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By Christine Chisha | Mon, Jul 16, 2012
The launch of the African Union (AU) is a major event in the contemporary history of the continent. In July 1999, the Assembly of Heads of State and Government of the Organization of African Unity (OAU) decided to accelerate the process of economic and political integration of the continent.
AU commissioner for Economic Affairs Dr. Maxwell Mkwezalamba said the organization has grown since its establishment in terms of mandate and transformation from OAU to AU.
He said OAU formed in 1963 focused mostly on politics, to eliminate the last vestiges of colonialism and apartheid, strengthen unity and solidarity of African states while the AU is focusing more on trade, economics, integration and infrastructure development.
Dr Mkwezalamba said due to the shift to more economical issues, the budget of the AU which was at US$40 million has increased to US$280 million.
The Commissioner for Economic affairs said the continental body seeks to encourage intra-Africa trade among its members to enhance Africa’s worldwide competitiveness.
“The benefits of partnerships with India, European Union (EU), China, Turkey and South America are many and helping Africa improves its infrastructure, private sector development, technology and enhances agriculture,” Dr Mkwezalamba said.
The G8 and G20 support to Africa Union Member states has resulted for many to increase their quarter from the International Monetary Fund (IMF). He said this entails more Africa member states will benefit more resources from the IMF.
With India partnering with Africa, Dr Mkwezalamba said India has pledged to establish five institutions on agriculture and food security. He said apart from India helping to eradicate poverty and hunger in Africa, its presence in investment is growing higher and trade volume has continued growing.
Dr Mkwezalamba said China was also helping a lot in building roads, rail and schools in Africa. He said despite trading with other regions, strong trade between AU members is vital to creating jobs and eradicating poverty. “With trade we are able to look at issues of infrastructure, we are able to look at issues of efficiency in terms of movement of transport within the continent, and we are also able to measure how we are able to export. We can then add value,” he said.
Trade among AU members’ accounts for about 12 percent of all African trade. In comparison, over 40 percent of all trade on other continents come from
buying and selling goods between neighbors in the same region. And deputy commissioner chairperson Erastus Mwencha called for immediate action on intra-Africa trade since Africa has the lowest levels of trade of any world region.
He was speaking at the sidelines of the 19th ordinary session of the assembly of Head of States and Government which ended on Monday in Addis Ababa, Ethiopia. The leaders considered the report of the High Level Committee of Heads of State and Government Chairs of the Regional Economic Communities (RECs) under the theme ‘Boosting Intra-African Trade’.
But critics say decisions often taken by African leaders are poorly implemented. However, Mr Mwencha said the African Union Commission aims to realize its
objective of a strong intra-Africa trade. "We have set our target first of all to create a continental free trade area by 2017, but we are not oblivious to the challenges that we have gone through in the past. There is reason to be optimistic because we now have regional economic communities, which are building themselves into a free trade customs union,” said Mr Mwencha.
He said trade was already happening and cited the Southern African Development Community (SADC) and the East African Community (EAC) who are forming a tripartite free-trade area, which he said sharply improves trade relations of about 26 countries in both groupings.
“We are encouraging Central Africa, we are encouraging West Africa, North Africa to do similar,” he said.
Mr Mwencha he said Africa should take advantage of the continent’s huge combined markets of the 54 member states.