Findings of the 2019 African Regional Integration Index indicate that regional integration in Africa remains low with the continent recording an average index score of 0.327 out of a possible 1.
The latest index, published late May by the United Nations Economic Commission for Africa, the African Union, and the African Development Bank, builds on the first edition published back in 2016. It provides up-to-date data on the status and progress of regional integration in Africa.
The ARII uses 16 indicators, grouped into five dimensions – free movement of people, trade, productive capacity, infrastructure, and macroeconomic policy – to measure how well each country and region is integrated with its neighbors. It shows the continent is still particularly poorly integrated on the productive and infrastructural dimensions, which are key aspects of the foundations of regional integration while free movement of people is the strongest dimension.
Although 20 countries score above average, no African country can be considered well integrated with its region, the report said. Much more needs to be done to link regional economies to make them more resilient to shocks such as the current COVID-19 pandemic, it said.
“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.
By the metrics, the East African Community is ranked the best integrated among the eight Regional Economic Communities in Africa, while the Southern Africa Development Community was least integrated.
South Africa is the continent’s most regionally-integrated country as it outperforms on productive and infrastructure integration. But it underperforms on the free movement of people even though its score of just 0.625 is way ahead of second-best Kenya (0.444) and third-placed Rwanda (0.434).
The worst integrated countries are South Sudan, with a modest performance in regional infrastructure and financial integration, and Eritrea, both of which are doing poorly on almost every measure.
The Index also covers issues of intellectual property, competition policy, investment, and digital trade, which are critical to the successful negotiations of Phase II and III of the African Continental Free Trade Area, according to Jean-Denis Gabikini, Acting Director of the AUC’s Economic Affairs Department.
The free trade agreement marks a momentous milestone for Africa, with the potential to create a continental trade bloc of 1.3 billion people and a combined gross domestic product of about $3 trillion, facilitated by free movement of people and zero-tariff intra-regional trade.
“To achieve an “integrated, prosperous and peaceful Africa, representing a dynamic force in the concert of nations”, this ARII report will support AU Member States and RECs to address industrialization and value addition priorities for the development of the continent,” Gabikini said. With the establishment of RECs and the creation of AfCFTA, Africa is positioned to improve regional integration, which is a major development priority for the continent.
“It is up to Africans themselves to ensure that the initiative benefits them through hard work and efficient implementation of the mechanisms of the CFTA,” says David Luke, Coordinator of the African Trade Policy Centre, Regional Integration and Trade Division of ECA. “This index is both a measurement exercise and a call to action; to build resilient economies through integration,” Karingi added.
