From the Abuja Treaty to the Sustainable
Development Goals: Realizing Economic Integration
in Africa
Tres Ricks†
Introduction ............................................................... 250
The Abuja Treaty ....................................................... 251
A. African Monetary Union ..................................... 253
1. African Central Bank .................................... 254
2. African Single Currency ................................ 255
III. A History of African Development Prior to the Abuja
Treaty ......................................................................... 256
IV. Lessons to be Learned from the European Union and
the
Euro................................................................. 258
V.
Will the African Union and the “Afro” be Able to
Overcome the Problems that the European Union
Faced? And What New Problems Might Arise? ....... 260
A. Sovereignty ......................................................... 261
B. Maastricht Criteria .............................................. 262
C. What Significance does “Brexit” Hold for the
African Union? ................................................... 263
VI. Foreign Direct Investment and the Sustainable Development
Goals........................................................................... 263
A. Sustainable Development Goals ......................... 265
1. Infrastructure.................................................. 266
2. Corruption ...................................................... 267
3. Health Challenges .......................................... 269
VII. A Cause for Optimism ............................................... 271
A. The Tripartite Free Trade Area ............................. 272
B. The Pan African Passport..................................... 273
VIII. Conclusion .................................................................. 273
I.
II.
†
J.D. Candidate 2017, University of North Carolina School of Law.
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I. Introduction
The continent of Africa has been continually plagued by
financial distress for much of recent history. However, in 1991, the
Organization of African Unity (“OAU”) signed into law a treaty that
sought to remedy Africa’s woes through political and economic
unity.1 This treaty, which came to be known as the Abuja Treaty,
aimed to unify the African economy through free trade and
monetary union, ultimately establishing the African Economic
Community (“AEC”).2 Over twenty years have passed since the
treaty was initially signed and progress towards these ends seems to
be modest. Despite slow progress, there is reason to be optimistic
about the fulfillment of the Abuja Treaty’s visions. On September
25, 2015, the United Nations General Assembly formally adopted
the Sustainable Development Goals (“SDGs”) as part of the 2030
Agenda for Sustainable Development.3 These seventeen goals
represent a multifaceted approach to development, recognizing that
sustainable development must focus on more than just one or two
areas of growth.4 The SDGs focus on three dimensions of
sustainable development: economic, social, and environmental.5
This re-envisioned and reinvigorated approach to development
could provide the framework necessary to finally realize the visions
of the Abuja Treaty—the economic integration of Africa.6 This
comment begins with a description of the Abuja Treaty and its goals
and provides a brief history of development in Africa prior to the
Treaty. Subsequently, the comment goes into a discussion of the
European Union (“EU”) and its common currency, the euro, to
illustrate the struggles that Africa may face on its journey to
economic integration. While achieving economic integration will
certainly be a struggle, there is much to be gained. The processes
that lead to economic integration will likely encourage Foreign
1 History of The OAU and AU: The Organization of African Unity and the African
Union,
AFRICAN
UNION,
http://www.au.int/en/history/oau-and-au
[https://perma.cc/N8BP-GNP5] (last visited Jan. 8, 2017).
2 Id.
3 G.A. Res. 70/1, Transforming Our World: The 2030 Agenda for Sustainable
Development (Sept. 25, 2015).
4 See id. ¶ 13.
5 Id. ¶ 2.
6 ALAN MATTHEWS, AGRIC. POLICY SUPPORT SERV. POLICY ASSISTANCE DIV.,
REGIONAL INTEGRATION AND FOOD SECURITY IN DEVELOPING COUNTRIES, ch. 6 (2003),
http://www.fao.org/docrep/004/y4793e/y4793e0a.htm [https://perma.cc/C25A-R7BC].
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Direct Investment (“FDI”), which will make economic integration
a more feasible reality. This comment will discuss some of the
advantages that FDI inflows can provide to developing nations and
how African nations can attract more FDI. Lastly, this comment
will discuss specifically why Africa has reason to be optimistic
about the future of the SDGs and the Abuja Treaty in light of recent
successes and the possibilities for the future.
II. The Abuja Treaty
In June of 1991, the OAU Heads of State signed the Abuja
Treaty during the twenty-seventh Ordinary Session of the Assembly
in Abuja, Nigeria.7 However, it was not until May 1994 that the
Treaty came into force after receiving the requisite numbers for
ratification.8 Through a gradual six-step process, spanning thirtyfour years, the Abuja Treaty sought to create an economically
integrated Africa.9
As mentioned in the introduction, the grand vision of the Abuja
Treaty is to establish the AEC.10 The Treaty called for the creation
of the AEC by 2028, and there is reason to believe that this is a
possibility.11 The objectives of the AEC are manifold:
To promote economic, social and cultural development and the
integration of African economies in order to increase economic
self- reliance and to promote an endogenous and self-sustained
development; to establish, on a continental scale, a framework for
the development, mobilization and utilization of the human and
material resources of Africa in order to achieve a self-reliant
development; to promote co-operation in all fields of human
endeavor in order to raise the standard of living of African
peoples, and maintain and enhance economic stability, foster
close and peaceful relations among Member States and contribute
to the progress, development and the economic integration of the
Continent; and to coordinate and harmonize policies among
existing and future economic communities in order to foster the
7 Treaty Establishing the African Economic Community, June 3, 1991, 30 I.L.M.
1241 (entered into force May 12, 1994) [hereinafter Abuja Treaty].
8 Id.
9 Id.
10 See supra part I; see also E.K. Bensah Jr., Why “Africa” Is Lost in the “Abuja
Treaty” Translation, PAN-AFRICANIST INT’L (Sept. 12, 2011, 7:48 AM),
http://www.panafricanistinternational.org/?p=1316 [https://perma.cc/A2W9-LUX9].
11 Id.
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gradual establishment of the Community.12
The Abuja Treaty has been called one of the most ambitious projects
to unite the nations of Africa ever undertaken.13
Chapter II of the Abuja Treaty sets forth the treaty’s six-stage
plan to achieve African economic integration in a period of thirtyfour years.14 The First Stage of the plan calls for the strengthening
of Regional Economic Communities (“RECs”) and the
establishment of RECs in regions where they do not exist.15 Article
88 of the Treaty explains that the AEC must be established mainly
through the coordination, harmonization, and progressive
integration of the activities of the RECs.16 Today the AEC is
comprised of eight RECs: the Arab Maghreb Union (“AMU”); the
Economic Community of West African States (“ECOWAS”); the
East African Community (“EAC”), the Intergovernmental
Authority on Development (“IGAD”); the Southern African
Development Community (“SADC”); the Common Market for
Eastern and Southern Africa (“COMESA”); the Economic
Community of Central African States (“ECCAS”); and the
Community of Sahel-Saharan States (“CENSAD”).17 These RECS
are not only the building blocks of economic integration in Africa,
they also help ensure peace and stability in their regions.18
Stage Two focuses on removing tariffs and liberalizing trade
between the RECs.19 The Third Stage calls for the establishment of
a Free Trade Area after Stage Two has been successfully
completed.20 Just recently, major strides have been made in the
liberalizing of trade and the establishment of a free trade area; this
comment will discuss the specifics of these strides later in the
discussion.
Abuja Treaty, supra note 7, art. 4.
Bensah Jr., supra note 10.
14 Abuja Treaty, supra note 7, ch. 2.
15 Id.
16 Office of the Special Advisor on Afr., The Regional Economic Communities
(RECs) as the Building Blocks of the African Union, UNITED NATIONS,
http://www.un.org/en/africa/osaa/peace/recs.shtml [https://perma.cc/WQ3Q-SLL8] (last
visited Jan. 8, 2017).
17 Id.
18 Id.
19 Abuja Treaty, supra note 7, art. 88.
20 Id.
12
13
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253
Stage Four of the Treaty focuses on establishing a customs
union at the continental level within two years of achieving a Free
Trade Area.21 A customs union is a form of trade agreement under
which certain countries grant reciprocal preferential tariff-free
market access and agree to apply a common set of external tariffs to
imports from the rest of the world.22 A customs union is generally
thought of as a deeper form of integration than a Free Trade Area,
requiring more coordination and a great loss of autonomy.23
The Fifth Stage calls for the establishment of an African
Common Market.24 However, it is the Sixth Stage that is of the
greatest interest to this Comment. The main focus of the Sixth Stage
of the Abuja Treaty is to implement an African Monetary Union, a
single African Central Bank (“ACB”), and a single African
currency, the “afro”.25
A. African Monetary Union
For the afro to be implemented and integrated into the African
economies, a centralized monetary union must exist to manage
criteria such as inflation rate, exchange rate, etc.26 The African
Monetary Union envisioned by the Abuja Treaty will consist of five
monetary unions, one in each of the five existing RECs.27 The five
monetary unions will be the West African Economic and Monetary
Union (“WAEMU”), the Economic and Monetary Community for
Central Africa (“CAEMC”), Arab Monetary Union (“ArMU”),
Southern African Monetary Union (“SAMU”), and East African
Monetary Union (“EAMU”). 28
Besides the conventional economic aims of higher growth and
Id.
Soamiely Andriamananjara, Customs Unions, in PREFERENTIAL TRADE
AGREEMENT POLICIES FOR DEVELOPMENT: A HANDBOOK PART 1, 111,
http://siteresources.worldbank.org/INTRANETTRADE/Resources/C5.pdf
[https://perma.cc/VAQ6-JYA6].
23 Id.
24 Abuja Treaty, supra note 7, art. 88.
25 Id.
26 Paul Masson & Heather Milkiewicz, Africa’s Economic Morass – Will a Common
Currency Help?, BROOKINGS: POL’Y BRIEF SERIES (July 1, 2003),
https://www.brookings.edu/research/africas-economic-morass-will-a-common-currencyhelp/ [https://perma.cc/S72V-A7CW].
27 Id.
28 Id.
21
22
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[Vol. XLII
lower inflation, there are two principal reasons behind the
enthusiasm for monetary union.29 The first reason is the success of
the Europe’s single currency, the euro.30 This single European
currency has stimulated interest in monetary unions throughout the
world.31 However, the European and African economies have
different strengths and weaknesses; this comment will later discuss
whether the benefits produced by the economic integration of the
European economies can be expected to follow from the union of
Africa’s economies. The second motivation for monetary union is
the desire to combat Africa’s reputation of economic and political
weakness.32 Monetary union could help Africa in negotiating
favorable trade agreements both globally and bilaterally.33
1. African Central Bank
Central to an African Monetary Union is the establishment of a
central bank and a single unified currency.34 While the Abuja
Treaty was signed over two decades ago, progress towards a single
ACB has been modest.35 Ten years after its inception, the visions
of the Abuja Treaty were given renewed priority when the OAU’s
fifty-three member states agreed to transform the intergovernmental organization into the African Union (“AU”),
retaining its predecessor’s dedication to political and economic
unity.36 In addition to the creation of the African Central Bank, the
AU Constitutive Act also provided for the creation of an African
Investment Bank (“AIB”) and the African Monetary Fund (“AMF”)
to implement the economic integration called for in the Abuja
Treaty.37 In August of 2003, the Association of African Central
Bank Governors announced that it would work for the creation of a
Masson & Milkiewicz, supra note 26.
Id.
31 Id.
32 Id.
33 Id.
34 Id.
35 Masson & Milkiewicz, supra note 26.
36 Paul Masson & Catherine Pattillo, A Single Currency for Africa, FIN. & DEV., Dec.
2004,
at
9,
https://www.imf.org/external/pubs/ft/fandd/2004/12/pdf/masson.pdf.
[https://perma.cc/B4BY-CNJE].
37 The Financial Institutions, AFRICAN UNION, http://www.au.int/en/organs/fi.
[https://perma.cc/9EJJ-VR2D] (last visited Jan. 8, 2017).
29
30
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common central bank by 2021.38
According to the AU, the purpose of the re-envisioned ACB will
be to build a common monetary policy and a single African
currency as a way to accelerate economic integration as envisaged
in Articles 6 and 44 of the Abuja Treaty.39 The objectives of the
ACB will be to: promote international monetary cooperation
through a permanent institution; promote exchange stability and
avoid competitive exchange rates depreciation; and assist in the
establishment of a multilateral system of payments in respect of
current transactions between members and eliminate foreign
exchange restrictions that hamper the growth of world trade.40
Abuja, Nigeria is the proposed headquarters of the ACB.41 The
ACB will be the sole issuer of the African single currency.42
2. African Single Currency
A single currency is a core vision of the Abuja Treaty.43
Experiments with common currencies are not necessarily a new
phenomenon in Africa.44 In fact, the continent of Africa already has
two functioning monetary unions—the CFA franc zone and the
Common Monetary Area.45 While both have suffered from periods
of instability, they have generally been successful in providing low
inflation.46 Many believe that a single African currency is
imperative to the progress of African economics and politics.47 At
the twenty-fifth AU Summit in Johannesburg, South Africa, the AU
demonstrated its desire to speed up the implementation of this pancontinental currency.48 The AU is aiming to introduce the common
Masson & Pattillo, supra note 36, at 9.
Abuja Treaty, supra note 7, art. 6, 44.
40 Id.
41 Id.
42 Xinhua, African Central Bank Governors Seek Continental Monetary Integration,
The East Africa (Aug. 31, 2012), http://www.theeastafrican.co.ke/business/Africancentral-bank-governors-seek-monetary-integration/2560-1491604-pfi2xiz/index.html
[https://perma.cc/RYD3-CNLH]
43 Abuja Treaty, supra note 7, at art. 6.
44 Masson & Pattillo, supra note 36, at 41.
45 Masson & Milkiewicz, surpa note 26.
46 Id.
47 Id.
48 African Union Renews Talks on Common Currency, African Monetary Fund,
BRICKS POST (June 12, 2015, 5:04 AM), http://thebricspost.com/african-union-renews38
39
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currency by 2025.49
The potential benefits of a single currency are many. A single
currency could attract higher levels of inward investment,
connecting Africa through world-class infrastructure with a
concerted push to finance and implement major projects.50 A single
currency could also create a platform for improving intercontinental
trade relationships by reducing exchange rate costs.51 Some
optimists believe that a single currency would lead to stability
throughout Africa and lead to a reduction in violence and conflict.52
Since the currency would be controlled by the ACB and the
monetary unions, rather than any particular country’s government,
it could be used as a “bloodless tool” to enforce democracy.53 If the
entire AU were operating within a single market with a single
currency, economic sanctions and monetary restrictions would be
effective tools to combat unruly countries.54 A single currency may
also remedy the longtime exploitation of Africa’s natural
resources.55 This comment will later discuss the effects that a single
currency might have on FDI in Africa.56
III. A History of African Development Prior to the Abuja
Treaty
In order to fully comprehend the circumstances that led to the
drafting of the Abuja Treaty, it will be helpful to gain a greater
understanding of the economic and social factors that led to its
creation.
The establishment of the OAU, the body that signed the Abuja
Treaty into law, was the culmination of the Pan-African movement,
a struggle for independence from colonial rule, dating back to the
talks-on-common-currency-african-monetary-fund/#.WHKRFCMrKfV
[perma.cc/GRN2-7MYB].
49 Id.
50 Id.
51 Masson & Milkiewicz, supra note 26.
52 Id.
53 Id.
54 Ted Brackemyre, Africa, Learn From Europe: The “Afro” May Not Be a Good
L.
&
INT’L
DEV.
SOC’Y
(June
18,
2015),
Look,
HARV.
https://orgs.law.harvard.edu/lids/2015/06/18/africa-learn-from-europe-the-afro-may-notbe-a-good-look/ [https://perma.cc/3X5R-E6HR].
55 Id.
56 Infra Part V.
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nineteenth century.57 In 1963, those African countries that had
achieved their independence met in Addis Ababa and formed the
OAU.58 The primary mission of this newly formed alliance was the
liberation of the remaining African countries still under colonial
rule and achieving continental political unity.59 From 1963 to 1975,
the OAU was principally concerned with quelling the inter-state
conflicts and eradicating racist and colonial rule; economic
development was not on the OAU’s agenda during this time.60
However, the heating up of the Cold War in the 1970s undermined
the influence of the OAU as many African countries were forced to
take sides in this ideological war between the West and the
Soviets.61 In 1973, the Arab Oil Embargo struck, quadrupling the
price of oil in a matter of months.62 In order to combat their ailing
economies, African nations took on vast amounts of foreign debt.63
By 1982, Africa’s debt service reached around $8 billion, up from
$2 billion in 1975.64 Africa was in a debt crisis that threatened to
undermine the foundations of global financial stability.65 It was
under these circumstances that the OAU began to develop an agenda
on economic development.66
In 1980, the OAU passed the Lagos Plan of Action.67 Aimed at
achieving collective self-reliance, as well as economic and social
development, the Lagos Plan served as the initial blueprint for
57 See Abella Bujra, Lecture at African Ctr. for Applied Research and Training in
Soc. Dev., Africa: Transition from the OAU to the AU (Sept. 23, 2002),
http://www.dpmf.org/meetings/From-OAU-AU.html [https://perma.cc/2CUP-3LPN].
58 Id.
59 Id.
60 Id.
61 Id.
62 DAMBISA MOYO, DEAD AID: WHY AID IS NOT WORKING AND HOW THERE IS A
BETTER WAY FOR AFRICA 15 (2009).
63 Id. at 17–18.
64 Id. at 18.
65 Id.
66 Rasheed Alao, African Single Currency: The Great White Hope for a New Africa
(Apr. 9, 2014, 12:00 AM), http://independentnig.com/african-single-currency-greatwhite-hope-new-africa/ [https://perma.cc/KDF4-J3LD].
67 Chengetai Madziwa, Towards Economic Emancipation, from Lagos Plan of
Action to Nepad, KNOWLEDGE FOR DEV. (Oct. 2015), http://www.sardc.net/en/southernafrican-news-features/towards-economic-emancipation-from-lagos-plan-of-action-tonepad/ [https://perma.cc/UX67-ZL6S].
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African development.68 It was this new framework for development
that led to the adoption of the Abuja Treaty in 1991.69
IV. Lessons to be Learned from the European Union and the
Euro
The theoretical benefits of the African Central Bank, the African
Monetary Union, and the common currency are vast, but as we so
often see, theoretical benefits do not always translate into
measureable solutions. When analyzing the visions of the Abuja
Treaty, two questions come to mind: “Are these goals possible?”
and “Will they help?” Speculation certainly plays a role in
answering these questions, but history ought to play a role as well.
In order to envision what a single currency might look like in Africa,
let us learn from the history of the single currency in Europe, the
euro.
In order to understand the advent of the euro, one must have an
appreciation of the history of its founder, the EU. While the EU
was not created until 1993, in many ways it can trace its origins back
to World War II.70 In order to ensure economic growth, political
harmony, and lasting peace following the war, six countries—
Belgium, France, Italy, Luxembourg, the Netherlands, and West
Germany—signed the Treaty of Paris, creating the European Coal
and Steel Community (“ECSC”).71 The ECSC created a free-trade
area for several key economic and military resources.72 In 1957, the
ECSC members signed the Treaty of Rome to create the European
Economic Community (“EEC”).73 The EEC created a common
market, eliminating barriers to the movement of goods, services,
capital, and labor and creating a common external trade policy.74 In
1992, the Maastricht Treaty created the EU.75 The treaty renamed
the EEC to the European Community (EC), which became the
Id.
Alao, supra note 66.
70 See Matthew J. Gabel, European Union (EU), ENCYCLOPAEDIA BRITANNICA (July
7, 2016), http://www.britannica.com/topic/European-Union [https://perma.cc/V2JUM5AC].
71 Id.
72 Id.
73 Id.
74 Id.
75 Id.
68
69
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primary component of the new EU.76
In addition to creating the EU, the Maastricht Treaty also
specified an agenda for incorporating monetary policy into the EC
and formalized plans for a common currency, the euro, managed by
common monetary institutions.77 One of the criterions set in the
Maastricht Treaty was the requirement that to qualify for
participation in the common currency a country must have a budget
deficit not exceeding three percent of its GDP, public debt under
sixty percent of GDP, inflation rates with one and a half percent of
the three lowest inflation rates in the EU, and exchange-rate
stability.78 Those countries that qualified and chose to adopt the
euro were further required to establish a permanent exchange rate
and, after a transition period, replace their national currency with
the euro.79 In 1998, the European Central Bank (“ECB”), based on
the model of the German Central Bank, was founded.80 On January
1, 1999, eleven countries—Austria, Belgium, Finland, France,
Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal,
and Spain—adopted the euro and relinquished control over their
exchange rates.81 Greece, who did not meet these requirements, was
nonetheless admitted to the euro in 2001.82 By January 1, 2002, the
euro was introduced to the general public in all twelve of these
countries.83
The biggest threat to the euro since its inception has been the
Eurozone sovereign debt crisis of 2009.84 This economic downturn,
which began in Greece and spread to Portugal, Ireland, Italy, and
Spain, threatened the survival of the euro and, some believed, the
EU itself.85 While large bailout packages were approved for Greece,
Ireland, Portugal, Spain, and Cyprus, to bring the EU back from the
Gabel, supra note 70.
Id
78 Id.
79 Id.
80 Rolf Wenkel, Euro: Success or Failure?, BUSINECOMICS (Jan. 1, 2012),
https://busienomics.wordpress.com/2012/05/07/euro-success-or-failure-2/
[https://perma.cc/U4CP-PWS9].
81 Gabel, supra note 70.
82 Id.
83 Id.
84 Id.
85 Id.
76
77
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brink of collapse, the debt crisis exposed many shortcomings in the
regulatory framework governing the Euro Zone’s shared
economy.86 In response to the debt crisis, the EU created the
European Stability Mechanism, a permanent bailout fund.87
Whether or not the euro may be considered a “success” is
debatable; however, what is certain is the euro’s positive effect on
interest and exchange rates.88 In the first ten years of the euro,
inflation in the Germany was lower than it had ever been when the
deutschmark was its official currency.89 Despite massive debt
problems for many European countries, the euro has proven itself to
be a stable currency.90 By reducing exchange rate costs, the euro
has saved private corporations billions in transaction costs.91
European exports are booming due to the euro.92 Despite volatile
European economies over the past decade, the euro has remained
stable against the dollar and it is the world’s second most important
reserve currency after the U.S. dollar.93
V. Will the African Union and the “Afro” be Able to
Overcome the Problems that the European Union Faced?
And What New Problems Might Arise?
It is clear that a common currency had many positive effects on
the European economy and the EU. Whether or not a common
currency in Africa will produce the same positive results is another
question. The AU would be wise to learn from the history of the
euro, but also to keep in mind that Africa is a characteristically
different economy than Europe. Will Africa even be able to reach
the point of issuing a common currency? Keep in mind that the EU
had certain requirements for countries wishing to adopt the euro.94
Should Africa institute similar requirements? Also keep in mind
that the EU faced a massive debt crisis by allowing some countries,
namely Greece, to join their monetary union and to use the euro
86
87
88
89
90
91
92
93
94
Id.
Gabel, supra note 70.
Wenkel, supra note 80.
Id.
Id.
Id.
Id.
Id.
Gabel, supra note 70.
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261
without meeting the standard requirements.95 Additionally would
Africa be able to deal with a debt crisis like that faced by the EU in
2009? Lastly, will Africa benefit from a common currency in the
same way that Europe has? Does Africa even need it?
A. Sovereignty
For the AU to successfully implement a common currency, it
will have to overcome the issue of monetary sovereignty. Prior to
the advent of the euro, almost all independent nations displayed
their sovereignty through the use of a currency entirely their own.96
While the AU consists of fifty-four countries, those countries
consist of hundreds of ethnic groups.97 Will this pose a problem for
the integration of a single currency?
Once again, it may be useful to analyze how the EU dealt with
this issue of monetary sovereignty when it unified its members’
economies. When the European Monetary Union (EMU) came into
being, the exchange rates of members were irrevocably fixed, and
the monetary policy of the union was under the control of the ECB.98
This signified a major change, at least in Europe, in attitudes
towards monetary sovereignty.99 The EMU signified that countries
were willing to sacrifice sovereignty in the field of its own money
in exchange for its share of sovereignty in the direction of the
ECB.100 It should be noted that the adoption of a single currency is
not strictly necessary to the creation of a monetary union.101 The
right to produce a national currency has been a hallmark of legal
sovereignty for centuries.102 Despite this tradition, after the creation
of the EMU, the switch to a common currency after the creation of
the EMU seemed to face little opposition.103
Id.
Robert A. Mundell, Monetary Unions and the Problem of Sovereignty, 579
ANNALS AM. ACAD. POL. SCI. 123, 128 (2002).
97 Member
States
of
the
AU,
AFRICAN
UNION,
http://www.au.int/en/AU_Member_States [https://perma.cc/334Y-3XBZ] (last visited
Jan. 8, 2017).
98 Mundell, supra note 96, at 126.
99 Id. at 127.
100 Id.
101 Id. at 127
102 Id. at 126.
103 Id.
95
96
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Taking what we have learned from Europe, it appears that once
a monetary union is established, sovereignty becomes less of a
roadblock to implementing a single currency.104 If this holds true
for Africa, it seems very likely that the members of the AU would
be willing to adopt a common currency. Of the five monetary
unions that are envisioned under the Abuja Treaty, two are already
in existence—WAEMU and CAEMC.105 The two unions consist of
fourteen countries collectively and maintain the same currency, the
CFA franc.106 The fact that monetary unions and common
currencies are not a completely foreign concept to the AU will be
extremely beneficial in overcoming any issues of monetary
sovereignty. In light of this, it is likely that sovereignty will not
prevent the implementation of a common currency in the AU.
B. Maastricht Criteria
As mentioned earlier, the Maastricht Treaty set out strict
requirements for countries seeking to use the euro.107 However, the
Eurozone relaxed those criteria, and countries like Greece, that did
not meet the initial criteria, were allowed to use the euro.108 History
has cast doubt on the prudence of this decision, as Greece has faced
financial woes time and time again.109 Theo Waigel, former German
finance minister, said that Greece should never have been allowed
in the monetary union.110 As Greece is now on the verge of default
and an exit from the Eurozone, it seems that much can be learned
from the European Union’s growing pains.111
Afrozone membership ought to have membership criteria
similar to the Maastricht Criteria. However, because Africa has its
own unique economies, it ought not blindly follow the criteria of the
Maastricht Treaty.112 Instead the Afrozone criteria should focus on
Mundell, supra note 96, at 127.
Background
Information,
INT’L
https://www.imf.org/external/pubs/ft/fabric/backgrnd.htm
N4BA] (last visited Jan. 8, 2017).
106 Id.
107 Gabel, supra note 70.
108 Id.
109 See id.
110 Wenkel, supra note 80.
111 Brackemyre, supra note 54.
112 Id.
104
105
MONETARY
FUND,
[https://perma.cc/8BKD-
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N.C. J. INT'L L.
263
things such as growth, inflation, and unemployment rates.113 If the
AU can slowly integrate countries that meet the criteria and are
ready for monetary union, it stands a better chance of avoiding a
situation like Greece, and it has a better chance of reaching
economic and political unity.114
C. What Significance Does “Brexit” Hold for the African
Union?
On June 23, 2016, the people of the United Kingdom by virtue
of a referendum voted to leave the European Union.115 Britain’s exit
from the EU, colloquially known as “Brexit,” left much of the world
in shock as global stock prices plummeted in response to this
unprecedented, and largely unanticipated, occurrence.116 As Africa
becomes more economically and politically integrated, what
significance does an occurrence such as Brexit have to the AU?
Brexit is a stark reminder of the risks and challenges associated
with a shared political and economic sphere.117 It is almost certain
that many of the same issues that led to Brexit, debates over debt,
immigration, and national identity, will arise as points of contention
among the member states of AU.118 Additionally, it is not
unthinkable to assume that discord over these issues may even be
magnified under the weight of Africa’s industrialization,
insufficient access to education and healthcare, and ongoing
conflicts over resources and identity.119
VI. Foreign Direct Investment and the Sustainable Development
Id.
See generally id. (arguing that Africa needs the flexibility of regional and national
policymaking to further monetary development).
115 Brian Wheeler & Alex Hunt, Brexit: All You Need to Know About the UK Leaving
the EU, BRIT. BROADCASTING CORP. (Aug. 10, 2016), http://www.bbc.com/news/ukpolitics-32810887 [https://perma.cc/649S-9TE8].
116 Charles Riley & Heather Long, Brexit Shock Vote: What You Need to Know, CNN
MONEY
(June
24,
2016,
4:04
PM),
http://money.cnn.com/2016/06/24/news/economy/brexit-uk-european-union-vote/
[https://perma.cc/V6MC-DJFA].
117 Anne Frugé, The Opposite of Brexit: African Union Launches An All-Africa
Passport, WASH. POST (July 1, 2016), https://www.washingtonpost.com/news/monkeycage/wp/2016/07/01/the-opposite-of-brexit-african-union-launches-an-all-africapassport/ [https://perma.cc/Y8J6-KJMM].
118 Id.
119 Id.
113
114
264
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Goals
FDI is often viewed as an essential component in development
because of its contributions in terms of investment, employment,
and foreign exchange.120 Research has found FDI to be a significant
catalyst for output and trade in developing countries, due in part to
a major expansion in the scope of global value chains.121 It also
delivers a number of important contributions to economic
development in terms of investment, employment, and foreign
exchange.122 Regional economic integration is vital to attracting
FDI as it provides a common FDI policy regime and a single
integrated market for trade and investment.123
As mentioned earlier, the adoptions of the Lagos Plan of Action
marked the beginning of efforts towards economic integration in
Africa.124 As a result, Africa saw a large increase in the number of
regional economic integration organizations (“REIOs”).125
However, despite the proliferation of these REIOs, their impact on
attracting FDI has been limited.126 Studies on these REIOs have
revealed three main issues that have contributed to their
ineffectiveness in attracting FDI.127 First, the majority of these
REIOs are poorly organized.128 This disorganization has manifested
itself in inadequate payment of member contributions, low
implementation of programs, duplication or implementation of
conflicting programs and lows attendance at meetings.129 Second,
120 THE WORLD BANK, MAKING FOREIGN DIRECT INVESTMENT WORK FOR SUBSAHARAN AFRICA 7 (Thomas Farole & Deborah Winkler eds., 2014),
https://openknowledge.worldbank.org/bitstream/handle/10986/16390/9781464801266.pd
f?sequence=1 [https://perma.cc/9ZLY-3WYJ].
121 Id.
122 Id.
123 U.N., Trade & Dev. Board, Inv., Enter. & Dev. Comm’n., Regional Integration
and Foreign Direct Investment in Developing and Transition Economies, U.N. Doc.
TD/B/C.II/MEM.4/2.
3.
(Dec.
3,
2012),
http://unctad.org/meetings/en/SessionalDocuments/ciimem4d2_en.pdf
[https://perma.cc/F5ZC-U5M7] [hereinafter Regional Integration and Foreign Direct
Investment].
124 Id. at 6.
125 Id.
126 Id.
127 Id.
128 Id.
129 Regional Integration and Foreign Direct Investment, supra note 123, at 6.
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there is limited coverage of investment issues.130 Investment issues
often take lower priority than issues of peace and security, free
movement of persons, goods, capital, and services, agriculture, and
infrastructure and energy.131 Lastly, there has been a general lack
of progress in practical implementation among many REIOs.132
Often times, proposed plans are overly ambitious and as a
consequence the formation of free trade areas and customs unions
has not always been fully implemented and deadlines have often
been missed.133
A pan-African REIO, like the African Economic Community
envisioned in the Abuja Treaty, might solve many of these issues
that have plagued individual REIOs.134 While progress towards the
AEC and the goals of the Abuja Treaty has been volatile, there is
still reason to be optimistic. In 2015, the SDGs were adopted to
replace the expiring Millennium Development Goals (“MDGs”).135
Could the Sustainable Development Goals lead to increased FDI in
Africa and ultimately the realization of the Abuja Treaty goals?
A. Sustainable Development Goals
The SDGs represent a concerted effort to shift the global
economy onto a more sustainable trajectory of long-term growth
and development.136 They are not primarily oriented with specific
economic, social or environmental issues, but rather aim to put in
place policies, institutions and systems necessary to generate
sustainable investment and growth.137 The SDGs offer an
opportunity to increase FDI that target’s Africa’s major needs.138
The SDGs focus on seventeen goals of development; those that are
most pertinent to economic growth and foreign direct investment
are boosting infrastructure, creating transparent institutions free of
Id.
Id.
132 Id. at 7.
133 Id.
134 Id.
135 U.N. CONF. ON TRADE & DEV., WORLD INVESTMENT REPORT 2014 – INVESTING IN
THE
SDGS:
AN
ACTION
PLAN
136
(2014),
http://unctad.org/en/PublicationsLibrary/wir2014_en.pdf [https://perma.cc/FJG2-9JKF].
136 Id.
137 Id.
138 Id. at 44.
130
131
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REALIZING ECONOMIC INTEGRATION IN AFRICA
[Vol. XLII
corruption, and addressing health challenges.139
1. Infrastructure
A major benefit of FDI is what some refer to as “spillover
potential.”140 Spillover is the productivity gain resulting from the
diffusion of knowledge and technology from foreign investors to
local firms and workers, and can lead to lasting growth and
development in the long-run.141 However, certain steps must be
taken to attract FDI and encourage spillover.142 Many of the
governments of developing nations in Africa will need to build
capacity in their own institutions in order to implement spillover
policy effectively.143 An important part of taking advantage of
spillover will be upgrading domestic delivery capacity, particularly
in terms of the national quality infrastructure, technology transfer
offices, and vocational training.144
Unsurprisingly, multinational corporations prefer to operate
their business enterprises in countries with well-established,
developed infrastructures.145 Among those aspects of infrastructure
that are most important to encouraging FDI are adequate roads, rail
networks, uninterrupted power and water supply, and sea ports and
international airports.146 Additionally, modern communications and
Internet access are becoming increasingly important as
infrastructure considerations.147
In addition to those factors listed above that are traditionally
considered as infrastructure, government infrastructure is also
essential to attracting FDI.148 Government infrastructure refers to a
139 Sustainable
Development
Goals,
UNITED
NATIONS
http://www.un.org/sustainabledevelopment/sustainable-development-goals/
[https://perma.cc/L59X-R4JT] (last visited Jan. 8, 2017).
140 Mundell, supra note 96, at 125.
141 Id.
142 Id.
143 Id., at 276.
144 Id. at 276–77.
145 Mumtaz Hussain, The Significance of Intrastructure for FDI Inflow in Developing
Countries, J. LIFE ECON. 4 (Feb. 2014), http://www.jlecon.com/Makaleler/1723946088_1Mumtaz%20Hussaın%20SHAH.pdf [https://perma.cc/J84T-64JH].
146 Id.
147 Id.
148 World Economy Infrastructure & FDI, YUMPU, https://www.yumpu.com/
en/document/view/27146743/infrastructure-amp-fdi-department-of-economics-texas-
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N.C. J. INT'L L.
267
country’s political, institutional, and legal environment.149 This
includes legislation, regulation, and a legal system that governs the
freedom of transaction, defines and protects property rights, and
supports sound and transparent legal processes.150 Not only can a
strong government infrastructure attract FDI, but it can also foster
an environment for the creation of domestic Multinational
Enterprises (“MNEs”) that can in turn invest abroad.151 Benefits
from this sort of infrastructure improvement are particularly
noticeable in small developing countries.152 Conversely, countries
that fail to achieve a sufficient government infrastructure are
unlikely to receive any substantial form of FDI.153
While there is some disagreement as to whether it is more
important to focus on bolstering traditional infrastructure versus
government infrastructure, or vice versa, there is agreement, almost
universally, that a strong infrastructure is essential to attracting
FDI.154
2. Corruption
Another factor that weighs heavily on attracting FDI is good
governance in the public and private sectors.155 Governance is a set
of processes, policies, laws, behaviors, and institutions that affect
the manner in which power is exercised in the management of a
country’s economic, financial, and social resources.156 The African
Development Bank took serious efforts to improve governance by
aampm-university [https://perma.cc/X985-UWZQ] (last visited Jan. 8, 2017).
149 Id.
150 Id.
151 Id.
152 Id.
153 Id.
154 Julian Donaubauer et al., The Crucial Role of Infrastructure in Attracting FDI 1
(Columbia FDI Persp., Paper No. 133, 2014), https://www.ciaonet.org/catalog/33559
[https://perma.cc/9XDV-P8UW].
155 See Governance, Economic and Financial Management Department (OSGE),
Governance Strategic Framework and Action Plan (GAP II) (2014 – 2018): Promoting
Good Governance and Accountability for Africa’s Transformation, AFRICAN DEV. BANK
GRP. 1, http://www.afdb.org/fileadmin/uploads/afdb/
Documents/Policy-Documents/2014-2018_-_Governance_Strategic_Direction
_and_Action_Plan__GAP_II_Draft_Report_for_External_Consultation.pdf
[https://perma.cc/Z43T-9FS5] [hereinafter OSGE].
156 Id.
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implementing its Governance Strategic Direction and Action Plan
(“GAP I”) from 2008-2012.157 The goals of GAP I were two fold.158
Its aims were to strengthen the policies and institutions aimed at
bolstering transparency and accountability in the management of
Africa’s public finance and to improve the investment and business
climate in Africa for private sector-led growth.159 Following the
expiration of GAP I, the African Development Bank adopted the
GAP II to operate from 2014-2018.160 GAP II envisions an African
continent governed by transparent, accountable, and responsive
governments, with solid institutions capable of driving sustainable
growth.161 The three core objectives of GAP II are as follows: (1)
strengthening governments’ capacity for transparent and
accountable use of public resources and citizen’s ability to hold
governments accountable; (2) improving outcomes in the sectors
and citizens’ ability to monitor them; and (3) promoting a business
enabling environment to support Africa’s socioeconomic
transformation, job creation, and financial inclusion.162 One theme
that has carried over from GAP I to GAP II is that of reducing
corruption in both the public and private sectors.163
GAP II is also concerned with improving corporate governance
throughout Africa.164 Distrust lies at the heart of many corporate
governance issues.165 For example, in recent years many African
corporations have failed to properly disclose all material
information that is required of them by international standards.166
The Summary of Progress Report on Corporate Governance in
Africa observed that “[t]he challenge is to convince corporations
that disclosure is an asset, rather than a burden, but this impediment
Id. at viii.
Id.
159 Id.
160 Id.
161 OSGE, supra note 155.
162 Id. at iv–v.
163 Id. at ix.
164 Id.
165 See African Development Bank: Corporate Governance Strategy, AFRICAN DEV.
BANK 4 (Jul. 2007), http://www.afdb.org/fileadmin/
uploads/afdb/Documents/Generic-Documents/003_CG%20STRAT.CLEAN.REVSJMB.PDF [https://perma.cc/D5L8-P6AH].
166 Id.
157
158
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269
will remain so as long as corporations continue to suspect that
disclosure of information may be used in a manner perceived as
discretionary by the authorities.”167 Interestingly enough, the
banking sectors of many African countries have conformed to
international guidelines, including the Basel I and II Guidelines,
which have positively affected corporate governance in the banking
sector.168 Many think that the banking sector will be a key leverage
point for mainstreaming corporate governance across other sectors
of African economies.169 In order to improve corporate governance,
the African Development Bank believes that three key players must
be targeted: “(i) government organizations and regional economic
institutions [(‘RECs’)]; (ii) financial intermediaries; and (iii)
corporations, particularly state-owned enterprises [(‘SOEs’)] and
small and medium-sized enterprises [(‘SMEs’)].”170
Countries without a strong legal framework are not only
susceptible to corruption, but also face simpler problems involving
enforcement.171 The laws of a country are of little importance if they
are not enforced. This lack of legal enforcement has been a huge
deterrent to multinationals investing in developing countries.172
This problem often manifests itself in contract enforcement.173
Foreign investors in both the agribusiness and mining sections
identified contract enforcement as a significant barrier to
developing working relationships with local suppliers.174 In a
business, such as mining, the limited ability to take legal action
against suppliers in a case of breach of contract makes “it
unmanageable to source many higher value-added inputs from local
markets.”175
3. Health Challenges
While this comment cannot adequately address the scope of the
167
168
169
170
171
Id.
Id. at 6.
Id.
Id. at 2.
African Development Bank: Corporate Governance Strategy, supra note 165, at
6.
172
173
174
175
Id. at 1.
See THE WORLD BANK, supra 120, at 259.
Id.
Id.
270
REALIZING ECONOMIC INTEGRATION IN AFRICA
[Vol. XLII
health challenges that Africa faces, it would be foolish to overlook
the importance of good health and well-being in economic
development. Certainly, a person cannot contribute in any
meaningful way to their country’s economy if they, and those
around them, are stricken with disease.
To keep this discussion within the purview of FDI, it will be
helpful to look at how recent health issues have affected FDI
inflows. The 2015 World Investment Report noted that the FDI
flows to West Africa declined by ten percent.176 This dramatic
decrease is largely attributable to the outbreak of the Ebola virus,
which left over 10,000 African people dead.177 In those countries
that were affected by Ebola, many companies either closed or
suspended their expansion.178 But Ebola is not the only health
challenge that Africa faces.179 As of 2013, sub-Saharan Africa was
home to seventy percent of all new HIV infections.180 Additionally,
malaria kills roughly 660,000 people each year in Africa.181
Economists believe that malaria alone is responsible for a growing
penalty of up to 1.3% in some African countries.182 Any
development strategy that is going to produce economic growth
clearly must address these health issues.
Expanding on the objectives set by the MDGs, the SDGs set an
ambitious agenda to tackle many of the health issues plaguing the
developing world.183 One such objective is to end the epidemics of
AIDS, tuberculosis, malaria, water-borne diseases, and other
176 U.N. CONFERENCE ON TRADE AND DEV., WORLD INVESTMENT REPORT 2015, at 3
(2015) [hereinafter WIR 2015].
177 Id.; see also 2014 Ebola Outbreak in West Africa – Case Counts, CTR. FOR DISEASE
CONTROL,
http://www.cdc.gov/vhf/ebola/outbreaks/2014-west-africa/case-counts.html
[https://perma.cc/8QZD-SL23].
178 WIR 2015, supra note 176, at 34 (noting that in Sierra Leone, Africa Minerals
closed its flagship mine Tonkolili, and in Liberia, ArcelorMiital suspended an iron
expansion projects after contractors moved staff out of the country).
179 WORLD BANK: DISEASE IS A PREVENTABLE CAUSE OF POVERTY,
http://www.worldbank.org/mdgs/diseases.html [https://perma.cc/HES3-D94K].
180 Id.
181 Id.
182 Id.
183 Goal 3: Ensure Healthy Lives and Promote Well-being for All at All Ages, UNITED
NATIONS, http://www.un.org/sustainabledevelopment/health/ [https://perma.cc/T5XNK74N].
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271
communicable diseases by 2030.184 Another goal is to strengthen
the capacity of all countries in the areas of early warning, risk
reduction, and management of national and global health risks.185
Whether or not these goals are realistic and the lengths that it would
take to achieve them are a topic for another paper; what is salient
here is that economic development does not occur in a vacuum and
for sustainable development to occur, good health must be a
priority.
VII. A Cause for Optimism
Africa has endured countless hardships and barriers to
development, and recently this endurance has started to pay its
dividends. In June of 2015, African Heads of Government met at
the 25th Summit of the AU and agreed to the creation of the
Continental Free Trade Area (“CFTA”), a central component of the
Abuja Treaty.186 With a project implementation date of 2017, the
CFTA presents major opportunities to boost intra-African trade,
thus improving African productivity and competitiveness
globally.187 While the CFTA is still in planning phases, the
Tripartite Free Trade Area represents concrete progress towards
accomplishing continent-wide free trade.188 Even more recently, the
AU announced plans to implement a pan-African passport, issuing
the first passports as soon as July of 2017 and making the passports
available throughout the continent by 2020.189
Id.
Id.
186 The Continental Free Trade Area: Making It Work for Africa, U.N. CONF. ON
TRADE
&
DEV.,
http://unctad.org/en/pages/newsdetails.aspx?
OriginalVersionID=1158&Sitemap_x0020_Taxonomy=UNCTAD%20Home
[https://perma.cc/A8YV-S7ZB].
187 Id.
188 Soamiely Andriamananjara, Understanding the Importance of the Tripartite Free
Trade Area, BROOKINGS (June 17, 2015), https://www.brookings.edu/blog/africa-infocus/2015/06/17/understanding-the-importance-of-the-tripartite-free-trade-area/
[https://perma.cc/CQJ3-8VN8] [hereinafter Tripartite].
189 Press Release, African Union, African Union Set to Launch e-Passport at July
Summit in Rwanda (June 13, 2016), http://au.int/en/pressreleases/30770/african-unionset-launch-e-passport-july-summit-rwanda [https://perma.cc/9QE8-FU8X] [hereinafter ePassport].
184
185
272
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[Vol. XLII
A. The Tripartite Free Trade Area
On June 10, 2015, the Tripartite Free Trade Area (“TFTA”) was
signed into law in Cairo, Egypt.190 The TFTA brings together three
of Africa’s major RECs—SADC, EAC, and COMESA.191
Twenty-six countries agreed to the TFTA, representing fortyeight percent of the AU membership, fifty-one percent of
continental Gross Domestic Product (“GDP”), and a combined
population of 632 million.192
While the establishment of the TFTA is significant for many
reasons, perhaps most significant of all is what the agreement
suggests about the future of a common market in Africa. First of
all, the TFTA demonstrates that twenty-six heterogeneous African
nations are willing to undergo such collective action.193
Additionally, it shows the feasibility of harmonizing three very
different preferential trade regimes into one unified system.194
The TFTA is a major step toward the continental free trade zone
envisioned by the Abuja Treaty. However, some trade experts
believe that a 2017 implementation date is unrealistic.195 Trudi
Hartzenberg, director of the Stellenbosch, South Africa-based
Tralac Trade Law Center, said in an interview, “The indicative date
is really a political decision, but realistically the negotiation will
take much longer . . . what may be possible is some kind of
framework agreement by 2017, and then the more detailed
provisions on specific substantive issues will take much longer.”196
Among other reasons, Hartzenberg cites a lack of impetus to
liberalize import tariffs, slow regulatory reforms and
harmonization, and countries’ reluctance to enter into investment
protection agreements as to why a 2017 implementation date is
190 Sara Canals, Toward a Unified African Market, S. SUDAN NEWS AGENCY (Jan. 21,
2016),
http://www.southsudannewsagency.com/opinion/articles/towards-a-unifiedafrican-market [https://perma.cc/N99B-85YB].
191 Tripartite, supra note 188.
192 David Luke & Zodwa Mabuza, The Tripartite Free Trade Area Agreement: A
Milestone for Africa’s Regional Integration Process, 4 BRIDGES AFR. 6 (2015).
193 Id.
194 Id.
195 Rene Vollgraaf, Africa Free-Trade Bloc Implementation Date May Be Too
Optimistic,
BLOOMBERG
LAW
(Dec.
15,
2015,
6:45
PM),
http://www.bloomberg.com/news/articles/2015-12-15/africa-free-trade-blocimplementation-date-may-be-too-optimistic [https://perma.cc/34LK-6JE4].
196 Id.
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unlikely.197 While some trade experts remain skeptical about the
implementation date of the CFTA, the optimism of the AU is
understandable and well deserved.198
B. The Pan African Passport
In addition to the unrestricted movement of goods and services
across the continent, the unrestricted movement of people was also
envisioned in the Abuja Treaty.199 This vision came one step closer
to realization when, on June 13, 2016, the AU announced its plan to
launch a single African Passport.200 This single passport permits
any citizen of an AU member state to enter any of the other fiftyfour states, without a visa.201 The first issue of these passports was
distributed in July of 2016 at the twenty-seventh AU Summit in
Kigali; the current plan is to have these passports available for all
African citizens by 2020.202 This Pan-African passport is a step
toward essentially eliminating borders, allowing for increased trade
and travel.203
VIII. Conclusion
There is some need for urgency. Africa is in the midst of a
population explosion.204 Projections estimate that by 2050 the
population of Africa will double to roughly 2.5 billion people.205 If
this pattern holds, when the century closes out, forty percent of the
world’s population will be African.206 As one author put it, Africa
Id.
Canals, supra note 190.
199 e-Passport, supra note 189.
200 Anne Frugé, The Opposite of Brexit: African Union Launches an All-Africa
Passport, WASH. POST (July 1, 2015), https://www.washingtonpost.com/
news/monkey-cage/wp/2016/07/01/the-opposite-of-brexit-african-union-launches-an-allafrica-passport/ [https://perma.cc/K5HL-5LC5].
201 Id.
202 Id.
203 Id.
204 Drew Hinshaw, Promise of Youth: For a Growing Africa, Hope Mingles with Fear
of the Future, WALL ST. J. (Nov. 27, 2015, 9:01 AM), http://www.wsj.com/articles/for-agrowing-africa-hope-mingles-with-fear-of-the-future-1448632865
[https://perma.cc/S8XZ-WD2P].
205 Id.
206 Id.
197
198
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REALIZING ECONOMIC INTEGRATION IN AFRICA
[Vol. XLII
will be the next “emerging giant, or giant emergency.”207
There are many reasons to believe that Africa’s growing
population will be beneficial.208 By and large, the population of the
world is aging; by 2050 nearly a fourth of the people on earth will
be over sixty years of age, compared with just an eighth now.209 By
comparison, projections show that by 2050, the average African will
be twenty-eight years old.210 Africa is experiencing a baby boom
and will soon become the world’s most reliable source of new life:
college graduates, workers, and consumers.211 However, as it
stands, Africa’s population has been growing faster than its
governments and economies have developed.212
For Africa to harness the potential of its greatest resource,
human capital, it must continue to develop at a more rapid pace.
The visions of the Abuja Treaty are ambitious, but there is ample
reason to believe that they are attainable. Development is an
evolving concept that sometimes must be learned through trial and
error. With the recent establishment of the TFTA and the passing
of the SDGs, new life has been breathed into the goals of the Abuja
Treaty. Much can be learned from the establishment of the EU and
the euro. If Africa is going to achieve economic integration, strict
adherence to guidelines for entry must be observed; the EU’s
struggles with Greece are a testament to this. Additionally,
attracting FDI must be a priority as it provides access to streams of
commerce and global value chains that Africa would not have
access to otherwise. Combining the goals of the Abuja Treaty with
the vision of the SDGs is the sort of thinking that Africa will need
if it hopes to achieve continental economic integration.
207
208
209
210
211
212
Id.
Id.
Id.
Hinshaw, supra note 204.
Id.
Id.