Presentation about Achieving Regional Integration in North Africa Challenges & solutions by Moono Mupotola, Division Manager, Regional Integration & Trade Dept. Forum des Entrepreneurs Maghrébins 2014, 17/18 Février à Marrakech.

1. Achieving Regional
Integration in North Africa
Challenges & solutions
African Development Bank Group
AfDB
Moono Mupotola
Division Manager
Regional Integration & Trade Dept.
1

2. Why it matters
Increased
returns and
competition
Collective
Bargaining
Power
Management of
Shared Natural
Resources
Security
Increased
investments
Economies of
scale
Social
development
Economic
diversification

3. The dimensions of integration
Physical
infrastructure
Regional
Public Goods
Soft
Infrastructure

4. What needs to be done
Ensure that integration has a development impact
Strengthen institutional architecture for regional integration;
Enhance physical connectivity through the development of
regional or sub regional infrastructure that adequately connects
production zones with regional markets;
Scale up trade facilitation assistance through harmonization and/or
mutual recognition of regulations, procedures and standards;
Promote business environment reforms that facilitate regional
private sector cooperation and cross border investments;
Accelerate the domestication of regional agreements.

5. FDI and RI
• Think regionally: Made in the Maghreb? or
Made in UMA?
• Maghreb as single production base: Maghreb
Investment Area (FDI)
• RI provides opportunities for TNCs to expand
in a region and develop value chain
arrangements.
• Hub and spokes model

6. TF & The rise of Global Value Chains
Source: Boeing Co
6

7. Regional Integration in NA
Status
Opportunities
Challenges
Renewed political commitment for
Regional Integration
Well developed Services sectors: Finance,
Tourism, Telecommunications
Institutional architecture does not cover
all 6 NA countries
Mixed outcomes arising out of the Arab
spring
High prevalence of NTBs and NTMs
Vibrant private sectors in Tunisia,
Morocco, Egypt
Inadequate cross-border/maritime trade
facilitation
Reliance on oil, natural resources, tourism
and remittances
Surpluses of capital in Lybia, Algeria
Manufactured exports are labor intensive
& low tech
Weak regional institutions
Lowest levels of intra-regional trade in
Africa
Potential to create wealth through high
value added industries
Low domestication of Regional
Agreements

8. What the Bank plans to do
Our Focus
• Making Africa
Accessible
Our approach
• To leverage the
renewed interest and
mobilize additional
resources in support of
RI
Our priorities
• Improving dialogue;
• Supporting governance
reforms;
• Operationalizing PIDA
Priority Action Plan;
• Trade Facilitation;
• Private Sector
development
• Connecting Africa to
Africa
The Bank is currently developing a Regional Integration Strategy Paper for North Africa

9. Sample of planned regional operations in PIDA
SECTOR
TRANSPORT
DESCRIPTION
Trans-Maghreb Highway: The programe will cover the following countries:
Morocco to Egypt through Algeria, Tunisia and Libya. It will design and
implement a smart corridor system and install “state of the art” one-stop
border posts.
COST
US$ 75 millions
North Africa Transmission: 2,700 km line from Morocco to Egypt through
Algeria, Tunisia and Libya.
TBD
Nigeria–Algeria Pipeline: 4,100 km gas pipeline from Warri to Hassi R’Mel
in Algeria for export to Europe
1,200 US$ millions
Nubian Sandstone Aquifer System: Implementation of regional strategy
for the use of the aquifer system
TBD
North-West Sahara Aquifer System: Prefeasibility studies for improved
use of the aquifer system
TBD
ENERGY
Water Resources
Management

10. Connecting Africa to Africa
• Growing middle class; increased purchasing
power;
• Opportunities: Real Estate Development;
financial services, tourism, Energy, Agriculture
and mining.
• More integrated regional blocs & the promise
of the Tripartite: $1 trillion market, 600 million
consumers, 26 Countries, 58% of Africa’s GDP.
• Language is not a barrier!

11. Thank you!
www.afdb.org/atf
www.afdb.org/en/blogs/integratingafrica/
m.mupotola@afbd.org
(216) 71 10 39 00
(216) 71 10 26 54
afdb_acc
African
Development
Bank Group
AfDB_Group