African regional integration faces new urgency

PUBLISHED ON June 17th, 2020

African regional integration faces new urgency

Content type:: Graphic Analysis
Location:: AFRICA
Keywords associated with this article:: Geographic: Africa, ME/NAF, Central Africa, East Africa, North Africa, Southern Africa, West Africa

Topical: economy, international relations, emergency, fiscal, foreign trade, government, health, immigration, infrastructure, investment, policy, regional, talks
ISSN:: 2633-304X

Lagging regional integration is further complicated by the COVID-19 crisis

Regional integration efforts were already deficient pre-COVID-19.

Impacts

COVID-19-related border and trade restrictions will strain various bilateral relationships over the short-to-medium term.
Progress on freedom of movement and visa openness could face renewed setbacks.
Recent continental efforts on procuring COVID-19-related supplies will intensify efforts to improve medical regional value chains.
COVID-19-related border closures will exacerbate ongoing and emerging food security crises.

Conclusion

The latest Africa Regional Integration Index Report shows states and regional economic communities generally not well integrated, with the EAC overall the most integrated community across five criteria: trade integration; productive integration; macroeconomic integration; infrastructural integration; and the free movement of people.

Sub-Saharan Africa’s growth is set to contract by at least 1.6% in 2020, and global growth by at least 3%, with severe impacts for regional heavyweights Nigeria and South Africa.

With the African Continental Free Trade Area (AfCFTA)’s implementation now delayed (potentially until 2021), and COVID-19-related disruptions to global trade and financial markets, enhanced regional integration will become even more pressing to offset expected economic downturns.

Source: Emerald

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.