Intra-African investments: Progress and challenges

Regional integration in Africa has been a key topic of discussion at the African Development Week as stakeholders focus on progress in negotiations around the continental free trade area. The Director of Capacity Development Division at the United Nations Economic Commission for Africa, Stephen Karringi, sheds light on the advancements in intra-African investments and payment systems, while addressing the persisting challenges hindering seamless continental integration. Over the past decade, significant strides have been made towards regional and continental integration, evident in the development of trans-border infrastructure projects that aim to link different countries. The ongoing negotiations of the continental free trade area serve as a major milestone towards deeper continental integration. Notably, there has been positive movement in intra-African investments, particularly within the financial services sector. This indicates the continent's progress towards enhancing economic cooperation and collaboration. Despite these advancements, challenges remain, notably in the realm of connectivity between African cities. The Trans-African highway, for instance, still has missing links, accounting for approximately 20% of the intended network. Additionally, the optimization of the Yamoussoukro Decision, aimed at creating an open sky for the continent's aviation sector, requires further implementation to facilitate smoother air transport operations across Africa. While progress has been made in these areas, there is still much work to be done. One of the persisting topics of discussion is the prospect of a common currency for Africa or specific regions. Karringi emphasizes the importance of focusing on easing business transactions by addressing payment systems and enhancing region-specific payment mechanisms. Furthermore, achieving currency compatibility necessitates clear macroeconomic policy convergence, which currently remains a work in progress. Karringi underscores the significance of robust infrastructure networks and the promotion of regional value chains to bolster productive capacities across countries. A shift towards regional value chains will not only enhance production capabilities but also foster economic integration and the equitable distribution of integration benefits. The movement of people within the continent is a pivotal aspect of enhancing regional integration. While some progress has been made in facilitating visa issuance upon arrival in certain African capitals, there is a continued need to streamline visa processes and enhance the free movement of individuals across borders. Karringi stresses the importance of honoring protocols and treaties on the free movement of persons established through regional economic communities to pave the way for continental harmonization in this aspect. Ultimately, the aim is to foster a seamless environment where Africans can traverse borders with ease, contributing to the advancement of economic opportunities and overall integration.