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African Economic Community

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TheAfrican Economic Community (AEC) is an organization ofAfrican Union states establishing grounds for mutual economic development among the majority ofAfrican states.[1] The stated goals of the organization include the creation offree trade areas,customs unions, asingle market, acentral bank, and a common currency (seeAfrican Monetary Union) thus establishing aneconomic and monetary union.

Goals

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The AEC founded through theAbuja Treaty, signed in 1991 and entered into force in 1994[2]is envisioned to be created in six stages:

  1. (completed in 1999) Creation of regional blocs in regions where such do not yet exist
  2. (completed in 2007) Strengthening of intra-REC integration and inter-REC harmonisation
  3. (completed in 2021) Establishing of afree trade area andcustoms union in each regional bloc
  4. (to be completed in 2023) Establishing of a continent-wide customs union (and thus also a free trade area)
  5. (to be completed in 2025) Establishing of a continent-wideAfricanCommon Market (ACM)
  6. (to be completed in 2028) Establishing of a continent-wideeconomic and monetary union (and thus also acurrency union) andParliament
  • End of all transition periods: 2034 at the latest
Parts of this article (those related to pre-2017 deadlines) need to beupdated. Please help update this article to reflect recent events or newly available information.(January 2017)

Stages progress

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as of September 2007

  • Stage 1:Completed, onlyArab Maghreb Union members andSahrawi Republic not participating.Somalia is participating, but no practical implementation yet.
  • Stage 2: Steady progress, nothing factual to check.
  • Stage 3:
 Regional blocs - pillars of the African Economic Community (AEC)
ActivityCEN-SADCOMESAEACECCASECOWASIGADSADCUMA
CEMACCommonUEMOAWAMZCommonSACUCommon
Free Trade Areastalledprogressing1fully in forcefully in forceproposed for 2007 ?fully in forceproposedstalledfully in forceprogressing2stalled
Customs Unionstalledproposed for 2008fully in forcefully in forceproposed for 2011 ?fully in forceproposed for 2007stalledfully in forceproposed for 2010stalled

1 Members not yet participating:DR Congo (in talks to join),Eritrea,Ethiopia,Seychelles (in talks to join),Swaziland (on derogation until SACU gives permission for Swaziland to join the FTA),Uganda (to join very soon)[1]
2 Members not yet participating:Angola,DR Congo,Seychelles[2]

  • Stage 4: In March 2018, 49 African countries signed theAfrican Continental Free Trade Agreement paving the way for a continent-widefree trade area. The continental free trade area became operational in July 2019, after 22 ratifications.[3][4] As of 2021, 34 signatories have effectively become parties of the treaty.
  • Stage 5: no progress yet
  • Stage 6: no progress yet

Overall progress

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  Members of the AEC's parent, the African Union
Activities
Regional blocFree Trade AreaEconomic and monetary unionFreeTravelPolitical pactDefence pact
Customs UnionSingle MarketCurrency UnionVisa-freeBorder-less
AECPartially In Forceproposed for 2023proposed for 2023proposed for 2028proposed for 2023proposed for 2023proposed for 2028proposed for 2028
CEN-SADproposed for 2010
COMESAin force1proposed for 2008?proposed for 2018
EACin forcein forceproposed for 2015proposed for 2024proposed for 2018[5]?proposed for 2023
ECCASCEMACin forcein force?in force
Commonproposed for 2007 ?proposed for 2011 ?proposedproposedproposed?in force
ECOWASUEMOAin forcein forceproposed[6]in force
WAMZ?proposed for 2012
Commonproposed2proposed for 2007proposed[7]proposedin force1proposedproposedin force
IGAD
SADCSACUin forcein forcede factoin force1?
Common[3][permanent dead link]proposed for 20083proposed for 2010proposed for 2015proposed for 2016
UMA

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

African Economic Community
Pillar regional
blocs (REC)		Area
(km²)		PopulationGDP (PPP)($US)Member
states
(millions)(per capita)
EAC5,449,717343,328,958737,4202,1498
ECOWAS/CEDEAO5,112,903349,154,0001,322,4523,78815
IGAD5,233,604294,197,387225,0491,1977
AMU/UMA 46,046,441106,919,5261,299,17312,6285
ECCAS/CEEAC6,667,421218,261,591175,9281,45111
SADC9,882,959394,845,175737,3923,15215
COMESA12,873,957406,102,471735,5991,81120
CEN-SAD 414,680,11129
TotalAEC29,910,442853,520,0102,053,7062,40654
Other regional
blocs		Area
(km²)		PopulationGDP (PPP)($US)Member
states
(millions)(per capita)
WAMZ 11,602,991264,456,9101,551,5165,8676
SACU 12,693,41851,055,878541,43310,6055
CEMAC 23,020,14234,970,52985,1362,4356
UEMOA 13,505,37580,865,222101,6401,2578
UMA 2 45,782,14084,185,073491,2765,8365
GAFTA 3 45,876,9601,662,5966,3553,8225
AES  2,780,15971,374,000179,3473
During 2004. Sources:The World Factbook 2005, IMF WEO Database.
  Smallest value among the blocs compared.
  Largest value among the blocs compared.
1: Economic bloc inside a pillar REC.
2: Proposed for pillar REC, but objecting participation.
3: Non-African members of GAFTA are excluded from figures.
4: The area 446,550 km2 used forMorocco excludes all disputed territories, while 710,850 km2 would include the Moroccan-claimed and partially-controlled parts ofWestern Sahara (claimed as theSahrawi Arab Democratic Republic by thePolisario Front). Morocco also claimsCeuta andMelilla, making up about 22.8 km2 (8.8 sq mi) more claimed territory.
This box:

Pillars

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Currently there are multipleregional blocs in Africa, also known asRegional Economic Communities (RECs), many of which have overlapping memberships. The RECs consist primarily oftrade 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 (CEN-SAD)
Common Market for Eastern and Southern Africa (COMESA)
East African Community (EAC)
Economic Community of Central African States (ECCAS/CEEAC)Economic and Monetary Community of Central Africa (CEMAC)
Economic Community of West African States (ECOWAS)West African Economic and Monetary Union (UEMOA)

West African Monetary Zone (WAMZ)

Intergovernmental Authority on Development (IGAD)
Southern African Development Community (SADC)Southern African Customs Union (SACU)
Common Monetary Area (CMA)
Arab Maghreb Union (UMA)

Pillar membership

[edit]
  member states; year of joining
  member states; year of joining; cooperation in the framework of the bloc stalled
  candidate states; year of application
CEN-SAD
Founding states (1998):

Joined later:

COMESA
Founding states (1994):

Joined later:

Former members:
EAC
Founding states (2001):

Joined later:


ECOWAS
Founding states (1975):

Joined later:

Former members:
UEMOA-94:UEMOA state from 1994

UEMOA-97:UEMOA state from 1997
WAMZ-00:WAMZ state from 2000

WAMZ-10:WAMZ state from 2010
ECCAS
Founding states (1985):

Joined later:

CEMAC-99:CEMAC state from 1999
IGAD
Founding states (1986):

Joined later:


UMA1
Founding states (1989):
SADC
Founding states (1980):

Joined later:

SACU-70:SACU state from 1970
SACU-90:SACU state from 1990

1 The UMA (Arab Maghreb Union) does not participate in the AEC so far, because of opposition byMorocco

Interlocking relationships

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The image above contains clickable links
The image above contains clickable links
Euler diagram showing the relationships among various multinational African entities

Venn diagrams illustrating interlocking relationship overlaps:

REC pillars of the African Economic Community.
  COMESA
  EAC
  ECCAS
  ECOWAS
  IGAD
  SADC
  UMA
Active REC pillars of the African Economic Community.
  COMESA
  EAC
  ECCAS
  ECOWAS
  SADC

Other blocs

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Other trade blocs in Africa not part of the African Economic Community.
  GAFTA
  CEPGL
  COI
  LGA
  MRU

Other African regional blocs, not participating in the AEC framework (many of them predating AEC) are:

Their membership is as follows:

GAFTA1CEPGLCOILGAMRU
2005 membership:

Joined later:

1976 membership:1984 membership:1970 membership:1973 membership:

Joined later:

1 Only AfricanGAFTA members are listed.
GAFTA andMRU are the only blocs not currently stalled.

African Free Trade Zone

[edit]
Main article:African Free Trade Zone

The African Free Trade Zone (AFTZ) was announced on Wednesday October 22, 2008 by the heads ofSouthern African Development Community (SADC), theCommon Market for Eastern and Southern Africa (COMESA) and theEast African Community (EAC).

In May 2012 the idea was extended to also include ECOWAS, ECCAS and AMU.[11]

See also

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References

[edit]
  1. ^Staff writer (2024)."African Economic Community (AEC)". UIA Global Civil Society Database.uia.org. Brussels, Belgium:Union of International Associations. Yearbook of International Organizations Online. Retrieved29 January 2025.
  2. ^Staff writer (2024)."Treaty Establishing the African Economic Community (Abuja treaty)". UIA Global Civil Society Database.uia.org. Brussels, Belgium:Union of International Associations. Yearbook of International Organizations Online. Retrieved29 January 2025.
  3. ^Kede, Shoshana (2 April 2019)."Africa free trade agreement gets last ratification from Gambia".AfricanBusinessMagazine.com. Archived fromthe original on 2 April 2019. Retrieved2 April 2019.
  4. ^"AfCFTA Agreement secures minimum threshold of 22 ratification as Sierra Leone and the Saharawi Republic deposit instruments".African Union. 29 April 2019. Archived fromthe original on 2 June 2019. Retrieved11 August 2020.
  5. ^Ligami, Christabel (2017-04-17)."East Africa e-passports to be issued in 2018".theeastafrican.co.ke. Retrieved2017-10-04.
  6. ^WT/COMTD/N/11Archived 2009-03-25 at theWayback Machine
  7. ^WT/COMTD/N/21Archived 2009-03-27 at theWayback Machine
  8. ^ab"SADC, COMESA and the EAC: Conflicting regional and trade agendas". Institute for Global Dialogue. October 2008. Archived fromthe original on 1 January 2017. Retrieved7 May 2011.
  9. ^"African integration is great but has its hurdles". New Vision. 26 May 2010. Archived fromthe original on 19 June 2010. Retrieved7 May 2011.
  10. ^Mugisha, Ivan R. (2010-08-20)."Rwanda back to Central Africa bloc, 10 years on".theeastafrican.co.ke. Retrieved2017-10-04.
  11. ^Africa free trade zone in operation by 2018

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