11.2 Regional economic communities and their impact

Regional economic communities in Africa aim to boost trade, development, and cooperation among member states. From ECOWAS in West Africa to SADC in the south, these groups work to create free trade areas, customs unions, and shared policies.

These communities bring benefits like economic growth, increased trade, and foreign investment. By expanding markets and reducing barriers, they help African countries compete globally and foster regional stability. However, progress varies due to political and economic challenges.

Major Regional Economic Communities

West and North Africa

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• ECOWAS (Economic Community of West African States)
  • Established in 1975 with the signing of the Treaty of Lagos
  • Aims to promote economic integration and shared development goals among its 15 member states in West Africa
  • Implemented the ECOWAS Trade Liberalization Scheme (ETLS) to create a common market
  • Established the ECOWAS Passport to facilitate free movement of citizens within the region
• AMU (Arab Maghreb Union)
  • Created in 1989 through the Marrakech Treaty signed by Algeria, Libya, Mauritania, Morocco, and Tunisia
  • Objectives include coordinating economic policy, promoting free trade, and fostering cooperation in various sectors
  • Progress has been limited due to political tensions and closed borders between member states

Southern and Eastern Africa

• SADC (Southern African Development Community)
  • Formed in 1992 as a successor to the Southern African Development Coordination Conference (SADCC)
  • Comprises 16 member states in Southern Africa focused on achieving development, peace and security, and economic growth
  • Established the SADC Free Trade Area in 2008 to eliminate tariffs and trade barriers
  • Launched the SADC Industrialization Strategy and Roadmap 2015-2063 to drive sustainable industrial development
• EAC (East African Community)
  • Established in 2000 by Kenya, Tanzania, and Uganda, later joined by Burundi, Rwanda, and South Sudan
  • Aims to widen and deepen cooperation among member states in political, economic, and social spheres
  • Launched a Customs Union in 2005 and a Common Market in 2010 to promote free trade and movement of factors of production
  • Plans to establish a Monetary Union and eventually a Political Federation
• COMESA (Common Market for Eastern and Southern Africa)
  • Formed in 1994 to replace the Preferential Trade Area (PTA) for Eastern and Southern Africa
  • With 21 member states, it is the largest regional economic community in Africa
  • Objectives include promoting regional integration through trade and investment
  • Established the COMESA Free Trade Area in 2000 and launched the COMESA Customs Union in 2009
• IGAD (Intergovernmental Authority on Development)
  • Established in 1996 to supersede the Intergovernmental Authority on Drought and Development (IGADD)
  • Consists of 8 member states in the Horn of Africa focused on achieving peace, prosperity, and regional integration
  • Priorities include food security, environmental protection, peace and security, and economic cooperation and integration

Central Africa

• ECCAS (Economic Community of Central African States)
  • Established in 1983 to promote regional economic cooperation and integration in Central Africa
  • Comprises 11 member states working towards establishing a Central African Common Market
  • Objectives include harmonizing national policies, promoting free movement of people and goods, and fostering peace and stability
  • Progress has been hampered by political instability, conflicts, and limited implementation of agreed-upon policies

Benefits of Regional Integration

Economic Growth and Development

• Regional integration promotes economic growth and development by:
  • Expanding market access for goods and services
  • Attracting foreign direct investment (FDI) through larger, more integrated markets
  • Facilitating technology transfer and knowledge sharing among member states
  • Enhancing competitiveness through economies of scale and specialization
• Trade liberalization, a key component of regional integration, reduces tariffs and non-tariff barriers, promoting increased trade flows and economic efficiency

Increased Trade and Investment

• Customs unions, a form of regional integration, establish a common external tariff (CET) and eliminate internal tariffs among member states
  • This reduces trade barriers, promotes intra-regional trade, and creates a larger, more attractive market for foreign investors
• Free movement of people, another benefit of regional integration, allows for:
  • Increased labor mobility and skill sharing across member states
  • Enhanced tourism and cultural exchanges within the region
  • Improved access to education and healthcare services for citizens of member states
• Regional integration also promotes the harmonization of trade policies, standards, and regulations, reducing the costs and complexity of cross-border trade