1. Presentation By Progress on Intra-African Trade June, 2011 Emmanuel J. Chinyama ECA 7 th Session of the Committee on Trade, Regional Cooperation and Integration 2 - 3 June 2011 Addis Ababa, Ethiopia

2. Outline of the Presentation  Introduction  Direction of Africa’s trade with major trading partners  Direction of trade within African regions  Trade performance by countries  Intra-African trade potentials  Challenges of Intra-African trade  Conclusion and policy recommendations

3. Introduction  The significance of trade to economic growth.  Regional Integration will strengthen Africa’s economic independence and empowerment with respect to the rest of the world.  The role of regional integration in promoting trade in Africa.  Focus of the presentation.

4. Direction of Africa’s trade with major Trading Partners (exports) Direction of Exports (in million of US$) - average between 2000 and 2007 RECsAFRICACHINAASIAEUJAPANUSAROWWORLD CEMAC558.82594.51948.14453.9142.54887.71641.816227.2 CEN-SAD8813.542945750.750831.01879.920682.415218.3107469.9 CEPGL93.3146.966.6898.623.1176.2168.91573.6 COMESA4761.13986.81925.627827.51046.834329366.352346.1 EAC1499.7156.1532.81515.9113.6199.11026.15043.3 ECCAS990.46502.32351.88125.6370.1102344992.533566.7 ECOWAS6125.7616.33693.613556.4788.617073.26168.648022.3 IGAD1646.22740552.81480.6545.1212.71412.68590 IOC223.235.9106.71930.159.3515.5170.63041.4 MRU85.739.2206.31327.74.2167.93872218 SADC8704.97139.55184.620679.42672.811266.514973.970621.6 UEMOA2828.4253.9776.43549.842.6589.9853.98894.9 UMA2158.41079.91511.650915.4485.19147.510996.876294.7

5. Share of Import Sources (2000-2007) RECAFRICACHINAASIAEUJAPANUSAROWWORLD CEMAC1457522119100 CEN- SAD9810413722100 CEPGL424334845100 COMES A12811314827100 EAC137 215536100 ECCAS1661045210 100 ECOWA S13915334620100 IGAD121114204534100 IOC141019293322100 MRU45352112221100 SADC12811365820100 UEMOA24109391414100 UMA455592420100

6. Intra REC-Trade (% Growth)

7. Intra-Africa Trade (% Growth)

8. Intra-African trade potentials  Africa trades more with the rest of the world than it does with itself.  Rich endowments among African countries  Africa has a large population of about one billion people.  Reforms which are key to boost trade.  Diversification of finished products.

9. Intra-African trade potential  Effective implementation of decisions agreed at continental level.  Increased demand by the emerging economies such as China, India, Brazil, and others.  Rich fertile soil for agricultural production.

10. Challenges Limiting the Potential of Intra-African Trade  Lack of diversification and competitiveness.  The nature of African economies.  Weak trade-related infrastructure.  Multiplicity and inconvertibility of currencies.  Delays at customs which, on average, are longer than in the rest of the world.  A large proportion of African landlocked countries.

11. Challenges Limiting the Potential of Intra-African Trade Weak Infrastructure Share of paved roads in Africa by Sub-regions

12. Conclusion  There is a potential for intra-Africa trade to improve.  There is need to address the supply constraints in order to make Africa’s products competitive;  There is need to accelerate trade reforms, including exports diversification;  Deepening of regional integration and accelerating intra-Africa trade will need strong commitmenst from the Member States.

13. Conclusion  High trade costs prevent many African countries to the full realization of gains from the globalization.  Members States should continue their reforms including export diversification.

14. THANK YOU FOR YOUR ATTENTION