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STATUS OF THE INTEGRATION STATUS OF THE INTEGRATION PROCESS IN AFRICA: RECENT PROCESS IN AFRICA: RECENT
DEVELOPMENTSDEVELOPMENTS
AFRICAN UNION UNION AFRICAINEAFRICAN UNION UNION AFRICAINE
UNIÃO AFRICANAUNIÃO AFRICANA
AFRICAN UNION UNION AFRICAINEAFRICAN UNION UNION AFRICAINE
UNIÃO AFRICANAUNIÃO AFRICANA
Presented by: Dr. René N’Guettia KouassiPresented by: Dr. René N’Guettia KouassiDirector of Economic AffairsDirector of Economic AffairsAfrican Union Commission African Union Commission Fax: +251 11 551 92 49Fax: +251 11 551 92 49Email: Email: [email protected]: Email: [email protected]
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PRESENTATION OUTLINEINTRODUCTION
I- OVERVIEW OF THE IMPLEMENTATION OF THE ABUJA TREATY1. Status of integration according to REC2. Agreements between RECs: the COMESA-EAC-SADC Tripartite Arrangement as a model to be popularized 3. Difficulties encountered: remedial action through synergy
II- RESPONSES FROM THE AFRICAN UNION COMMISSION 1. Policy decisions: From the AU Commission to the Authority2. Other initiatives3. Diversification of partners
III- MOST RECENT INITIATIVE: THE MINIMUM INTEGRATION PROGRAMME (MIP) AS THE MAINSPRING OF THE INTEGRATION PROCESS1. Definition2. What is meant by the concept “Minimum”: a minimum number of projects or activities to be implemented, not a minimum number of sectoral priority programmes 3. Objectives4. Fields of application: sectors and sub-sectors concerned5. Stakeholders6. Funding problems: the raison d’être of the African Integration Fund7. Possible constraints to its implementation8. Content of the initial phase of the MIP
IV- RECOMMENDATIONS OF THE 2ND AU/RECs/AfDB/ECA COORDINATION MEETINGV - PRINCIPAL RECOMMENDATIONSCONCLUSION
2
INTRODUCTION
• 25 May 1963 : creation of the Organization of African Unity (OAU)• 1980 : Advent of the Lagos Plan of Action and of the Final Act of Lagos,
preceded by the Monrovia Conference (Liberia) in 1979.• 1991 : advent of the Treaty Establishing the African Economic Community
(AEC), commonly known as the Abuja Treaty, which came into force in 1994.• In September 1999, adoption of the Sirte Declaration, aiming basically to
accelerate the implementation of the Abuja Treaty, in particular the reduction of stages and the implementation of institutions such as the African Central Bank, the Court of Justice, …
• In 2000, adoption of the Constitutive Act of the African Union at the Lomé Summit.
• In July 2001, in Lusaka, Zambia, advent of the African Union (to be launched in Durban, Republic of South Africa, in July 2002) and adoption of the New Partnership for Africa’s Development (NEPAD).
• However, in spite of the adoption and the implementation of these initiatives, the results achieved with respect to regional integration are not particularly successful.
3
INTRODUCTION (cont.)• While certain RECs have recorded tangible results in some specific sectors,
others show relatively disappointing balance sheets with respect to the objectives of the Abuja Treaty.
• The AU, principal architect and guarantor of the success of the African integration process, is still not able to fully fill the role given to it, namely that of coordinating, harmonizing, monitoring and assessing the implementation of the activities, projects and programmes intended to boost the process of regional and continental integration.
• The RECs, considered to be the indisputable pillars of this noble integration project, are, in some cases, in a bad way. The ground covered thus far lacks any foresight enabling a clear assessment to be made. Obstacles linked to funding, lack of human resources, multiple membership of countries, duplication of mandates, insufficient cooperation between RECs, poor coordination and harmonization of policies, weak institutional infrastructure, inconsistent policies of pan-African institutions, etc, remain unresolved; all of which paralyzes any progress on the road towards regional and continental integration.
4
INTRODUCTION (cont.)
• Development partners, particularly donors, generally are not able to fully understand priority regional and continental activities, projects and programmes because of the institutional and organizational chaos that typifies the main players present on the African integration market. Taking advantage of the chaos, certain development partners, experts in fishing in murky waters, pit players against each other. This has the result of weakening and undermining the very foundations of the integration process. The example of the APEs is a perfect illustration of this situation.
• To bring an effective and sustainable solution to this situation which tends to persist, the Commission, the executive organ of the AU, has undertaken a series of initiatives, one of which is the Minimum Integration Programme in close cooperation with the RECs.
5
I. OVERVIEW OF THE IMPLEMENTATION OF THE
ABUJA TREATY
6
1. Status of integration according to REC
Source : African Union Commission, Questionnaire on the MIP*Period set for accomplishment of this stage 7
2. Agreements between RECs: the COMESA/EAC/SADC Tripartite Arrangement as a model to be popularized
• The Heads of State and Government of COMESA, EAC and SADC met in Kampala on 22 October 2008, and in their communiqué, conveyed urgency in calling for the establishment of a single Free Trade Area covering the 26 countries of COMESA, EAC and SADC;
• In April or May 2010, the Heads of State and Government will clearly pronounce themselves on the way forward for establishing the single FTA ;
• Establish the FTA on a tariff-free, quota-free, exemption-free basis by simply combining the existing FTAs of COMESA, EAC and SADC;
• By 2012, all these FTAs will not have any exemptions or sensitive lists ;• There should be a preparatory period for consultations at the national, regional and tripartite
level from early 2010 up to June 2011;• By June 2011, there should be a finalized Agreement establishing the Tripartite FTA, ready for
signature in July 2011. When signed, Member States will have about six months up to December 2011, to finalize their domestic processes ;
• The Tripartite FTA should be launched in January 2012;• Tripartite economic space will also assist to address some current challenges resulting from
multiple membership by advancing the ongoing harmonization and coordination initiatives .
8
2. Challenges and constraints encountered
Lack of financial and human resources; Some RECs are still dependent on external funding;Multi-membership of several RECs; Persistence of tariff and non tariff barriers; Inadequate physical infrastructure;Lack of coherence and links between sectoral cooperation programmes and macro-economic policies implemented by RECs; Absence of national coordination mechanisms: Non application of protocols with respect to economic integration; Lack of political will; Inability to include integration objectives, plans and programmes in national development plans; Weakness of institutional infrastructure; Insufficient coordination between pan-African institutions; Lack of cohesion in the face of several development partners; Tentative cooperation between pan-African organizations;Poor involvement of partners in the integration process. 9
II. RESPONSES FROM THE AFRICAN UNION COMMISSION
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1. Recent major policy decisions: from the AU Commission to the Authority
Adoption in January – February 2009 of the decision transforming the Commission into an Authority. Authority whose content was adopted by the Sirte Assembly.
As changes to the current structure of the Commission, must be added, amongst others:
The Secretariat: coordination of the common defence policy (coordination of the Continent’s common defence policy).
Secretariat: Political affairs and coordination of common positions in the area of foreign policy (political cooperation, coordination of common positions in the area of foreign policy, human rights…
Transformation of the Commission into an Authority aiming to strengthen the Union’s institutional framework in order to enable it to play its part in accelerating the Continent’s political and socio-economic integration towards the creation of the United States of Africa.
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2. Other InitiativesIn order to bring an effective and lasting solution to this seemingly persistent
situation, the Commission, executive organ of the AU, has initiated the following: – rationalization of the RECs which has led to the recognition of the 8 RECs; – quantification of rationalization scenarios (study in progress);– elaboration and adoption of the African Charter on Statistics (signing and
ratification by countries in progress);– Development of the strategy for statistical harmonisation;– establishment of financial institutions (Article 19 of the Constitutive Act);– adoption of the founding texts of the AIB (Protocol and Statutes → signing and
ratification in progress);– The founding texts of the AMF (elaboration underway). The related Technical
Steering Committee is already functioning in Yaoundé;– The ACB: the Technical Steering Committee is gradually being established in
Abuja, Nigeria. It will be mandated, among other things, to prepare a road map to facilitate the advent of a single African currency;
– Adoption of the African Charter on Democracy;– Adoption of PIDA (Programme for Infrastructure Development in Africa).
12
3. Diversification of partners
• Africa-Europe Dialogue, the Joint Strategy and the related Action Plans
• Partnership between Africa-China• Partnership between Africa-India• TICAD Initiative with Japan• Partnership between Africa-South America• Partnership between Africa-Turkey• Partnership between Africa-South Korea
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III. MOST RECENT INITIATIVE: THE MINIMUM INTEGRATION PROGRAMME (MIP) AS THE
MAINSPRING OF THE INTEGRATION PROCESS
14
1. Definition• The Minimum Integration Programme is composed of different activities, different projects and programmes on which the RECs will agree in order to accelerate and bring the regional and continental integration process to completion.
• The MIP is therefore perceived as a mechanism for REC convergence, that should focus on a number of key areas of concern at regional and continental level; areas in which the RECs could enhance the cooperation and benefit from comparative advantages and the success stories of all the RECs in the area of integration.
• The MIP incorporates attainable objectives within the timeframe of the AU Strategic Plan (four years), and is accompanied by a monitoring and evaluation mechanism. It is to be implemented by the RECs, Member States and the AUC, in collaboration with Africa’s various development partners.
• The MIP was developed with the variable geometry integration approach according to which the RECs are expected to progress at different paces in the integration process. In fact, the RECs will continue implementing their respective programmes (considered as their priority programmes) and at the same time endeavour to work towards achieving other activities contained in the MIP.
15
2. What is meant by the concept of “Minimum Integration Programme”
• Two types of definition are to be considered:a) The concept “minimum” should be understood as a one to four projects
to be undertaken by each REC with the obligation of implementing them within a four-year timeframe, a period that corresponds to one phase of the MIP;
b) The concept “minimum” should not mean a limited number of priority sectors because:
* The RECs are not in the same boat with respect to the implementation of the Abuja Treaty. Therefore, the inactivity of some RECs should be avoided if they had already accomplished the minimum projects accepted.
* Consequently – retain all the sectors and sub-sectors considered as priority areas by the RECs.
• Therefore retain within these sectors and sub-sectors a minimum number of projects or activities to be implemented. Such an approach is dynamic.
• The concept “minimum” should therefore be understood as a limited number of projects or activities per priority sector according to the level of integration attained by each REC with respect to the Abuja Treaty. 16
3. ObjectivesThe MIP has several objectives, amongst which are the following: • situate the RECs in relation to the implementation of the Abuja Treaty;• highlight the regional and continental priority programmes initiated by the
Commission and whose implementation, according to the principle of subsidiarity, falls within the competence of national or regional authorities;
• identify the regional and continental projects within the AUC and the RECs, implementation of which reposes on the principle of subsidiarity;
• bolster ongoing economic cooperation initiatives between the RECs, and identify the measures likely to accelerate integration in specific sectors or priority areas;
• identify priority sectors that call for bold coordination and harmonization measures, within and among the RECs;
• emulate successful integration experiences in certain RECs and apply them to all the other Communities;
• help the RECs to identify and implement the priority activities with a view to attaining the integration stages defined in Article 6 of the Abuja Treaty;
• help the RECs to implement the MIP using a clearly defined calendar; • develop and implement other support measures to facilitate the creation of a
single market around the key sectors;• identify projects and programmes whose implementation is based on inter-REC
relations.
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4. Fields of application: sectors and sub-sectors concerned
The RECs have almost unanimously accepted the following sectors as priority sectors. Overall, they are:
• Free movement of persons, goods, services and capital (100%);• Peace and security (100%);• Infrastructure and energy (100%);• Agriculture (100%); • Trade (86%);• Industry (86%);• Investment (86%);• Statistics (86%).
In addition to the priority sectors mentioned above, the RECs have considered it imperative to undertake certain urgent activities described as necessary support measures in the following areas:
• Political affairs (71%);• Science and technology (57%); and• Social affairs (57%).
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4. Fields of application: sectors and sub-sectors concerned (cont.)
In order of importance, the priority sub-sectors retained within the framework of the MIP are as follows: •Tariff barriers (100%);•Non-tariff barriers (100%);•Customs procedures (100%);•Free movement of persons, goods, services and capital (100%);•Transport (100%);•Energy (100%);•Information and Communication Technologies (100%);•Harmonization of statistics (100%);•Conflict prevention and resolution (100%);•Establishment and operation of an early warning system for conflicts, and observation and monitoring situation rooms (100%);•Border programmes (100%);•Small arms and light weapons (100%);•Anti-terrorism (100%);•Capacity building and development (100%); 19
3. Fields of application: sectors and sub-sectors concerned (cont.)
• Establishment and operation of an African Standby Force (ASF) and regional brigades (86%);
• Investment (86%);• Rules of origin (86%);• Education (86%);• Gender (86%);• Processing of agricultural products (71%);• Science and technology for socio-economic development (71%);• Industry (71%);• Post-conflict reconstruction and development (PCRD) (71%);• Animal husbandry (57%);• Fishing (57%);• Culture (57%);• Water (57%);• Environment and climate change (57%);• Election observation (57%);• Conflict prevention (57%);• Promotion of democratic institutions (57%); and• Health (57%).
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5. Stakeholders in the implementation of the MIP
• The players involved in the implementation of the MIP are Member States, Regional Economic Communities, and the African Union Commission.
• The MIP also has the advantage of offering to donors, partner institutions of the United Nations System, as well as to other development partners, more visibility and cohesion in the actions to be undertaken.
• The multiple partnerships that the AU enters into with the rest of the world should have their « MIP component » or should fit partially or totally into the MIP mould.
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5.1 - Division of MIP activities, projects and programmes between stakeholders according to their implementation responsibility
•Sign partnership agreements between RECs (ECOWAS and ECCAS, ECCAS and COMEAS and CEN-SAD and ECCAS)•Recognize community passports between RECs
•STAP•PIDA•CAADP•Plan of Action for the Accelerated industrial Development of Africa•Plan of Action for the Second Decade of Education•Africa’s Science and Technology Consolidated Plan of Action •African Health Strategy•Establish and operate an early warning system for conflicts and situation rooms for observation and monitoring•Establish and operate an African Standby Force and regional brigades•Implement the African Union Border Programme•Harmonisation of the different regional investment protocols•Capacity building
AUCAUC
•Accelerate effective establishment of regional protocols on the free movement of persons, right of residence and establishment •Facilitate free movement for Africans holding diplomatic and service passports•Establish guarantee mechanisms for free movement•Establish mechanisms which facilitate free movement of goods, services and capital in the regions•Establish an external Customs Tariff in the RECs that have not yet done so •Establish a special fund for agriculture in every REC•Create a regional system, where there is non, an information management system on agricultural markets•Establish a protocol for the promotion of industrial policies in every REC•Establish a peer review mechanism in each REC•Establish regional investment protocols•Sign a Cooperation Agreement in each REC in the area of trafficking in human beings, especially women and children
RECs
RECs
REC Groupings:•COMESA, SADC, EAC and IGAD;•ECOWAS, ECCAS, CEN-SAD and AMU
REC Groupings:•COMESA, SADC, EAC and IGAD;•ECOWAS, ECCAS, CEN-SAD and AMU
•African financial institutions•African Charter on Statistics and harmonization of statistics in Africa•Elaboration of a continental investment code•Strengthening and harmonization of regional initiatives for combating HIV/AIDS at regional and continental level
•Set up instruments for security and enhance cooperation on security as well as the fight against terrorism between regions•Harmonize car insurance schemes between RECs•Harmonize axle load limits and vehicle dimensions between RECs •Harmonize road transit charges between RECs•Harmonize the various regional food security programmes •Establish links between the different regional systems for managing agricultural information•Sign a Multilateral Agreement on cooperation between the RECs for combating trafficking in human beings, especially women and children
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Cooperation between RECs:
SADC, COMESA, EAC and IGAD
ECOWAS, ECCAS, CEN-SAD and AMU
- Implementation of the African Charter on Statistics;- Establishment of African financial institutions;- Implementation of PIDA;- Implementation of CAADP;- Implementation of the Strategy for implementing the Plan of Action for
the Accelerated Industrial Development of Africa; - Implementation of the African Charter on Democracy;- Implementation of the Plan of Action for the Second Decade of
Education ; - Implementation of the Plan of Action for Micro-Finance; - Free movement of persons, goods, services and capital.
-Creation of Customs Union;-Creation of Common Market;-Creation of the economic and monetary union;- EPA negotiation ;-Free movement of persons, goods, services and capital; -Implementation of PIDA
Source: Speech by AUC Chairperson Jean Ping at the Conference of African Ministers of Economy and Finance and Governors of Central Banks, held in Tunis in November 2008
5.2 – PYRAMID OF ACTIVITIES OR PROJECTS OF THE MIP
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6. The problems of MIP funding: the raison d’être of the African Integration Fund
In general, three main sources of funding are proposed, namely:
• Internal sources (statutory contributions from Member States, and alternative funding sources that are in the process of being identified);
• Contributions from African financial institutions (AfDB, African Central Banks);
• External sources (mainly from development partners);
• But in order that the implementation of the MIP does not suffer any funding constraints, we propose the creation of an “Integration Fund” dedicated to funding the MIP and which could be lodged either in the African Development Bank or in the future African Investment Bank which is in the process of being established.
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6. The problems of MIP funding: the raison d’être of the African Integration Fund
(cont.)In addition, the AUC will undertake a series of consultations with the RECs in order to develop a strategy for funding the MIP. To this end, the strategy will have to: •identify the financing sources of the different RECs;•identify the funds used by the RECs for implementing ongoing activities and projects contained in the MIP;•identify existing funds within the AUC allocated to ongoing activities of the MIP;•estimate the amounts needed for implementing each activity or project contained in the MIP; •Establish a strategy for the mobilizing of financial resources from development partners; •propose the necessary measures for the creation, functioning and management of the Integration Fund; and•determine the relations between the specialized regional funds in the RECS and the proposed Integration Fund.
25
7. Challenges and constraints in the implementation of the MIP
Source: African Union Commission, MIP Questionnaire 26
6. Content of the Initial Phase of the MIPSummary Table of the MIP (2009-2012)
27
Priority sectors of the First Phase of the MIP (2009-2012)
Sub-sectors of the First Phase of the MIP (2009-2012)
Objectives of the First Phase (2009-2012)
Projects, activities and programmes to be implemented to achieve the objectives of the First Phase (2009-2012)
Trade
Tariff barriers (TB) Gradual elimination of tariff barriers (TB) in all RECs
Speeding up the implementation of programmes for the elimination of TB in every REC
Non-tariff Barriers (NTB) Elimination of non-tariff barriers (NTB) at the level of RECs
Establishment/operationalization of computerized systems in all RECs for detecting and eliminating non-tariff obstacles to trade
Rules of origin Simplification and harmonization of rules of origin
Simplification and harmonization of rules of origin in and between all RECs
FTZ Signing of partnership agreements between RECs
Signing partnership agreements between RECs
Harmonizing REC programmes
Customs Gradual harmonization of customs procedures and creations of a customs union with a common external tariff (CET)
Accelerate the completion of the Customs Unions in the RECs
Tackle the problem of Member States belonging to more than one REC by encouraging the establishment of a cooperation framework between Communities with a view to eventually creating customs unions between REC groupings
Summary Table of the MIP (2009-2012) cont.
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Priority sectors of the First Phase of the MIP (2009-2012)
Sub-sectors of the First Phase of the MIP (2009-2012)
Objectives of the First Phase (2009-2012)
Projects, activities and programmes to be implemented to achieve the objectives of the First Phase (2009-2012)
Free movement
Free movement of persons Total free movement of persons in the regions and partial between regions
•Accelerate effective implementation of regional protocols on free movement of persons, right of residence and establishment;•Visa exemption for African holders of diplomatic and service passports;• Facilitate obtaining visas for certain categories of businessmen, researchers and academics;• Put security instruments in place and improve security cooperation and the fight against terrorism within and between RECs.
Free movement of goods Free movement of goods in the regions
• Set up mechanisms facilitating free movement of goods within regions
Harmonization of a few instruments between regions for facilitating free movement of goods within regions
Free movement of services and capital
Gradual free movement of services and capital in the regions
Establish a legal framework (Protocol) in each REC for free movement of services and capital.
Summary Table of the MIP (2009-2012)
29
Priority sectors of the First Phase of the MIP (2009-2012)
Sub-sectors of the First Phase of the MIP (2009-2012)
Objectives of the First Phase (2009-2012)
Projects, activities and programmes to be implemented to achieve the objectives of the First Phase (2009-2012)
Peace and Security
All sub-sectorsConflict prevention and resolution, and post-conflict development in Africa
Establishment and operation of an early warning system for conflicts and situation rooms for observation and monitoring
Establishment and operation of an African Standby Force and regional brigades
Implementation of the African Union Border Programme
Promote preventive diplomacy in the area of conflict resolution
Infrastructure and EnergyTransport/Energy /ICT Infrastructure development in
Africa
Accelerate the implementation of the STAP
Ensure effective participation by RECs in the PIDA development process
Assist RECs in building their capacities to elaborate infrastructure development projects
Summary Table of the MIP (2009-2012)
30
Priority sectors of the First Phase of the MIP (2009-2012)
Sub-sectors of the First Phase of the MIP (2009-2012)
Objectives of the First Phase (2009-2012)
Projects, activities and programmes to be implemented to achieve the objectives of the First Phase (2009-2012)
Agriculture
All sub-sectors Speed up implementation of the Comprehensive Africa Agriculture Development Plan (CAADP)
Harmonization of the various regional food security programmes;
Establishment of an information management system on agricultural markets where there is none;
Exchange of experiences between RECs; and
Establishment of a special fund for agriculture in each REC
IndustryAll sub-sectors Development of the industrial
sector in Africa Develop a legal
framework for the promotion of industrial policy (protocol) in each REC
Operationalization in every REC of the strategy for implementing the Plan of Action for Industrial Development in Africa
Summary Table of the MIP (2009-2012)
31
Priority sectors of the First Phase of the MIP (2009-2012)
Sub-sectors of the First Phase of the MIP (2009-2012)
Objectives of the First Phase (2009-2012)
Projects, activities and programmes to be implemented to achieve the objectives of the First Phase (2009-2012)
Investment
Investment policies Establish a regional and continental platform to promote investment
Establishment of regional investment protocols;
Harmonization of the different protocols;
Elaboration of a continental investment code;
Acceleration of the establishment of the African Investment Bank
Science and Technology Education Development of the education system in Africa
Encourage RECs and Member States to implement the Plan of Action for the Second Decade of Education for Africa
Science andTechnology
Promote the use of Science and Technology for poverty eradication in Africa
Encourage RECs and Member States to implement the Africa’s Science and Technology Consolidated Plan of Action
Summary Table of the MIP (2009-2012)
32
Priority sectors of the First Phase of the MIP (2009-2012)
Sub-sectors of the First Phase of the MIP (2009-2012)
Objectives of the First Phase (2009-2012)
Projects, activities and programmes to be implemented to achieve the objectives of the First Phase (2009-2012)
Social Affairs
Health Increase access for Africans to basic healthcare
Implementation of the African Health Strategy (2007-2015)
Gender Promote the participation of women in economic development
Creation of regional associations of business women
Political Affairs
Elections, promotion of democratic institutions
Promote democratic elections and rotation of political power between parties
Ratification and implementation of the African Charter on Democracy, Elections and Governance
Governance Improved governance in RECs
•Creation in each REC of a peer review mechanism• Encourage all RECs to adhere to the APRM
StatisticsHarmonization of statistics Establish instruments for
harmonization of statistics in Africa
Ratification of the African Charter on Statistics by Member States
Preparation of continental guides for data collection, harmonization of measurement standards etc…
Summary Table of the MIP (2009-2012)
33
Priority sectors of the First Phase of the MIP (2009-2012)
Sub-sectors of the First Phase of the MIP (2009-2012)
Objectives of the First Phase (2009-2012
Projects, activities and programmes to be implemented to achieve the objectives of the First Phase (2009-2012)
Capacity Building
All sub-sectors Strengthen capacities of RECs, the AUC and Member States
•Organize training sessions in the various MIP sub-sectors for officials of RECs, AUC and Member States;• Build the institutional capacities of RECs and the AUC;• Develop a programme for exchange of experiences and good practices among RECs
Fiscal policyInflation/ interest rate/ fiscal deficit
Harmonization of fiscal policy at regional level
Support the harmonization of fiscal policies at regional level
MonetaryPolicy
Payment systems/ macroeconomic convergence / banking sector
Intensification of actions for the establishment of the African Central Bank (ACB) and the African Monetary Fund (AMF)
Speed up the establishment of the African Central Bank and the African Monetary Fund
Development of the financial market
Stock exchanges Establishment of an African Stock Exchange
Create a favourable environment for the development of national and regional financial markets
IV. Recommendations of the 7th AU/RECs/AfDB/ECA Coordination Meeting
Minimum Integration Programme (MIP):• Convene sectoral meetings;• Invite all stakeholders;• Elaborate road maps at sectoral level.
Financing integration:• Urge Member States that have not yet done so to endow the
AU and the RECs with mechanisms to enable them to generate funds for their operation and implementation of projects.
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• The AUC should take all necessary steps aimed at mobilizing the internal and external resources needed for the implementation of the MIP;
• The AUC, in collaboration with the RECs, should encourage Member States to partly finance the major integration projects and to integrate the MIP in national and regional Development Plans;
• The AUC, in collaboration with the RECs, should host donors round tables with a view to mobilizing the funds needed for financing the MIP;
• The African Union Commission should raise the awareness of Member States on the advantages of integration;
• The AUC and the RECs should raise the awareness of Member States on the need to implement MIP activities on time;
• Strengthening existing institutions and, if need be, establishing appropriate institutional arrangements with a view to facilitating coordination between the different organizations in charge of implementation and the external partners.
35
V - PRINCIPAL RECOMMENDATIONS
V - PRINCIPAL RECOMMENDATIONS (cont.)
• The AUC should intensify consultations with the RECs and use the coordination meeting with them to good effect in order to coordinate, monitor and evaluate the MIP;
• Opening AU representational offices in the RECS will facilitate communication with the latter and ensure effective monitoring of the implementation of the MIP;
• Within the framework of their cooperation, the AUC and the RECs should exchange officials with each other in order to benefit from experience gained;
• The AUC, in collaboration with the RECs, should host sectoral training courses with a view to building the capacity of their personnel; and
• The development of a monitoring and evaluation framework to track the progress made towards achieving the integration objectives, and to evaluate the results of programmes and projects directed towards those objectives.
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CONCLUSION
• The Minimum Integration Programme (MIP) is the missing link in the big loop for the implementation of the Treaty Establishing the African Economic Community (AEC) animated by Member States, the Regional Economic Communities (RECs), the African Union Commission (AUC) and development partners.
• While it is accepted that the RECs are working in specific environments with projects and programmes which are adapted to their situation, the MIP is an essential requirement to which the RECs, as pillars of the AEC, must direct their actions; it is the coordination and harmonization of their activities around jointly negotiated priority programmes that are designed to speed up the integration of the African continent.
• The success of the MIP will depend on the will and determination of each stakeholder to play its part and to effectively translate into reality the part of the programme for which it is responsible.
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Annexes: MIP content: Phases 1, 2 and 3Priority sectors of the MIP
Sub-sectors of the MIP
N°
First Phase Objectives (2009-2012)
Second Phase Objectives (2013-2016)
Third Phase Objectives (2017-2020)
Projects, activities and programmes to be implemented during the First Phase (2009-2012)
Trade Tariff Barriers (TB) 1 Gradual elimination of tariff barriers (TB) in all RECs
Elimination of all TB in the RECs
Elimination of all TB in the RECs and at continental level
Accelerated implementation of the programmes for elimination of TB in each REC
Non-Tariff Barriers (NTB)
2 Elimination of non-tariff barriers (NTB) at the level of RECs
Gradual elimination of NTBs in the RECs
Elimination of all NTBs at continental level
Set up/operationalize of the computerized system in all the RECs to detect and eliminate all non-tariff obstacles to trade
Rules of to origin 3 Simplification and harmonization of rules of origin
Rules of origin harmonized at regional level
Rules of origin harmonized at continental level
Simplification and harmonization of rules of origin in and between all RECs
FTZ 4 Signing partnership agreements between RECs
Creation of two free trade zones: COMESA, SADC, EAC, IGADECOWAS, ECCAS, CEN-SAD, AMU
Signing partnership agreements between RECs
Harmonizing REC programmes
38
Priority sectors of the MIP
Sub-sectors of the MIP
N°
First Phase Objectives (2009-2012)
Second Phase Objectives (2013-2016)
Third Phase Objectives (2017-2020)
Projects, activities and programmes to be implemented during the First Phase (2009-2012)
Free movement
Customs 5 Facilitation of customs procedures and creation of a Customs Union in each REC with a CET
Customs Union in each of the two REC groups
Continental Customs Union with a continental CET
Accelerate the completion of the Customs Unions in the RECs
Tackle the problem of Member States belonging to more than one REC by encouraging the establishment of a cooperation framework between Communities with a view to eventually creating customs unions between REC groupings
Free movement of persons
6 Total free movement of persons within regions and partial between regions
Gradual free movement of persons between regions
Complete free movement of persons in Africa
Accelerate effective implementation of regional protocols on free movement of persons, right of residence and establishment
Facilitate free movement for African holders of diplomatic and service passports
Establish guarantee mechanisms.
Free movement of goods
7 Free movement of goods within regions
Gradual free movement of goods between regions
Total free movement of goods in Africa
Set up mechanisms facilitating free movement of goods within regions
Harmonization of a few instruments between regions for facilitating free movement of goods within regions
Free movement of services and capital
8 Gradual free movement of services and capital within regions
Gradual free movement of services and capital between regions
Total free movement of services and capital in Africa
Establish a legal framework (Protocol) in each REC for free movement of services and capital.
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Priority sectors of the MIP
Sub-sectors of the MIP
N° First Phase Objectives (2009-2012)
Second Phase Objectives (2013-2016)
Third Phase Objectives (2017-2020)
Projects, activities and programmes to be implemented during the First Phase (2009-2012)
Peace and security
All sub-sectors 9 Conflict prevention and resolution and post-conflict development in Africa
Conflict prevention and resolution and post-conflict development in Africa
Conflict prevention and resolution and post-conflict development in Africa
Establishment and operation of an early warning system for conflicts and situation rooms for observation and monitoring
Establishment and operation of an African Standby Force and regional brigades
Implementation of the African Union Border Programme
Infrastructure and Energy
Transport/ Energy/ICT
10 Infrastructure development in Africa
Infrastructure development in Africa
Infrastructure development in Africa
Accelerate the implementation of the STAP
Ensure effective participation by RECs in the PIDA development process
Agriculture
All sub-sectors 11 Accelerate CAADP implementation with a view to: eliminating hungerreducing poverty and food insecurity, andencouraging trade development
Achieve the first of the Millennium Development Goals (MDGs) of reducing hunger and poverty by half by 2015
Develop the agricultural sector in Africa
Harmonization of the various regional food security programmes;
Establish an information management system on agricultural markets where there is none;
Exchange of experiences between RECs; and
Establishment of a special fund for agriculture in each REC
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Priority sectors of the MIP
Sub-sectors of the MIP
N° First Phase Objectives (2009-2012)
Second Phase Objectives (2013-2016)
Third Phase Objectives (2017-2020)
Projects, activities and programmes to be implemented during the First Phase (2009-2012)
Industry All sub-sectors 12 Development of the industrial sector in Africa
Development of the industrial sector in Africa
Development of the industrial sector in Africa
Each REC should have a legal framework for promoting industrial policy (protocol)
Operationalization in every REC of the strategy for implementing the Plan of Action for Industrial Development in Africa
Investment
Investment policies 13 Establish a regional and continental platform for attracting investors
Increased local, regional and foreign investment
Increased local, regional and foreign investment
Establishment of regional investment protocols;
Harmonization of the different protocols; and
Elaboration of a continental code
Science and technology
Education 14 Development of the education system in Africa
Development of the education system in Africa
Development of the education system in Africa
Encourage RECs and Member States to implement the Plan of Action for the Second Decade of Education for Africa
Science and Technology
15 Promote the use of Science and Technology for poverty eradication in Africa
Promote the use of Science and Technology for poverty eradication in Africa
Promote the use of Science and Technology for poverty eradication in Africa
Encourage RECs and Member States to implement the Africa’s Science and Technology Consolidated Plan of Action
Social Affairs
Health 16 Ensure access for all Africans to basic health needs
Ensure access for all Africans to basic health needs
Ensure access for all Africans to basic health needs
Implementation of the African Health Strategy (2007-2015)
Gender 17 Promote participation by women in economic development
Position women as key players in the economic cycle of Member States
Position women as key players in the economic cycle of Member States
Create regional associations of business women
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Priority sectors of the MIP
Sub-sectors of the MIP
N° First Phase Objectives (2009-2012)
Second Phase Objectives (2013-2016)
Third Phase Objectives (2017-2020)
Projects, activities and programmes to be implemented during the First Phase (2009-2012)
Political affairs
Elections and promotion of democratic institutions
18 Democratic elections and rotation of political power between parties
Democratic elections and rotation of political power between parties
Democratic elections and rotation of political power between parties
Ratification and implementation of the African Charter on Democracy, Elections and Governance
Governance 19 Improved governance in RECs
Improved governance in RECs
Improved governance in RECs
Creation in each REC of a peer review mechanism
Statistics Harmonization of statistics
20 Establish instruments for harmonization of statistics in Africa
Production of reliable and comparable statistics in Africa
Production of reliable and comparable statistics in Africa
Ratification of the African Charter on Statistics by Member States
Preparation of continental guides for data collection, harmonization of measurement standards etc…
Capacity building
All sub-sectors 21 Strengthen capacity of RECs, the AUC and Member States
Strengthen capacity of RECs, the AUC and Member States
Strengthen capacity of RECs, the AUC and Member States
Organize training sessions in the various MIP sub-sectors for officials of RECs, AUC and Member States
Fiscal policy
Inflation/ interest rate/ fiscal deficit
22 --------- Harmonization of fiscal policy at regional level
Harmonization of fiscal policy at continental level
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Monetary policy
Payment systems/ macroeconomic convergence / banking sector
23 ---------
Creation of a monetary union in each REC
Creation of a continental monetary union with a common African currency
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Development of the financial market
Stock exchanges 24 ------
Create a favourable environment for the development of national and regional financial markets
Establishment of an African Stock Exchange
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THANK YOU FOR YOUR KIND ATTENTION
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