Increasing cooperation and collaboration between countries in Africa has long been a continental goal. The idea is that a more integrated and cohesive system will lead to a more prosperous continent. But finding common ground on trade, investment, and infrastructure development is often easier said than done, especially when working in a bloc of 50+ countries. So, is African integration the answer to greater continental development?
What does integration look like today?
One of the main drivers of African integration in recent decades has been the African Union (AU), a continental union consisting of the 55 member states located on the African continent. The AU promotes cooperation and integration in areas such as politics and economics, peace and security, and social and cultural development. Previous high profile initiatives have been aimed at creating a single market for goods and services, as well as efforts to improve transportation and communication links between countries.
Of these, the African Continental Free Trade Area (AfCFTA) is one of the most ambitious projects aimed at promoting true, continent-wide African integration. The AfCFTA is a free trade agreement between all 55 African Union member states that will create a single market for goods and services, and remove trade barriers between countries. Think of the single market in the EU or the USMCA, and it’s easy to see why such a free trade area could have an enormous impact if successfully executed.
On a subregional level, a number of organizations known as regional economic communities (RECs) are already cooperating: the Economic Community of West African States (ECOWAS) and the Common Market for Eastern and Southern Africa (COMESA) promote trade, investment and cooperation between countries in their respective blocs.
But continental integration is a massive and complex undertaking. What are the potential benefits and challenges this campaign faces?
Potential benefits
Increased trade: African integration efforts can help to increase trade among African countries, which can lead to economic growth and job creation. This increased trade can also help to diversify the economy and reduce dependence on exports of raw materials.
Improved infrastructure: Countries working together, especially in regional blocs, will be better positioned to mobilize resources and capital for major infrastructure projects that could improve transportation and energy networks, which can make it easier for businesses to operate and can help to attract foreign investment.
Greater economic stability: If countries and people are more strongly connected politically, economically, and socially, it could help create greater economic stability by reducing the risk of economic shocks and by allowing the creation of a larger market for goods and services.
Greater political stability: Increased interdependence should also contribute to greater political stability – both within countries and regions – by promoting cooperation and dialogue among African countries, which can help reduce the risk of conflict.
Potential challenges
Bureaucratic challenges: African integration efforts have previously been hindered by bureaucratic challenges, such as lack of coordination and lack of political will among member countries. While the general sentiment seems to be changing, this will still be a major challenge moving forward, and the bureaucratic systems needed for successful integration could overwhelm some governments.
Lack of resources: Integration efforts will require the mobilization of financial and human resources. Countries which are not well-positioned to mobilize one or both, or which lack a significant supply of one or both, will find it difficult to implement integration initiatives if not properly supported by the broader international community.
Different levels of development: Differences in economic standing, industrialization, and labor are just a few factors that will create challenges for integration efforts. If systems and benefits are not clearly defined, more developed nations will have less incentive to open their economies to the less developed, furthering the divide between the two.
Lack of trust: While countries may be members of the AU or a REC, this does not necessarily guarantee full trust between them. Successful integration efforts can only be realized when these nations find common ground to cooperate and coordinate together.
Corruption: While many countries have taken steps to combat corruption, the fact remains that it is still very present on the continent and could hinder integration efforts. Integration will require transparency and trust, and if corruption is not sufficiently curtailed prior to executing initiatives, it could simply reach a wider-scale and have even more damaging effects, threatening integration and foreign investment.
Final note
Overall, African integration efforts have the potential to bring many benefits, such as increased trade, improved infrastructure, and significant economic development. However, they also face significant challenges that need to be overcome in order to achieve sustainable integration and development on the continent. For the latest updates on the AfCFTA, check out AU’s website.