This thesis provides an empirical analysis of enterprise development and informality in Mozambiqu... more This thesis provides an empirical analysis of enterprise development and informality in Mozambique. It explores factors which hinder the development of the enterprise sector, focussing on the heterogeneity of firm responses to the institutional environment, with important consequences for economic growth, employment and poverty reduction. With the growing consensus on the centrality of institutions to economic growth, this thesis provides firm-level evidence to support the findings of aggregate, cross-country level analyses. Using enterprise survey evidence, it comprises four case studies from Mozambique, a country characterised in recent years by high economic growth rates but persistently high unemployment and poverty levels.
No discussion of economic integration in Africa today is complete without reference to the Africa... more No discussion of economic integration in Africa today is complete without reference to the African Continental Free Trade Area (AfCFTA). Even if the Regional Economic Communities (REC s) and other regional organisations have continued to advance their own processes, the AfCFTA is high on political and policy agendas (see Yearbook on the African Union 2000, 178-182). It is the trade and integration initiative of the moment, seeking as it does to
Mozambique has signed and recently ratified the African Continental Free Trade Area (AfCFTA) agre... more Mozambique has signed and recently ratified the African Continental Free Trade Area (AfCFTA) agreement. This study review's the country's experience of the Southern African Development Community (SADC) Protocol on Trade in Goods and draws lessons for designing AfCFTA-related policies. Collected evidence suggests that, while imports to Mozambique have been rising, much of this is from outside Africa, while imports from the region are arguably not driven by the SADC free trade agreement (FTA) per sé. Administrative, logistic and infrastructure hurdles have limited the use of the SADC FTA and thus its impact, while evidence suggests that the main tariff reductions led to lower levels of misreporting and border corruption rather than increasing import volumes. Although this does not preclude some competition from SADC imports, it implies that the overall effect of the SADC FTA has been limited in terms of displacing industries or stimulating structural change. Mozambican exports to South Africa and the region grew over the SADC FTA implementation period but these relate primarily to the extractive sectors. Nonetheless, Mozambique has seen some 'new' export products over the last 15 years, with documented cases of small-scale SADC-focused investments. These examples, and the challenges of using the SADC FTA should offer guidance for taking advantage of the AfCFTA. The paper concludes that the political momentum around the AfCFTA and recent industrial policy efforts can, and should, be used as a tool to promote job-creating exports to SADC and the continent through a problemsolving approach to promote further export development.
The African Union faces challenges and opportunities in promoting African regional integration. T... more The African Union faces challenges and opportunities in promoting African regional integration. The momentum for continental cooperation seems to be on the rise. This is in addition to achievements at the regional level, both through the eight Regional Economic Communities and other regional organisations. Nonetheless, the benefits of these efforts depend on if and how they are implemented. For instance, implementation, monitoring, and evaluation of Agenda 2063 is up to the individual states. While there is increased traction for cooperation, national politics still largely influence regional processes. COVID-19 has led to calls for greater market integration and joint industrialisation, with the African Continental Free Trade Area (AfCFTA) being presented as Africa’s “stimulus package”. Progress towards continental and regional integration is undeniable as the AfCFTA is becoming the lens through which social and economic development is being framed. Combined with regional and continental industrialisation strategies, the AfCFTA will contribute to creating regional value chains and lowering import dependency. There has also been increased collective action in debt relief calls and procurement efforts in the wake of COVID-19, but the results of such actions depend on how politics play out within and between countries.
Le Centre pour la Communication Scientifique Directe - HAL - Inria, May 28, 2021
Africa is well endowed with organizations to promote regional cooperation and integration. It has... more Africa is well endowed with organizations to promote regional cooperation and integration. It has 8 African Union (AU)-recognized regional economic communities (RECs), 7 other economic organizations and 25 specialized regional organizations (ROs). On average each country is member of 3 RECs and 4 other ROs. The number of continental treaties signed by African Union member states has accelerated over the last four decades. At the same time, progress on ratifying and implementing these and their regional equivalents is slow, undermining their impacts. This has led to calls to rationalize memberships. At its 50th anniversary in 2013, the AU launched the 50year AU2063 programme, "The Africa we want, " with 15 flagship projects, heralding a renewed push towards continent-wide projects.
Yearbook on the African Union Volume 1 (2020), 2021
No discussion of economic integration in Africa today is complete without reference to the Africa... more No discussion of economic integration in Africa today is complete without reference to the African Continental Free Trade Area (AfCFTA). Even if the Regional Economic Communities (REC s) and other regional organisations have continued to advance their own processes, the AfCFTA is high on political and policy agendas (see Yearbook on the African Union 2000, 178-182). It is the trade and integration initiative of the moment, seeking as it does to
This Political Economy Analysis (PEA) takes a closer look at the transport and port sectors
in ou... more This Political Economy Analysis (PEA) takes a closer look at the transport and port sectors in our region of study. It seeks identify feasible opportunities to promote reforms, reduce costs and facilitate trade along (and around) the three corridor and at the same time describe the main actors and institutions that underlie the operation of these sectors. The port and transport sectors were chosen as focus sectors for the PEA for two main reasons: 1. Transport and ports are the main time/cost components on the three corridors under study. In the previous part of the report we find that 63% of costs is spent on transport on average on the Abidjan- Ouagadougou, Tema-Ouagadougou and Lomé- Ouagadougou corridors. 40 to 50% of time is spent in the ports. 2. There are strong indications from existing literature that political economy and regulatory elements underlie these metrics. In light of the above this part explore the follo wing three questions: • Who are the main actors in these sectors (firms, regulators, unions, etc), how do they relate to one another and what type of power do they exert? • What structural and institutional incentives shape the behaviour of the actors and interest groups around the corridors, resulting in the problems identified above? • What politically feasible opportunities can be identified to promote reforms, reduce costs and facilitate trade along (and around) the three corridors?
The “corridors approach” is fast gaining importance as an economic development strategy, particul... more The “corridors approach” is fast gaining importance as an economic development strategy, particularly in Africa. Largely based on historical transport connections across the continent, corridors have moved from transport to so-called development corridors, embodying a range of development objectives aimed at overcoming coordination failures in investment and taking advantage of agglomeration and spillover effects, to boost trade and productivity.
Development corridors target an increasingly wide array of policy challenges, with an increasing focus on agriculture. They aim to increase regional trade through better physical and soft infrastructures, improve markets for agricultural inputs and outputs, set out agricultural investment opportunities, engage with international investors, and promote the integration of small-scale producers into international value chains.
Southern African Development Community (SADC) Policy Frameworks have adopted corridors as a major policy direction and point to the role of corridors in general and to promote agricultural development. Further, the SADC Regional Agricultural Policy identifies them as key to achieve its specific objectives.
This study looks at the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and Maputo Development corridors and their roles in addressing constraints to market integration for agricultural producers and potential lessons for the Comprehensive Africa Agricultural Development Programme (CAADP) to maximise its impact on smallholders, particularly at the regional level.
The report is based on a review of the relevant literature and stakeholder interviews in Mozambique, Tanzania and South Africa. The study identifies key issues from discussants and the literature with a view to further promoting frank policy dialogue.
Key Findings of ECDPM
Corridors can do much for farmers but the existing literature and our interviews tend to show they risk being ‘corridors of power’ rather than ‘corridors of plenty’ so far.
A key finding is that cross-border trade is increasingly improving, particularly for larger operators. This relates in part to corridor-related initiatives to improve both “hard” aspects such as infrastructures and “soft” aspects such as border and port management.
Current constraints to regional and national value chain integration reportedly relate more to ‘behind the border’ issues. A more in-depth, narrowly focused political economy analysis would help in specifying what each relevant actor could do for the successful integration of corridors approaches and proposed CAADP-related investment.
Overall, there is a need for deeper understanding and more dialogue to build trust between different parts of the private sector, policy makers and other key stakeholders at the national, regional and international level.
Regional integration is
crucial for economic
transformation in
Africa. Yet despite
support for th... more Regional integration is crucial for economic transformation in Africa. Yet despite support for this regional agenda, implementation is slow due to numerous complexities and obstacles Regional integration is crucial for economic transformation in Africa. Yet despite support for this regional agenda, implementation is slow due to numerous complexities and obstacles The strength of political and economic coalitions within states prevail over commitments made within regional institutions. “Signaling” support to regional integration does not equate implementation of these signals. Yet careful alignment of reform coalitions around cross-border projects such as corridors may contribute to trust and capacity building between countries in support of incremental and functional regional integration.
Given the need for regional cooperation to achieve common goals like fostering green industrialis... more Given the need for regional cooperation to achieve common goals like fostering green industrialisation and post-COVID economic recovery, the ambition to promote regional economic cooperation and integration in Africa is as pressing as ever. But integrating markets and applying common rules comes with political costs and trade-offs for different groups, and regional organisations often have limited power to enforce implementation of regional agreements. As such, formal commitments to implement common regional trade rules and regulations are often not (fully) implemented, undermining the goals initially sought through cooperation. This note, which builds on an online event that ECDPM convened as part of the TWP Community of Practice Global Webinar Series in June 2022, argues that it is essential to go beyond formal regional strategies and blueprints and to ‘think and work politically’ (TWP) to promote regional cooperation and integration more effectively.
This paper sets out to better inform stakeholders about why the Nile Basin Initiative (NBI) and n... more This paper sets out to better inform stakeholders about why the Nile Basin Initiative (NBI) and national level stakeholders operate as they do around their joint agenda. It concludes with implications for support. 2 Political traction, member states interests and potential Nile water rights have long been the subject of tensions among its riparian states. These have increased with the expansion of upstream hydroelectric developments, particularly in Ethiopia, and downstream reluctance to revisit colonial-era agreements that gave Egypt and then Sudan priority water rights. These factors point to the need for a river basin organisation to coordinate the use of this shared resource.
Ce document vise à expliquer le fonctionnement de la Communauté économique des États de l'Afrique... more Ce document vise à expliquer le fonctionnement de la Communauté économique des États de l'Afrique centrale (CEEAC) et de la Communauté économique et monétaire de l'Afrique centrale (CEMAC), à la fois dans leur collaboration entre elles et avec leurs États membres. Il conclut par une analyse des implications qui en résultent pour les partenaires institutionnels désireux de soutenir cette organisation. 2
Struggling to integrate in an intertwined region By Bruce Byiers* This background paper is part o... more Struggling to integrate in an intertwined region By Bruce Byiers* This background paper is part of a series on the Political Economy Dynamics of Regional Organisations (PEDRO) and builds on an earlier paper conducted under the Political Economy of Regional Integration in Africa (PERIA) project. It was prepared in March 2017. In line with ECDPM's mission to inform and facilitate EU-Africa policy dialogue, and financed by the Federal Ministry for Economic Cooperation and Development, BMZ, the studies analyse key policy areas of seventeen regional organisations in Sub-Saharan Africa. In doing so they address three broad questions: What is the political traction of the organisations around different policy areas? What are the key member state interests in the regional agenda? What are the areas with most future traction for regional organisations to promote cooperation and integration around specific areas? The studies aim to advance thinking on how regional policies play out in practice, and ways to promote politically feasible and adaptive approaches to regional cooperation and integration. Further information can be found at www.ecdpm.org/pedro.
This paper sets out to better inform stakeholders about why the Intergovernmental Authority for D... more This paper sets out to better inform stakeholders about why the Intergovernmental Authority for Development (IGAD) and national level stakeholders operate as they do in the two specific areas of economic integration and conflict. It concludes with implications for support. 2 Political traction, member states interests and potential Created in 1986 as the Intergovernmental Authority on Drought and Development (IGADD), 3 the original IGADD had a relatively narrow agenda, focusing primarily on combating drought and desertification. In 1994, shortly after the accession of Eritrea, the organisation was re-launched as the Intergovernmental Authority for Development (IGAD). As reflected in the new name, its mandate was widened beyond drought issues, while its agenda further expanded in the 2000s with the African Union's formal recognition of IGAD as one of the eight Regional Economic Communities (RECs). This recognition further cemented IGAD's role as a key African regional organisation, especially as a 'building block' of the African Peace and Security Architecture (APSA). Peace and security is one of three main pillars of work of IGAD. It hosts one of Africa's most elaborate Conflict Early Warning Systems and is recognised for its role in conflict mediation, particularly the Sudan Comprehensive Peace Agreement in 2005 and subsequent referendum. In this regard, IGAD has managed to play an important role in fostering political compromises and balancing interests among dominant regional players. Conflict resolution and management is the main area where IGAD has managed to build on a common drive among member countries to address the high and direct political costs of spillovers from cross-border conflicts. Yet, the IGAD efforts have been necessarily reactive and ad hoc, due mainly to shifting national interests, regional alliances and enmities. The interventions and decisions of IGAD are driven by the Summit of Heads of State, so by national government leaders and their narrow national interests. This, in turn, may undermine the credibility of IGAD processes.
This paper sets out to better inform stakeholders about why the Intergovernmental Authority for D... more This paper sets out to better inform stakeholders about why the Intergovernmental Authority for Development (IGAD) and national level stakeholders operate as they do in the two specific areas of economic integration and conflict. It concludes with implications for support. 2 Political traction, member states interests and potential Created in 1986 as the Intergovernmental Authority on Drought and Development (IGADD), 3 the original IGADD had a relatively narrow agenda, focusing primarily on combating drought and desertification. In 1994, shortly after the accession of Eritrea, the organisation was re-launched as the Intergovernmental Authority for Development (IGAD). As reflected in the new name, its mandate was widened beyond drought issues, while its agenda further expanded in the 2000s with the African Union's formal recognition of IGAD as one of the eight Regional Economic Communities (RECs). This recognition further cemented IGAD's role as a key African regional organisation, especially as a 'building block' of the African Peace and Security Architecture (APSA). Peace and security is one of three main pillars of work of IGAD. It hosts one of Africa's most elaborate Conflict Early Warning Systems and is recognised for its role in conflict mediation, particularly the Sudan Comprehensive Peace Agreement in 2005 and subsequent referendum. In this regard, IGAD has managed to play an important role in fostering political compromises and balancing interests among dominant regional players. Conflict resolution and management is the main area where IGAD has managed to build on a common drive among member countries to address the high and direct political costs of spillovers from cross-border conflicts. Yet, the IGAD efforts have been necessarily reactive and ad hoc, due mainly to shifting national interests, regional alliances and enmities. The interventions and decisions of IGAD are driven by the Summit of Heads of State, so by national government leaders and their narrow national interests. This, in turn, may undermine the credibility of IGAD processes. 1 Based on a March 2017 Background Paper by ECDPM, available at www.ecdpm.org/pedro/backgroundpapers. The Policy Brief and Background Paper were prepared under the BMZ-financed project on the Political Economy Dynamics of Regional Organisations (PEDRO). This paper builds on an earlier paper conducted under the PERIA project.
This Briefing Note gives an overview of the complexities and challenges facing efforts at regiona... more This Briefing Note gives an overview of the complexities and challenges facing efforts at regional integration in Africa. Although frustration with progress in regional integration is widespread, ambitions continue to grow with the recent signing of the African Continental Free Trade Area. Engagement with regional processes should be based on a very explicit understanding of the political economy of regional processes. This means taking account of political interests and incentives both within and between states to gauge where there is genuine traction for regional initiatives and therefore where external support might be effective. As part of thinking about furthering the regional agenda, this Briefing Note also points to the importance of effective monitoring, meaning not only following outcomes, but also tracking commitments made towards regional efforts. A more realistic understanding of where and why countries engage in regional integration, and improved monitoring of actual engagement can help identify where to support countries in their efforts. But peer pressure and learning across regions can also play a role. The Pan African Coalitions for Transformation recently launched to play this role across a range of policy areas could help fulfil this role.
This paper looks at the political economy dynamics around regional industrialisation policy in th... more This paper looks at the political economy dynamics around regional industrialisation policy in the Southern African Development Community (SADC). It examines what drives regional industrialisation strategies in African Regional Economic Communities (RECs); the key actors and factors shaping regional industrialisation in SADC; and the resulting opportunities, different modalities and potential risks for donors who want to support such strategies. Despite the apparent logic for regional industrialisation strategies, it is not clear what the actual role and added value of regional organisations and policies are, or should be, in this domain. While SADC member states profess support for a regional industrialisation agenda, their domestic industrial development and other political objectives often lead them to adopt policies that protect national industries, often at the expense of their neighbours. Those who seek to support this regional agenda need to take account of these dynamics to avoid frustration. By taking an approach informed by political economy analysis, support can align with efforts that have real traction. Secondly, donors must ensure their support is flexible and adaptive to changing circumstances, and based on realistic objectives.
This thesis provides an empirical analysis of enterprise development and informality in Mozambiqu... more This thesis provides an empirical analysis of enterprise development and informality in Mozambique. It explores factors which hinder the development of the enterprise sector, focussing on the heterogeneity of firm responses to the institutional environment, with important consequences for economic growth, employment and poverty reduction. With the growing consensus on the centrality of institutions to economic growth, this thesis provides firm-level evidence to support the findings of aggregate, cross-country level analyses. Using enterprise survey evidence, it comprises four case studies from Mozambique, a country characterised in recent years by high economic growth rates but persistently high unemployment and poverty levels.
No discussion of economic integration in Africa today is complete without reference to the Africa... more No discussion of economic integration in Africa today is complete without reference to the African Continental Free Trade Area (AfCFTA). Even if the Regional Economic Communities (REC s) and other regional organisations have continued to advance their own processes, the AfCFTA is high on political and policy agendas (see Yearbook on the African Union 2000, 178-182). It is the trade and integration initiative of the moment, seeking as it does to
Mozambique has signed and recently ratified the African Continental Free Trade Area (AfCFTA) agre... more Mozambique has signed and recently ratified the African Continental Free Trade Area (AfCFTA) agreement. This study review's the country's experience of the Southern African Development Community (SADC) Protocol on Trade in Goods and draws lessons for designing AfCFTA-related policies. Collected evidence suggests that, while imports to Mozambique have been rising, much of this is from outside Africa, while imports from the region are arguably not driven by the SADC free trade agreement (FTA) per sé. Administrative, logistic and infrastructure hurdles have limited the use of the SADC FTA and thus its impact, while evidence suggests that the main tariff reductions led to lower levels of misreporting and border corruption rather than increasing import volumes. Although this does not preclude some competition from SADC imports, it implies that the overall effect of the SADC FTA has been limited in terms of displacing industries or stimulating structural change. Mozambican exports to South Africa and the region grew over the SADC FTA implementation period but these relate primarily to the extractive sectors. Nonetheless, Mozambique has seen some 'new' export products over the last 15 years, with documented cases of small-scale SADC-focused investments. These examples, and the challenges of using the SADC FTA should offer guidance for taking advantage of the AfCFTA. The paper concludes that the political momentum around the AfCFTA and recent industrial policy efforts can, and should, be used as a tool to promote job-creating exports to SADC and the continent through a problemsolving approach to promote further export development.
The African Union faces challenges and opportunities in promoting African regional integration. T... more The African Union faces challenges and opportunities in promoting African regional integration. The momentum for continental cooperation seems to be on the rise. This is in addition to achievements at the regional level, both through the eight Regional Economic Communities and other regional organisations. Nonetheless, the benefits of these efforts depend on if and how they are implemented. For instance, implementation, monitoring, and evaluation of Agenda 2063 is up to the individual states. While there is increased traction for cooperation, national politics still largely influence regional processes. COVID-19 has led to calls for greater market integration and joint industrialisation, with the African Continental Free Trade Area (AfCFTA) being presented as Africa’s “stimulus package”. Progress towards continental and regional integration is undeniable as the AfCFTA is becoming the lens through which social and economic development is being framed. Combined with regional and continental industrialisation strategies, the AfCFTA will contribute to creating regional value chains and lowering import dependency. There has also been increased collective action in debt relief calls and procurement efforts in the wake of COVID-19, but the results of such actions depend on how politics play out within and between countries.
Le Centre pour la Communication Scientifique Directe - HAL - Inria, May 28, 2021
Africa is well endowed with organizations to promote regional cooperation and integration. It has... more Africa is well endowed with organizations to promote regional cooperation and integration. It has 8 African Union (AU)-recognized regional economic communities (RECs), 7 other economic organizations and 25 specialized regional organizations (ROs). On average each country is member of 3 RECs and 4 other ROs. The number of continental treaties signed by African Union member states has accelerated over the last four decades. At the same time, progress on ratifying and implementing these and their regional equivalents is slow, undermining their impacts. This has led to calls to rationalize memberships. At its 50th anniversary in 2013, the AU launched the 50year AU2063 programme, "The Africa we want, " with 15 flagship projects, heralding a renewed push towards continent-wide projects.
Yearbook on the African Union Volume 1 (2020), 2021
No discussion of economic integration in Africa today is complete without reference to the Africa... more No discussion of economic integration in Africa today is complete without reference to the African Continental Free Trade Area (AfCFTA). Even if the Regional Economic Communities (REC s) and other regional organisations have continued to advance their own processes, the AfCFTA is high on political and policy agendas (see Yearbook on the African Union 2000, 178-182). It is the trade and integration initiative of the moment, seeking as it does to
This Political Economy Analysis (PEA) takes a closer look at the transport and port sectors
in ou... more This Political Economy Analysis (PEA) takes a closer look at the transport and port sectors in our region of study. It seeks identify feasible opportunities to promote reforms, reduce costs and facilitate trade along (and around) the three corridor and at the same time describe the main actors and institutions that underlie the operation of these sectors. The port and transport sectors were chosen as focus sectors for the PEA for two main reasons: 1. Transport and ports are the main time/cost components on the three corridors under study. In the previous part of the report we find that 63% of costs is spent on transport on average on the Abidjan- Ouagadougou, Tema-Ouagadougou and Lomé- Ouagadougou corridors. 40 to 50% of time is spent in the ports. 2. There are strong indications from existing literature that political economy and regulatory elements underlie these metrics. In light of the above this part explore the follo wing three questions: • Who are the main actors in these sectors (firms, regulators, unions, etc), how do they relate to one another and what type of power do they exert? • What structural and institutional incentives shape the behaviour of the actors and interest groups around the corridors, resulting in the problems identified above? • What politically feasible opportunities can be identified to promote reforms, reduce costs and facilitate trade along (and around) the three corridors?
The “corridors approach” is fast gaining importance as an economic development strategy, particul... more The “corridors approach” is fast gaining importance as an economic development strategy, particularly in Africa. Largely based on historical transport connections across the continent, corridors have moved from transport to so-called development corridors, embodying a range of development objectives aimed at overcoming coordination failures in investment and taking advantage of agglomeration and spillover effects, to boost trade and productivity.
Development corridors target an increasingly wide array of policy challenges, with an increasing focus on agriculture. They aim to increase regional trade through better physical and soft infrastructures, improve markets for agricultural inputs and outputs, set out agricultural investment opportunities, engage with international investors, and promote the integration of small-scale producers into international value chains.
Southern African Development Community (SADC) Policy Frameworks have adopted corridors as a major policy direction and point to the role of corridors in general and to promote agricultural development. Further, the SADC Regional Agricultural Policy identifies them as key to achieve its specific objectives.
This study looks at the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and Maputo Development corridors and their roles in addressing constraints to market integration for agricultural producers and potential lessons for the Comprehensive Africa Agricultural Development Programme (CAADP) to maximise its impact on smallholders, particularly at the regional level.
The report is based on a review of the relevant literature and stakeholder interviews in Mozambique, Tanzania and South Africa. The study identifies key issues from discussants and the literature with a view to further promoting frank policy dialogue.
Key Findings of ECDPM
Corridors can do much for farmers but the existing literature and our interviews tend to show they risk being ‘corridors of power’ rather than ‘corridors of plenty’ so far.
A key finding is that cross-border trade is increasingly improving, particularly for larger operators. This relates in part to corridor-related initiatives to improve both “hard” aspects such as infrastructures and “soft” aspects such as border and port management.
Current constraints to regional and national value chain integration reportedly relate more to ‘behind the border’ issues. A more in-depth, narrowly focused political economy analysis would help in specifying what each relevant actor could do for the successful integration of corridors approaches and proposed CAADP-related investment.
Overall, there is a need for deeper understanding and more dialogue to build trust between different parts of the private sector, policy makers and other key stakeholders at the national, regional and international level.
Regional integration is
crucial for economic
transformation in
Africa. Yet despite
support for th... more Regional integration is crucial for economic transformation in Africa. Yet despite support for this regional agenda, implementation is slow due to numerous complexities and obstacles Regional integration is crucial for economic transformation in Africa. Yet despite support for this regional agenda, implementation is slow due to numerous complexities and obstacles The strength of political and economic coalitions within states prevail over commitments made within regional institutions. “Signaling” support to regional integration does not equate implementation of these signals. Yet careful alignment of reform coalitions around cross-border projects such as corridors may contribute to trust and capacity building between countries in support of incremental and functional regional integration.
Given the need for regional cooperation to achieve common goals like fostering green industrialis... more Given the need for regional cooperation to achieve common goals like fostering green industrialisation and post-COVID economic recovery, the ambition to promote regional economic cooperation and integration in Africa is as pressing as ever. But integrating markets and applying common rules comes with political costs and trade-offs for different groups, and regional organisations often have limited power to enforce implementation of regional agreements. As such, formal commitments to implement common regional trade rules and regulations are often not (fully) implemented, undermining the goals initially sought through cooperation. This note, which builds on an online event that ECDPM convened as part of the TWP Community of Practice Global Webinar Series in June 2022, argues that it is essential to go beyond formal regional strategies and blueprints and to ‘think and work politically’ (TWP) to promote regional cooperation and integration more effectively.
This paper sets out to better inform stakeholders about why the Nile Basin Initiative (NBI) and n... more This paper sets out to better inform stakeholders about why the Nile Basin Initiative (NBI) and national level stakeholders operate as they do around their joint agenda. It concludes with implications for support. 2 Political traction, member states interests and potential Nile water rights have long been the subject of tensions among its riparian states. These have increased with the expansion of upstream hydroelectric developments, particularly in Ethiopia, and downstream reluctance to revisit colonial-era agreements that gave Egypt and then Sudan priority water rights. These factors point to the need for a river basin organisation to coordinate the use of this shared resource.
Ce document vise à expliquer le fonctionnement de la Communauté économique des États de l'Afrique... more Ce document vise à expliquer le fonctionnement de la Communauté économique des États de l'Afrique centrale (CEEAC) et de la Communauté économique et monétaire de l'Afrique centrale (CEMAC), à la fois dans leur collaboration entre elles et avec leurs États membres. Il conclut par une analyse des implications qui en résultent pour les partenaires institutionnels désireux de soutenir cette organisation. 2
Struggling to integrate in an intertwined region By Bruce Byiers* This background paper is part o... more Struggling to integrate in an intertwined region By Bruce Byiers* This background paper is part of a series on the Political Economy Dynamics of Regional Organisations (PEDRO) and builds on an earlier paper conducted under the Political Economy of Regional Integration in Africa (PERIA) project. It was prepared in March 2017. In line with ECDPM's mission to inform and facilitate EU-Africa policy dialogue, and financed by the Federal Ministry for Economic Cooperation and Development, BMZ, the studies analyse key policy areas of seventeen regional organisations in Sub-Saharan Africa. In doing so they address three broad questions: What is the political traction of the organisations around different policy areas? What are the key member state interests in the regional agenda? What are the areas with most future traction for regional organisations to promote cooperation and integration around specific areas? The studies aim to advance thinking on how regional policies play out in practice, and ways to promote politically feasible and adaptive approaches to regional cooperation and integration. Further information can be found at www.ecdpm.org/pedro.
This paper sets out to better inform stakeholders about why the Intergovernmental Authority for D... more This paper sets out to better inform stakeholders about why the Intergovernmental Authority for Development (IGAD) and national level stakeholders operate as they do in the two specific areas of economic integration and conflict. It concludes with implications for support. 2 Political traction, member states interests and potential Created in 1986 as the Intergovernmental Authority on Drought and Development (IGADD), 3 the original IGADD had a relatively narrow agenda, focusing primarily on combating drought and desertification. In 1994, shortly after the accession of Eritrea, the organisation was re-launched as the Intergovernmental Authority for Development (IGAD). As reflected in the new name, its mandate was widened beyond drought issues, while its agenda further expanded in the 2000s with the African Union's formal recognition of IGAD as one of the eight Regional Economic Communities (RECs). This recognition further cemented IGAD's role as a key African regional organisation, especially as a 'building block' of the African Peace and Security Architecture (APSA). Peace and security is one of three main pillars of work of IGAD. It hosts one of Africa's most elaborate Conflict Early Warning Systems and is recognised for its role in conflict mediation, particularly the Sudan Comprehensive Peace Agreement in 2005 and subsequent referendum. In this regard, IGAD has managed to play an important role in fostering political compromises and balancing interests among dominant regional players. Conflict resolution and management is the main area where IGAD has managed to build on a common drive among member countries to address the high and direct political costs of spillovers from cross-border conflicts. Yet, the IGAD efforts have been necessarily reactive and ad hoc, due mainly to shifting national interests, regional alliances and enmities. The interventions and decisions of IGAD are driven by the Summit of Heads of State, so by national government leaders and their narrow national interests. This, in turn, may undermine the credibility of IGAD processes.
This paper sets out to better inform stakeholders about why the Intergovernmental Authority for D... more This paper sets out to better inform stakeholders about why the Intergovernmental Authority for Development (IGAD) and national level stakeholders operate as they do in the two specific areas of economic integration and conflict. It concludes with implications for support. 2 Political traction, member states interests and potential Created in 1986 as the Intergovernmental Authority on Drought and Development (IGADD), 3 the original IGADD had a relatively narrow agenda, focusing primarily on combating drought and desertification. In 1994, shortly after the accession of Eritrea, the organisation was re-launched as the Intergovernmental Authority for Development (IGAD). As reflected in the new name, its mandate was widened beyond drought issues, while its agenda further expanded in the 2000s with the African Union's formal recognition of IGAD as one of the eight Regional Economic Communities (RECs). This recognition further cemented IGAD's role as a key African regional organisation, especially as a 'building block' of the African Peace and Security Architecture (APSA). Peace and security is one of three main pillars of work of IGAD. It hosts one of Africa's most elaborate Conflict Early Warning Systems and is recognised for its role in conflict mediation, particularly the Sudan Comprehensive Peace Agreement in 2005 and subsequent referendum. In this regard, IGAD has managed to play an important role in fostering political compromises and balancing interests among dominant regional players. Conflict resolution and management is the main area where IGAD has managed to build on a common drive among member countries to address the high and direct political costs of spillovers from cross-border conflicts. Yet, the IGAD efforts have been necessarily reactive and ad hoc, due mainly to shifting national interests, regional alliances and enmities. The interventions and decisions of IGAD are driven by the Summit of Heads of State, so by national government leaders and their narrow national interests. This, in turn, may undermine the credibility of IGAD processes. 1 Based on a March 2017 Background Paper by ECDPM, available at www.ecdpm.org/pedro/backgroundpapers. The Policy Brief and Background Paper were prepared under the BMZ-financed project on the Political Economy Dynamics of Regional Organisations (PEDRO). This paper builds on an earlier paper conducted under the PERIA project.
This Briefing Note gives an overview of the complexities and challenges facing efforts at regiona... more This Briefing Note gives an overview of the complexities and challenges facing efforts at regional integration in Africa. Although frustration with progress in regional integration is widespread, ambitions continue to grow with the recent signing of the African Continental Free Trade Area. Engagement with regional processes should be based on a very explicit understanding of the political economy of regional processes. This means taking account of political interests and incentives both within and between states to gauge where there is genuine traction for regional initiatives and therefore where external support might be effective. As part of thinking about furthering the regional agenda, this Briefing Note also points to the importance of effective monitoring, meaning not only following outcomes, but also tracking commitments made towards regional efforts. A more realistic understanding of where and why countries engage in regional integration, and improved monitoring of actual engagement can help identify where to support countries in their efforts. But peer pressure and learning across regions can also play a role. The Pan African Coalitions for Transformation recently launched to play this role across a range of policy areas could help fulfil this role.
This paper looks at the political economy dynamics around regional industrialisation policy in th... more This paper looks at the political economy dynamics around regional industrialisation policy in the Southern African Development Community (SADC). It examines what drives regional industrialisation strategies in African Regional Economic Communities (RECs); the key actors and factors shaping regional industrialisation in SADC; and the resulting opportunities, different modalities and potential risks for donors who want to support such strategies. Despite the apparent logic for regional industrialisation strategies, it is not clear what the actual role and added value of regional organisations and policies are, or should be, in this domain. While SADC member states profess support for a regional industrialisation agenda, their domestic industrial development and other political objectives often lead them to adopt policies that protect national industries, often at the expense of their neighbours. Those who seek to support this regional agenda need to take account of these dynamics to avoid frustration. By taking an approach informed by political economy analysis, support can align with efforts that have real traction. Secondly, donors must ensure their support is flexible and adaptive to changing circumstances, and based on realistic objectives.
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Papers by Bruce Byiers
in our region of study. It seeks identify feasible opportunities to promote reforms, reduce
costs and facilitate trade along (and around) the three corridor and at the same time
describe the main actors and institutions that underlie the operation of these sectors.
The port and transport sectors were chosen as focus sectors for the PEA for two main
reasons:
1. Transport and ports are the main time/cost components on the three corridors under
study. In the previous part of the report we find that 63% of costs is spent on transport
on average on the Abidjan- Ouagadougou, Tema-Ouagadougou and Lomé-
Ouagadougou corridors. 40 to 50% of time is spent in the ports.
2. There are strong indications from existing literature that political economy and
regulatory elements underlie these metrics.
In light of the above this part explore the follo wing three questions:
• Who are the main actors in these sectors (firms, regulators, unions, etc), how do they
relate to one another and what type of power do they exert?
• What structural and institutional incentives shape the behaviour of the actors and
interest groups around the corridors, resulting in the problems identified above?
• What politically feasible opportunities can be identified to promote reforms, reduce
costs and facilitate trade along (and around) the three corridors?
Development corridors target an increasingly wide array of policy challenges, with an increasing focus on agriculture. They aim to increase regional trade through better physical and soft infrastructures, improve markets for agricultural inputs and outputs, set out agricultural investment opportunities, engage with international investors, and promote the integration of small-scale producers into international value chains.
Southern African Development Community (SADC) Policy Frameworks have adopted corridors as a major policy direction and point to the role of corridors in general and to promote agricultural development. Further, the SADC Regional Agricultural Policy identifies them as key to achieve its specific objectives.
This study looks at the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and Maputo Development corridors and their roles in addressing constraints to market integration for agricultural producers and potential lessons for the Comprehensive Africa Agricultural Development Programme (CAADP) to maximise its impact on smallholders, particularly at the regional level.
The report is based on a review of the relevant literature and stakeholder interviews in Mozambique, Tanzania and South Africa. The study identifies key issues from discussants and the literature with a view to further promoting frank policy dialogue.
Key Findings of ECDPM
Corridors can do much for farmers but the existing literature and our interviews tend to show they risk being ‘corridors of power’ rather than ‘corridors of plenty’ so far.
A key finding is that cross-border trade is increasingly improving, particularly for larger operators. This relates in part to corridor-related initiatives to improve both “hard” aspects such as infrastructures and “soft” aspects such as border and port management.
Current constraints to regional and national value chain integration reportedly relate more to ‘behind the border’ issues. A more in-depth, narrowly focused political economy analysis would help in specifying what each relevant actor could do for the successful integration of corridors approaches and proposed CAADP-related investment.
Overall, there is a need for deeper understanding and more dialogue to build trust between different parts of the private sector, policy makers and other key stakeholders at the national, regional and international level.
crucial for economic
transformation in
Africa. Yet despite
support for this
regional agenda,
implementation is slow
due to numerous
complexities and
obstacles
Regional integration is
crucial for economic
transformation in
Africa. Yet despite
support for this
regional agenda,
implementation is slow
due to numerous
complexities and
obstacles
The strength of
political and economic
coalitions within states
prevail over
commitments made
within regional
institutions. “Signaling”
support to regional
integration does not
equate implementation
of these signals.
Yet careful alignment
of reform coalitions
around cross-border
projects such as
corridors may
contribute to trust and
capacity building
between countries in
support of incremental
and functional regional
integration.
in our region of study. It seeks identify feasible opportunities to promote reforms, reduce
costs and facilitate trade along (and around) the three corridor and at the same time
describe the main actors and institutions that underlie the operation of these sectors.
The port and transport sectors were chosen as focus sectors for the PEA for two main
reasons:
1. Transport and ports are the main time/cost components on the three corridors under
study. In the previous part of the report we find that 63% of costs is spent on transport
on average on the Abidjan- Ouagadougou, Tema-Ouagadougou and Lomé-
Ouagadougou corridors. 40 to 50% of time is spent in the ports.
2. There are strong indications from existing literature that political economy and
regulatory elements underlie these metrics.
In light of the above this part explore the follo wing three questions:
• Who are the main actors in these sectors (firms, regulators, unions, etc), how do they
relate to one another and what type of power do they exert?
• What structural and institutional incentives shape the behaviour of the actors and
interest groups around the corridors, resulting in the problems identified above?
• What politically feasible opportunities can be identified to promote reforms, reduce
costs and facilitate trade along (and around) the three corridors?
Development corridors target an increasingly wide array of policy challenges, with an increasing focus on agriculture. They aim to increase regional trade through better physical and soft infrastructures, improve markets for agricultural inputs and outputs, set out agricultural investment opportunities, engage with international investors, and promote the integration of small-scale producers into international value chains.
Southern African Development Community (SADC) Policy Frameworks have adopted corridors as a major policy direction and point to the role of corridors in general and to promote agricultural development. Further, the SADC Regional Agricultural Policy identifies them as key to achieve its specific objectives.
This study looks at the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) and Maputo Development corridors and their roles in addressing constraints to market integration for agricultural producers and potential lessons for the Comprehensive Africa Agricultural Development Programme (CAADP) to maximise its impact on smallholders, particularly at the regional level.
The report is based on a review of the relevant literature and stakeholder interviews in Mozambique, Tanzania and South Africa. The study identifies key issues from discussants and the literature with a view to further promoting frank policy dialogue.
Key Findings of ECDPM
Corridors can do much for farmers but the existing literature and our interviews tend to show they risk being ‘corridors of power’ rather than ‘corridors of plenty’ so far.
A key finding is that cross-border trade is increasingly improving, particularly for larger operators. This relates in part to corridor-related initiatives to improve both “hard” aspects such as infrastructures and “soft” aspects such as border and port management.
Current constraints to regional and national value chain integration reportedly relate more to ‘behind the border’ issues. A more in-depth, narrowly focused political economy analysis would help in specifying what each relevant actor could do for the successful integration of corridors approaches and proposed CAADP-related investment.
Overall, there is a need for deeper understanding and more dialogue to build trust between different parts of the private sector, policy makers and other key stakeholders at the national, regional and international level.
crucial for economic
transformation in
Africa. Yet despite
support for this
regional agenda,
implementation is slow
due to numerous
complexities and
obstacles
Regional integration is
crucial for economic
transformation in
Africa. Yet despite
support for this
regional agenda,
implementation is slow
due to numerous
complexities and
obstacles
The strength of
political and economic
coalitions within states
prevail over
commitments made
within regional
institutions. “Signaling”
support to regional
integration does not
equate implementation
of these signals.
Yet careful alignment
of reform coalitions
around cross-border
projects such as
corridors may
contribute to trust and
capacity building
between countries in
support of incremental
and functional regional
integration.