News Analysis: Integration key in transforming African economies (2)

While acknowledging the unprecedented growth of economies of African nations over the past years, the AfDB chief believes that the growth has been fragmented hence the importance of pushing for accelerated efforts in integrating the continent.

Therefore, the challenge facing the continent is to improve intra-Africa trade since the continent still has a yawning market as well as abundant natural resources which still remain untapped and are currently being exported into raw form.

To transform African economies through the integration agenda, the AfDB chief believes that African governments should endeavor to add value to raw materials unlike the current situation where the continent has specialized in exporting raw materials.

The adding of value to the continent's raw materials will result in massive industrialization, job creation and infrastructure development among various nations, he added.

Erastus Mwencha, the AU Deputy Chairperson, is more optimistic about the integration process of the African continent because of the potential economic growth being exhibited by various countries.

Mwencha, who delivered a keynote address to the private sector currently attending the 21st AU Summit, said his optimism is also based within the scope of a 50 year continental development framework currently being championed by the AU.

"Based on the potential for growth on the African continent, and within the scope of a 50 year continental development framework (Agenda 2063) currently being championed by the AU Commission, the African Union therefore sees a continent integrated economically and politically in the next 50 years," he said.

The AU, he said, is also planning for an Africa whose share of world trade will stand at 15 percent and whose intra-trade will be standing at 50 percent compared to 11 percent currently.

The AU has since crafted a strategic plan that encompasses eight priority areas namely human capacity development, agriculture and food security, inclusive economic development, peace and stability and gender equity.

Others include resource mobilization, communication and participation and institutional capacity.

The AU also believes that the role of the private sector in the integration agenda should not be ignored because the sector is playing in pivotal role in economic growth of the continent.

According to figures, Africa's private sector accounted for more than 80 percent of total production, two thirds of total investment and three quarters of total credit to economies over the 1996-2008 period. The sector was also responsible for 90 percent of formal and informal employment.

"As such our common strategic goal with respect to the private sector should be to promote a pro-active and vibrant Pan-African sector that can play the lead in energizing African economies to achieve poverty eradication through creative and productive processes that accelerate economic growth, sustainable development and deeper integration of Africa into the global economy," Mwencha said.