of tariff barriers (TB) in all RECs

Elimination of all TB in the RECs

Elimination of all TB in the RECs and at continental level

Accelerated implementation of the programmes for elimination of TB in each REC

Non-Tariff Barriers (NTB)

2 Elimination of non-tariff barriers (NTB) at the level of RECs

Gradual elimination of NTBs in the RECs

Elimination of all NTBs at continental level

Set up/operationalize of the computerized system in all the RECs to detect and eliminate all non-tariff obstacles to trade

Rules of to origin 3 Simplification and harmonization of rules of origin

Rules of origin harmonized at regional level

Rules of origin harmonized at continental level

Simplification and harmonization of rules of origin in and between all RECs

FTZ 4 Signing partnership agreements between RECs

Creation of two free trade zones: COMESA, SADC, EAC, IGADECOWAS, ECCAS, CEN-SAD, AMU

Signing partnership agreements between RECs

Harmonizing REC programmes

38

Priority sectors of the MIP


N°

First Phase Objectives (2009-2012)




Free movement

Customs 5 Facilitation of customs procedures and creation of a Customs Union in each REC with a CET

Customs Union in each of the two REC groups

Continental Customs Union with a continental CET

Accelerate the completion of the Customs Unions in the RECs

Tackle the problem of Member States belonging to more than one REC by encouraging the establishment of a cooperation framework between Communities with a view to eventually creating customs unions between REC groupings

Free movement of persons

6 Total free movement of persons within regions and partial between regions

Gradual free movement of persons between regions

Complete free movement of persons in Africa

Accelerate effective implementation of regional protocols on free movement of persons, right of residence and establishment

Facilitate free movement for African holders of diplomatic and service passports

Establish guarantee mechanisms.

Free movement of goods

7 Free movement of goods within regions

Gradual free movement of goods between regions

Total free movement of goods in Africa

Set up mechanisms facilitating free movement of goods within regions

Harmonization of a few instruments between regions for facilitating free movement of goods within regions

Free movement of services and capital

8 Gradual free movement of services and capital within regions

Gradual free movement of services and capital between regions

Total free movement of services and capital in Africa

Establish a legal framework (Protocol) in each REC for free movement of services and capital.

39



N° First Phase Objectives (2009-2012)




Peace and security

All sub-sectors 9 Conflict prevention and resolution and post-conflict development in Africa

Conflict prevention and resolution and post-conflict development in Africa

Conflict prevention and resolution and post-conflict development in Africa

Establishment and operation of an early warning system for conflicts and situation rooms for observation and monitoring

Establishment and operation of an African Standby Force and regional brigades

Implementation of the African Union Border Programme

Infrastructure and Energy

Transport/ Energy/ICT

10 Infrastructure development in Africa

Infrastructure development in Africa

Infrastructure development in Africa

Accelerate the implementation of the STAP

Ensure effective participation by RECs in the PIDA development process

Agriculture

All sub-sectors 11 Accelerate CAADP implementation with a view to: eliminating hungerreducing poverty and food insecurity, andencouraging trade development

Achieve the first of the Millennium Development Goals (MDGs) of reducing hunger and poverty by half by 2015

Develop the agricultural sector in Africa

Harmonization of the various regional food security programmes;

Establish an information management system on agricultural markets where there is none;

Exchange of experiences between RECs; and

Establishment of a special fund for agriculture in each REC

40







Industry All sub-sectors 12 Development of the industrial sector in Africa

Development of the industrial sector in Africa

Development of the industrial sector in Africa

Each REC should have a legal framework for promoting industrial policy (protocol)

Operationalization in every REC of the strategy for implementing the Plan of Action for Industrial Development in Africa

Investment

Investment policies 13 Establish a regional and continental platform for attracting investors

Increased local, regional and foreign investment

Increased local, regional and foreign investment

Establishment of regional investment protocols;

Harmonization of the different protocols; and

Elaboration of a continental code

Science and technology

Education 14 Development of the education system in Africa

Development of the education system in Africa

Development of the education system in Africa

Encourage RECs and Member States to implement the Plan of Action for the Second Decade of Education for Africa

Science and Technology

15 Promote the use of Science and Technology for poverty eradication in Africa



Encourage RECs and Member States to implement the Africa’s Science and Technology Consolidated Plan of Action

Social Affairs

Health 16 Ensure access for all Africans to basic health needs

Ensure access for all Africans to basic health needs

Ensure access for all Africans to basic health needs

Implementation of the African Health Strategy (2007-2015)

Gender 17 Promote participation by women in economic development

Position women as key players in the economic cycle of Member States

Position women as key players in the economic cycle of Member States

Create regional associations of business women

41







Political affairs

Elections and promotion of democratic institutions

18 Democratic elections and rotation of political power between parties

Democratic elections and rotation of political power between parties

Democratic elections and rotation of political power between parties

Ratification and implementation of the African Charter on Democracy, Elections and Governance

Governance 19 Improved governance in RECs

Improved governance in RECs

Improved governance in RECs

Creation in each REC of a peer review mechanism

Statistics Harmonization of statistics

20 Establish instruments for harmonization of statistics in Africa

Production of reliable and comparable statistics in Africa

Production of reliable and comparable statistics in Africa

Ratification of the African Charter on Statistics by Member States

Preparation of continental guides for data collection, harmonization of measurement standards etc…

Capacity building

All sub-sectors 21 Strengthen capacity of RECs, the AUC and Member States

Strengthen capacity of RECs, the AUC and Member States

Strengthen capacity of RECs, the AUC and Member States

Organize training sessions in the various MIP sub-sectors for officials of RECs, AUC and Member States

Fiscal policy

Inflation/ interest rate/ fiscal deficit

22 --------- Harmonization of fiscal policy at regional level

Harmonization of fiscal policy at continental level

---------

Monetary policy

Payment systems/ macroeconomic convergence / banking sector

23 ---------

Creation of a monetary union in each REC

Creation of a continental monetary union with a common African currency

--------

Development of the financial market

Stock exchanges 24 ------

Create a favourable environment for the development of national and regional financial markets

Establishment of an African Stock Exchange

----------

42

THANK YOU FOR YOUR KIND ATTENTION

43

1 status of the integration process in africa: recent developments african union union africaine...

Documents

african integration

african integration

regional integration

status of integration

continental integration

integration process1

noble integration project

african central bank