Regional economic integration is a key pillar of strengthening economic relations among African States

By: Mohammad Saeed Ibrahim Mohammad

   Regional economic integration is a key pillar of strengthening economic relations among African States. It is a gradual path aimed at achieving economic convergence between two or more countries and integrating their autonomous economic spaces into one extended space. This integration seeks to achieve a range of noble objectives: expanding intra-trade, achieving structural transformation and sustained economic growth, and strengthening intra-economic relations by creating an enabling environment for investment and trade. African States have long sought to strengthen economic cooperation among themselves, through the founding of the Organization of African Unity in 1963, and following the emergence of regional blocs such as ECOWAS, CEECAS, COMESA, and ICAD. 

   Despite their achievements, the conglomerates still face many challenges, such as poor infrastructure, bureaucracy, political instability in some countries, the development gap among African States, different currencies and languages, and the dominance of Africa's economy by major powers. However, many believe that economic integration can contribute to overcoming these challenges and achieving Africa's development and prosperity. Through it, trade and investment can be increased, foreign investment attracted, industrial and agricultural development promoted, and infrastructure improved, contributing to new job creation, improved standard of living, self-sufficiency, and reduced dependence on imports. Economic integration is a real key to Africa's development and prosperity and to building a promising future for its citizens.

   The sun of regional economic integration rises upon Africa, carrying broad hopes for achieving development and prosperity. In light of this direction, African countries unify their economies and combine their efforts to create a unified economic space rich in possibilities and opportunities. Integration enables the free movement of goods and services among African countries, leading to increased trade volume and the creation of new investment opportunities. It also provides an attractive investment environment for global companies, leading to increased foreign investments and stimulating economic growth.

   continent are numerous, especially considering its vast and largely untapped landmass, with a population exceeding 1.4 billion and a GDP exceeding $3.1 trillion in 2023. Africa possesses significant natural resources, including oil, gas, minerals, and fertile land. Therefore, regional blocs represent a huge productive and consumer market that can be leveraged. Integration entails significant potential for not only promoting strong and equitable economic growth through markets but also for reducing conflicts, achieving regional stability, and promoting trade liberalization. It also expands the market scope by providing greater opportunities to attract private sector investors, as well as sharing financial and monetary risks, especially those related to exchange rate fluctuations and financial market movements. It is worth noting that all of this contributes to improving consumer welfare, in addition to the diversity and quality of consumer goods. Each country specializes in producing goods in which it has a comparative advantage and produces them at lower costs, which favors a more efficient economy and the achievement of "economies of scale in production," all of which contribute to promoting economic growth and development on the continent. Focusing on COMESA, the area of the bloc represents about two-thirds of the continent's land area, with a population exceeding 583 million. This makes COMESA one of the largest markets in the world if it is pushed towards different stages of integration, especially in light of the region's inclination towards investing in infrastructure projects, information technology, and communications. COMESA is making efforts to support the establishment of regional corridors and implementing a strategy for industrial transformation since 2019.

Africa's economic integration faces several challenges that impede its full realization:

- First, the continent suffers from weak infrastructure, such as roads, ports, and electrical grids, which negatively affect the flow of goods and services between countries.

- Second, bureaucracy and trade barriers are a major challenge, as bureaucratic regulations and procedures conflict between countries and hinder free trade and investment.

- Third, some African countries suffer from political instability and persistent conflicts, affecting confidence and foreign direct investment.

- Fourth, there is a large development gap between African countries, where economic and institutional capacities vary between developing and emerging countries.

- Fifth, the continent suffers from diverse currencies and languages, hampering trade and economic cooperation.

- Finally, major countries such as China, the United States, and Russia occupy an important position in the African economy, affecting African countries' ability to achieve full economic independence and define their economic policies.

To achieve comprehensive African economic integration, African States must cooperate in:

• Strengthening infrastructure
• Streamlining bureaucratic procedures
• Reducing trade barriers
• Pursuing political stability and conflict resolution
• Promoting economic cooperation among States
• Mobilizing financial resources to finance regional projects

   There are ongoing efforts to promote Africa's economic integration in order to achieve sustainable development and promote opportunities for economic prosperity. One such effort is the establishment of the African Free Trade Area (AfCFTA), which aims to achieve trade integration among African countries by reducing tariffs and removing trade barriers. This is an important step in promoting free trade and stimulating economic exchange on the continent. In addition, efforts focus on the development of regional infrastructure, such as roads, railways, and ports, to facilitate the movement of goods and services between States. Cooperation in agriculture, industry, and energy is also strengthened through the exchange of technology, knowledge, and joint investments, with a view to enhancing productivity and diversifying national economies. It also integrates Africa's financial markets, including developing stock exchanges and promoting regional financial trading. This aims to enhance capital flow and finance investment projects on the continent. In addition, efforts are being made to remove trade and bureaucratic barriers to Africa's trade and investment. This includes simplifying customs procedures, exchanging information, and developing modern logistics systems. Finally, the role of the private sector in promoting economic integration is enhanced by encouraging private investment, promoting entrepreneurship, and sharing experiences and technology. The private sector is a major driver of economic growth and job creation on the continent.

Africa's economic integration plays a crucial role in achieving sustainable development on the continent. When economic integration is achieved, many of the United Nations' sustainable development goals are met:

- First, economic integration contributes to the fight against poverty and hunger by promoting employment and achieving inclusive economic growth that benefits all segments of society.

- Second, economic integration promotes environmental protection, the sustainability of natural resources, and the sharing of knowledge and technology in environmental protection and sustainable development.

- Third, economic integration contributes to ensuring universal access to education and health care by sharing experiences and successful practices in these areas and providing the necessary resources.

- Fourth, economic integration contributes to the promotion of peace and security on the continent. By promoting trade and economic exchange among States, positive integration and interaction between peoples and States can be achieved, reducing the potential for conflicts and enhancing political stability and security.

   Africa's economic integration must therefore be strengthened through enhanced regional cooperation, improved infrastructure, and the removal of trade barriers. Governments should take effective action to support economic integration and provide an enabling environment for the private sector and investments, as well as to promote education, health, and environmental protection as key priorities on the continental agenda.

   In conclusion, regional economic integration overlooks Africa as a bright sun, carrying broad hopes for development and prosperity. By joining forces and overcoming obstacles, these hopes will become a tangible reality, and Africa will become a strong, unified continent, contributing effectively to the world's economy. However, the challenges facing this trend, which require collective solutions and strong political will by continent states, should not be ignored. By strengthening infrastructure, streamlining bureaucratic procedures, pursuing political stability, strengthening economic cooperation among States, and mobilizing financial resources, these challenges can be overcome, reaching a better future for Africa's children. Regional economic integration is not an option but an imperative for Africa's development and prosperity. Together, we can build a strong, united continent that inspires the world with its enormous potential and great achievements.