By: Salisu Suleiman
Within hours of his swearing in as President of France, Francois Hollande was on his way to Berlin to meet with German Chancellor, Angela Merkel. For a man who had aspired to be president since the age of 15, it was extraordinary that he spent his first night as president not in the Élysée Palace, but in a hotel room in Berlin, so important is the European Union to France and Europe.
Reports in the past week suggest that the Gulf Cooperation Council (GCC) comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates are contemplating a closer union in addition to strengthening economic ties. Similarly, former bitter enemies and rivals, China, Japan and South Korea are now seeking a trading pact. Nuclear armed rivals India and Pakistan are also exploring the potential of stronger economic ties.
Across the world, countries are coming together to promote economic and political interests by easing trade barriers and boosting regional cooperation. Except in Africa, where a truck conveying Ivorian goods to Nigeria will pass through about 43 checkpoints and process about 32 different documents. Yet both countries (and all others in-between) are members of the Economic Community for West African States (ECOWAS).
Catching a flight from Nigeria to Mali involves multiple flights and may take days instead of hours. Markets in Nigeria have few goods from Africa, while it is hard to find made in Nigeria goods in other African countries, even if we produce little besides crude oil. Despite decades of rhetoric, intra African trade and economic cooperation remain largely neglected, at great loss to the continent.
The time has come for African governments to promote higher levels of cooperation towards achieving national and regional developmental goals and objectives. In the short run, the process may be disruptive, as long accepted practices are thrown out and regulatory agencies forced to cope with uncertain conditions. As things stand now, few African governments appear ready for these challenges.
Thus, Africa’s one billion people are scattered in 57 countries and territories. Even experts have difficulty mapping the peculiarities of each country. The populations, cultures, and politics of these countries differ greatly, thus hindering opportunities for economic integration. This means that continent’s regional economic blocs must play greater roles in promoting economic and trade, while facilitating the agenda for stronger political integration.
Regional Economic Communities (RECs) are not new. Since the 1970s, several RECs have emerged in Africa. ECOWAS/CEDEAO was the first such bloc and is a regional group of fifteen countries, founded in 1975. Its mission is to promote economic integration in “all fields of economic activity, particularly industry, transport, telecommunications, energy, agriculture, Natural resources, commerce, monetary and financial questions, social and cultural matters”.
The Southern African Development Community (SADC) has been in existence since 1980, when it was formed as a loose alliance of nine majority-ruled states in Southern Africa known as the Southern African Development Coordination Conference (SADCC). Its central objective is to coordinate the development of projects in order to lessen economic dependence on the then Apartheid South Africa and to promote regional cohesion. Its transformation from a coordinating conference into a proper regional development bloc occurred in 1992 when the Declaration and Treaty were signed at the Summit of Heads of State and Government, thereby giving the organization a legal character.
The East African Community (EAC) is the regional intergovernmental organisation of the Republics of Kenya, Uganda, the United Republic of Tanzania, Republic of Rwanda and Republic of Burundi with its headquarters in Arusha, Tanzania. The EAC has a population of about 130million. The aims are to widen and deepen co-operation among the partner states in political, economic and social fields for their mutual benefit.
The COMESA (Common market for Eastern and Southern Africa) states, in implementing a free trade area, planned to remove all internal trade tariffs and barriers. COMESA’s focus is the “economic prosperity through regional integration”. With its 19 member states, population of over 389 million and annual import bill of around US$32 billion with an export bill of US$82 billion, COMESA is a major market for both internal and external trade.
The Arab Maghreb Union (UMA) is a Pan-Arab trade agreement aiming for economic and political unity in North Africa. It was created with the objective of developing a common market among its member states of Algeria, Libya, Mauritania, Morocco and Tunisia. The main objectives of the Arab Maghreb Union Treaty are to strengthen all forms of ties among member states for the purpose of facilitating regional stability and enhance policy coordination. The UMA Treaty also planned to gradually introduce free circulation of goods, services, and factors of production among them.
With all these organisations, frameworks and treaties in existence, it is startling that Africa still has about 40 different currencies, while only about 11 per cent of the continent’s total trade is conducted within Africa