United Africa: realistic or not?

Vlatka Bilas

doi:10.15291/oec.3053

Abstract

There is a proliferation trend of a number of regional economic integrations in the world, as well as their deepening. This global trend spilled over in Africa, where the creation and deepening of regional economic integrations with the ultimate objective/goal of establishing one continental integration is considered a development imperative. A single market of 1.3 billion people can make a difference, from the aspect of trade, productivity, competitiveness, creation of new jobs and higher living standard. This paper aims to provide an overview and discuss challenges and perspectives of the development of regional integrations in Africa with special emphasis on eight regional economic communities recognized as building blocks of the African Union. Accordingly, the contribution of the paper is twofold. First, it gives an overview of the main features of regional economic integration of Africa and the performance of eight regional economic communities. Second, it identifies the main challenges and gains of regional economic integration processes in Africa and offers recommendations for further successful regional integration processes in Africa.

Highlights

Regional integration initiatives in Africa started at the beginning of twentieth century, in 1910, by establishing the South African Customs Union and the East African Community in 1919
This paper aims to provide an overview and discuss challenges and perspectives of the development of regional integrations in Africa with special emphasis on eight regional economic communities recognized as building blocks of the African Union
The discussion is focused on the formation of the African Union and the performance of eight regional economic communities (RECs): Arab Maghreb Union (AMU) established in 1989, Common Market for Eastern and Southern Africa (COMESA) established in 1993, Community of Sahel-Saharan States (CEN-SAD) established in 1998, East African Community (EAC) established in 1999, Economic Community of Central African States (ECCAS) established in 1983, Economic Community of West African States (ECOWAS) established in 1975, Intergovernmental Authority on Development (IGAD) established in 1996 and Southern African Development Community (SADC) established in 1992

Summary

Introduction

Regional integration initiatives in Africa started at the beginning of twentieth century, in 1910, by establishing the South African Customs Union and the East African Community in 1919. In period 2008-2018, all the regions, except the Commonwealth of Independent States and Africa, attained their pre-crisis trade levels of 2008. This small share in the world trade constitutes more than half of GDP of each African country (Geda and Seid, 2015). Many countries are members at the same time of two or more RECs. For example, Libya is a member of UMA, COMESA and CEN-SAD, while Liberia is a member of CEN-SAD and ECOWAS. Libya is a member of UMA, COMESA and CEN-SAD, while Liberia is a member of CEN-SAD and ECOWAS This fact certainly affects the speed and the level of the achieved integration of RECs. The paper consists of four parts.

Regional economic integration: theoretical framework

Regional economic integrations in Africa: overview and discussion

Conclusion

Findings

Literature