Advancing African Integration: Resource Mobilization and TFTA Operationalization

As the East African Community (EAC) assumes the rotating chairmanship of the Tripartite Task Force, it has put forth a compelling call for a harmonized, continent-wide strategy for resource mobilization in Africa. The objective to supplant existing fragmented efforts, thereby enhancing the continent's financial capacity and fostering self-sustainability within the African Union (AU) and its Regional Economic Communities (RECs).

The current disjointed approach to fundraising is a central concern for both the AU and the African RECs, due their substantial reliance on external donors, with some of these entities depending on such funding for over 70% of their operational budgets. This dependency, coupled with the fragmentation of financial resources and persistent issues of member states' non-payment of contributions, impedes critical regional integration efforts. Consequently, the establishment of a unified and streamlined resource mobilization framework is not merely advisable, but essential to bolster the financial autonomy and effectiveness of African continental and regional institutions.

Speaking at an AUDA-NEPAD roundtable in Malabo, Equatorial Guinea, the EAC Secretary General underscored the urgent necessity for a cohesive approach to finance the ambitious objectives of the AU's Agenda 2063, recognizing the continent's persistent struggle with limited development resources. Specifically, she championed blended financing, integrating public, private, and philanthropic capital, and urged greater engagement from African philanthropists and the private sector. Furthermore, the criticality of austerity measures to ensure efficient resource allocation and the strategic deployment of technology to enhance planning, coordination, and implementation was emphasised. Echoing this sentiment, AU Commission Chairperson highlighted the imperative for Africa to transition from donor dependency towards a model rooted in the African ownership of the Africa's development agenda.

An article published on The Star further highlights crucial elements for the effective operationalization and long-term success of the Tripartite Free Trade Area (TFTA):

• TFTA's Formal Entry into Force: The TFTA agreement officially entered into force on July 25, 2024, upon reaching the requisite 14 ratifications. However, several key instruments for its full operationalization remain outstanding, including the finalization of tariff offers, the adoption of product-specific rules of origin (with unsolved chapters on textiles and automotive sectors, and problems to find an agreement similar to the AfCFTA), as well as additional ratifications that are required by the remaining Member/Partner States.
• Facilitating Movement of Persons: The Tripartite Agreement on the movement of business and persons, adopted in March 2023 to ease visa requirements for traders and professional service providers, faces delays in its ratification process. Expediting this Protocol is crucial for enhancing regional trade and economic activity.
• Strengthening Institutional Framework: A significant challenge is the lack of a permanent TFTA Secretariat. Currently, the Tripartite is managed by a rotating Task Force with a limited mandate to coordinate the work program and decisions of the Tripartite organs. Establishing a dedicated, permanent Secretariat is essential for robust coordination and effective implementation.
• Revival of the Industrial Development Pillar: A critical component for the TFTA's success is the revitalization of the Industrial Development Pillar, one of its three core pillars alongside market integration and infrastructure development. This focus aims to stimulate productive capacity within the three RECs.

It must finally be noted that the TFTA Agreement is opened to the accession by other AU Member States (Art. 41) even outside the three RECs that make up the Tripartite (EAC, SADC and COMESA), signaling its potential as a model for continental integration. In  fact, in January 2012, the AU Assembly of Heads of States and Governments adopted in its ordinary session the Decision Assembly/AU/Dec.392(XVIII), which encouraged the formation of a second bloc of RECs among ECOWAS, ECCAS, CEN-SAD, and AMU, to accelerate overall African integration. In December 2013, a concept note discussed by the AU and these specific RECs during a meeting in Johannesburg outlined the modalities for achieving this second consolidated bloc among pre-existing RECs. However, these discussions did not culminate in a conclusive agreement, which regrettably mirrors the typical approach of African nations to integration initiatives: an initial rapid start, often followed by deficient implementation that falters when encountering obstacles.

Similar attempts of merging between RECs have been made by ECCAS And CEMAC (with discussions planned for this week), and by IGAD and EAC (with discussions that recently resurfaced, even in the last months). However, these projects they all stalled.