By Hon. Prof. Kariuki Muigua, OGW, PhD, C.Arb, FCIArb is a Professor of Environmental Law and Dispute Resolution at the University of Nairobi, Member of Permanent Court of Arbitration, Leading Environmental Law Scholar, Respected Sustainable Development Policy Advisor, Top Natural Resources Lawyer, Highly-Regarded Dispute Resolution Expert and Awardee of the Order of Grand Warrior (OGW) of Kenya by H.E. the President of Republic of Kenya. He is The African ADR Practitioner of the Year 2022, The African Arbitrator of the Year 2022, ADR Practitioner of the Year in Kenya 2021, CIArb (Kenya) Lifetime Achievement Award 2021 and ADR Publisher of the Year 2021 and Author of the Kenya’s First ESG Book: Embracing Environmental Social and Governance (ESG) tenets for Sustainable Development” (Glenwood, Nairobi, July 2023) and Kenya’s First Two Climate Change Law Book: Combating Climate Change for Sustainability (Glenwood, Nairobi, October 2023), Achieving Climate Justice for Development (Glenwood, Nairobi, October 2023) and Promoting Rule of Law for Sustainable Development (Glenwood, Nairobi, January 2024)*
In addition to the AfCFTA, Regional Economic Communities (RECs) s in Africa have played a pivotal role in strengthening intra-African trade. Africa boasts several RECs and intergovernmental organizations including the Arab Maghreb Union (UMA); the Common Market for Eastern and Southern Africa (COMESA); the Community of Sahel-Saharan States (CEN-SAD); the East African Community (EAC); the Economic Community of Central African States (ECCAS); the Economic Community of West African States (ECOWAS); the Intergovernmental Authority on Development (IGAD) and the Southern African Development Community (SADC).
According to the African Union, the purpose of the RECs is to facilitate regional economic integration between members of the individual regions and the wider African continent. RECs have played a major role in strengthening intra-African trade. For example, COMESA established a Free Trade Area in 2000, setting the stage for the reduction of tariffs amongst member states. As a result, intra COMESA trade has grown at an average of seven per cent with higher increases reflected between intra-Free Trade Area States. It has also been pointed out that SADC has made tremendous achievements in a number of areas of regional cooperation and integration notably, in the areas of governance, democracy, peace and security; infrastructure and services; trade, industry, finance and investment; food, agriculture and natural resources; and social and human development.
The EAC has also seen a growth of regional trade with EAC trade value being recorded at $10.17 billion representing a 20% share of Intra- trade to global trade. According to the EAC, imports of locally available goods into the region; such as meat, furniture and textiles, have been attracting a tariff of 35 percent a move which aims at promoting local production, value addition and industrialization. It is therefore evident that there has been some progress towards strengthening intra-African trade. However, despite this progress, it has been pointed out that presently, intra-Africa trade stands low at just approximately 14.4% of total African exports.
Reports further indicate that intra-continental trade constitutes less than 14% of Africa’s total trade, in comparison to 66.9% in Europe, 63.8% in Asia & Oceania, and 44.4% in the Americas. It has been argued that the dependence on external markets leaves the continent highly exposed to crises and shocks in other parts of the world, as showcased by the impact of COVID-19 and the ongoing Russia-Ukraine war. In addition, it has been asserted that while there is huge potential to increase intra-Africa trade, the composition of Africa’s world imports and exports does not match sufficiently to trigger a process of import substitution away from the rest of the world.
Further, it has been asserted that efforts to promote regional integration have reduced tariff protections, but despite significant progress, intraregional traders still face high tariffs. It has further been argued that nontariff measures are potentially more trade restrictive than tariffs therefore hindering the growth of intra-African trade. In addition, it is contended that low performance in trade facilitation indicators is also hampering the development of trade and the economy in the region. For example, it has been pointed out that many African countries score low in ecommerce, linear shipping connectivity and doing business indicators. This has been attributed to several causes including small, fractured and partly isolated markets in the Continent.
UNCTAD posits that many African countries resorted to development strategies after gaining independence that included the establishment of RECs. However, several RECs have overlapping memberships and seem to complicate instead of facilitating trade relationships among the African countries. The African Union Action Plan for Boosting Intra-African Trade further notes that the growth of intra-African trade is constrained by a number of factors including differences in trade regimes; restrictive customs procedures, administrative and technical barriers; limitations of productive capacity; inadequacies of trade‐related infrastructure, trade finance, and trade information; lack of factor market integration; and inadequate focus on internal market issues. It is important to address these challenges in order to strengthen intra-African trade.
*This is an extract from the Book: Promoting Rule of Law for Sustainable Development (Glenwood, Nairobi, January 2024) by Hon. Prof. Kariuki Muigua, OGW, PhD, Professor of Environmental Law and Dispute Resolution, Senior Advocate of Kenya, Chartered Arbitrator, Kenya’s ADR Practitioner of the Year 2021 (Nairobi Legal Awards), ADR Lifetime Achievement Award 2021 (CIArb Kenya), African Arbitrator of the Year 2022, Africa ADR Practitioner of the Year 2022, Member of National Environment Tribunal (NET) Emeritus (2017 to 2022) and Member of Permanent Court of Arbitration nominated by Republic of Kenya. Prof. Kariuki Muigua is a foremost Environmental Law and Natural Resources Lawyer and Scholar, Sustainable Development Advocate and Conflict Management Expert in Kenya. Prof. Kariuki Muigua teaches Environmental Law and Dispute resolution at the University of Nairobi School of Law, The Center for Advanced Studies in Environmental Law and Policy (CASELAP) and Wangari Maathai Institute for Peace and Environmental Studies. He has published numerous books and articles on Environmental Law, Environmental Justice Conflict Management, Alternative Dispute Resolution and Sustainable Development. Prof. Muigua is also a Chartered Arbitrator, an Accredited Mediator, the Managing Partner of Kariuki Muigua & Co. Advocates and Africa Trustee Emeritus of the Chartered Institute of Arbitrators 2019-2022. Prof. Muigua is a 2023 recipient of President of the Republic of Kenya Order of Grand Warrior (OGW) Award for his service to the Nation as a Distinguished Expert, Academic and Scholar in Dispute Resolution and recognized among the top 5 leading lawyers and dispute resolution experts in Band 1 in Kenya by the Chambers Global Guide 2022 and was listed in the Inaugural THE LAWYER AFRICA Litigation Hall of Fame 2023 as one of the Top 50 Most Distinguished Litigation Lawyers in Kenya and the Top Arbitrator in Kenya in 2023.
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