best practices in regional integration in africa 8 th session of the committee on trade, regional...
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Best Practices in Regional Integration in Africa
8th Session of the Committee on Trade, Regional Cooperation and Integration6 - 8 February 2013Addis Ababa, Ethiopia
George M. Mugabe
UNECA-RITD
Regional integration: a key strategy for advancing Africa’s socio-economic endeavors.
There is increased level of political will and commitment to establishing the AEC
Bottlenecks still hamper progress towards realizing the AEC
Introduction
Any notable progress?
Some best practices in regional integration in RECs are making the
difference worth noting
Some best practices in regional integration in RECs are making the
difference worth notingNotable progress in
RECs where some best
practices have been put in
place
Elimination of tariffs Under COMESA FTA,
participating countries are now a zero tariff zone
85% of the total regional trade is from within the FTA
EAC member States are a duty- and quota-free trade regime (0% Tariff) since 2010
Trade has strengthened to over $ 2 billion since then
Trade and Market Integration
Total exports within the EAC region are now running a close second to total EAC exports to the euro area (Trademark Southern Africa)
Values in US $ Millions
UNCTAD, 2011
Elimination of NTBs COMESA, EAC and SADC are implementing an
“ORM”
Trade and Market Integration
Rwanda now has zero checkpoints from Rusumo border to Kigali
Some Best ExamplesSome Best Examples
An
y Progress M
ade?
An
y Progress M
ade?
Rules of Origin Certificates
COMESA is using a regional Rules of Origin (RoO) certificate.
It entitles cross-border traders to preferential trade under FTA.
Harmonized formulae for RoO.
Rules of Origin
The Chirundu One Stop Border Post (OSBP)
Savings in time values as high as US $ 600,000/day
Clearing time has reduced from 3 days, to 6 hours and 1 day maximum.
Trade Facilitation Measures
More Examples?
COMESA CD is used as standardized document for customs transit traffic control.
The document caters for imports, exports, transit and warehousing
It said to have replaced on average 32 documents in some member States
Trade Facilitation Measures
Simplification of documentation at customs check points: Cutting down Red Tape
Relaxation of visa requirements
COMESA is granting a 90-day visa upon arrival to all FTA members.
The same is true within ECOWAS.
Free Movement of People
Visa requirements are stringent
in Africa
Visa requirements are stringent
in Africa Rwanda, as of January 1, 2013, is issuing visa on arrival for all African nationals.
Rwanda, as of January 1, 2013, is issuing visa on arrival for all African nationals.
Travelling regionally and internationally is easy with ECOWAS regional Passport.
Expected to replace the national passports used by other member States.
CEMAC is also using a regional passport “CEMAC Passport”
Free Movement of People
Use of Regional Passports
Under the principle of reciprocity in AMU, Mauritania guarantees;
Freedom of establishment and capital investment,
Freedom to transfer foreign capital,
The ability to transfer the professional income of foreign employees and
Equal treatment of Mauritanians and foreign individuals, as well as of legal entities.
Right of Establishment
COMESA is using the harmonized axle load limit to safeguard the roads against overloading.
Transport and Communication
200 km of 240 km of Arusha-Namanga-Athi River Road is complete
Use of the Harmonized Consumer Price Index (HCPI) as a mechanism to harmonize inflation rate
COMESA is implementing the HCPI
Its based on a harmonized methodology and conceptual approaches across COMESA
SADC is also implementing its HCPI and reported and gazetted on monthly basis
Macroeconomic Convergence
Institutional Monitoring Mechanisms for macroeconomic convergence integration
ECOWAS has set up an institutional framework for multilateral surveillance
It works closely with;
The West African Monetary Agency (WAMA), and
WAMI to promote the establishment of a second West African Monetary Zone (WAMZ)
Macroeconomic Convergence
Payment Systems
Launched in 2007
It has over 10 million subscribers and
Over 2 million daily transactions
Over $ 415 million per month in P2P transactions in Kenya alone.
One-quarter of Kenya’s GDP flows through the mobile payment system.
Contributes annually to roughly 17 per cent of Kenyan GDP.
Way F
orward
Recommend best practices be identified, reported on and shared at country, REC, and even continental level
Although bilateral agreements help to initiate momentum, but for RI initiatives to achieve the intended purposes, encourage agreements through multilateral arrangements