Amidst Brexit woes, Africa forges ahead with integration

In the days after Brexit, markets plunged, the Pound went into free fall, a Prime Minister resigned and the future not only of the UK, but also the European Union seemed uncertain.

Monday, July 18, 2016

In the days after Brexit, markets plunged, the Pound went into free fall, a Prime Minister resigned and the future not only of the UK, but also the European Union seemed uncertain. Beyond the reasons that divided people over this vote and its economic and political ramifications; is a growing frustration with inter-governmental integration models. Why then – with the woes of the European Union so visible – is Africa forging ahead with an ambitious plan to accelerate the free movement of Africans and integrate national economies beyond border communities and physical proximity?

There are three reasons for these interesting points of divergence. The first is that the contexts between Europe and Africa are dramatically different. The European Union (EU) is the most integrated region globally. For at least 50 years, Europeans have enjoyed the benefits of integration. A large population of the EU has never known what it is to demand for visas while traveling in the region, or seek work permits to work elsewhere in Europe than their home-countries. On the contrary, Africans have a completely parallel experience to this. Africa is the most fragmented continent worldwide, and its people suffer the cost of non-integration on a daily basis. This fragmentation was imposed on Africa, and what is happening now is that we are working to reverse this process, without violating the principle of sovereignty. 

The second reason is the different centralised and decentralised models of governance between the European Union and African Union. The European Commission has the power to make regulatory decisions on behalf of all EU members. This very centralised model means that there is a high level of centralised decision-making especially amongst Eurozone countries. On the contrary, the African Union Commission is highly decentralised in nature with limited influence on Regional Economic Communities (RECs). 

The third reason for growing integration across Africa is to do with flexibility. We are aware that there is no continental prescription toward integration. Thus, various methods have been adopted in different trade blocs that illustrate the notion that one size doesn’t fit all. However, as the integration train blows full steam ahead, the speed won’t be determined by the train wagon with the slowest speed. A sense of urgency and haste is what defines the process, as RECs develop parallel but non-contradictory strategies to advance integration objectives.

Having said that, this year’s 27th African Union Summit takes place in Rwanda three weeks after the Brexit vote re-examined European integration.The vision of the African Union is enshrined in Agenda 2063; a continental paradigm shift aimed at working toward ‘an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.’ An ambitious goal to be sure, but numerous continental and regional projects have illustrated how concrete progress can make Agenda 2063 a reality.

In East Africa, regional integration has been instrumental in building cross-border infrastructure; removing barriers to people and goods; and, cutting costs for the East African Community (EAC) citizen. According to the Africa Regional Integration Index report 2016, the EAC is rated as a leading regional bloc on the Continent on various dimensions that include trade integration, regional infrastructure and productive integration.

A key element of this upward growth trajectory is understanding and learning the benefits of flexibility, as previously pointed out. If one size does not fit all, creating other ways to accelerate the process can be useful. Two EAC regional initiatives – the Northern Corridor Integration Projects and the Central Corridor – are frameworks designed to fast-track implementation of cross-border projects and thus accelerate individual countries’ and regional economic transformation. Projects along both Corridors are tailored to different EAC member countries under the Principle of Variable Geometry. This Principle allows for progression in co-operation among a sub-group of members in a larger integration scheme, in a variety of areas and at different speeds.

EAC Northern and Central Corridor projects have yielded exceptional results for citizens. To start with, the factors of production (labour and capital) are now free to move in the region; reducing costs and increasing opportunities for economies of scale.The free movement of people, labour, capital and goods is one of the key cornerstones of EAC policies and actions; the result being a more interconnected African market – an indispensable platform for stronger economic growth and prosperity. These freedoms are as important for the EAC bloc in as much as they were key pillars for the EU single market. In fact, the EAC has in the past sought to emulate the EU integration model owing to its success. Moving forward, the EAC will have to closely re-examine its integration agenda to ensure that tangible benefits are delivered to citizens. Unless it is anchored in everyday citizen’s realities, no integration process would be politically sustainable.

In enabling the free movements of its citizens, the EAC has focused on various initiatives. These include the East African Single Tourist Visa (EASTV), which promotes the region as a single tourist destination. EAC countries along the Northern Corridor have also waived fees for work permits; and allow the use of I.Ds or voting cards as traveling documents. A growing number of Mutually Recognised Agreements mean that Accountants, Architects and Engineers can work seamlessly across EAC states. 

Connectivity is an essential aspect within the region, so it is no surprise that on a global level, the EAC is one of the few, if not the only regional bloc that has already scrapped mobile roaming charges. This has led to a minimum 400% increase in the volume of calls; a direct benefit to EAC citizens and African businesses operating across EAC borders. It is this spirit that convened six African presidents to sign the agreement for a One Africa Network, projected to be operational starting this month.

Along the Central Corridor, there is renewed energy and plans are being developed to implement infrastructure projects such as Standard Gauge Dar es Salaam-Isaka-Kigali-Keza-Musongati (DIKKM)Railway, and the Rusumo Hydro Power Plant. A One Education Area is in the pipeline, as well as an Open Skies Policy, which will allow for liberalisation of airspace across EAC countries, starting with those along the Northern Corridor.

With regard to doing business across Africa, the AU has introduced a single passport to make travel and doing business easier between Africans throughout Africa. This has been a direct response to millions of Africans demanding the right to travel freely across their continent.

What we’re witnessing is that solutions have to be based on actual needs and aspirations of people, with clear and visible results. The Brexit vote was driven by citizen frustrations and the feeling that the EU was a distant bureaucracy in Brussels detached from reality. Lessons abound for the EAC and one key lesson is that we must remain true to our mission, which is "one people – one destiny.”

For all the reasons above, I believe that Africa is on the right course. A mindset and processes that are citizen-centered, inclusive and where leaders are accountable to those they lead and to each other, is the right way to go. People know what they value and want, and are ready to contribute to its achievement provided they’re involved at every step. As leaders, it is imperative that we increasingly involve our citizens in decision-making and implementation; and not only when their vote is needed to legitimise or reject a decision they never made in the first place.

Two of the greatest precursors for economic growth are infrastructure and human capital. The AU’s Agenda 2063 makes these foci of its mission. Connecting these elements across Africa is a sure-fire way to make quantum leaps in development. Ultimately, regional or continental integration can’t cure every ill of society, nor guarantee a particular future. Despite this, in Africa we are registering tangible results. However, if there is one lesson to learn from the bumpy road the EU integration project is going through, is that for people to choose what best serves their present and future interests, they need to be well informed and fully involved.

The writer is the Minister for East African Community, Rwanda.

An abridged version of this article was published by the Guardian.