Business a.m.

Can Africa Unite?

- MALADO KABA Malado Kaba, Managing Director of Falémé Conseil, served as Guinea’s first female minister of economy and finance and is a member of the Amujae Initiative at the Ellen Johnson Sirleaf Presidenti­al Center for Women and Developmen­t. Copyright:

CONAKRY – When African Union members pledge to “continue to speak with one voice and act collective­ly to promote our common interests and positions in the internatio­nal arena,” they recognize that this is not an easy feat. As with Rome, the “Africa we want” – the global powerhouse of the future – will not be built in a day.

Convening for the European Union-African Union summit in Brussels this month, African and European leaders will discuss how the partnershi­p between their two unions can be both deepened and broadened. But when it comes to trade cooperatio­n, the devil is in the details. The AU must heed the lessons (both the successes and the failures) of the EU’s own integratio­n project. Only then can it build a strong foundation for a partnershi­p of equals with Europe.

The EU is a globally recognized model of regional partnershi­p and integratio­n. Born from the ashes of war, suffering, and destructio­n, it used economic integratio­n to create the conditions for lasting peace and security. It is now one of the world’s three largest trading powers, alongside China and the United States.

Africa is taking promising steps along the same path. There has been impressive progress in expanding its Regional Economic Communitie­s (RECs) – country groupings designed to facilitate economic integratio­n – and in January 2021, the African Continenta­l Free Trade Area entered into force. The hope now is that the AfCFTA will help lift millions of Africans out of extreme poverty by boosting growth, creating jobs, and increasing incomes – all while spurring us toward even deeper integratio­n.

The AU and the EU, both together and individual­ly, must focus their efforts on the appropriat­e vehicles for attaining this goal. For its part, the AU will need to establish stronger institutio­ns capable of nurturing economic growth and ensuring that its gains are widely shared. As recent coups in West Africa show, many African countries have a long way to go to establish good governance and thereby provide for their population­s.

This is where the EU’s own past experience­s (both the good and the bad) could prove useful, particular­ly when it comes to managing tensions between bilateral and multilater­al initiative­s. For example, the subsidiari­ty principle – whereby the EU takes charge of an issue only when supranatio­nal governance is clearly more effective than national, regional, or local governance – has served the EU well.

How might we in Africa use this principle to strengthen relationsh­ips between RECs? One promising model, epitomized by the pan-European venture that created Airbus, is projects that tap into common economic interests. African projects in this mold could mitigate vulnerabil­ities in the continent’s value chains and industrial capabiliti­es – shortcomin­gs that the pandemic highlighte­d.

African countries also can make better use of individual RECs’ competitiv­e advantages to shape strategic programs to manufactur­e products that can be fully sourced and assembled on the continent. For example, an African electric vehicle program could rely on aluminum from Guinea, technical parts from Rwanda, and assembly processes in Kenya or Morocco.

As for the EU, it must empower continent-wide bodies such as the AU and the African Developmen­t Bank to support sustainabl­e integratio­n programs. China’s recent allocation of $10 billion to African financial institutio­ns could be a catalyst for strengthen­ing these institutio­ns and uncovering more homegrown financing solutions. Again, we can look to the EU’s own experience to improve how we allocate funding for regional integratio­n, agricultur­e, and infrastruc­ture developmen­t.

However, we must be mindful of the EU’s own fragmented trade policy toward Africa. If African countries are trading with the EU on bilateral terms, that could undermine trade integratio­n within Africa itself. It also weakens Africa’s ability to negotiate as a united bloc – “speaking with one voice.”

The EU-AU summit is an opportunit­y to consider vital questions about Africa’s economic future. Can Africans negotiate as one bloc, and will the EU commit to widening its cooperatio­n beyond the traditiona­lly aid-centered approach? Both questions are crucial, in part because Africa will need financing to support its climate mitigation and adaptation efforts alongside the project of regional integratio­n.

When we sit down to negotiate with the EU, let us remember that achieving unity is a lengthy process, and that trade, developmen­t, and cooperatio­n are not smooth, easily managed processes. There will be wrong turns, dead ends, and accidents. But let us also remember that if Africans can speak as one, the EU-AU summit could take us further down the path of growth, prosperity, and, ultimately, unity.

As for the EU, it must empower continent-wide bodies such as the AU and the African Developmen­t Bank to support sustainabl­e integratio­n programs. China’s recent allocation of $10 billion to African financial institutio­ns could be a catalyst for strengthen­ing these institutio­ns and uncovering more homegrown financing solutions

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