TOWARD 2063 – OUR STRENGTHS,OPPORTUNITIES, WEAKNESSES AND THREATS CSO CONSULTATION – AGENDA 2063 Dakar, Senegal, Sept. 30, 2013 Michael Sudarkasa, CEO, Africa Business Group CIDO African Union OUR PATH, OUR FUTURE Lagos Plan of Action Abuja Treaty African Economic Community New Partnership for Africa’s Development Progress - S.W.O.T Analysis Toward Agenda 2063 LAGOS PLAN OF ACTION Lagos Plan of Action for the Economic Development of Africa 1980 - 2000 At meeting of the Organization of African Unity, Adopted in Lagos, Nigeria in April 1980. Post colonial era, review of first 20 years of “independence” 1960 – 1980, in the shadows of the independence of Zimbabwe Focus on African economic self-determination-in agriculture, science and technology, toward industrialization, intra-African trade, infrastructure development, human capital development, national resource development, shared learning In the context though – of new governments, minimal intra-African economic linkages, IMF recipes of structural adjustment, non-existent domestic private sectors, dependence on donor assistance, great influence of multi-national corporations . . . ABUJA TREATY Abuja Treaty for the Establishment of the African Economic Community, entered into in Abuja, Nigeria by members of the Organization of African Unity on June 3, 1991 – entered into force in 1994 Six stage economic integration path: 1. By 1999 – Creation of regional blocs in regions where they do not yet exist 2. By 2007 – Strengthening of inter-REC integration and inter-rec harmonisation 3. By 2017 - Establish a Free Trade Area and Customs Union in each regional bloc 4. By 2019 – Establish a continent-wide customs union (incorporating a continent wide free trade area) 5. By 2023 – Establishing a continent-wide African Common Market 6. By 2028 – Establishing a continent-wide economic and monetary union (and currency) and Parliament By 2034 latest – end all transition periods ABUJA TREATY (Cont.) Regional Economic Communities - the Pillars 1. COMESA – founded 1994 2. EAC – founded 2001 3. ECCAS – founded 1985 4. ECOWAS – founded 1975 5. SADC – founded 1980 6. IGAD – founded 1986 7. CENSAD – founded 1988 8. UMA – founded 1989 NEW PARTNERSHIP FOR AFRICA’S DEVELOPMENT Adopted at the 37th session of the Assembly of Heads of State and Government in July 2001 as the New African Initiative in Lusaka, Zambia. NEPAD is a merger of two plans for the economic regeneration of Africa: the Millennium Partnership for the African Recovery Programme (MAP), led by Former President Thabo Mbeki of South Africa and Former President Olusegun Obasanjo of Nigeria and President bdelaziz Bouteflika of Algeria; and the OMEGA Plan for Africa developed by President Abdoulaye Wade of Senegal. The Heads of State and Government Implementation Committee (HSGIC) for the project finalized the policy framework and renamed the initiative the “New Partnership for Africa's Development” on 23 October 2001 Today as a Programme of the AU, NEPAD seeks to provide an overarching vision and policy framework for accelerating economic co-operation and integration S. W. O. T. ANALYSIS OF PROGRES TO DATE STRENGTHS • All initiatives well intentioned, entered into with historical context well articulated and appreciated Most countries of the continent participated - so near unanimous support (exceptions Morocco, South Africa pre – 1994 etc.) Have helped propel continental economic partnership thinking - economic growth and greater political freedom Underlying initiatives have promoted regional unity, economic cooperation, trade, investment and freer flows of peoples Good practices are being developed – ECOWAS – passport less travel; OHADA – harmonized laws; currency unions – West Africa CFA franc, Central Africa CFA franc; Common Monetary Area of Southern Africa; COMESA and EAC – Free Trade Areas; African Free Trade Zone – SADC, COMESA and EAC (2012 – ECOWAS, ECCAS and AMU) S. W. O. T. ANALYSIS OF PROGRES TO DATE WEAKNESSES • Colonial ties/ divisions/ relationships hard to break, slow progress – Francophonie, EPAs, Lusophonie Small national economies, 26 (of 55) countries have less than 10 million people, 20 5 million or less National governments reticent to devolve power/ fund capacity development to/ of the RECs Multiple memberships within RECs which overlap regional boundaries slowing integration, works against regional harmonization Uneven democratization, governance philosophies, selected long standing regional/ ethnic feuds are impediments to regional/ continental unity – North Africa, Great Lakes, Horn of Africa Economic growth and regional integration not yet adequately inclusive African leaders not adequately committed to abiding by Constitutional term limits S. W. O. T. ANALYSIS OF PROGRES TO DATE OPPORTUNITIES • Global Economic Slow Down – re-ordered Africa’s global economic relationships (opened path for new trading partners from the South), encouraged focus on greater domestic resource mobilization Past “liabilities” becoming assets - Growing populations – creating more attractive markets; “Brain Drain – created financially better off Diaspora, led to remittance flows and skills transfer – “Brain Gain”; Poor infrastructure – communications and energy, allowing for innovation, technology leap frogging – cellular technology proliferation, renewable energy opportunities Underutilized agricultural potential – continental food security, bread basket to the world Youthful population and low wage base – potentially next global manufacturing hub Still globally unique natural resource reserves – trade, supply, and value addition opportunities will continue to increase S. W. O. T. ANALYSIS OF PROGRES TO DATE THREATS • More complex global geo-political system – multiplying national relationships, rather than REC driven/regional partnerships (Colonial States, and newer Southern Partnerships) Week domestic private sectors – at a time when private sector led growth is the mantra – risk economic re-colonialisation if blindly seek to attract foreign capital with supporting indigenous enterprises and encouraging entrepreneurship Non-inclusive GDP growth creating wealth disparity- leaving youth un/ under-employed, idle . . .creates opportunity for civil unrest, third force influences to grow Governance challenges – succession planning, curtailing of illicit flows/ corruption, political intolerance Climate change – lack of preparedness for natural disasters Under developed infrastructure to facilitate intra-African economic integration …TOWARD THE AFRICAN AGENDA 2063 Selected thoughts on milestone priorities: 1. Mobility – One Continent, One Visa – promote regional and continental mobility 2. Depoliticize Regional Integration – One Region, One REC – fast track economic and political integration among contiguous states, commit to expand resource flows to RECs 3. Prioritize Continental Transport Infrastructure Development – Road, Rail and Air transport improvement will accelerate regional integration 4. Prioritize Energy Infrastructure Development – Electricity indispensable catalyst for economic development 5. Education and Skills Development Prioritization – Commit to improving labour force, means greater focus on youth preparedness for 21st century labour market/ entrepeneurship 6. Leverage Diaspora Potential (Populations and Nations) - Harness skills, capital, connections (political and economic) better and as a priority as part of domestic resource mobilization aim 7. Continental Solutions First – look to identify and share continental good practice toward development – support development of internal African expertise and knowledge networks A CSO CONSULTATION CONTRIBUTION . . . THANK YOU! Africa Business Group TBC-Design Quarter William Nicol Road, Corner Leslie Ave. Fourways 2128, Johannesburg PO Box 413586, Craighall 2024, South Africa Tel: 27 11 513 4117 Fax: 27 86 619 2444 Cell: 27 82 414 8671 E-mail: michael@abghq.com URL: www.abghq.com