Regional integration vital in attaining green economies in Africa
TWO fundamental messages to come out of the just-ended 56th Session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development in Victoria Falls were the need for local solutions to deal with local challenges and the need to speed up the integration of Africa to attain green economies.
The call for local solutions was highlighted by the incoming chair of the Southern African Development Community (SADC), President Mnangagwa, when he officially opened the conference.
In his address, he emphasised the need “to look from within and among ourselves for solutions”.
“We cannot afford to bury our heads in the sand. I, therefore, challenge you to pursue robust and innovative measures to unlock maximum benefit from our natural resources, which essentially starts with sharing of ideas through deeper cooperation,” he said.
The message was reiterated by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube, who emphasised the need for integration and applauded initiatives such as the African Continental Free Trade Area (AfCFTA) and the Programme for Infrastructure Development in Africa.
Prof Ncube underlined the urgent need to move to inclusive green economies, restructuring of the global financial landscape and accelerating regional integration.
A green economy is defined as low carbon, resource efficient and socially inclusive.
In a green economy, growth in employment and income is driven by public and private investment into economic activities, infrastructure and assets that allow reduced carbon emissions and pollution, enhanced energy and prevention of the loss of biodiversity and ecosystem services.
This is precisely the reason Prof Ncube told conference delegates of the need for policy options that enhance private sector participation, as well as innovative financing tools.
But above everything else, Prof Ncube is conscious that without nurturing regional and global cooperative initiatives to drive climate resilience and sustainable development across the continent, dreams of attaining green economies will not be realised.
“It is high time we join hands as a continent and strengthen our existing regional trading blocs, such as AfCFTA, to promote free movement of goods and services in Africa,” said Prof Ncube, emphasising the need for unity of purpose.
AfCFTA is the world’s largest free trade area. It is made up of 55 member states of the African Union and eight regional economic communities. Its primary mandate is to establish a single continental market with a population of approximately 1,3 billion people and a combined gross domestic product of roughly US$3,4 trillion.
It is this realisation of the enormous potential of AfCFTA that prompted Prof Ncube to declare: “Africa stands at a pivotal juncture, (and that) . . . while we face formidable challenges,
Prof Ncube chairs the
challenges (also) come with opportunities — opportunities to reshape our destiny, forge ahead with bold solutions and redefine Africa’s narrative.”
But for all this to happen, there is a need to continue pressing for international financial institutions reforms to make them fit for purpose and responsive to the needs of weaker countries.
In order to bring fairness to the global financial landscape, the Economic Commission for Africa (ECA) needs to continue to provide leadership to build consensus on the continent for such reforms to be effected.
Established by the Economic and Social Council of the United Nations in 1958 as one of the UN’s five regional commissions, ECA’s mandate is to promote the economic and social development of its member states, foster intra-regional integration and promote international cooperation.
It is made up of 54 member states and plays a dual role as a regional arm of the UN and as a key component of the African institutional landscape.
It is an ideal instrument or institution to make unique contributions to address the continent’s development challenges.
Since its inception, ECA is yet to achieve any remarkable successes. It is, however, the same institution that inspired the first generation of African leaders who sought to create regional entities capable of promoting regional cooperation and integration.
This vision was captured by the Organisation of African Unity’s publication in 1981. It appeared in a document titled “Lagos Plan of Action for the Economic Development of Africa, 1980-2000”, which proposed the establishment of the African Economic Community that would be based on an African Common Market (ACM).
The guiding logic of the Lagos Plan of Action was the creation of intergovernmental economic organisations in each of Africa’s five major regions — East, West, North, South and Central.
The creation of these blocs was seen as the best means for a continent-wide ACM.
Among the blocs, SADC has emerged as one of the most organised that has achieved commendable results.
Originally conceived as a vehicle for reducing dependence of the Frontline States on South Africa during the apartheid era, SADC is now seeking to enhance traditional cooperation in a variety of functional realms, most notably in transportation.
It is not surprising that Zimbabwe has, since the advent of the New Dispensation, invested US$2,5 billion in infrastructure development, including the main highway linking the country with South Africa, all the way to Africa’s hinterland through Zambia.
Despite a myriad of challenges, the economic prospects for the SADC look good.
Not so long ago, the African Development Bank, in conjunction with the World Bank and the Development Bank of South Africa, published a report that said: “Although its effects and the inequities it has embedded will linger on for a long time to come, the demise of apartheid opens up prospects unimaginable even a few years ago.”
Indeed, the SADC region has many advantages.
Most of the countries, except Angola and Mozambique, were once colonised by the British and speak English.
Most, if not all, of the countries have embraced neo-liberal economic policies that reinforce the idea of capital not having any colour.
And besides a shared historical heritage, the countries are beginning to dismantle restrictive travel regulations by doing away with passports.
In the final analysis, the economic integration of African regional blocs and attainment of green economies depend largely on the unity of African states.
Writing in “The Making of the Africa-Nation” (2003), one of the leading Pan-African voices championing African innovation for development, Professor Mammo Muchie, concludes his article titled “Can Africa succeed without reforming the global economic system” by saying that the continent and its regional blocs “need to have a conceptual framework on how to bring integrated and comprehensive structural transformation”.
Prof Muchie highlights three things that need to happen.
First, there is a need for a common conception and approach in dealing with a system that continues to have a logic and modus operandi that is massively unjust and unfair for Africa.
Second, there is a need for compelling moral clarity, intellectual confidence and political commitment to assist ordinary citizens to be main beneficiaries of Africa’s wealth, resources and environment. Third, there is a need for a united approach to bear on the political executive, legislatures and the judiciary, and scientific authority to prevent environmental degradation.