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Regional economic communities

Africa’s current integration landscape contains an array of regional economic commu-nities, including seven considered the building blocks of the African Economic Community (table 2.1):

• The Arab Maghreb Union (UMA), whose five members encompass all of North Africa.

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• The Common Market for Eastern and Southern Africa (COMESA), whose 20 members include all East African countries except Tanzania and seven countries of Southern Africa.

• The Community of Sahel-Saharan States (CEN-SAD), whose 18 members are in West, Central, Southern, and North Africa.

• The Economic Community of Central African States (ECCAS), whose 11 mem-bers span Central Africa.

• The Economic Community of West African States (ECOWAS), whose 15 mem-bers encompass all of West Africa.

• The Inter-Governmental Authority on Development (IGAD), comprising 7 countries in the Horn of Africa and the northern part of East Africa.

• The Southern African Development Community (SADC), whose 14 members cover all of Southern Africa.

Seven geographically more limited regional economic communities are subsets of the above:

• The Central African Economic and Monetary Community (CEMAC), a group of six ECCAS countries.

• The East African Community (EAC), made up of COMESA members Kenya and Uganda and SADC member Tanzania.

• The Economic Community of Great Lakes Countries (CEPGL), consisting of three members of ECCAS.

• The Indian Ocean Commission (IOC), made up of four members of COMESA and one (Réunion) that is a dependency of France.

• The Mano River Union (MRU), consisting of three members of ECOWAS.

• The Southern African Customs Union (SACU), consisting of five members of SADC.

• The West African Economic and Monetary Union (UEMOA), encompassing eight members of ECOWAS.

Recognizing the importance of economic integration for promoting intraregional trade and accelerating development, African leaders established the African Economic Community. The community shows that integration remains key for overcoming eco-nomic fragmentation, promoting ecoeco-nomic diversification, and building cross-border links among productive entities. The community also reflects Africa’s desire to trans-form itself from a continent of predominantly least developed and developing economies into a strong united bloc of nations, a transformation that is expected to occur in phases over three decades (box 2.1). The first phase, 1994–99, focused on strengthening the regional economic communities as effective building blocks for the African Economic Community. The regional communities should evolve into free trade areas and customs unions, eventually consolidating and culminating in a com-mon market covering the continent. The African Economic Community’s treaty includes numerous ancillary protocols on trade, customs, special treatment for certain Regional communities

should evolve into free trade areas and customs unions, eventually consolidating and culminating in a common market covering the continent

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Table 2.1

Members and objectives of Africa’s regional economic communities, 2001

Specified Current

Community Members objective status Comments

Arab Maghreb Algeria, Libya, Mauritania, Morocco, Tunisia Full economic • Free trade area not Integration has

Union (UMA) union achieved, but conventions been moving slowly

in force for investments, since 1995.

payments, and land transport.

Central African Cameroon, Central African Republic, Chad, Full economic • Monetary and customs unions Economic and Republic of Congo, Equatorial Guinea, union achieved, and competition and

Monetary Gabon business laws harmonized.

Community • Macroeconomic policy

(CEMAC) convergence in place.

Common Market Angola, Burundi, Comoros, Democratic Common market • Free trade area among nine for Eastern and Republic of Congo, Djibouti, Egypt, Eritrea, members achieved in October Southern Africa Ethiopia, Kenya, Madagascar, Malawi, 2000.

(COMESA) Mauritius, Namibia, Rwanda, Seychelles, • Customs union expected by

Sudan, Swaziland, Uganda, Zambia, December 2004.

Zimbabwe • Criteria set for macroeconomic

policy convergence.

Community of Benin, Burkina Faso, Central African Free trade area • Study on feasibility of free trade Sahel-Saharan Republic, Chad, Djibouti, Egypt, Eritrea, and integration in area just launched.

States Gambia, Libya, Mali, Morocco, Niger, Nigeria, some sectors (CEN-SAD) Senegal, Somalia, Sudan, Togo, Tunisia

East African Kenya, Tanzania, Uganda Full economic • Significant progress on free

Community union trade area.

(EAC) • Customs union expected by

2004–06.

Economic Angola, Burundi, Cameroon, Central Full economic • Study on free trade area Community of African Republic, Chad, Democratic union considered for implementation.

Central African Republic of Congo, Republic of Congo, States (ECCAS) Equatorial Guinea, Gabon, São Tomé and

Principe, Rwanda

Economic Burundi, Democratic Republic of Congo, Full economic • Preferential trade Integration at a

Community of Rwanda union arrangements signed. standstill since 1994.

Great Lakes Countries (CEPGL)

Economic Benin, Burkina Faso, Cape Verde, Côte Full economic • Tariffs removed on Community of d’Ivoire, Gambia, Ghana, Guinea, union unprocessed goods.

West African Guinea-Bissau, Liberia, Mali, Niger, • Full elimination of tariffs on States Nigeria, Senegal, Sierra Leone, Togo industrial goods not yet achieved.

(ECOWAS) • Second monetary zone in

progress.

• Peace and security mechanism in place.

• Macroeconomic policy convergence in place.

Indian Ocean Comoros, Madagascar, Mauritius, Réunion, Sustainable • Vibrant trade programme Political issues have

Commission Seychelles development elaborated. slowed progress.

(IOC) through cooperation • Virtual University of Indian

on diplomacy, Ocean created.

environment, and trade

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countries, popular participation, dispute settlement, and sectoral and infrastructure development (see box 2.1). Except for the protocol on the relationship between the African Economic Community and the regional communities, none of the protocols has been finalized, adopted, or ratified by member states.