African Economic Community


The African Economic Community is an organization of African Union states establishing grounds for mutual economic development among the majority of African states. The stated goals of the organization include the creation of free trade areas, customs unions, a single market, a central bank, and a common currency thus establishing an economic and monetary union.

Pillars

Currently there are multiple regional blocs in Africa, also known as Regional Economic Communities, many of which have overlapping memberships. The RECs consist primarily of trade blocs and, in some cases, some political and military cooperation. Most of these RECs form the "pillars" of AEC, many of which also have an overlap in some of their member states. Due to this high proportion of overlap it is likely that some states with several memberships will eventually drop out of one or more RECs. Several of these pillars also contain subgroups with tighter customs and/or monetary unions of their own:
These pillars and their corresponding subgroups are as follows:
PillarsSubgroups
Community of Sahel-Saharan States
Common Market for Eastern and Southern Africa
East African Community
Economic Community of Central African States Economic and Monetary Community of Central Africa
Economic Community of West African States West African Economic and Monetary Union
West African Monetary Zone
Intergovernmental Authority on Development
Southern African Development Community Southern African Customs Union
Arab Maghreb Union

Pillar membership



1 The Arab Maghreb Union does not participate in the AEC so far, because of opposition by Morocco

Other blocs

Other African regional blocs, not participating in the AEC, are the following.
Their membership is as follows:
GAFTA 1CEPGLCOILGAMRU
2005 membership:
Joined later:
  • 2009:
1976 membership:
    		• 1984 membership:
    		• 1970 membership:
    		• 1973 membership:
    • Joined later:
    • 1980:
    • 2008:
    1 Only African GAFTA members are listed.
    GAFTA and MRU are the only blocs not currently stalled.

    Goals

    The AEC founded through the Abuja Treaty, signed in 1991 and entered into force in 1994
    is envisioned to be created in six stages:
    1. Creation of regional blocs in regions where such do not yet exist
    2. Strengthening of intra-REC integration and inter-REC harmonisation
    3. Establishing of a free trade area and customs union in each regional bloc
    4. Establishing of a continent-wide customs union
    5. Establishing of a continent-wide African Common Market
    6. Establishing of a continent-wide economic and monetary union and Parliament

      Stages progress

    as of September 2007
    • Stage 1: Completed, only Arab Maghreb Union members and Sahrawi Republic not participating. Somalia is participating, but no practical implementation yet.
    • Stage 2: Steady progress, nothing factual to check.
    • Stage 3:
    1 Members not yet participating: DR Congo, Eritrea, Ethiopia, Seychelles, Swaziland, Uganda
    2 Members not yet participating: Angola, DR Congo, Seychelles
    • Stage 4: In March 2018, 49 African countries signed the African Continental Free Trade Agreement paving the way for a continent-wide free trade area. As of April 2019, 22 signatories have ratified the agreement, reaching the threshold needed for it to come into force. The continental free trade area is planned to become operational in July 2019.
    • Stage 5: no progress yet
    • Stage 6: no progress yet

      Overall progress

    1 not all members participating yet
    2 telecommunications, transport and energy - proposed
    3 sensitive goods to be covered from 2012

    African Free Trade Zone

    The African Free Trade Zone was announced on Wednesday October 22, 2008 by the heads of Southern African Development Community, the Common Market for Eastern and Southern Africa and the East African Community.
    In May 2012 the idea was extended to also include ECOWAS, ECCAS and AMU.
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