African countries make progress in regional integration and trade, but more work is needed, says the Economic Commission for Africa (ECA). While the ECA's assessment showed commendable progress in implementing the regional integration agenda and promoting intra-regional trade, efforts should be doubled to accelerate the African Continental Free Trade Agreement (AfCFTA), and the protocol on free movement of persons, right of residence, and right of establishment should be ratified.
The report was based on monitoring frameworks and tools, including indicators developed by the ECA, the African Union Commission, and the African Development Bank. The director of ECA's Regional Integration and Trade Division, Stephen Karingi, presented the report at the Conference of African Ministers of Finance, Planning, and Economic Development meeting in Addis Ababa, Ethiopia.
Karingi said that the integration agenda faced slow implementation of policies and agreements and several integration challenges, including inadequate financial resources, poor infrastructure networks, increasing violence, terrorism, and political instability. To deepen integration, Member States would need to address these challenges collectively. According to Karingi, the protocol on free movement of persons, right of residence, and right of establishment interacted with the ability to move goods and services, and would help optimize the AfCFTA, which is critical to realizing the economic benefits of integration.
While the pandemic created potential for trade and business growth through digitalization in Africa, it also worsened public deficits and the debt burden, reducing infrastructure investment. Africa remains constrained by huge infrastructure gaps, with an estimated annual financing need of between $130 billion to $170 billion, and an annual financing gap of between $68 billion to $108 billion. The energy price increases, exacerbated by the war in Ukraine, have also put a strain on African countries, particularly net energy importers.
Despite collaborative efforts from the United Nations, the African Union, and regional economic communities, insecurity, poor infrastructure, and high communication costs across borders continue to hinder the integration process. The ECA will continue to prioritize support for Member States, regional economic communities, and the AfDB toward implementation of the free trade area to foster regional integration in Africa.