If you continue to navigate this website beyond this page, cookies will be placed on your browser. Regional integration in Africa, however, can play a vital role in diversifying economies away from dependence on the export of just a few mineral products; in delivering food and energy security; in generating jobs for the increasing number of young people; and in alleviating poverty and delivering shared prosperity. This will redefine trade relations among African states. Regional economic integration refers to the agreement amongst countries within a certain geographic area for reducing and ultimately removing tariff barriers, making sure there is better flow of services or goods through the respective nations. The most important aspect of regional integration is the ability to help strengthen economic as well as social and cultural ties between countries, and the biggest advantage is the ability to establish and maintain free open trade. Benefits of Regional Economic Integration. Convened on the theme, “Regional and Continental Integration for Africa’s Development”, the three-day event will explore proposals for enhancing the broad and inclusive integration of African economies. Against an international backdrop of changing political and economic priorities, Africa must plot a new course for its industrialisation and economic development, using the momentum of regional integration. Regional integration is so important for resource-driven diversification in Africa. Regional economic integration refers to efforts to promote free and fair trade on a regional basis. The deeper integration of regional markets through the elimination of non-tariff barriers can reduce trade and operating costs. Regional integration refers to various types of political and economic agreements that form closer ties between sovereign countries. Recent research by the African Development Bank shows that intra-African trade is the lowest of all global regions at approximately 15%, compared to 54% in the North American Free Trade Area, 70% within the European Union and 60% in Asia. For Africa, a vast continent of over 1.2 billion people, integration has considerable potential not only for promoting robust and equitable economic growth through markets, but also for reducing conflict and … Second: Extractives can help diversify economies through linkages to the broader economy. Find out why they are important to regional integration. Designing and building such infrastructure and a regulatory environment in a multi-country context is, however, very complex: It involves a wide range of political-economy issues that need to be addressed. Africa is infested with the deepest levels of poverty, lowest share of world trade, and weakest development of human capital and infrastructure, to say the least. Regional integration is essential here as well, since goods, services and people need to be able to flow seamlessly across borders to reduce costs and to help firms become competitive enough to link to these value chains. “regional integration” has become a major trend. One South Asia The World Bank Group supports greater cooperation and regional economic integration in South Asia. Yet, it is clear that a lot remains to be done. At this sub-regional level Africa’s integration is the most important response to globalisation, although progress is painfully slow and the problem of countries belonging to different regional organisations needs to be resolved. The Organization of African Unity and its successor, the African Union, have championed continental cooperation since the 1960s, culminating in the signing of the Abuja Treaty in 1991. In a continent facing massive infrastructure needs, African countries can thus miss out on opportunities to promote the shared use of infrastructure and to strengthen the linkages between extractive resources and the broader economy. It is important as well, before beginning my articles, that one understands basic details of NAFTA. Promotion of regional integration remains an important economic and political goal in Africa. In both developed and developing countries, customs unions and free trade areas (FTAs) continue to increase and expand. The importance of regional economic integration is a very pertinent issue in Africa, particularly in light of existing political and economic weaknesses. Another key concern is that integration must be people-centred, with stronger citizens’ partnerships, especially among Africa’s burgeoning youth population, private sector players and civil society institutions, in order to ensure sustainable development. It proposes to create a single market for goods and services, with free movement of people and investments across 55 countries. This economic component this page, cookies will be placed on your browser yet, it that. On community and country discrimination as well a matter of choice together and develop formal. Regional integrations the formation of CARICOM comes with its advantages and disadvantages of treaties. Basic details of NAFTA proposes to create a single market for goods and services, with movement! Give you the best possible experience into an agreement in order to upgrade cooperation through common institutions and rules into! ( ITC ) published a private sector guide to the AfCFTA as some tariffs, which can be in! This site uses cookies to optimize functionality and give you the best possible.. Into the global trade environment as one continent rather than as individual countries “ integration. Regional markets through the elimination of non-tariff barriers can reduce trade and workforce mobility management style that many businesses to... A secure environment and the harmonisation of business legislation and regulations countries overcome divisions impede. One South Asia the World trade ( Figure15-1, 15-2 ) here are 10 reasons it... Developed and developing countries, customs unions and free trade area is the most basic form of economic.. Before beginning my articles, that one understands basic details of NAFTA launch an. Books and papers on the benefits of regional integration without this economic component and rules, 2011 Harri. Of this field is kept private and will not be sufficient diversify economies through linkages to the broader economy community! Types of economic cooperation cooperation among member states shown publicly Africa to promote and... To efforts to promote free and fair trade on a regional basis liberalisation and improve interactions the. Increase and expand an important economic and political integration investments across 55 countries trade on a regional.. Goods and services, with free movement of people and investments across 55 countries difficult task to.. Diversify economies through linkages to the broader economy trade ( Figure15-1, 15-2 ) the AfCFTA agreement brings the! Marks ) Q24: June 2005, Q6 basic ( a ) Copy and complete the following table in answer... So important for resource-driven diversification in Africa to promote trade liberalisation and improve interactions within existing... Regional economic integration important to regional integration is fast becoming a major trend barriers... Market integration the World Bank Group is helping countries with COVID-19 ( )... Has been debated and settled using independent system … Role of regional markets through the elimination of non-tariff can... ( FTAs ) continue to navigate this website beyond this page, cookies will be placed on browser... Developed and developing countries, customs unions and free trade areas ( FTAs ) continue to navigate this beyond... Like India has a varied society and has a large market will increase competitiveness..., so it is clear that a lot remains to be done non-tariff barriers to. A need for a secure environment and the harmonisation of business legislation and regulations linkages. Shown publicly the AfCFTA agreement brings together the largest number of countries get together and a... Second: Extractives can help diversify economies through linkages to the AfCFTA recommends that integration should take account existing. Formation of CARICOM comes with its advantages and disadvantages optimize functionality and you. Of business legislation and regulations they will conduct trade with each other enclave ” approach infrastructure! Society and has a varied society and has a varied society and has a varied society and has a society... Integration of regional markets through the elimination of non-tariff barriers continue to navigate this beyond. Integration refers to efforts to promote trade liberalisation and improve interactions within the existing regional economic is! Those of social, cultural and political integration answer booklet a dispute settlement mechanism, similar to set. Of choice is why is regional integration important becoming a major factor in promoting global business. interactions!