Economic Integration In Africa Research Articles

Assessement of Nigerias Afrocentric Foreign Policy: A Case Study of President Olusegun Obasanjo's Administration

The emergence of President Olusegun Obasanjo in 1999 as the president of Nigeria marked a significant transition from military rule to democratic rule, the image of the country have been battered in the international arena due to military dictatorship, hence the president have to concentrate on rebuilding the image of Nigeria. Nigeria's Afrocentrism, rooted in its post-independence policy under Prime Minister Sir Abubakar Tafawa Balewa, has consistently placed Africa at the center of its foreign policy. The paper explores Nigeria's Afrocentric foreign policy, focusing on the administration of President Olusegun Obasanjo (1999-2007). This approach emphasizes African unity, emancipation, and development, with Nigeria playing a key role in mediation, conflict resolution, and peacekeeping within the continent. The research aimed to critically examines the effort made by president Obasanjo in area of ensuring democratic rule, Peacekeeping operations, and regional economic integration in Africa. This paper argues that Nigeria’s Afrocentric foreign policy, while altruistic, may require recalibration to better align with national interests, ensuring that such commitments do not disproportionately burden the Nigerian economy. The historical and analytical approach was employed in the presentation and analysis of data, the information goes through rigorous analysis that is data analysis, which is a technique for an objective, systematic and qualitative description of the data acquired. Furthermore, the theory employed in the making of this research is Concentric circle theory which was first brought from sociology, and later adopted in the study of foreign policy. A shift towards a more pragmatic and national interest-focused foreign policy, emphasizing economic growth and development, is recommended for future engagements.

Regional trade agreements and economic integration in Africa: assessing the impact of the African Continental Free Trade Area (AFCFTA)

This article examines the impact of Regional Trade Agreements (RTAs) on economic integration in Africa, focusing on the African Continental Free Trade Area (AfCFTA). As the largest free trade area globally, AfCFTA aims to create a unified market for goods and services across 55 African Union member states, fostering economic growth, reducing trade barriers, and enhancing intra-African trade. This article assesses the potential economic benefits of AfCFTA, including increased market access, industrialization, and job creation. It also considers the challenges of implementation, such as infrastructure deficits, varying levels of economic development, and non-tariff barriers. Through case studies of key African economies, including South Africa, Nigeria, and Kenya, the article explores how AfCFTA is reshaping trade dynamics and regional cooperation. Furthermore, it evaluates the role of AfCFTA in addressing Africa’s dependence on external markets and enhancing global competitiveness. The article concludes by providing recommendations for policy reforms, capacity building, and regional cooperation needed to maximize the benefits of AfCFTA. By analyzing both opportunities and challenges, this article offers insights into how AfCFTA can drive deeper economic integration and sustainable development across the African continent.

The Impact of Transport Infrastructure Development in Africa on the Development of Regional Integration in Africa

This paper, combined with scholars' current discussions on the importance of regional integration for national economic development, this paper focuses on showing that poor transportation hinders the import and export trade and the introduction of integration-specific talents in Africa, and that high-quality transportation infrastructure can improve trade facilitation and promote cross-regional trade, investment and the formation of a unified market on the African continent. It shows that good transportation can facilitate the development of regional economic integration in Africa and is an enabler of regional economic integration.

The Nigerian Cabotage Act and the Ideals of the African Continental Free Trade Area: An Unwholesome Alliance?

AbstractOne of the primary goals of the African Continental Free Trade Area (AfCFTA) is to establish a single market for goods and services in order to achieve economic integration in Africa. Experts opine that the AfCFTA can be a game changer for improving intra-African trade and may pave the way to economic diversification and inclusion. To maximize the potential of the AfCFTA, African nations must eliminate or minimize trade and non-trade barriers that can undermine the AfCFTA's true intention. Nigeria is the largest economy in Africa; therefore for the AfCFTA to flourish, Nigeria must implement targeted industrial, structural and policy changes to facilitate the achievement of the AfCFTA's objectives. This article addresses protectionist cabotage as a non-tariff trade hurdle to AfCFTA aims, as well as the need for Nigeria to abolish or liberalize its restrictive regime on domestic cabotage trade. It proposes that Nigeria should take the lead in campaigning for a regional cabotage regime and eliminate its protectionist policy.

African Continental Integration - A New Step towards a Multipolar World

The global economy continues to suffer the consequences of the 2020 global recession caused by the COVID-19 pandemic and the dramatic shifts in international relations in 2022 triggered by severe sanctions imposed by Western nations against Russia. Many countries have been affected by the restrictions. African economies were no exception, experiencing a strong negative impact of these sanctions because of rising global prices on cereal crops, oil, natural gas, and mineral fertilizers, which caused a decrease in their imports felt primarily by the most vulnerable population groups. In addition, the region has seen a retreat from basic gains in living standards and social problems. This situation has once again made it clear to African countries that they should pool efforts in order to minimize damage and facilitate economic recovery. In this regard, the issues of developing economic integration, such as the transition from the subregional to regional (continental) level of economic integration, which is the subject of this paper, have become more relevant. The African Continental Free Trade Area, launched on January 1, 2021, is the largest in the world in terms of the number of participating countries with a total population of 1.3 billion USD and GDP of 3.4 trillion USD, and is expected to more than double by 2050. An important achievement of economic integration in Africa is the creation in 2018 of the African Single Market for Air Transport and plans for the introduction of a single passport, which are designed to ensure the free movement of Africans across the continent. Thus, continental integration is an extremely important and necessary tool for Africa to strengthen intra-regional ties, increase labor productivity and enhance the competitiveness of African goods. In addition, the promotion of integration helps to strengthen Africa’s economic and political positions in the world, which objectively contributes to the movement towards a multipolar world.

Tension between state-level industrial policy and regional integration in Africa

How does industrial policy currently interact with Regional Economic Communities in Africa? This article examines the tension between Regional Economic Communities and state-level industrial policy in Africa through two main problems: (1) how state industrial policies undermine Regional Economic Communities through a crisis of implementation and (2) how Regional Economic Communities undermine industrial policies through crisis of coordination. In discussing these issues, using indicative examples from the regions, especially the Economic Community of West African States (ECOWAS) and the East African Community (EAC), the article brings together industrial policy and regional economic integration in Africa.

China in Africa: Assessing the Consequences for the Continent’s Agenda for Economic Regionalism

Africa has become a major arena in the so-called “multiplex world.” The growing presence of China and other emerging countries on the continent in the last two decades has turned Africa into an area in which there are a large number of different patterns of interaction between state and non-state actors. International debates are polarised over whether these new South–South dynamics generate new dependency relations or whether they provide genuine opportunities for transformation. This article focuses on China’s role in the ongoing processes of economic integration in Africa. Far from merely reproducing a neoliberal pattern, this interaction may highlight a certain convergence between the African regional integration projects and China’s desire to promote structural transformation strategies, with investment in infrastructure being an example. However, the article concludes that rather than reinforcing African regional integration, this essentially bilateral and highly pragmatic Chinese strategy may have some indirect returns on regional integration but is actually showing some signs of decline.

Evaluating the belt and road initiative effects on trade and migration: Evidence from the East African community

AbstractThis paper uses the new panel data structural gravity equations to examine the impact of China's Belt and Road Initiative in two dimensions, namely trade and migration on participating countries. By leveraging the Poisson pseudo‐maximum likelihood estimator with fixed‐effects to address both endogeneity and omitted variables, our results highlighted the importance of accounting for the regional economic integration in Africa, Europe, and Asia. The model assesses 65 countries, including 30 sub‐Saharan economies from the period 2000–2018. The findings of our study indicate that migration has a significant impact on the flow of bilateral trade. We also observed that the East African Community regional trade agreements have a significant negative effect on intra‐blocs trade under the Belt and Road Initiative. Therefore, a comprehensive policy agenda needs to be developed to enhance migration and trade‐promoting policies among the participating economies of Africa to engender African growth from a win‐win perspective.

Conservative-Progressive Power Games, Mutual Jostling in Africa and Resilience of Sino-African Relations under COVID-19 Wind

By taking the subprime crisis as its historical fact of analysis and game theory as its theoretical explanatory basis, this paper aims to explain and demonstrate why Sino-African relations may well withstand in the ongoing “conservative-progressive power games” in Africa under COVID-19 wind, even though they are being further jostled by the “conservative’s offensive”. To support my central point, I start from the assumption that, as was just the case with the subprime crisis, the socioeconomic and financial dimension will once again become a compass [but also a barometer] in the decisions and actions of all the states at stake—the “conservatives”, the “progressives”, as well as the different African countries. Thus, the improvement of the socioeconomic and financial situation on its own territory will become the major challenge of almost all these states at stake. And China, which is less affected by the socioeconomic and financial crisis caused by COVID-19 than the “conservatives”, will be well able to bear the costs of its increasing engagement on the African continent. Although a relative decline or quasi-stagnation of its engagement on the continent can be noted—but rather less than in the case of the “conservatives”, due of course to the comparative shocks of this crisis caused by COVID-19 on their economic activities. In this same logic, another explanatory point is that, if Sino-African relations fall, a big hole will be left in African economies—because of China’s pronounced economic integration in Africa. A hole that the “conservatives”—hit hard by this crisis due to COVID-19, will not be able to fill during this critical moment, in the sense of satisfying the demands of Africa—which is also hit hard by the same crisis. Finally, the game theory as an explanatory theoretical basis, via the five (5) points game, imagined in terms of gain on the African continent, according to the costs of “conservative-progressive engagements”—which are conditioned here by the socioeconomic and financial crisis due to COVID-19, demonstrates as well this affirmation of the resistance of Sino-African relations. In this game, following the assumptions put forward, the most possible scenario is the one that affirms that: Sino-African relations and “conservatives” both withstand. Because, China, less affected by the socioeconomic and financial crisis due to COVID-19, will still be able to bear the costs of its engagement on the African continent. But also, in the case of the fall of the “conservatives”, China alone will not be able to fully cover the gap left by them due to the crisis caused by COVID-19, which also negatively impacted its economy and finances. And the point remains to think about the post- COVID-19 scenario of these “conservative-progressive power games” on the African continent.

Le mécanisme de règlement des différends de la ZLECAf: un choix adéquat pour l’intégration économique en Afrique?

In order to ensure the peaceful resolution of disputes arising from the implementation of its norms, the African Continental Free Trade Area (AfCFTA) has adopted a dispute settlement mechanism that is almost identical to that of the World Trade Organization (WTO), although the two organizations have distinctly different objectives. While the ultimate objective of the AfCFTA is the progressive achievement of economic integration in Africa, the WTO aims to remove as many barriers to international trade relations as possible. This study attempts to demonstrate that the WTO model of dispute settlement adopted by the AfCFTA would not be appropriate to propel African economic integration, especially since not only is it characterized by a great deal of flexibility that allows member states to seek politically negotiated solutions, but above all, it does not take into account, either directly or indirectly, the individual, who is supposed to be the ultimate beneficiary of any process of economic integration of the African continent. Consequently, the present contribution advocates, on the one hand, the attribution of the competence to settle disputes related to AfCFTA’s Law to the future African Court of Justice and Human and Peoples’ Rights (ACJHPR) and, on the other hand, the incorporation of the preliminary referral into the AfCFTA’s Law that could be exercised by the national judge.

Dispute Settlement under the African Continental Free Trade Area Agreement: A Preliminary Assessment

The African Continental Free Trade Area Agreement (AfCFTA) will add a new dispute settlement system to the plethora of judicial mechanisms designed to resolve trade disputes in Africa. Given the discontent of member states and the limited impact that the existing highly legalised trade dispute settlement mechanisms have had on regional economic integration in Africa, this article undertakes a preliminary critical assessment of the AfCFTA Dispute Settlement Mechanism (DSM). The article situates the AfCFTA-DSM in the overall discontent and unsupportive practices of African states with highly legalised dispute settlement systems and similar WTO-styled DSMs among other shortcomings. Notwithstanding the transplantation of the WTO-styled DSM and the ineffectiveness of previous similar attempts in Africa, the article argues that the Consultation Phase offers the AfCFTA member states a realistic chance of engaging with the DSM. In conclusion, the article highlights other factors such as private sector involvement, the strategic operationalisation of the DSM, and geopolitical and power dynamics as critical to the success of the dispute settlement system.

Towards a Purposeful Economic Integration in Africa: Free Movement of Persons in Lieu of Illegal Migration

Illegal migration has beguiled the youths of Africa, typified by the treacherous Mediterranean crossing to Europe in recent years. This migration typology, once instigated by political conflicts, is now driven by socio-economic factors. Emigration in search of green pastures is, however, dwarfed by the huge but inconspicuous intra-Africa movement by Africans across international borders for trade, cultural/family ties, and of course, safety from conflicts. But, as migration within and out of Africa is motivated by economic factors, this article examines the Africa Union’s agenda on economic integration through the lens of free movement of persons. It investigates the nexus between migration, free movement, and economic growth through integration; and further provides an outline of the African Union’s framework on migration, mainly free movement of persons. It does so with the view of putting forward a case for the revision of the present African Union’s fragmented and complex migration normative framework. This paper argues for the revision of the present policy of an unconditional progressive approach to free movement, and calls for the acceleration of economic integration in Africa through the said free movement of persons. This economic integration approach will act as a desirable catalyst for the overall continental integration aspirations.

Why So Much Pessimism about Economic Integration in Africa? The Case of the Southern African Development Community

The fifteen countries that make up the SADC are Angola, Botswana, Democratic Republic of Congo, Lesotho, Malawi, Madagascar, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe.

Dispute Settlement Under the African Continental Free Trade Area Agreement: A Preliminary Assessment

The African Continental Free Trade Area Agreement (AfCFTA) will add a new dispute settlement system to the plethora of judicial mechanisms designed to resolve trade disputes in Africa. Against the discontent of Member States and limited impact the existing highly legalized trade dispute settlement mechanisms have had on regional economic integration in Africa, this paper undertakes a preliminary assessment of the AfCFTA Dispute Settlement Mechanism (DSM). In particular, the paper situates the AfCFTA-DSM in the overall discontent and unsupportive practices of African States with highly legalized dispute settlement systems and similar WTO-Styled DSMs among other shortcomings. Notwithstanding the transplantation of the WTO-Styled DSM, the paper argues that the Consultation Phase, offers the AfCFTA Member States a realistic chance of engaging with the DSM. In addition, the paper highlights other factors such as private sector involvement, strategic operationalisation of the DSM, geopolitical and power dynamics as critical to the success of the dispute settlement system.

Preparedness and Economic Integration in Africa – A Case with Reference to APRM

Abstract The ideas of governance and African integration and the inter-linkages between them are consistently defining policy-making in Africa. This paper analyses the Lagos Plan of Action and makes an assessment of various sub-regional integration pursuits within Africa, which is integral to the African Peer Review Mechanism (APRM). The paper also analyses the business environment and economic governance in African sub-regions by assessing their participation in international trade and investment flows, besides discussing the trade-related institutional frameworks in Africa. Moreover, the paper analyses few indigenous best practices in the areas of infrastructural development, trade facilitation, competition regime, and, agricultural development, among others and also reflects on the pertinent concerns. It calls for a broad-based multi-stakeholder participation to help enhance Africa’s preparedness and global outreach.

Investment Facilitation in Regional Economic Integration in Africa: The Cases of COMESA, EAC and SADC

A rethink of the purpose of investment treaties is progressively leading to a paradigm shift. Whereas the traditional model of investment treaties has emphasised the protection of investments, we are witnessing a change in focus to the facilitation of investments. Simultaneously, there is a deliberate and conscious effort to restrict the scope of coverage of the standards of protection typically offered under such treaties. These developments in the international investment regime are discernible in the regional investment instruments concluded by the Common Market for Eastern and Southern Africa (COMESA), the East African Community (EAC) and the Southern African Development Community (SADC). A corresponding move is also beginning to emerge at the national and bilateral levels. Cumulatively, these changes in investment instruments signal a developing trend in future investment agreements negotiated and concluded by COMESA, EAC and SADC Member States.

Rethinking regional economic integration in Africa as if industrialization mattered

This paper outlines an evolutionary and an historical theoretical framework to identify and propose taxonomic principles that can be used to analyze whether or not a given regional economic integration (REI) arrangement is transformative and developmental. Using this framework, it looks into the relationship between industrialization and regional economic integration in Sub-Saharan Africa (SSA). It also looks at how asymmetric economic integration with advanced economies has affected industrialization and symmetric economic integration in Africa. Based on historical evidence, the paper concludes that there is a positive, circular and cumulative relationship between industrialization and regional economic integration in SSA. It also concludes that the asymmetric economic integration of SSA economies with advanced ones has had negative, circular and cumulative impact on industrialization and (symmetric) economic integration in SSA. Therefore, it argues that, if industrialization and transformative REI is to take place in SSA, there is a need for making context-specific, dynamic and transformative industrial policies as center pieces of development strategies, for rethinking REI initiatives in such a way that they facilitate and amplify the effectiveness of these industrial policies and strategies, and for replacing the legacies of colonialism and neoliberal globalization with strategic integration of SSA economies vis. advanced economies.

The Sustainable Development Goals and Agenda 2063: Implications for Economic Integration in Africa

<p>This paper examines how Africa’s recent efforts to promote economic integration, specifically<br />the Regional Economic Communities (RECs) and the proposed Continental Free Trade Area<br />(CFTA) are supported by and in harmony with the Post 2015 Development Agenda and the<br />African Union’s Agenda 2063 initiative.<br />The World Bank’s Global Economic Prospects projects for the period 2014-2017 that five of<br />the world’s 13 top growing economies will be in Africa. However, it is distressing and puzzling<br />that such growth has not been accompanied by reduced poverty, income inequality and<br />unemployment. It is also unsettling that few states met all of the Millennium Development<br />Goals (MDGs) which expired at the end of last year. Furthermore, Africa will likely be<br />confronted by daunting challenges in the near term. This ominous situation is enhanced by the<br />nature of Africa’s trade, both within the continent and in the global economy.<br />To counter some of these constraints, especially the tariff barriers, the RECs and the CFTA will<br />be critical in stimulating trade growth. Increased economic integration, either on a regional<br />level or on a continent-wide level under the general guidelines of the Sustainable Development<br />Goals (SDGs) and Agenda 2063 will result in increased trade which will, in the long term,<br />increase incomes, reduce poverty, increase employment, provide greater consumer choice, and<br />will offer shelter from exogenous external shocks. However, at least in the short term, such<br />gains are also typically accompanied by loses. This paper calls for a continental Integration<br />Compensation Funding Mechanism (ICFM) to balance some of these loses. The ICFM would<br />be developed and managed by the African Development Bank, the United Nations Economic<br />Commission for Africa and the African Union.</p>

Regional Economic Integration in Africa

Regional economic cooperation and integration can be an effective means for countries to overcome constraints of size and fragmentation, and to allow small landlocked countries to more efficiently connect to larger, deeper regional and global markets. The need for scale and market consolidation is particularly relevant for the 54 African countries, many of which are small, landlocked economies with small populations. Notwithstanding frequent and strong reaffirmation of political commitment to integration by African leaders, progress on the ground has been slow and challenging. While there is great diversity among sub-regions, three sets of constraints (“hard” infrastructure, “soft” infrastructure, and political cooperation and institutions) typically impede progress toward greater regional integration in Africa. The Asian experience of economic cooperation suggests another approach, focused on flexible, bottom-up platforms, improved hard and soft infrastructure, strong coalitions, deepened trade, and strengthened institutions, which could advance the regional integration agenda in parallel to the traditional political stream/process. A number of encouraging initiatives that incorporate some of these features are underway in Africa today, and hold the promise of becoming building blocks of an increasingly integrated African economic space.

THE ROLE OF SADC IN BOOSTING DOMESTIC, REGIONAL, CONTINENTAL AND INTERNATIONAL TRADE

The role of regional economic communities in the development of trade in Africa is widely recognised. Currently, intra-African trade stands at 10 per cent. This is in sharp contrast to other developing regions of the world. In Asia and Latin America, the levels of intra-trade are 50 and 26 per cent, respectively. There are a number of reasons accounting for the low level of intra-African trade, including the weak mandate given to regional economic communities to monitor and enforce the commitments assumed by countries under regional trade agreements. The lack of integration has negatively impacted on African countries and affected their ability to attract foreign direct investment commensurate with their development needs. Had African countries been less exposed to external markets, they would have been minimally affected by the global financial crisis. The importance of boosting intra-African trade was highlighted by Africa’s Heads of State and Government when they devoted this year’s summit to this theme. In the run-up to the summit, the African Union Commission released a study that underscored the importance of regional economic communities in the process of economic integration in Africa. Currently, SADC member states are in the process of implementing the SADC Trade Protocol, which would create a fully-fledged free trade area and later a customs union, and at the same time engaged in tripartite negotiations aimed at merging the three (SADC, COMESA and the EAC) regional configurations. They are also engaged in the EPA negotiations with the European Union, which would create a free trade area and also the Doha negotiations under the auspices of the WTO. The main objective of this article is to estimate SADC countries’ bilateral trade potential, which may result in the improvements in trade facilitation.