The report, which is based on monitoring frameworks and tools, including the indicators developed by the ECA, the African Union Commission and the African Development Bank, was presented to experts meeting ahead of the March 20-21 ministerial part of the Conference of African Ministers of Finance, Planning and Economic Development takes place in Addis Ababa, Ethiopia.
Member States will have to address integration issues, including insufficient financial resources; poor infrastructure networks; increasing violence, terrorism and political instability. In addition, the integration agenda is experiencing slow implementation of policies and agreements. For example, the Protocol on the Free Movement of Persons, the Right of Residence and the Right of Establishment should be ratified because: “It forms the basis for deeper integration as it interacts with the ability to move goods and services and helps to strengthen the AfCFTA optimizing, Karingi emphasized.
“Joint efforts are required from all Member States, regional economic communities, key partners and stakeholders to realize the economic benefits of integration and the African Continental Free Trade Area,” he said.
Macroeconomic integration
According to Karingi, to support member states in formulating and implementing economic policies and strengthening macroeconomic integration, ECA has developed a prototype macroeconomic model and provided support and training in 15 countries. In the tax area, ECA supported tax policy reform and revenue collection in Ethiopia, Kenya, Tanzania and Zambia.
Infrastructure and energy sectors
Africa continues to be hampered by huge infrastructure gaps, with an estimated annual funding need of between $130 billion and $170 billion, and an annual funding gap of between $68 billion and $108 billion. But improvements were reported in access to information and communication technology, which are a major driver of the African Infrastructure Development Index. Digitization in Africa was further accelerated by the pandemic, opening up more growth potential for trade and businesses.
“However, the COVID-19 pandemic and the war in Ukraine have exacerbated government deficits and indebtedness, which has reduced infrastructure investment in Africa,” said Karingi.
Increases in energy prices, exacerbated by the war in Ukraine, have put pressure on African countries, especially those that are net energy importers. The demand for energy in Africa is mainly driven by Nigeria, South Africa and North African countries.
Participants from Burkina Faso, Chad, Tanzania, Côte d’Ivoire, Tanzania expressed their concern about the increasing insecurity, poor infrastructure and high communication costs across borders hindering the integration process.
Antonio Pedro, Acting Executive Secretary of the ECA, said joint efforts, including the United Nations, the African Union and regional economic communities, continue to be deployed to respond to threats to peace and security, to participate in the management and the resolution of conflicts, and to turn the tide of terrorism and coups on the continent, albeit with mixed results.
In West Africa and the wider Sahel region, he said, through its West Africa office in partnership with the African Union, ECOWAS and other key players, ECA continues to fight the spread of violence, terrorism and drug trafficking while exploring the opportunities available in the region. draw attention.
“To promote regional integration on the continent, ECA will continue to prioritize the support it provides to Member States, regional economic communities, the African Union Commission and the African Continental Free Trade Area Secretariat for the implementation of the Free Trade Area ,’ Pedro said.
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