AU

A proper assessment of Rudahindwa’s monograph on the subject of establishing the African Economic Community (AEC) is one that cannot exclude the currents of ongoing reform efforts and the extent to which they are able to move the continent faster towards the dream of achieving the AEC. This invariably raises some methodological questions that border on multidisciplinary approach to regionalism, and the issue of context. The author highlights these two imperatives in the monograph. By using the concept of “developmental regionalism” as an analytical prism, the author situates the discussion within a multidisciplinary paradigm.

Post-Cotonou approaches to innovation require the technocrats to go beyond the jargon of ‘partnership of equals’ and change their own modus operandi: the future relationship must be based on co-production and the case of GIs is a testing ground for this. This would involve dedicating technical teams to work co-productively with farmers’ groups – women, youth, community-based – to understand the local issues that will impact any GI scheme in the regions. But it also means looking at new and novel products, such as cannabis, especially given the drive to legalise cannabis and in particular ‘medical marijuana. By extension, it means recognizing the importance of a development focused approach to the ACP and extending the scope of GIs beyond its current remit which has long-been defined by European values.

The book traces the evolution of regionalism and regional integration on the continent, from the Organization of African Unity through to the African Union but, unlike earlier treatises on regionalism, Bashi Rudahindwa rightly places emphasis on the role of the legal framework. He draws comparisons with other regional economic integration projects: the North American Free Trade Agreement (NAFTA), the Common Market of the Southern Cone (MERCOSUR), the Association of South East Asian Nations (ASEAN), and the European Union (EU), to argue for greater emphasis in the AU on capacity building, and the need to utilize law to support regulatory and institutional frameworks to facilitate trade and industrialization, and interventionist measures aimed at promoting structural transformation.

In this blog post I will consider policy initiatives for tackling the issue of illicit flow of funds out of African countries and the implications of these activities on investment and trade in the context of the AfCFTA. Combating Illicit Financial Flows has been a difficult task for African countries and, the best approach to tackle this endemic problem may be to develop and implement comprehensive mechanisms that will encourage the disclosure of these illegal activities in a timely manner. Such disclosure can best be realized by the adoption of a regional whistleblower protection directive.

The necessity to change the measurement strategy of the AGOA and ACP-EU trade agreements presents a challenge not only to African countries but also to the US and the European Union to establish a common understanding on the need to widen the scope of the measure. All the partners involved require a comprehensive measurement strategy to quantify the real impact of AGOA and ACP-EU on people’s lives.

Africa boasts of at least eight RECs (or potential and existing FTAs) recognised by the AU, one emerging TFTA, and, a budding AfCFTA.  All these efforts are meant to lead to the realisation of the AEC

Because Ethiopia is the headquarters of the African Union its role on regional integration is usually taken as given. It is usually assumed that the state has and is making efforts to integrate with the continent. In this essay, I contend that Ethiopia’s historical engagement with regional integration has been at best passive and vague. On the contrary, its focus on regional integration at the moment seems different and active.

The creation of a single continental unit is meant to allow the formation of larger economies of scale and enhance the region’s specialization in agricultural and industrial production. However, the reduction or even elimination of tariffs will not be enough to reach the AU’s objective of doubling the existing level of intra-African trade, as significant and continent-specific challenges lie ahead.

Hopefully, a sweltering sun in Africa has not caused AU experts to see mirages of intra-regional finance. Providing for intra-African investments in the current context of the continent is like offering classes on how to make planes to students living in countries that cannot yet make cars: Virtually all the real action takes place elsewhere. Instead of negotiating a chapter on investment, delegates must prioritize a chapter on how AU members can build their capacity to engage in deeper economic relations, especially on how to leverage FDIs in natural resources to develop adequate infrastructure for intra-African investment.