Abstract

This paper examines the importance of regional trade in services for five regional economic communities (RECs) in Sub-Saharan Africa. It argues that services affect growth and development through various pathways, but services development and trade in services are constrained by a number of factors. Given the limited relevance of multilateral services fora in removing services constraints relevant for Africa at present, there is a rationale for an African regional approach to remove these barriers to services trade.

In light of this, the AUC, RECs and national governments could consider concrete steps to prioritise the service sector and needed reforms. Although the 5 SSA RECs covered in this study on paper seem to be committed to continue to strive towards a further deepening of their regional integration in non-traditional issues such as services, investment and migration there are mixed results and limited progress relating to implementation of the provisions in the trade protocols.

The AUC can co-ordinate a process that might help to set targets for services liberalisation and aim for a harmonization of legislation amongst RECs as well as support deeper regional integration within the RECs. The REC’s common market/full economic union can be seen as a stepping stone towards an African internal market (for services). The AUC could therefore be provided with a clear mandate and resources to facilitate and monitor this process of regional trade liberalisation.

Christian Kingombe1

March 2012