Integration tops ARII’s list for building resilient economies in Africa
REGION AL INTEGRATION INDEX 2019 (ARII 2019) has underlined integration and regional networking as key to building more resilient economies in Africa.
The 2019 Index, which builds on the first edition published in 2016, provides up-to-date data on the status and progress of regional integration in the continent.
The second Africa Regional Integration Index (ARII 2019) was launched Friday by the Economic Commission for Africa (ECA), the African Development Bank (AfDB) and the African Union Commission (AUC), with a call to action to African economies to deepen their integration.
The report states that for Africa to succeed in its long-standing efforts towards closer economic integration, member states must improve regional networks of production and trade by enhancing countries’ productive, distributive, and marketing capacities. ARII 2019 further encourages building of innovative, regional value-chain frameworks in different sectors using improved technology, higher-quality inputs, and updated marketing techniques.
It addition, it says African countries must see to full implementation of the African Continental Free Trade Area (AfCFTA) agreement to remove non-tariff barriers, which remain a major challenge for regional integration.
The latest report says enhanced African workers competencies are also important to match the technology and production capacities of today and tomorrow to succeed in the global economy.
“Improve infrastructure through increased public–private partnerships, tapping into national resources and using regional and global infrastructure development funds and other innovative financing tools, accompanied by rigorous competition and transparency in procurement and construction processes” is also vital.
ARII 2019 also makes case for implementation of the Protocol on the Free Movement of People, which will enhance economic growth through increased opportunities for tourism, trade and investment, human capital mobility, and allow firms to find skills more easily to, in turn, drive productivity.
The 2019 Index, which builds on the first edition published in 2016, provides up-to-date data on the status and progress of regional integration in Africa.
It also helps to assess the level of integration for every Regional Economic Community (REC) and their member countries.
It observed that although 20 countries score above average, no African country can be considered well integrated in its region.
It added that even the most integrated country, South Africa, scores 0.625 less than two-thirds of its potential on the scale.
The report found that much more needs to be done to integrate regional economies to make them more resilient to shocks such as the current COVID-19 pandemic.
Overall, the Index shows that levels of integration on the continent are relatively low with an average score of 0.327 out of 1.
“Whereas the Index edition we are releasing today has data cut off points in 2019, the present COVID-19 pandemic has reopened the question of whether enough is being done in advancing regional integration as a means to help Africa withstand systematic shocks such as the one being experienced today,” said Stephen Karingi, regional integration division director at the ECA.
“This index is both a measurement exercise and a call to action; to build resilient economies through integration,” he added. “It will identify the solutions needed to truly build an integrated Africa.”