Issues arising from pooling resources and integrating economies
Integrating Africa is the AfDB Group’s blog on regional integration in Africa. It chronicles the issues arising from African countries’ efforts as they work to pool resources and integrate their economies for the development of their regional and individual economies. Read More
Debates preceding the June 2015 renewal of the African Growth and Opportunities Act (AGOA), a US Government initiative to enhance market access for qualifying Sub-Saharan African countries, centered on the unilateral nature of the initiative. Unlike a negotiated trade deal, the US Government under AGOA decides what countries and what products are eligible. With African countries having signed Economic Partnership Agreements with the European Union, it is not hard to imagine that it is unlikely for AGOA to be renewed beyond 2025 – at least not in its current form. The question therefore is: How do African countries ensure they are able to compete in the US market beyond AGOA? And can African countries use AGOA as a springboard to enhance their participation in global trade beyond the US and post AGOA?
Relaxing Visa Regulations: An imperative to push Africa’s integration agenda and unlock the continent’s economic potential
As world leaders gather in Kigali to attend the World Economic Forum for Africa, the free movement of people across the continent, a top priority in the vision for Africa set in Agenda 2063, will undoubtedly be at the heart of discussions.
From rocks to industries: How can the extractive industries be a platform for African industrialisation?
Industrialisation is back. After decades when policy efforts were mostly focused on macroeconomic stability and opening up markets, the success of industrial policies in emerging Asian markets highlighted the importance of a concerted effort for Africa to climb up the global value chains and diversify away from reliance on raw commodities. The Africa Union’s Agenda 2063 puts value addition and industrialisation at the centre of its vision for a prosperous continent, setting a target for Africa to generate 10% of global manufacturing by 2050.
Throughout the price boom of the 2000s, extractive resources (mining, oil and gas) were seen as assets that African Governments needed to leverage more effectively for development outcomes. This view has persisted even through the current price slump that began in 2011.
Despite the recent signing of the Tripartite Free Trade Area between the Southern African Development Community (SADC), the East African Community (EAC), and the Common Market for Eastern and Southern Africa (COMESA), Africa remains the most fragmented continent in the world, with 54 countries and very low levels of intra-regional trade, which stood at 16.2 percent in 2013, according to the World Trade Organization.