African Economic Community

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The African Economic Community (AEC) is an organization of African Union states establishing grounds for mutual economic development among the majority of African states. The stated goals of the organization include the creation of free trade areas, customs unions, a single market, a central bank, and a common currency (see African Monetary Union) thus establishing an economic and monetary union.

Video African Economic Community

Pillars

Currently there are multiple regional blocs in Africa, also known as Regional Economic Communities (RECs), many of which have overlapping memberships. The RECs consist primarily of trade blocs and, in some cases, some political and military cooperation. Most of these RECs form the "pillars" of AEC, many of which also have an overlap in some of their member states. Due to this high proportion of overlap it is likely that some states with several memberships will eventually drop out of one or more RECs. Several of these pillars also contain subgroups with tighter customs and/or monetary unions of their own:

These pillars and their corresponding subgroups are as follows:

Pillar membership

¹ The Arab Maghreb Union does not participate in the AEC so far, because of opposition by Morocco

Other blocs

Other African regional blocs, not participating in the AEC (their members can be part of other regional blocs which do participate), are the following.

• Greater Arab Free Trade Area (GAFTA) (also includes most Middle Eastern states)
• Economic Community of the Great Lakes Countries (CEPGL)
• Indian Ocean Commission (COI)
• Liptako-Gourma Authority (LGA)
• Mano River Union (MRU)

Their membership is as follows:

¹ Only African GAFTA members are listed.
GAFTA and MRU are the only blocs not currently stalled.

Maps African Economic Community

Goals

The AEC founded through the Abuja Treaty, signed in 1991 and entered into force in 1994 is envisioned to be created in six stages:

1. (to be completed in 1999) Creation of regional blocs in regions where such do not yet exist
2. (to be completed in 2007) Strengthening of intra-REC integration and inter-REC harmonisation
3. (to be completed in 2017) Establishing of a free trade area and customs union in each regional bloc
4. (to be completed in 2019) Establishing of a continent-wide customs union (and thus also a free trade area)
5. (to be completed in 2023) Establishing of a continent-wide African Common Market (ACM)
6. (to be completed in 2028) Establishing of a continent-wide economic and monetary union (and thus also a currency union) and Parliament

• End of all transition periods: 2034 at the latest

Stages progress

as of September 2007

• Stage 1: Completed, only Arab Maghreb Union members and Sahrawi Republic not participating. Somalia is participating, but no practical implementation yet.
• Stage 2: Steady progress, nothing factual to check.
• Stage 3:

¹ Members not yet participating: DR Congo (in talks to join), Eritrea, Ethiopia, Seychelles (in talks to join), Swaziland (on derogation until SACU gives permission for Swaziland to join the FTA), Uganda (to join very soon)[1]
² Members not yet participating: Angola, DR Congo, Seychelles [2]

• Stage 4: no progress yet
• Stage 5: no progress yet
• Stage 6: no progress yet

Overall progress

¹ not all members participating yet
² telecommunications, transport and energy - proposed
³ sensitive goods to be covered from 2012

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African Free Trade Zone

The African Free Trade Zone (AFTZ) was announced on Wednesday October 22, 2008 by the heads of Southern African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC).

In May 2012 the idea was extended to also include ECOWAS, ECCAS and AMU.

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See also

• African Economic Outlook
• Economy of Africa
• Economy of the African Union

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References

• A single African currency in our time?
• African leaders agree to form single market
• African Union Official Website
• South African webpage on RECs
• Pan-African Perspective

Source of article : Wikipedia