The Impact of Regional Integration on Africa’s Manufacturing Exports

Abstract

Do African Regional Trade Agreements (RTAs) increase intraregional manufacturing trade? The 1994 Abuja Treaty led to the creation of several African RTAs that include the Common Market for Eastern and Southern Africa (COMESA), Economic Community of West African States (ECOWAS), East African Community (EAC), Southern African Development Community (SADC), Central African Economic and Monetary Community, the Southern African Customs Union, and the Tripartite Free Trade Area. A primary objective of all the African RTAs has been to boost manufacturing exports. This is because manufacturing is essential for diversified production and increased productivity in Africa. These RTAs encouraged African countries to promote markets for manufactured goods within the African continent. Likewise, one of the primary objectives of the African Continental Free Trade Area (that was launched in March 2018 in Kigali) is to increase manufacturing exports. The African Continental Free trade area is expected to boost intra-African industrial exports by 53% [1]. The Tripartite Free Trade Area is expected to boost intraregional trade in heavy manufacturing, light manufacturing, processed foods, and textiles, by 25%, 49%, 55%, and 78%, respectively [2].