AfDB calls for strengthening of regional economies

Friday, August 31, 2007

AfDB calls for strengthening of regional economies

AfDB calls for strengthening of regional economies
By Joan Chirwa
Thursday August 30, 2007 [04:00]

ZAMBIA and other African countries must strengthen institutional and technical capacities at a regional level before a United African government could be established, the African Development Bank (AfDB) has advised.

And the AfDB has said delays at most border posts in southern Africa cost the region US$48 billion annually, mainly due to cumbersome inspection regimes by customs officials on goods transported across borders.

AfDB vice president for infrastructure, water and sanitation Mandla Gantsho said African countries cannot successfully integrate into a United Africa government with weak Regional Economic Communities (RECs) that were dependent on aid.

“The AfDB can play a role in terms of providing human and financial support and sharing experiences between African RECs and economic groupings in other parts of the world,” Gantsho said in an interview with the bank’s press department.

“That is, we must acknowledge that we are disadvantaged in the global economy if we remain as small, landlocked and fragmented countries with relatively weak RECs that are dependent on aid.

These are weak pillars, and we cannot integrate our continent on the basis of weak pillars.”
Gantsho noted the need for strengthening regional institutions and countries that make up the RECs for the effective implementation of the planned United African government.

“Doing so would strengthen the foundations of the continental government we are trying to build,” Gantsho said.

“However, the immediate establishment of a continental government would be tantamount to trying to place a roof on walls of straw or on walls that are built on foundations of soft sand. We have a role to play.”

He said the United African government would also ensure a more effective and efficient provision of regional public goods that are needed to catalyse both the integration as well as the development process across the entire continent.

“I am a proponent of the school of thought that sees regional economic unions as the basis for the Union Government, where the constituent countries yield some sovereign powers to the RECs.

This would fast-track sub regional political and socio-economic integration through investment in regional economic infrastructure,” Gantsho said.

And Gantsho said the costly delays at border posts in southern Africa had a negative effect on transport and logistics service providers.

“Transport providers are forced to pay huge penalties for failing to meet their service obligations to their clients. This is why transportation costs in Africa are the highest compared to other regions of the world. These constraints would be resolved in an integrated Africa,” said Gantsho.

Labels: AFRICAN DEVELOPMENT BANK, REGIONALISM