8th Session of the Committee on Trade, Regional Cooperation and Integration, 6 - 8 February 2013, Addis Ababa, Ethiopia

Presented by Mr. Stephen N. KaringiRegional Integration, Infrastructure and Trade Division (RITD)

Progress Report for Subprogramme 5 during 2012-2013:

Trade, Economic Cooperation & Regional Integration

OUTLINE

• Introduction

• Completed outputs during the remainder of 2011

• Status of activities 2012-2013

• Results achieved & impact

• Testimonials

• Lessons, challenges & opportunities

COMPLETED OUTPUTS DURING THE REMAINDER OF 2011(After the 7th Session of the CTRI)

OutputsAd hoc expert groups:

• Assessing Regional Integration in Africa (ARIA V)

Recurrent Publications:

• Assessing Regional Integration in Africa (ARIA V)

Non-recurrent Publications:

• Development of biofuels in Africa: technology options and related policy and regulatory issues• Compendium on best practices in utility regulation: towards energy policy harmonization • Regional norms for the Trans-African Highway • Progress towards achieving the Africa Mining Vision: Frame-work report of the ISG • Unpacking the Doha Round modalities for Africa’s prospects in regard to achieving MDGs

Contribution to joint outputs:

• Functional support to the African Union Conference of African Ministers of Trade

Training courses, seminars and workshops:

•Training course on contract negotiations for natural resources management • Workshop on the design of Public-Private Partnership (PPP) agreements on infrastructure• Workshop on Achieving the MDGs with a focus on poverty and livelihoods, gender and environment: the implication of the outcomes of the Doha of trade negotiations and those carried out under EPAs

Special events:

• Road Safety Conference

STATUS OF ACTIVITIES2012-2013

Outputs Status

Parliamentary documentation:

•Report on Africa’s regional integration agenda Completed

•Report on Africa’s intra-regional trade Completed

•Report on international trade and Africa Completed

•Report on developments and progress achieved in infrastructure and natural resources development in Africa Completed

Ad hoc expert groups:

•Assessing the status of implementation of trade and transport facilitation instruments and measures in Africa Completed

•Export diversification and intra-industry trade in Africa Completed

•Review of Assessing Regional Integration in Africa (ARIA VI) In progress

•Towards a low-carbon African economy: policy options for increased private sector participation in implementing clean and renewable energy and energy efficiency options

In progress

Outputs Status

Assistance to representatives and rapporteurs

•Functional support to PIDA implementation (2) Completed (1)

•Functional support to corridors management groups to enhance transit and trade Completed

•Functional support to member States, RECs, AU and its NEPAD programme in the context of the APRM and the UN TYCBP for the AU, MYPs and MDGs Completed

•Functional support to the AU Conference of African Ministers in charge of Energy Completed

•Functional support to the AU Conference of African Ministers in charge of Minerals Resources development •Functional support to the AU Conference of African Ministers in charge of Transport•Functional support to the AU Conference of African Ministers in charge of Trade (2)•Functional support to the AU Conference of African Ministers in charge of Integration•Functional support to the AUC/AfDB/ECA/RECs Coordinating Committee

Completed

Completed

Completed (1)

Not startedNot started

•Substantive servicing of the annual meeting of the coordinating group for United Nations Energy Africa

In progress

Outputs StatusRecurrent Publications

•Assessing Regional Integration in Africa (ARIA VI) In progress

Non recurrent publications

•Assessing the status of implementation of trade and transport facilitation instruments and measures in Africa In progress

•Export diversification and intra-industry trade in Africa Completed

•Implementing the African Mining Vision – directions for policy and regulatory improvement in Africa In progress

•Towards a low-carbon African economy: policy options for increased private sector participation in implementing the clean and renewable energy and energy efficiency options Completed

Booklets, fact sheets, wall charts, information kits

•Development of policy guidelines, briefs and toolkits for achieving the AMV (2) In progress

Technical material

•Maintenance of statistical database on infrastructure and natural resources development Not started

•Maintenance of Observatory on Regional Integration in Africa (2) Ongoing

•Virtual knowledge networks and management of thematic workspaces for Community of Practice

Not started

Outputs StatusContribution to joint outputs•Addressing the challenges of illicit financial outflow in Africa Completed

•Contribution to the implementation of the African Mining Vision Completed

•Contribution to the meetings of the thematic clusters of the United Nations Regional Coordination Mechanism for Africa (RCM-Africa) (2) Completed (1)

•Promoting economic & corporate governance to improve private investment in Africa Completed

Training courses, seminars and workshops•Regional workshop on exchange of experiences and best practices in policy convergence and establishment of single currencies within RECs Completed

•Regional workshop on export diversification and trade facilitation with a view to BIAT Completed

•Regional workshop on mainstreaming regional integration Completed

•Workshop for African member States and RECs on successes, gaps and lessons on international efforts towards achieving MDG8 on Global Partnership for Development

Not started

•Workshop on road accident reporting, data use and management and dissemination In progress

•Workshop on AMV and development based mineral regimes Not started

•Workshop to enhance national capacities for accessing clean energy technology funds and strengthen the contractual negotiating capacities Completed

Outputs StatusAdvisory Services, upon request to MS, RECs, AU/NEPAD (areas)•Promoting regional integration especially strengthening the RECs in the context of MYPs, the APRM, the UN TYCBP for the AU and MDGs (2) In progress

Fellowships and grants• Visiting scholars, fellows and interns to support the work of ECA in addressing issues in

regional integration, trade, infrastructure and natural resources development (3) In process

Field Projects•Building capacity of member States and RECs to increase Africa’s share of international trade (ATPC) Ongoing

•Building the capacity of RECs to implement trade and transport facilitation legal instruments Completed

•Mainstreaming regional integration into national development plans Completed

•Mainstreaming the African Mining Vision into sub-regional mining policy harmonisation frameworks In progress

• Implementation of SSATP work programme Completed

•Maintenance of observatory on Regional Integration in Africa Ongoing

•Support for the APRM and governance processes In progress

RESULTS ACHIEVED & IMPACT2012-2013

Expected Accomplishment: Enhanced capacity of member States to mainstream & integrate trade policies in national & regional development strategies that lead to effective participation in bilateral, regional & multilateral trade & trade negotiations

Indicator Activities Result Impact

Indicators:(i) Number of African countries that participate effectively in bilateral, regional and multilateral trade agreements

Targets: 15 countriesActual: 14 countries

(ii) Number of policies negotiated and proposed by African countries in multilateral, bilateral and regional trade negotiationsTargets: 20 policiesActual: 18 policies

• Conducted a Workshop on Export Diversification and Trade Facilitation with a view to Boosting intra-African Trade

• Organizing the Second African Trade Forum (ATF) to promote and enhance multi-stakeholder policy dialogue and advocacy in Africa

• Study on development of input-output data for the GTAP model together with ACS

• African trade officials were sensitized on how to enhance intra-African trade within the sphere of export diversification and trade facilitation

•African trade constituencies discussed issues and challenges of the CFTA, presenting proposals to the AU Summit in 2013

• African MS were trained in order to improve their capacities to produce supply and use tables (SUTs) and national accounts by using a specialized software.

• Greater preparedness by MS to design trade policy to enhance intra-African trade

• Enhanced policy-making that is owned by trade constituencies and targets in Africa’s development through trade and regional integration

•African MS can generate improved trade statistics for modelling trade policy outcomes to inform EPAs, WTO and RECs negotiations, better targeting the gains and minimizing the expected losses from trade opening

Expected Accomplishment: Increased harmonisation and implementation of policies & programmes in the areas of trade & market integration, physical integration, and free movement of people and goods between & across RECs

Indicator Activities Result Impact

Indicators: (i) Number of countries that have joined FTAs between & across the RECs & fully implemented protocols on the free movement of people & of physical integrationTarget: 38 countriesActual: 41 countries

(ii) Number of policies and programmes that have been harmonised & implemented by member StatesTarget: 16 policies & prog.Actual: 18 polices & prog.

• ARIA V related activities: (i) Formal launch of ARIA V release during the AU 19th Summit in July 2012 (ii) Prepared an intra-African trade documentary shown at the Summit & ECA KM platform(iii) Developed an e-book & online course in KM platform

• Catalogue of best practices & Report on Informal Cross Border Trade (ICBT)

• Survey on Mainstreaming Regional integration

• Influenced & supported the preparatory work to boost intra-African trade & launch CFTA negotiations, generating awareness across the African public

• Informed & equipped MS & RECs with tools to follow best practices in regional integration; be able to measure & record ICBT & be able to assess & enhance the process of domesticating regional integration commitments (e.g. CFTA)

• Enhanced opportunities to deepen regional integration & increase intra-African trade, improve export diversification & overcome capacity constraints faced by African member States

Expected Accomplishment: Enhanced capacity for harmonisation & convergence of policies & programmes in the areas of monetary & financial integration across the RECs

Harmonisation & convergence of policies & programmes across RECsTarget: 7 increased capacity Actual: 6

• Regional workshop on Policy Convergence and Single Currencies within RECs

• Created a community of practice constituted by MS and RECs on the ECA KM platform for sharing & disseminating information

•Better understanding of opportunities & challenges of financial integration, policy convergence & single currencies

Expected Accomplishment: Increased harmonisation & implementation of policies & programmes in the areas of trade & market integration, physical integration &free movement of people and goods between & across RECs (continued)

Indicator Activities Result Impact

Indicators:(i)Increased number of countries that have joined FTAs between & across the RECs & fully implemented protocols on the free movement of people & of physical integrationTarget: 38 countriesActual: 41 countries

ii) Number of policies and programmes that have been harmonised & implemented by member StatesTarget: 16 policies & programmesActual: 18 policies & programmes

• Validation workshop and Finalisation of Trans-African Highway Report

• Organized the African Road Safety Conference

• Workshop on the design of PPP for renewable energy

• Workshop on enhancing national capacities for accessing clean energy

• Endorsement of the Intergovernmental Agreement on the Trans African Highways (TAH)

• Adoption of a Plan of Action to harmonise the implementation of the Road Safety Decade for 54 African MS

• Trained policy makers of Southern Africa & formed a Working Group giving technical support to on-going activities in renewable energy PPP

• Enhanced skills of African MS in accessing and negotiating clean energy funds

• Strengthened trade and transit facilitation between landlocked and transit countries.

• Improved and targeted interventions to costs associated with road crashes in Africa & harmonised road safety policy in the continent

• A demonstration PPP in renewable energy project is in the process of being formulated

• Increased access to clean energy funds

Expected Accomplishment: Increased harmonisation & implementation of policies & programmes in the areas of trade & market integration, physical integration &free movement of people and goods between & across RECs (continued)

Indicator Activities Result Impact

Indicator:(i)Increased number of countries that have joined FTAs between & across the RECs & fully implemented protocols on the free movement of people & of physical integrationTarget: 36 countriesActual: 41 countries

ii) Number of policies and programmes that have been harmonised & implemented by member StatesTarget: 16 policies & programmesActual: 18 policies & programmes

• Produced the report of the ISG on Africa’s mineral regimes

• Prepared and Action Plan and the Africa Mining Vision (AMV)

• Substantive Support to 2nd AU Conference of African Ministers of Mines

• Conducted training workshop on mineral policy and mining contract negotiations

• African MS have a basis for harmonising their mineral policy regimes and better exploiting and managing minerals to achieve social and economic development objectives

• 25 policy-makers from 23 mining countries have gained the technical capacity to conduct policy design based on the AMV

• Improved mining policy- making at regional level which targets development objectives through sound mining practices

TESTIMONIALS• On the ARIA series:

“Thanks a lot for a nice workshop on regional Integration(…) I have inhaled a lot of knowledge which will be useful in my home country and Africa at large. Further, I would like to ask whether (…) ''ASSESSING REGIONAL INTEGRATION IN AFRICA V'', is a yearly publication or not. And if it is a yearly publication, how can our office (BANK OF TANZANIA) be in position of accessing a hardcopy whenever it is published?”, officer from the Bank of Tanzania, 22 August 2012

“I am desperately searching for the various volumes of ARIA-1 to V. Did you release these in book form? I am aware that these are available on the internet and on the UNECA website but just wondered if I could get formal copies thereof for eth office of Minister Manuel and President Zuma?”, representative of the Office of the Presidency of South Africa, 1 August 2012.

On the Regional Workshop on Exchange of Best Practices:“The joint activity on regional integration we conducted recently was a resounding success. MEFMI will undertake the necessary follow up interventions at country level to ensure the imparted skills and knowledge are applied to empower member States to make a contribution to the advancement of the regional integration process”, MEFMI, 27th August 2012

• On the Workshop on Export Diversification and Trade Facilitation:“It was great meeting you in Addis last week, and thank you so much for you presentation, which I think will go a long way in assisting African States to appreciate the use of models to analyse trade flows. I propose that in future these analyses should be backed by country case studies, as this will help us to appreciate production contraints, and also hidden factors that may be undermining the smooth movement of goods across borders.”, participant from COMESA, 13 August 2012.

“I found that this workshop was very timely as we are going to have a discussion on boosting Intra-African trade in the last week of September. Thanks for inviting me and my country”. participant, Sep 2012.

LESSONS, CHALLENGES & OPPORTUNITIES

• Better target the different needs of beneficiaries in terms of key messages and outputs arising from ECA’s work.

• RITD is expected to deliver on the assumption that member States are willing to implement their obligations. Lack of effective national commitment to implement adopted protocols and decisions undermines progress.

• Full involvement of the RECs in the design & implementation of joint tasks remains a challenge but is necessary to enhance their participation & ownership of outcomes.

LESSONS, CHALLENGES & OPPORTUNITIES

• Anchoring support based on a programme of activities which addresses long term goals is critical. This is the case of the African Mining Vision. Opportunities have been identified to create programmes in energy, the trans-African highway project, implementation of UN Road Safety Decade, of the Action Plan for Boosting Intra-African trade and for CFTA negotiations.

• In the case of ATPC, lack of capacities of target beneficiaries (RECs) to formulate and follow-up on their technical cooperation request impinges on delivery and is worsened by ad hoc demands. ATPC therefore needs a scaling up of resources to provide adequate support to the RECs.

LESSONS, CHALLENGES & OPPORTUNITIES

• Partnering up with other regional institutions such as MEFMI has been instrumental in delivering outputs of common interest which enabled the programme to fulfill technical assistance and consensus building objectives

• The sub-programme forged a close working relationship with the AUC in the implementation of virtually all of the activities under review, in particular in the areas of trade and market integration, and infrastructure. This partnership contributed a great deal in facilitating the process of securing AU Summit’s support and decisions on some of the recommendations emanating from the sub-programme’s work (e.g. ARIA V and VI) on the themes of enhancing intra-African trade and establishing a continental free trade area. The Subprogramme needs to continue and strengthen this collaboration.

Thank you for your kind attention!