Central Africa: Nkafu Policy Advocates Rationalization of Regional Economic Communities to Enhance Mobility of Production Factors

Established in 1983 to create a regional framework that could eventually lead to a common market, the Economic Community of Central African States (ECCAS) has not performed well in more than four decades of integration. This poor performance is largely a consequence of state members' lack of commitment and failure to pay agreed financial quotas, owing to their adhesion to other Regional Economic Communities (RECs).

Amongst the eleven countries that formed ECCAS, six countries (Cameroon, Central African Republic, Chad, Congo Republic, Equatorial Guinea, and Gabon) belong to the Economic and Monetary Community of Central Africa (CEMAC) created in 1994 and three countries (Rwanda, Burundi and São Tomé and Príncipe) belong to the Economic Community of Great Lakes Countries (ECGLC) established in 1976. 

To investigate these phenomena, the Nkafu Policy Institute of the Denis and Lenora Foretia Foundation conducted in-depth research to propose evidence-based recommendations that foster regional integration. Focusing on "The Mobility of Factors of Production in the Economic Community of Central African States", findings resulting from this research underscored among other things, that ECCAS is lagging due to poor infrastructures, a predominant informal sector, restrictive immigration policies which all concur to limiting the mobility of production factors.

It was observed about the openness to visas, that the Central Africa region has the lowest score (0.297) of the existing eight RECs in Africa (AfDB, 2023). In addition, the state of governance in the region has fostered the exacerbation of corruption, leading to inter-tribal as well as international conflicts, leaving hundreds of thousands of internally displaced persons in dire need of humanitarian assistance. Consequently, human rights, including women’s rights, accountability and security concerns have persistently deteriorated the business climate within the region. 

According to Dr Jean-Cedric Kouam, Director of Economic Affairs at the Nkafu Policy Institute, "accelerating the rationalization of regional economic communities is the ultimate means of boosting regional integration process in Central Africa today. Such an initiative will not only improve the mobility of people and goods but also put the region on the path to sustained and inclusive growth".

In this regard, the Central Africa Steering Committee (COPIL/CER-AC) for the rationalization of Central Africa’s regional economic community convened for its 6^th meeting last June 2024 in Yaoundé, highlighted the need to set up regional institutions that will increasingly empower the region in diverse sectorsand further boost the free movement of goods and services. Considering World Bank statistics (2020) stating women own close to 30% of businesses, the underlying question according to the Nkafu Policy Institute is to know if a greater involvement of women can foster intra-regional trade.

According to the African Development Bank Group (2021), trade within the sub-region represents less than 3% of total trade in Africa. Research findings however clearly established that women entrepreneur has great potential to increase the volume of intra-community trade if provided with equal facilities such as access to loans and land ownership, as their male counterparts.

To curb obstacles facing the mobility of production factors, a major recommendation was given to accelerate the rationalization of Regional Economic Communities to make the common market effective and further leverage women entrepreneurship, peace & security, and good governance to boost intra-community.

About the Denis and Lenora Foretia Foundation 

The Denis & Lenora Foretia Foundation was established to catalyze Africa’s economic transformation by focusing on social entrepreneurship, science and technology, innovation, public health, and progressive policies that create economic opportunities for all. The foundation works in partnership with local governments, policymakers, private enterprises, civil society organizations as well as development partners to expand the resources available to entrepreneurs, farmers, and small business owners in addition to improving individual livelihoods.

About the Nkafu Policy Institute

The Nkafu Policy Institute is a Think Tank within the Foundation that focuses on using independent analysis to inform public debate. Its mission is to advance public policies that help all Africans prosper in free, fair, and democratic economies. The Institute has distinguished itself as a leading research centre in Cameroon, committed to promoting open debate that builds consensus toward a democratic future.