Time for Integrated Regional Value Chains in Central Africa

24 October 2020
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United Nations Economic Commission for Africa (Addis Ababa)

Yaounde — "The African Continental Free Trade Area (AfCFTA) will offer an opportunity to sell to over 1.2 billion persons with a collective GDP of US$ 2.5 trillion, but what can Central African countries sell on the new continental market?

"As a result of COVID-19, Africa has not been able to get some of the food supplies it usually imported from other parts of the world. With Central Africa's vast expanse of arable land and a good mix of agricultural geographies, why not produce these locally instead of importing them?

"With major breakthroughs in battery storage (reaching 500 MW) and the high levels of solar irradiation in Chad and northern Cameroon, why not promote renewable energy, especially solar, to open up development opportunities in Central Africa's hinterland?

"The Republic of Congo has significant deposits of potash, an essential mineral for the production of agricultural fertilizers, with an in situ value of more than 2 trillion American dollars - so why not locally produce fertilizers and other chemicals necessary for agro production as part of an African-wide value chain which includes natural gas and phosphate producers such as Angola and Morocco, respectively?"

These were teasers for reflection put to an assembly of senior State officials from all the eleven countries of the Economic Community of Central Africa States (ECCAS) by the Director of the Subregional Office for Central Africa of the UN Economic Commission for Africa (ECA) - Antonio Pedro, Friday.

He noted that 8 out of 11 ECCAS member States had ratified the AfCFTA Agreement, a fact that should be celebrated, but he deplored Central Africa's low rankings in most regional integration indexes, especially the share of intra Central Africa trade.

Pedro argued that the AfCTA and COVID-19 supply shock dynamics strengthen the business fundamentals for an inward-looking development agenda. He demonstrated how Central African countries could take advantage of the AfCFTA on the basis of a consolidated Central African Industrialization and Economic Diversification Master Plan (PDIDE-AC, in French), being strung-together with ECA's support, to develop integrated regional value chains. He called on the captains of the industry in the region and beyond to seize the opportunity.

It was during a virtual exchange convened by the ECCAS Commission and moderated by its Commissioner in charge of the Common Market, Economic, Monetary and Financial Affairs - Mr François Kanimba. This, in the context of the regional economic community's open days to mark its 37th anniversary.

ECCAS was established on 18 October 1983 with the signing, in Libreville - Gabon, of its Constitutive Treaty. The treaty was the subject of a revision adopted on 18 December 2019 and which entered into force on 28 August 2020. ECCAS is made up of eleven Member States which are: Angola, Burundi, Cameroon, the Central African Republic, Chad, Congo, the Democratic Republic of the Congo, Gabon, Equatorial Guinea, Rwanda and Sao Tome and Principe.

Commissioner Kanimba said the initiative reflects the direction of the new ECCAS Commission, which intends to change the executive body's approach to communicating with Member States, partners and people of the Community, with a view to making the its achievements more visible.

He justified the choice of the theme by the concern of having up-to-date information on Member States' readiness for the take-off of AfCFTA scheduled for 1 January 2021. This is in order to identify the relevant actions to be included in the Commission's five-year strategic plan, which is being developed.

During the virtual meeting, representatives from most ECCAS Member States said they were ready, for the most part, with clear list of physical products to enjoy tariff concession within the AfCFTA regime but that they were still to tidy up their list of services for such concessions. They called on the ECCAS Commission to nudge member countries to quickly review and vet the proposals of their sector experts in readiness for the common market.

Many county representatives also said they still need to get clarity from the African Union on rules of origin of products especially those from special economic zones.

ECA's Office for Central Africa was praised for its substantive support to ECCAS member States in explicating the AfCFTA which led to ratifications of the Agreement, in drawing up national AfCFTA strategies and in formulating or reviewing industrial development and economic diversification masterplans. The implementation of these strategies and masterplans are key to enabling the sub-region to make the most of the AfCFTA.

Media Contact

Abel Akara Ticha - Communication Officer

United Nations Economic Commission for Africa

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Tel: +237 222504348

E-mail: akara@un.org

Read the original article on UNECA.

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