Docstoc

Slide 1 - Economic Commission for Africa

Document Sample
Slide 1 - Economic Commission for Africa Powered By Docstoc
					AFRICAN UNION                     UNION AFRICAINE

                                  UNIÃO AFRICANA




        STATUS OF THE INTEGRATION
        PROCESS IN AFRICA: RECENT
           . DEVELOPMENTS

                       Presented by: Dr. René N’Guettia Kouassi
                       Director of Economic Affairs
                       African Union Commission
                       Fax: +251 11 551 92 49
                       Email: KouassiN@africa-union.org
                       Email: Renekouacy@yahoo.com              1
            PRESENTATION OUTLINE
INTRODUCTION

I- OVERVIEW OF THE IMPLEMENTATION OF THE ABUJA TREATY
      1. Status of integration according to REC
      2. 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 Authority
      2. Other initiatives
      3. Diversification of partners
III- MOST RECENT INITIATIVE: THE MINIMUM INTEGRATION PROGRAMME (MIP) AS THE
     MAINSPRING OF THE INTEGRATION PROCESS
      1. Definition
      2. 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. Objectives
      4. Fields of application: sectors and sub-sectors concerned
      5. Stakeholders
      6. Funding problems: the raison d’être of the African Integration Fund
      7. Possible constraints to its implementation
      8. Content of the initial phase of the MIP
IV- RECOMMENDATIONS OF THE 2ND AU/RECs/AfDB/ECA COORDINATION MEETING
V - PRINCIPAL RECOMMENDATIONS                                                   2
CONCLUSION
                      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
                                                                      At the level of each REC
                                                                                                                 Date of
Integration Stages provided for by                                                                            achievement
                                     ECOWAS     COMESA      ECCAS     IGAD      CEN-SAD     EAC   SADC
         the Abuja Treaty                                                                                  provided for by the
                                                                                                              Abuja Treaty
       First Stage : (5 years)
                                                                                                                  1999
      Strengthening of RECs


      Second Stage : (8 years)
Coordination and harmonization of
                                                                          X                                       2007
 activities and gradual removal of
   Tariff and Non-Tariff Barriers

                                        X          X          X                    X         X      X
       Third Stage : (10 years)
                                                  (June                                                           2017
Free Trade Area and Customs Union     (2009)               (2010)*    A fixer    A fixer     X    (2010)
                                                 2009)*

                                                                          At continental level
     Fourth Stage : (2 years)
                                                                                                                  2019
Customs Union at continental level
      Fifth Stage : (4 years)
                                                                                                                  2023
     African Common Market

       Sixth Stage : (5 years)
 African Economic and Monetary                                                                                    2028
               Union
            Source : African Union Commission, Questionnaire on the MIP
                                                                                                                          7
            *Period set for accomplishment of this stage
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




                                       10
  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.


                                                                                       11
2.   Other Initiatives
In 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




                                                               13
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. Objectives
The 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.


                                                                                    17
     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%).
                                                                                  18
      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%).
                                                                                 20
         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.




                                                                          21
             5.1 - Division of MIP activities, projects and programmes between stakeholders according to their
                                                 implementation responsibility



           REC Groupings:                                                                                                                REC
•COMESA, SADC, EAC and IGAD;
                                                                             AUC
                                                                                                                                          s
•ECOWAS, ECCAS, CEN-SAD and AMU

                                                                  •African financial
                                                                  institutions
                                                                  •African Charter on                                                    •Accelerate effective establishment of
                                                                  Statistics and                                                         regional protocols on the free movement
                                                                  harmonization of                                                       of persons, right of residence and
                                                                  statistics in Africa                                                   establishment
                                                                  •Elaboration of a                                                      •Facilitate free movement for Africans
                                                                  continental investment      •STAP
                                                                                                                                         holding diplomatic and service passports
                                                                                              •PIDA
                        •Set up instruments for security and      code                                                                   •Establish guarantee mechanisms for
                                                                  •Strengthening and          •CAADP
                        enhance cooperation on security as                                                                               free movement
                                                                  harmonization of regional   •Plan of Action for the Accelerated
                        well as the fight against terrorism                                                                              •Establish mechanisms which facilitate
 •Sign partnership                                                initiatives for combating   industrial Development of Africa
                        between regions                                                                                                  free movement of goods, services and
 agreements between                                                                           •Plan of Action for the Second Decade
                        •Harmonize car insurance schemes          HIV/AIDS at regional and                                               capital in the regions
 RECs (ECOWAS and                                                 continental level           of Education
                        between RECs                                                                                                     •Establish an external Customs Tariff in
 ECCAS, ECCAS and                                                                             •Africa’s Science and Technology
                        •Harmonize axle load limits and vehicle                                                                          the RECs that have not yet done so
 COMEAS and CEN-                                                                              Consolidated Plan of Action
                        dimensions between RECs                                                                                          •Establish a special fund for agriculture in
 SAD and ECCAS)                                                                               •African Health Strategy
                        •Harmonize road transit charges                                                                                  every REC
 •Recognize community                                                                         •Establish and operate an early warning
                        between RECs                                                                                                     •Create a regional system, where there is
 passports between                                                                            system for conflicts and situation rooms
                        •Harmonize the various regional food                                                                             non, an information management system
 RECs                                                                                         for observation and monitoring
                        security programmes                                                                                              on agricultural markets
                                                                                              •Establish and operate an African
                        •Establish links between the different                                                                           •Establish a protocol for the promotion
                                                                                              Standby Force and regional brigades
                        regional systems for managing                                                                                    of industrial policies in every REC
                                                                                              •Implement the African Union Border
                        agricultural information                                                                                         •Establish a peer review mechanism in
                                                                                              Programme
                        •Sign a Multilateral Agreement on                                                                                each REC
                                                                                              •Harmonisation of the different regional
                        cooperation between the RECs for                                                                                 •Establish regional investment protocols
                                                                                              investment protocols
                        combating trafficking in human beings,                                                                           •Sign a Cooperation Agreement in each
                                                                                              •Capacity building
                        especially women and children                                                                                    REC in the area of trafficking in human
                                                                                                                                         beings, especially women and children




                                                                                                                                                                                   22
   5.2 – PYRAMID OF ACTIVITIES OR PROJECTS OF THE MIP



                                                                        Cooperation between RECs:

                                                                  SADC, COMESA, EAC and IGAD

                                                                  ECOWAS, ECCAS, CEN-SAD and AMU




                                                            -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




                                             -   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.


                                                                                                                                                           23
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
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.




                                                                                       24
         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 MIP
                           Summary Table of the MIP (2009-2012)
Priority sectors of the    Sub-sectors of the First    Objectives of the First              Projects, activities and
First Phase of the MIP     Phase of the MIP            Phase (2009-2012)                    programmes to be
(2009-2012)                (2009-2012)                                                      implemented to achieve
                                                                                            the objectives of the
                                                                                            First Phase (2009-2012)
                           Tariff barriers (TB)        Gradual elimination of tariff        Speeding up the
                                                       barriers (TB) in all RECs            implementation of
                                                                                            programmes for the
                                                                                            elimination of TB in every
                                                                                            REC
                           Non-tariff Barriers (NTB)   Elimination of non-tariff barriers   Establishment/
                                                       (NTB) at the level of RECs           operationalization of
                                                                                            computerized systems in all
                                                                                            RECs for detecting and
                                                                                            eliminating non-tariff
          Trade                                                                             obstacles to trade
                           Rules of origin             Simplification and                   Simplification and
                                                       harmonization of rules of origin     harmonization of rules of
                                                                                            origin in and between all
                                                                                            RECs

                           FTZ                         Signing of partnership                   Signing partnership
                                                       agreements between RECs                   agreements between
                                                                                                 RECs
                                                                                                Harmonizing REC
                                                                                                 programmes
                           Customs                     Gradual harmonization of                 Accelerate the
                                                       customs procedures and                    completion of the
                                                       creations of a customs union              Customs Unions in the
                                                       with a common external tariff             RECs
                                                                                                                       27
                                                       (CET)                                    Tackle the problem of
                                                                                                 Member States
                          Summary Table of the MIP (2009-2012) cont.
Priority sectors of the      Sub-sectors of the First    Objectives of the First       Projects, activities and
First Phase of the MIP       Phase of the MIP            Phase (2009-2012)             programmes to be
(2009-2012)                  (2009-2012)                                               implemented to achieve
                                                                                       the objectives of the
                                                                                       First Phase (2009-2012)
                             Free movement of persons    Total free movement of        •Accelerate effective
                                                         persons in the regions and    implementation of regional
                                                         partial between regions       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
     Free movement                                                                     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     •    Set up mechanisms
                                                         the regions                        facilitating free
                                                                                            movement of goods
                                                                                            within regions
                                                                                           Harmonization of a few
                                                                                            instruments between
                                                                                            regions for facilitating
                                                                                            free movement of goods
                                                                                            within regions
                                                                                                                     28
                             Free movement of services   Gradual free movement of      Establish a legal framework
                             and capital                 services and capital in the   (Protocol) in each REC for
                             Summary Table of the MIP (2009-2012)
Priority sectors of the      Sub-sectors of the First   Objectives of the First         Projects, activities and
First Phase of the MIP       Phase of the MIP           Phase (2009-2012)               programmes to be
(2009-2012)                  (2009-2012)                                                implemented to achieve
                                                                                        the objectives of the
                                                                                        First Phase (2009-2012)
                                                        Conflict prevention and            Establishment and
                                                                                            operation of an early
                             All sub-sectors            resolution, and post-conflict
                                                                                            warning system for conflicts
                                                        development in Africa               and situation rooms for
    Peace and Security                                                                      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
                             Transport/Energy /ICT      Infrastructure development in      Accelerate the
                                                                                            implementation of the
 Infrastructure and Energy                              Africa
                                                                                            STAP
                                                                                           Ensure effective
                                                                                            participation by RECs in the
                                                                                            PIDA development process
                                                                                           Assist RECs in building
                                                                                            their capacities to elaborate
                                                                                            infrastructure development
                                                                                            projects




                                                                                                                        29
                          Summary Table of the MIP (2009-2012)
Priority sectors of the   Sub-sectors of the First   Objectives of the First         Projects, activities and
First Phase of the MIP    Phase of the MIP           Phase (2009-2012)               programmes to be
(2009-2012)               (2009-2012)                                                implemented to achieve
                                                                                     the objectives of the
                                                                                     First Phase (2009-2012)
                          All sub-sectors            Speed up implementation of         Harmonization of the
                                                     the Comprehensive Africa            various regional food
        Agriculture                                  Agriculture Development Plan        security programmes;
                                                     (CAADP)                            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
                          All sub-sectors            Development of the industrial      Develop a legal
         Industry                                    sector in Africa                    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


                                                                                                               30
                          Summary Table of the MIP (2009-2012)
Priority sectors of the   Sub-sectors of the First   Objectives of the First        Projects, activities and
First Phase of the MIP    Phase of the MIP           Phase (2009-2012)              programmes to be
(2009-2012)               (2009-2012)                                               implemented to achieve
                                                                                    the objectives of the
                                                                                    First Phase (2009-2012)
                          Investment policies        Establish a regional and           Establishment of
                                                     continental platform to             regional investment
        Investment                                   promote 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   Encourage RECs and
                                                     system in Africa               Member States to implement
                                                                                    the Plan of Action for the
                                                                                    Second Decade of Education
                                                                                    for Africa


                          Science and                Promote the use of Science     Encourage RECs and
                          Technology                 and Technology for poverty     Member States to implement
                                                     eradication in Africa          the Africa’s Science and
                                                                                    Technology Consolidated
                                                                                    Plan of Action




                                                                                                             31
                          Summary Table of the MIP (2009-2012)
Priority sectors of the   Sub-sectors of the First      Objectives of the First           Projects, activities and
First Phase of the MIP    Phase of the MIP              Phase (2009-2012)                 programmes to be
(2009-2012)               (2009-2012)                                                     implemented to achieve
                                                                                          the objectives of the
                                                                                          First Phase (2009-2012)
                          Health                        Increase access for Africans      Implementation of the African
          Social                                        to basic healthcare               Health Strategy (2007-2015)
          Affairs
                          Gender                        Promote the participation of      Creation of regional
                                                        women in economic                 associations of business
                                                        development                       women


         Political        Elections, promotion of       Promote democratic elections      Ratification and
         Affairs          democratic institutions       and rotation of political power   implementation of the African
                                                        between parties                   Charter on Democracy,
                                                                                          Elections and Governance


                          Governance                    Improved governance in            •Creation in each REC of a
                                                        RECs                              peer review mechanism
                                                                                          • Encourage all RECs to
                                                                                          adhere to the APRM


                          Harmonization of statistics   Establish instruments for             Ratification of the
         Statistics                                     harmonization of statistics in         African Charter on
                                                        Africa                                 Statistics by Member
                                                                                               States
                                                                                              Preparation of
                                                                                               continental guides for
                                                                                               data collection,
                                                                                               harmonization of
                                                                                               measurement            32
                                                                                               standards etc…
                          Summary Table of the MIP (2009-2012)
Priority sectors of the   Sub-sectors of the First           Objectives of the First          Projects, activities and
First Phase of the MIP    Phase of the MIP                   Phase (2009-2012                 programmes to be
(2009-2012)               (2009-2012)                                                         implemented to achieve
                                                                                              the objectives of the
                                                                                              First Phase (2009-2012)
                          All sub-sectors                    Strengthen capacities of         •Organize training sessions in
                                                             RECs, the AUC and Member         the various MIP sub-sectors
         Capacity                                            States                           for officials of RECs, AUC
         Building                                                                             and Member States;
                                                                                              • Build the institutional
                                                                                              capacities of RECs and the
                                                                                              AUC;
                                                                                              • Develop a programme for
                                                                                              exchange of experiences and
                                                                                              good practices among RECs
                          Inflation/ interest rate/ fiscal   Harmonization of fiscal policy   Support the harmonization of
       Fiscal policy      deficit                            at regional level                fiscal policies at regional level


                          Payment systems/                   Intensification of actions for   Speed up the establishment
        Monetary          macroeconomic convergence          the establishment of the         of the African Central Bank
         Policy           / banking sector                   African Central Bank (ACB)       and the African Monetary
                                                             and the African Monetary         Fund
                                                             Fund (AMF)
    Development of the    Stock exchanges                    Establishment of an African      Create a favourable
     financial market                                        Stock Exchange                   environment for the
                                                                                              development of national and
                                                                                              regional financial markets




                                                                                                                            33
 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.


                                                         34
       V - PRINCIPAL RECOMMENDATIONS
•   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 (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.

                                                                                      36
                             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.


                                                                                        37
            Annexes: MIP content: Phases 1, 2 and 3
Priority         Sub-sectors of         N   First Phase Objectives        Second Phase               Third Phase          Projects, activities and
sectors of the   the MIP                °   (2009-2012)                   Objectives (2013-          Objectives           programmes to be
MIP                                                                       2016)                      (2017-2020)          implemented during the First
                                                                                                                          Phase (2009-2012)

Trade            Tariff Barriers (TB)   1   Gradual elimination of        Elimination of all TB in   Elimination of all       Accelerated
                                            tariff barriers (TB) in all   the RECs                   TB in the RECs            implementation of the
                                            RECs                                                     and at continental        programmes for
                                                                                                     level                     elimination of TB in each
                                                                                                                               REC
                 Non-Tariff Barriers    2   Elimination of non-tariff     Gradual elimination of     Elimination of all       Set up/operationalize of
                 (NTB)                      barriers (NTB) at the level   NTBs in the RECs           NTBs at                   the computerized system
                                            of RECs                                                  continental level         in all the RECs to detect
                                                                                                                               and eliminate all non-tariff
                                                                                                                               obstacles to trade



                 Rules of to origin     3   Simplification and            Rules of origin            Rules of origin          Simplification and
                                            harmonization of rules of     harmonized at regional     harmonized at             harmonization of rules of
                                            origin                        level                      continental level         origin in and between all
                                                                                                                               RECs


                 FTZ                    4   Signing partnership           Creation of two free                                Signing partnership
                                            agreements between            trade zones:                                         agreements between
                                            RECs                          COMESA, SADC,                                       RECs
                                                                          EAC, IGAD                                           Harmonizing REC
                                                                          ECOWAS, ECCAS,                                      programmes
                                                                          CEN-SAD, AMU




                                                                                                                                                    38
Priority     Sub-sectors of    N   First Phase Objectives    Second Phase        Third Phase           Projects, activities and programmes
sectors of   the MIP           °   (2009-2012)               Objectives (2013-   Objectives (2017-     to be implemented during the First
the MIP                                                      2016)               2020)                 Phase (2009-2012)

Free         Customs           5   Facilitation of customs   Customs Union in    Continental Customs       Accelerate the completion of the
movemen                            procedures and creation   each of the two     Union with a               Customs Unions in the RECs
t                                  of a Customs Union in     REC groups          continental CET           Tackle the problem of Member
                                   each REC with a CET                                                      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     6   Total free movement of    Gradual free        Complete free             Accelerate effective
             of persons            persons within regions    movement of         movement of persons        implementation of regional
                                   and partial between       persons between     in Africa                  protocols on free movement of
                                   regions                   regions                                        persons, right of residence and
                                                                                                            establishment
                                                                                                           Facilitate free movement for
                                                                                                            African holders of diplomatic and
                                                                                                            service passports
                                                                                                           Establish guarantee mechanisms.

             Free movement     7   Free movement of          Gradual free        Total free movement       Set up mechanisms facilitating
             of goods              goods within regions      movement of         of goods in Africa         free movement of goods within
                                                             goods between                                  regions
                                                             regions                                       Harmonization of a few
                                                                                                            instruments between regions for
                                                                                                            facilitating free movement of goods
                                                                                                            within regions
             Free movement     8   Gradual free movement     Gradual free        Total free movement       Establish a legal framework
             of services and       of services and capital   movement of         of services and            (Protocol) in each REC for free
             capital               within regions            services and        capital in Africa          movement of services and capital.
                                                             capital between
                                                             regions




                                                                                                                                       39
Priority     Sub-sectors of    N°   First Phase Objectives    Second Phase           Third Phase              Projects, activities and programmes
sectors      the MIP                (2009-2012)               Objectives (2013-      Objectives (2017-        to be implemented during the First
of the                                                        2016)                  2020)                    Phase (2009-2012)
MIP

Peace        All sub-sectors   9    Conflict prevention and   Conflict prevention    Conflict prevention          Establishment and operation of an
and                                 resolution and post-      and resolution and     and resolution and            early warning system for conflicts
security                            conflict development in   post-conflict          post-conflict                 and situation rooms for
                                    Africa                    development in         development in Africa         observation and monitoring
                                                              Africa                                              Establishment and operation of an
                                                                                                                   African Standby Force and
                                                                                                                   regional brigades
                                                                                                                  Implementation of the African
                                                                                                                   Union Border Programme
Infrastruc   Transport/        10   Infrastructure            Infrastructure         Infrastructure               Accelerate the implementation of
ture and     Energy/ICT             development in Africa     development in         development in Africa         the STAP
Energy                                                        Africa                                              Ensure effective participation by
                                                                                                                   RECs in the PIDA development
                                                                                                                   process



Agricultur   All sub-sectors   11   Accelerate CAADP          Achieve the first of   Develop the                  Harmonization of the various
e                                   implementation with a     the Millennium         agricultural sector in        regional        food        security
                                    view to:                  Development            Africa                        programmes;
                                    eliminating hunger       Goals (MDGs) of                                     Establish       an      information
                                    reducing poverty and     reducing hunger                                      management          system       on
                                    food insecurity, and      and poverty by half                                  agricultural markets where there is
                                    encouraging trade        by 2015                                              none;
                                    development                                                                   Exchange of experiences between
                                                                                                                   RECs; and
                                                                                                                  Establishment of a special fund for
                                                                                                                   agriculture in each REC




                                                                                                                                               40
Priority   Sub-sectors of        N°   First Phase                Second Phase          Third Phase              Projects, activities and programmes
sectors    the MIP                    Objectives (2009-          Objectives (2013-     Objectives (2017-        to be implemented during the First
of the                                2012)                      2016)                 2020)                    Phase (2009-2012)
MIP

Industry   All sub-sectors       12   Development of the         Development of        Development of the           Each REC should have a legal
                                      industrial sector in       the industrial        industrial sector in          framework for promoting industrial
                                      Africa                     sector in Africa      Africa                        policy (protocol)
                                                                                                                    Operationalization in every REC of
                                                                                                                     the strategy for implementing the
                                                                                                                     Plan of Action for Industrial
                                                                                                                     Development in Africa
Investme   Investment policies   13   Establish a regional       Increased local,      Increased local,             Establishment of regional
nt                                    and continental            regional and          regional and foreign          investment protocols;
                                      platform for attracting    foreign investment    investment                   Harmonization of the different
                                      investors                                                                      protocols; and
                                                                                                                    Elaboration of a continental code

Science    Education             14   Development of the         Development of        Development of the           Encourage RECs and Member
and                                   education system in        the education         education system in           States to implement the Plan of
technolo                              Africa                     system in Africa      Africa                        Action for the Second Decade of
gy                                                                                                                   Education for Africa

           Science and           15   Promote the use of         Promote the use of    Promote the use of           Encourage RECs and Member
           Technology                 Science and                Science and           Science and                   States to implement the Africa’s
                                      Technology for poverty     Technology for        Technology for                Science and Technology
                                      eradication in Africa      poverty eradication   poverty eradication in        Consolidated Plan of Action
                                                                 in Africa             Africa


Social     Health                16   Ensure access for all      Ensure access for     Ensure access for all        Implementation of the African
Affairs                               Africans to basic health   all Africans to       Africans to basic             Health Strategy (2007-2015)
                                      needs                      basic health needs    health needs

           Gender                17   Promote participation      Position women as     Position women as            Create regional associations of
                                      by women in economic       key players in the    key players in the            business women
                                      development                economic cycle of     economic cycle of
                                                                 Member States         Member States




                                                                                                                                                41
Priority     Sub-sectors of         N°   First Phase                 Second Phase            Third Phase              Projects, activities and programmes
sectors      the MIP                     Objectives (2009-           Objectives (2013-       Objectives (2017-        to be implemented during the First
of the                                   2012)                       2016)                   2020)                    Phase (2009-2012)
MIP

Political    Elections and          18   Democratic elections        Democratic              Democratic elections          Ratification and implementation of
affairs      promotion of                and rotation of political   elections and           and rotation of                the African Charter on Democracy,
             democratic                  power between               rotation of political   political power                Elections and Governance
             institutions                parties                     power between           between parties
                                                                     parties
             Governance             19   Improved governance         Improved                Improved governance           Creation in each REC of a peer
                                         in RECs                     governance in           in RECs                        review mechanism
                                                                     RECs

Statistics   Harmonization of       20   Establish instruments       Production of           Production of reliable        Ratification of the African Charter
             statistics                  for harmonization of        reliable and            and comparable                 on Statistics by Member States
                                         statistics in Africa        comparable              statistics in Africa          Preparation of continental guides
                                                                     statistics in Africa                                   for data collection, harmonization
                                                                                                                            of measurement standards etc…




Capacity     All sub-sectors        21   Strengthen capacity of      Strengthen              Strengthen capacity           Organize training sessions in the
building                                 RECs, the AUC and           capacity of RECs,       of RECs, the AUC               various MIP sub-sectors for
                                         Member States               the AUC and             and Member States              officials of RECs, AUC and
                                                                     Member States                                          Member States


Fiscal       Inflation/ interest    22             ---------         Harmonization of        Harmonization of                               ---------
policy       rate/ fiscal deficit                                    fiscal policy at        fiscal policy at
                                                                     regional level          continental level

Monetary     Payment systems/       23                               Creation of a           Creation of a
policy       macroeconomic                   ---------               monetary union in       continental monetary         --------
             convergence /                                           each REC                union with a common
             banking sector                                                                  African currency
Develop      Stock exchanges        24                               Create a                Establishment of an
ment of                                         ------               favourable              African Stock                           ----------
the                                                                  environment for         Exchange
financial                                                            the development of
market                                                               national and
                                                                     regional financial
                                                                     markets                                                                             42
THANK YOU FOR YOUR KIND
       ATTENTION



                          43

				
DOCUMENT INFO