Central Africa Regional Integration Strategy Paper 2019-2025
CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025
EDITED VERSION - JUNE 2019
EDITED VERSION - JUNE 2019 FOREWORD
The African Development Bank Group’s ever-growing investments in hard and soft infrastructure across Africa’s borders make the Bank’s position clear: regional integration is a core development priority. But what does regional integration mean for Central Africa? Imagine:
• Instead of seven markets as small as 1.3 million people each, one huge market of 138 million people.
• Instead of lengthy waits at borders – while skills gaps go unfilled – smooth, efficient border crossings, a mobile workforce, and learning across frontiers.
• Instead of power outages and unregulated energy, interconnected clean electricity networks that supply stable, affordable power to citizens and private enterprise on demand.
• Instead of costly imported products developed and manufactured outside the continent, a choice of quality, competitively-priced merchandise and services innovated and produced in the region.
• Instead of poorly integrated air and surface infrastructure, multimodal transport systems that deliver goods and people safely and cost- effectively to their destination in Central Africa and beyond.
This Central Africa Regional Integration Strategy Paper explains how the African Development Bank Group will work towards making this vision a reality over the next seven years. The Bank’s investments in regional operations in Central Africa grew 15% between 2017 and 2018, reaching US $ 1.1 billion in August 2018. Over 2019 to 2025, those investment will rise to US $4.4 billion – 88% in hard infrastructure and 12% in trade facilitation and capacity building. Placed strategically, these ventures can transform the lives of millions.
iv MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 But the Bank Group will not work alone. Goals on this global – will ensure that the best ideas are heard, that scale can only be achieved in partnership. any drawbacks are mitigated, and that actors move forward together. Country offices and more Bank staff The Bank’s policy expertise will support countries as in the region have already deepened consultations. they implement the African Continental Free Trade The area’s thirst for investments and innovation Agreement, which after entering into force on 30 May can only benefit from the Bank continuing to play a 2019 will free the movement of businesspeople and convening role. investments, remove tariffs on 90% of goods, and create the world’s largest free trade area since the The African Development Bank Group recognizes the World Trade Organization. tremendous potential of Central Africa. Its borders touch the borders of every other African region. It has The Bank’s analyses will feed into the decision of the abundant arable land, diversified ecosystems, and Economic Community of Central African States and the ample forests and water. It is home to significant oil Central African Economic and Monetary Community resources, deposits of precious metals and minerals, – which overlap in Central Africa – to harmonize their and the continent’s greatest hydropower potential. standards, approvals, and regulations, so that goods Most of all, its population – predominantly young – and services can circulate more freely, reducing losses stands ready to take advantage of opportunities to caused by delays and boosting competitiveness in prosper sustainably and inclusively. the region. Regional integration is a prerequisite for those And the Bank’s proficiency at dialogue with stakeholders opportunities to emerge. With this Regional Integration at all levels – local, national, regional, continental, and Strategy, the Bank plans to make that happen.
Akinwumi Ayodeji Adesina President, African Development Bank Group June 2019
v MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 ACKNOWLEDGMENTS
The Central Africa Regional Integration Strategy Paper was written under the general guidance of Khaled Sherif, Vice President, Regional Development, Integration and Business Delivery (RDVP), and Ousmane Dore, Director General of the Central Africa Regional Development and Business Delivery Office (RDGC).
The paper is the work of a dedicated project team led by Youssouf Kone, Regional Integration Coordinator, RDGC, under the direct supervision of Racine Kane, Deputy Director-General of RDGC; Moono Mupotola, Director, Regional Integration Coordination Office (RDRI); Sibry Tapsoba, Director, Transition States Coordination Office (RDTS); Mamady Souare, Manager, RDRI; and Hervé Lohoues, Lead Economist, RDGC/ECCE.
The writing team was composed of Gérard Bizimana, Régis Lakoue Derant, Bassirou Diallo, Nawsheen Elaheebocus, Samatar Omar Elmi, Charlotte Eyong, Abou Fall, Augustin Karanga, Ibrahima Konate, Marc Kouakou, Cédric Mbeng Mezui, Phillippe Ngwala, Bekale Ollame, Mamadou Tangara, and Julius Tieguhong. The paper was reviewed by peers J.-G. Afrika, Y. Ahmad, R. Amira, D. Amouzou, K.R. Eguida, and K. Kalumiya. The team is grateful to Kalidou Diallo and Abdourahmane Diaw, who contributed significantly to the concept note. We also commend Amel Soudani, Rim Trabelsi, and Alain Yao for their administrative support, as well as the team responsible for translation and editing – Yacouba Kone and Xaverie Flore Nga Abe Noah – without whose tireless dedication the timely publication of this paper would not have been possible. Finally, we thank Jennifer Petrela, consultant, who edited the final version of the paper, and Justin Kabasele of the External Relations and Communication Department (PCER), who with Graphic Industries was responsible for lay-out and graphic design.
In closing, the team would like to express its gratitude to all those who participated in the regional consultation workshop on this strategy that took place in Libreville, Gabon, from 10 to 12 September 2018. Their input will shape regional integration in Central Africa for years to come.
1 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 2 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 TABLE OF CONTENTS
FOREWORD IV
ACKNOWLEDGMENTS 1
ABBREVIATIONS AND ACRONYMS 7
MAP OF CENTRAL AFRICA 8
EXECUTIVE SUMMARY 10
I. INTRODUCTION 14
II. THE CONTEXT IN CENTRAL AFRICA 17 2.1 Politics and Security 17 2.2 The Economic, Monetary, and Financial Environment 17 2.3 Social Context and Cross-Cutting Issues 20 2.4 Environment, Climate Change, and Green Growth 21 2.5 Fragility Factors and Sources of Resilience 21 2.6 The Economic Outlook 22
III. THE REGIONAL INTEGRATION AGENDA: STATUS, CHALLENGES, OPPORTUNITIES, AND LESSONS LEARNED 24 3.1 The Status of Regional Integration in Central Africa 24 3.2 Central Africa’s Challenges and Opportunities 27 3.3 Lessons Learned from the Bank’s Experience 27
IV. THE BANK GROUP’S REGIONAL INTEGRATION STRATEGY IN CENTRAL AFRICA 2019–2025 31 4.1 The Rationale for the Bank’s Intervention 31 4.2 The Overall Goal and Pillars of the RISP-CA 2019–2025 32 4.3 Strategic Intervention Areas and a Results Framework 33 4.4 Alignment with the Priorities of the Continent, the Bank, and the Region 39
V. IMPLEMENTATION OF THE STRATEGY 41 5.1 Country Dialogue Issues and Regional Economic Communities 41 5.2 Internal and External Arrangements 41 5.3 Allocation and Financing 41 5.4 Potential Risks and Mitigation Measures 42
VI. CONCLUSION AND RECOMMENDATIONS 44
ANNEX 1: SELECTED MACROECONOMIC AND SOCIOECONOMIC DATA ON CENTRAL AFRICA 46
ANNEX 2: FRAGILITY AND SOURCES OF RESILIENCE WITHIN THE ECONOMIC COMMUNITY OF CENTRAL AFRICAN STATES 56
3 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 ANNEX 3: SELECTED INFRASTRUCTURE DATA ON CENTRAL AFRICA 58
ANNEX 4: MULTINATIONAL OPERATIONS PORTFOLIO AS AT 31 AUGUST 2018 62
ANNEX 5: IMPLEMENTATION PROGRESS RATINGS OF SUPERVISED PROJECTS IN CENTRAL AFRICA 64
ANNEX 6: KEY PERFORMANCE INDICATORS OF MULTINATIONAL PROJECTS UNDER REVIEW IN 2018 65
ANNEX 7: 2018 PORTFOLIO PERFORMANCE IMPROVEMENT PLAN, 2018 67
ANNEX 8: ALIGNMENT OF COUNTRY STRATEGY PAPERS WITH THE RISP-CA 2019–2025 69
ANNEX 9: INDICATIVE MULTINATIONAL OPERATIONS PROGRAMME 2019-2025 70
ANNEX 10: RESULTS-BASED LOGICAL FRAMEWORK FOR THE RISP-CA 2019-2025 73
ANNEX 11: THE CHANGE THEORY FOR THE RISP-CA 2019–2025 75
4 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 FIGURES Figure 1: Oil Price Trends, 2013-2018 18 Figure 2: CEMAC Fiscal Indicators, 2014-2022 20 Figure 3; Foreign Exchange Reserves in CEMAC, July 2014 - November 2017 20 Figure 4: Employement Trend by Sector 21 Figure 5: Sector Breakdown of Multinational Operations 28 Figure 6: The Overall Goal and Pillars of the RISP-CA 2019–2025 32 Figure 7: Consensual Road Network of Central Africa 61
TABLES Table 1: Intra-African Trade by Economic Area, 2017 26 Table 2: Risks and Mitigation Measures 42 Table 1.1 - Basic macroeconomic data for Central Africa, 2008-2020 46 Table 1.2 - Basic Indicators in Central Africa, 2018 48 Table 1.3 - Demand Composition and Growth in Central Africa, 2017–2020 49 Table 1.4 - Public Finances in Central Africa, 2017–2020 (percentage of GDP) 49 Table 1.5 - Balance of Payments Indicators in Central Africa, 2017–2020 50 Table 1.6 - Sector Contributions to GDP Growth (%), 2014–2018 51 Table 1.7 - External Debt Accumulation in Central African Countries, 2008-18 (% of GDP) 52 Table 1.8 - Demographic Indicators in Central Africa, 2018 52 Table 1.9 - Poverty and Income Distribution Indicators in Central Africa, 2014–2017 53 Table 1.10 - Basic Health Indicators in Central Africa 53 Table 1.11 - Basic Education Indicators in Central Africa 54 Table 1.12 - Basic Labor Indicators in Central Africa, 2018 54 Table 1.13 - Intra-Central Africa Trade, 2017 55 Table 3.1 - Infrastructure Development Indices in Central Africa, 2010–2018 58 Table 3.2 - Access to Services 59 Table 3.3 - Obstacles to Trade in Africa’s Regions 60 Table 3.4 - Doing Business Rankings in Central Africa, 2018 60 Table 6.1 - Some Key Performance Indicators (August 2018) 66
5 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 6 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 ABBREVIATIONS AND ACRONYMS
ADF African Development Fund AfCFTA African Continental Free Trade Area AfDB African Development Bank AIDI Africa Infrastructure Development Index BDEAC Development Bank of Central African States BEAC Bank of Central African States CAR Central African Republic CEMAC Central African Economic and Monetary Community CICOS International Commission for the Congo-Oubangui-Sangha Basin COMIFAC Commission of Central African Forests COPAX Central African Peace and Security Council COPIL/CER- Comité de pilotage de la rationalisation des communautés économiques régionales en AC Afrique Centrale CPIA country policy and institutional assessment CRFA country resilience and fragility assessment CSP country strategy paper DRC Democratic Republic of Congo ECCAS Economic Community of Central African States GDP gross domestic product ICT information and communication technology Km kilometer NEPAD-IPPF Infrastructure Project Preparation Facility of the New Partnership for Africa’s Development PACEBCO Congo Basin Ecosystem Conservation Support Project PD Presidential Directive PPP public-private partnership PRODEBALT Lake Chad Basin Development Project RBLF Results-Based Logical Framework RDGC Central Africa Regional Development and Business Delivery Office RDGE Regional Office for East Africa RDGS Regional Office for Southern Africa RDRI Regional Integration Coordination Office REC Regional Economic Community RISF Regional Integration Strategic Framework RISP Regional Integration Strategy Paper RISP-CA Central Africa Regional Integration Strategy Paper UA Unit of Account US United States
7 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 MAP OF CENTRAL AFRICA1
SURFACE square kilometers
Cameroon 475 440 14 899 994
4 659 080 Central African Republic 622 980
Chad 1 284 000
24 053 727 Congo 342 000 1 267 689 2 025 137 Democratic 5 260 750 Republic of Congo 2 344 860 81 339 988 Equatorial Guinea TOTAL 28 050 POPULATION Gabon 267 670
GDP PER CAPITA (2010 CONSTANT US DOLLARS)
Cameroon Central African Chad Congo Democratic Equatorial Gabon 1503.53 Republic Republic of Congo Guinea 9442.02 ADF and ADB 823.43 2576.39 ADF and ADB 335.02 ADF ADB 409.11 11486.61 ADF ADF ADB
1 At the African Development Bank Group, the operational area of the Regional Development and Business Delivery Office for Central Africa (RDGC) covers seven countries: Cameroon, the Central African Republic, Chad, Congo, the Democratic Republic of Congo, Equatorial Guinea, and Gabon. This list does not include all the member countries of the Economic Community of Central African States (ECCAS), which the African Union considers the regional economic community of Central Africa. ECCAS comprises 11 countries: Angola, Burundi, Cameroon, the Central African Republic, Chad, Congo, the Democratic Republic of Congo, Equatorial Guinea, Gabon, Rwanda, and Sao Tome and Principe. In the Bank’s operational portfolio, Burundi and Rwanda are covered by the Regional Office for East Africa (RDGE) and are included in the RISP 2018-2023 for that region, while Angola and São Tomé and Principe are covered by the Regional Office for Southern Africa (RDGS) and are included in RDGS’s RISP 2019-2024. For more information on the geographical grouping of the Bank’s regional member countries, see https://www.afdb.org/en/countries/.
8 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 9 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 EXECUTIVE SUMMARY
This Central Africa Regional Integration Strategy The RISP-CA 2019–2025 is based on the strategic Paper (RISP-CA) proposes a general framework and operational priorities of ECCAS and the Central of operations in Central Africa over 2019–2025 for African Economic and Monetary Community adoption by the Boards of Directors of the African (CEMAC). It takes into account recent developments Development Bank (AfDB or Bank) and the African in the region, the major roles expected of governments Development Fund. The RISP-CA was prepared within and the private sector, a diagnostic study conducted a context of major institutional changes, particularly in 2017, and economic and sector work. Lessons following the Bank’s adoption of the Development and and experience from the AfDB’s past interventions Business Delivery Model and the continental Regional guided the formulation of the RISP-CA’s pillars and Integration Strategic Framework for 2018–2025. It is the choice of operations to prioritize. Support for the consistent with the Bank’s Ten-Year Strategy, which strategy grew from a participatory process of close makes regional integration one of the institution’s consultations with regional economic communities, five operational priorities (its “High 5s,” the others of development partners, and the private sector, as well which are Feed Africa, Light Up and Power Africa, as ongoing dialogue with the authorities of the region. Industrialize Africa, and Improve the Quality of Life for the People of Africa.) The RISP-CA 2019–2025 Central Africa is characterized by an overlap of reflects the independent development evaluation of regional institutions with similar objectives and the Bank’s regional integration strategy and operations mixed performance, which have sought to eliminate in Central African between 2011 and 2016, as well as the problems inherent in fragmented national markets the guidelines emitted by the Bank’s Committee on with a view to creating an integrated regional space Operations and Development Effectiveness during the with optimal conditions for a larger market. The main approval, on 25 June 2018, of the completion report regional institutions in Central Africa are CEMAC, of the regional integration strategy that governed the ECCAS, the Economic Community of the Great Lakes Bank’s work in this area from 2011 to 2017. Countries, and the Lake Chad Basin Commission. CEMAC’s six member countries also belong to ECCAS; The portfolio of operations implemented under the Burundi and Rwanda are active in the East African RISP-CA will cover Cameroon, the Central African Community; Angola and DRC are also members of Republic, Chad, Congo, the Democratic Republic the Southern African Development Community; and of Congo (DRC), Equatorial Guinea, and Gabon. Burundi, DRC, and Rwanda are members of the These countries fall within the operational area of the Common Market for Eastern and Southern Africa. Central Africa Regional Development and Business Delivery Office (RDGC). The RISP-CA 2019–2025 The region is also marked by political instability seeks to support the integration efforts of members and a volatile security environment. This situation of the Economic Community of Central African States mainly stems from the activities of terrorist groups in the (ECCAS), which the African Union recognizes as the Lake Chad Basin (northern Cameroon, western Chad, regional economic community in Central Africa. ECCAS southeastern Niger, northeastern Nigeria) and the outbreak comprises 11 countries: Angola, Burundi, Cameroon, of several multifaceted conflicts, including conflicts over the Central African Republic, Chad, Congo, Equatorial the control of natural resources. The conflicts have been Guinea, DRC, Gabon, Rwanda, and Sao Tome and exacerbated by several factors: (i) countries’ weak ability Principe. In terms of the AfDB’s operations, however, to reduce insecurity and reconstruct; (ii) high poverty Burundi and Rwanda are covered by the Regional and the poor governance of natural resources; and (iii) Office for East Africa (RDGE) and are included in the a high unemployment rate and the low employability of RISP 2018–2023 for the East Africa region, which has young people who constitute the majority of the working already been approved by the boards of directors. population and whose lack of economic opportunities Angola and São Tomé and Principe, meanwhile, are exposes them to manipulation by armed groups and covered by the Regional Office for Southern Africa militias. The conflicts have created new humanitarian (RDGS) and are included in the RISP 2019–2024 for challenges, such as the massive displacement of the Southern Africa region. populations and an influx of refugees.
10 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 The region’s economies are largely based on the at the regional level; (vi) economic diversification production and export of extractive raw materials (oil, and the development of productive capacities; (vii) minerals, etc.) and are therefore highly vulnerable improvement of the business climate; (viii) the response to exogenous shocks. Economic activity has been to climate change, the rational management of natural slowing since the second quarter of 2014, as a result resources, and protection of the environment; (ix) of the fall in oil prices and several security shocks. the mobilization of domestic resources and stronger Indeed, the seven countries covered by RDGC recorded public-private partnerships; (x) youth employability; one of the lowest growth rates on the continent in and (xi) leadership and political will within the region’s 2018. Real gross domestic product (GDP) growth countries. stood at 2.2% in 2018, compared to 5.7% for East Africa, 4.3% for North Africa, 1.2% for Southern These challenges notwithstanding, the region has Africa, and 3.3% for West Africa. Central Africa’s significant potential, particularly as regards its pivotal real GDP growth had been 5.9% in 2014 compared geographical position, its abundant natural resources to 4.9% in 2011. In 2018, growth in Central Africa able to fuel economic and social development, was supported by a recovery in commodity prices. and a demographic dividend attributable to its Meanwhile, external debt increased significantly over predominantly young population (62%). Central the past several years, going from 14.3% of GDP in Africa is home to significant oil resources, deposits of 2011 to 27.0% of GDP in 2018 and demonstrating precious metals and minerals, huge transboundary water adjustment difficulties in the region. The poverty resources, and the continent’s greatest hydropower rate was estimated at 60% and most countries are potential. experiencing a rise in inequality. This is especially true for countries affected by conflicts, such as the The RISP-CA seeks to stimulate economic diversi- Central African Republic and DRC. fication and structural transformation by increasing intra-regional trade in Central Africa. The Bank intends As at 31 August 2018, the AfDB’s active portfolio of to achieve this goal by organizing its work in the region multinational operations in Central Africa consisted around two pillars, approved by the Committee on Op- of 44 operations worth a total of UA 779.55 million, erations and Development Effectiveness in June 2018: compared to 29 operations and UA 676.86 million (i) reinforcing regional infrastructure (energy, transport, in May 2017 (the date of the last portfolio review). and information and communication technology), and This 15.2% increase in the volume of commitments (ii) supporting reforms that develop intra-regional trade shows the Bank’s willingness to support integration and build regional economic communities’ institutional activities in the region through several financing capacity. windows (the AfDB, the African Development Fund, the Transition Support Facility, the African Water Facility, The RISP-CA expects its operations to tackle the and the Infrastructure Project Preparation Facility roots of fragility, which is a major challenge for the of the New Partnership for Africa’s Development, region. Operations will do this by strengthening the known as NEPAD-IPPF). It is evident that the Bank region’s economic resilience—transforming the structure wants to help redress the region’s poor intra-regional of the region’s economies, promoting economic infrastructure, which is one of the main obstacles to diversification, and reducing countries’ dependence integration and trade. on oil and mineral exports.
Central Africa continues to grapple with many Implementing the RISP-CA will require investments challenges that it must overcome to establish the of UA 3.185 billion, corresponding to 30 regional foundations for successful regional integration. operations over a seven-year period (2019–2025). These challenges include (i) peace-building to break the About 88% of the planned funding will be devoted to vicious circle of instability and fragility; (ii) infrastructure reinforcing regional infrastructure (energy, transport, development (transport, energy, information and and information and communication technology) communication technology, shared waters); (iii) the while 12% has been earmarked for developing intra- operationalization and harmonization of the ECCAS and regional trade and building institutional capacity in CEMAC free trade areas; (iv) the reduction of non-tariff regional economic communities. With regard to the barriers; (v) human and institutional capacity building risk of fragility in the region, the infrastructure and
11 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 institutional capacity-building components of the access to reliable and affordable energy for the pop- indicative program are expected to strengthen the ulation and the private sector; (iii) better-connected resilience of the countries of the region. Beyond these transport infrastructure; (iv) denser terrestrial inter- interventions, the AfDB also plans specific operations, connections and national fiber-optic backbones; (v) a for example to strengthen resilience to food insecurity, harmonized and operational institutional framework promote the socioeconomic reintegration of vulnerable that promotes intra-regional trade and investment; (vi) groups, and conserve ecosystems in the Congo a more dynamic finance sector with more domestic Basin. This approach aligns with the Bank’s vision financing for the private sector; (vii) more decent of reducing fragility and building resilience within employment and sustainable economic opportuni- states. It also complements the value-chain-supports ties, especially for young people; and (viii) stronger projects financed by the Bank as part of its country capacities within regional economic communities strategy papers. to manage and implement regional projects. The RISP-CA’s pillars and operational sectors have great The RISP-CA 2019–2025 expects to achieve eight potential to create jobs and economic opportunities, principal outcomes: (i) better quality of transport especially for young people. The strategy expects and greater access to regional markets; (ii) improved to contribute to inclusive and sustainable growth.
12 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 13 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 I. INTRODUCTION
This Central Africa Regional Integration Strategy Industrialize Africa, and Improve the Quality of Life Paper (RISP-CA) proposes a new framework for for the People of Africa). The RISF 2018–2025, which the African Development Bank (AfDB or Bank)’s RISP-CA 2019–2025 will operationalize in Central operations in the Central African region over Africa, aligns with the Bank’s new Development and 2019–2025. It takes over from the Regional Integration Business Delivery Model and rests on three pillars: Strategy Paper (RISP) 2011–2015,2 which was approved (i) electricity and infrastructure connectivity, (ii) trade by the Board of Directors of the AfDB and the Board and investment, and (iii) financial integration. of Directors of the African Development Fund in April 2011 and was later extended to December The RISP-CA reflects the recommendations and 2017. The RISP-CA 2019–2025 seeks to support the experience of the Bank’s past interventions in integration efforts of member countries of the Economic support of regional integration. More precisely, it Community of Central African States (ECCAS), which takes into account the March 2018 recommendations of the African Union recognizes as the regional economic the AfDB’s Independent Development Evaluation unit,4 community in Central Africa. ECCAS comprises 11 one of which concerns a tailored approach. The RISP- countries: Angola, Burundi, Cameroon, the Central CA also reflects the guidelines of the Bank’s Committee African Republic, Chad, Congo, Equatorial Guinea, on Operations and Development Effectiveness, defined the Democratic Republic of Congo (DRC), Gabon, during the presentation of the completion report of Rwanda, and Sao Tome and Principe. In terms of the RISP-CA 2011–2017 in June 2018, and the findings of AfDB’s operations, however, Burundi and Rwanda are the regional portfolio performance review. In particular, covered by the Regional Office for East Africa (RDGE) the committee’s guidelines recommended better and are included in the RISP 2018–2023 for the East handling fragility issues and capacity building and Africa region, which has already been approved by strengthening dialogue with national and regional the boards of directors. Angola and São Tomé and authorities and other development partners. Principe, meanwhile, are covered by the Regional Office for Southern Africa (RDGS) and are included in The RISP-CA 2019–2025 also reflects the Bank’s the RISP 2019–2024 for the Southern Africa region. frequent consultations, made through RDGC, with Insofar as the RISP-CA is concerned, therefore, the regional and national authorities and development portfolio will cover Cameroon, the Central African partners. To prepare this strategy, Bank staff undertook Republic, Chad, Congo, DRC, Equatorial Guinea, and dialogue missions to the ECCAS General Secretariat, Gabon. These countries fall within the operational the Commission of the Central African Economic area of the Central Africa Regional Development and and Monetary Community (CEMAC), and regional Business Delivery Office (RDGC) that is in charge of member countries. The dialogue that ensued made this strategy. it possible to propose a strategy based on ECCAS’s and CEMAC’s strategic and operational priorities. The The RISP-CA 2019–2025 follows the Bank’s approval RISP-CA also takes into account recent developments in March 2018 of the continental Regional Integration in the countries of the region, the growing role of the Strategic Framework (RISF) for 2018–2025.3 In line private sector as the area’s main engine of growth, with its Ten-Year Strategy, the Bank has placed regional and governments’ role as agents and facilitators of integration at the core of its activities, making it one of structural reforms in economic diversification and its five operational priorities (its “High 5s,” the others structural transformation. In addition, the RISP-CA of which are Feed Africa, Light Up and Power Africa, is based on sector diagnostic studies conducted in
2 African Development Bank and African Development Fund. Central Africa Regional Integration Strategy Paper (RISP) 2011-2015. February 2011. 3 African Development Bank and African Development Fund. Regional Integration Strategic Framework. March 2018. 4 African Development Bank (Independent Development Evaluation). Addressing Regional Integration Challenges in Central Africa: Evaluation of the Regional Integration Strategy and Operations of the African Development Bank, 2011-2016 – Summary Report. March 2018.
14 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 2017, on economic and sector work on the investment 2018: (i) reinforcing regional infrastructure (energy, climate and the industrialization of the timber sector, on transport, and information and communication an in-depth review of the literature on the challenges technology), and (ii) supporting reforms that develop and opportunities of regional integration in Central intra-regional trade and build regional economic Africa, and more. communities’ institutional capacity.
Reflecting these orientations, the RISP-CA This introduction is followed by five chapters on seeks to stimulate economic diversification the following subjects: the context in Central Africa, and structural transformation by increasing the regional integration agenda and lessons learned, intra-regional trade in Central Africa. The Bank the Bank Group’s proposal for a regional integration intends to achieve this goal by organizing its work strategy in Central Africa for 2019–2025, the Bank’s around two pillars approved by the Committee on plans for implementing the strategy, and concluding Operations and Development Effectiveness in June recommendations.
15 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 16 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 II. THE CONTEXT IN CENTRAL AFRICA
2.1 POLITICS AND SECURITY already weighing on the economies of the region. Conflict and insecurity are fueled by the manipulation Central Africa is marked by political instability of young people affected by underemployment as well and a volatile security environment. This situation as by the illegal proliferation and circulation of small mainly stems from the activities of terrorist groups in arms and light weapons. Supported by development the Lake Chad Basin (northern Cameroon, western partners, national and regional authorities are carrying Chad, southeastern Niger, northeastern Nigeria) and out concerted actions to combat insecurity, sometimes the outbreak of several multifaceted conflicts, including to the detriment of social expenditure in the countries conflicts over the control of natural resources. In concerned. addition, over the past three years, electoral processes have often dominated attention and occasioned The crises in the Central African Republic, Congo, tensions. This was the case in Angola, Burundi, the DRC, and the Lake Chad Basin are perpetuating Central African Republic, Chad, Congo, Equatorial a deplorable humanitarian situation. The actions Guinea, and Gabon. This pattern confirms that the of Boko Haram have produced more than 200,000 region faces significant challenges to building strong refugees and about 2.6 million displaced people, and consensual political institutions that promote including 1.5 million children. About 1.3 million people social cohesion. Strong presidential power systems have been displaced in Kasai region of DRC.7 The coupled with the lack of alternation of political parties volume of refugees is increasingly undermining the have most often led to crises that have interrupted socioeconomic balance of the host regions. economic activity by destroying infrastructure and disrupting markets.5 2.2 THE ECONOMIC, MONETARY, AND Conflicts have been exacerbated by countries’ FINANCIAL ENVIRONMENT inability to reduce insecurity and reconstruct; to reduce high levels of poverty and unemployment, Economic activity has slowed since the second especially among young people; and to manage quarter of 2014 because of the fall in oil prices natural resources properly. The high incidence of and various security shocks.8 In 2018, the growth terrorism is due mainly to the permanent threat posed in Central Africa’s gross domestic product (GDP) by Boko Haram in the Lake Chad Basin,6 the political accelerated slightly to 2.2% from 1.1% in 2017, but and military crisis in the Central African Republic, remained below the African average of 3.5%. This continued armed conflicts in the Great Lakes region, growth was driven primarily by the rebound in raw and the activities of the Ugandan rebel movement (the material prices, principally oil. East Africa led with Lord’s Resistance Army) in the Central African Republic GDP growth estimated at 5.7% in 2018, followed by and DRC. Furthermore, the crisis in the Kasai region of North Africa at 4.9%, West Africa at 3.3%, Central DRC continues to displace massive populations and Africa at 2.2%, and Southern Africa at 1.2%.9 Central create new humanitarian needs. Finally, the political Africa’s real GDP growth was 5.9% in 2014 compared and security crisis in the northwest and southwest to 4.9% in 2011. Meanwhile, ECCAS’s GDP growth of Cameroon has worsened the vulnerability factors rate stood at 1.5% in 2017, compared to 2.8% in 2015
5 United Nations Development Programme. Central Africa: A Sub-Region Lagging Behind? March 2017 6 An important institution in the Lake Chad area is the Lake Chad Basin Commission. This commission was established on 22 May 1964 by four countries bordering Lake Chad: Cameroon, Chad, Niger, and Nigeria. The number of member countries increased to six after the accession of the Central African Republic in 1996 and Libya in 2008. DRC, Egypt, Republic of Congo and Sudan are observer members. The commission’s headquarters are in N’djamena, Chad. 7 United Nations Office for the Coordination of Humanitarian Affairs. Lake Chad Basin: Crisis Update. November-December 2018. 8 Communauté économique et monétaire de l’Afrique centrale. Rapport intérimaire de surveillance multilatérale 2017 et perspectives pour 2018. March 2018. 9 African Development Bank. 2019 African Economic Outlook. January 2019.
17 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 and 5.2% in 2011. It came out negative at -0.31% in contribution is made mainly by extractive industries 2013, strongly affected by the poor performance of (value added by manufacturing does not exceed the Central African Republic (-36.7%) and Equatorial 14.5% of real GDP). The tertiary sector contributed Guinea (-4.13%). As regards CEMAC, real GDP growth an average of 40.9% to real GDP in 2017, mainly as was 2.18% in 2017 compared to 2.25% in 2015 and a result of the good performance of market services, 5.12% in 2011. The rate turned negative in 2013 and commercial activities, telecommunications, and 2016, at -5.20% and -0.32% respectively. transport services. The primary sector contributes only slightly (16.9%) to the region’s GDP, a trend The region’s economies are largely based on the that has not improved significantly for at least one production and export of extractive raw materi- decade. The crisis caused by the fall in oil prices als (oil, minerals, etc.) and are therefore highly (Figure 1) deteriorated macroeconomic frameworks vulnerable to exogenous shocks. The secondary and jeopardized prospects for sustained growth in sector dominates the regional economy, contribut- the short term, with widening deficits in budgets and ing an average of 42.2% to real GDP in 2017. The external current accounts.
Figure 1 : Oil Price Trends, 2013-2018
Source: https://prixdubaril.com
The decline in oil prices has placed national budgets in 2011, 19.6% in 2014, 25.5% in 2015, and 28.1% in under severe pressure since the second half of 2017. Within ECCAS, external debt almost doubled 2014. In the seven countries covered by the RISP-CA, within a period of seven years, from 28.7% in 2011 to the overall budget balance in 2018 recorded a deficit 57.1% in 2017. Within the CEMAC zone, the situation of 1.4% of GDP, down from a deficit of 3.0% in 2017. was even more severe, with external debt rising from This reduction in the deficit is primarily attributable 19.5% of GDP in 2011 to 60.0% of GDP in 2017 as to the slight rise in oil prices and fiscal consolidation a result of adjustment difficulties in the region.10 Of under CEMAC’s economic and financial reform pro- course, there are disparities between countries: for gram. Within ECCAS, the deficit increased from 3% example, according to the AfDB’s African Economic of GDP in 2014 to 5.7% of GDP in 2016. A similar Outlook, in 2018, Congo’s debt was 67% of GDP (in trend is observed within CEMAC: 2.6% of GDP in Congo, debt rose from 32% of GDP in 2013 to 87% 2014 compared to 6% of GDP in 2016. in 2016, partly a result of high public spending for political decentralization). In contrast, Gabon’s debt The sharp fall in government revenues and the climbed from 15% of GDP in 2011 to 25% in 2015 resulting increase in current account deficits have and 41% in 2017 but fell back to 37% in 2018. For depleted foreign exchange reserves (Figure 2) and other countries, external debt ratios have generally increased external debt. In 2018, external debt in fluctuated between 20% and 30%, except in Equa- Central Africa stood at 27.0% of GDP against 14.3% torial Guinea, where it is 10%. It should be noted that
10 International Monetary Fund. Sub-Saharan Africa: Regional Economic Outlook, Restarting the Growth Engine. May 2017.
18 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 the appreciation of the United States dollar against public expenditure is estimated at 17.8% of GDP in the euro has contributed to increasing external debt 2018. These expenses are driven by country-specific in the CEMAC region. Finally, inflation is fairly under transformative investments and integration projects. control in the Bank’s Central Africa region, with an In addition, security expenditure (internal security as average of 9.3% in 2017 that was significantly driven well as defense) in DRC grew from 7% of the state by the rate in DRC (41.5%). In CEMAC countries in budget in 2013 to 14% in 2015 and 17% in 2017. In the same currency zone (the CFA franc), inflation is Chad, government expenditure on security increased generally under control, reflecting the central bank’s from 8% in 2012 to 19% in 2013 before falling back policy of stable prices. More specifically, inflation to 10% in 2015 and then rising to 14% in 2017. It ranges from 0.6% in Equatorial Guinea to 3.9% in the should be noted that most ongoing infrastructure Central African Republic. In DRC, however, inflation work is carried out with imported equipment, there- stood at 27.7% in 2018, down from 41.5% in 2017. by putting additional pressure on foreign exchange Except for the Central African Republic (3.9%), infla- reserves (Figure 3). tion in 2018 was below CEMAC’s target of 3.0% in all CEMAC member countries: Cameroon (1.1%), Chad Backed by a monetary union with a fixed exchange (2.1%), Congo (1.5%), Equatorial Guinea (0.6%), and rate, CEMAC adopted an economic and financial Gabon (2.8%). The fixed exchange rate policy in the reform program in July 2016. CEMAC’s program CFA franc zone helps CEMAC countries weather the (Programme des réformes économiques et financières distortions created by the dominance of their extractive de la CEMAC) has three objectives, mainly focused industries by maintaining a stable inflation rate below on fiscal policy: (i) to strengthen tax policy by raising 3%. The seven countries in the AfDB’s Central Africa indirect tax rates (value-added tax and excise duties) region recorded average inflation of 6.8% in 2018, and reduce direct taxation; (ii) to improve public lower than 14.5% in East Africa, 12.8% in North Africa, expenditure; and (iii) to harmonize procedures and 7.4% in Southern Africa, and 9.5% in West Africa.11 coordinate fiscal policies. In addition, countries in the region have concluded an agreement, monitored More insecurity has led to significant additional by staff of the International Monetary Fund, on mac- macroeconomic and budgetary costs. Central Africa’s roeconomic policies and frameworks that underpin
11 African Development Bank Group. Central Africa Economic Outlook 2019. 2019. 19 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 the regional strategy to correct fiscal and external of hydrocarbons following a higher-than-expected imbalances.12 Budget surpluses are expected to be increase in crude oil prices, coupled with an increase recorded in 2019 in all countries in the CEMAC zone in oil production in some countries and a steady except Cameroon, Congo, and Equatorial Guinea. At decline in budgetary expenditure. Annex 1 highlights the origin of this expected easing in public finance, key macroeconomic and social trends in Central we note the increase in revenues from the exploitation Africa. Figure 3: Exchange Reserves in Figure 2: CEMAC Fiscal Figure 3: Exchange Reserves in Figure 2: CEMAC Fiscal Figure 2: CEMAC Fiscal CEMAC, July 2014–December Indicators, 2014–2022 Figure 3: CEMAC,Foreign July Exchange 2014–Dec emberReserves inI ndicators, 2014–2022 2017 Indicators, 2014-2022 CEMAC,2017 July 2014 - November 2017
1 252 00 114 2 0 -5 1 202 –5 112 2 –5 -10–1 –1 1 151 110 1 -15–1 –1 8 101 88 1 -20–2 –2 6 55 -25–2 66 5 –2 -30 4 00 –3 44 0 –3 201420 151 161 171 181 191 202 212 222 20 1 1 1 1 1 2 2 2 2 prproj. prproj. pr proj. pr proj. pr proj. 22 pr pr pr pr pr Capital expenditure (left scale ) Capital expenditure (left scale ) Nov - 15 Nov - 16 Nov - 17 July - 14 July - 15 July - 16 Non-oil revenue (left scale) NoV - 14 Non-oil revenue (left scale) NJuly - 17 Overall non-oil fiscal balance, excl. grants - 15 March - 16 March - 17 March Overall non-oil fiscal balance, excl. grants
Sources: CEMAC authorities; International Sources: CEMAC authorities; International Monetary Fund Sources: CEMAC authorities; International Sources: CEMAC authorities; International Monetary Fund Monetary Fund calculations calculations Monetary Fund calculations calculations
Central Africa is lagging behind in governance, African Republic (30.5/100), Congo (42.8/100), and which weakens institutions’ efficiency and reduces Cameroon (46.9/100). Part of the reason for the poor public policies’ benefits for development. In 2016, showing can be traced to the abundance of natural the average Ibrahim Index of Governance in Africa13 resources and area’s rich biodiversity, which have led score for ECCAS countries was 44.0/100 compared to to the illegal exploitation of resources and a struggle 50.8/100 for Africa. Between 2005 and 2016, overall for control. governance deteriorated, particularly in the Central
2.3 SOCIAL CONTEXT AND CROSS-CUTTING ISSUES
The social context in the region is marked by people, and poorly distributed or limited access to land persistent poverty, high inequality, and high and natural resources. While the official unemployment unemployment, especially among women and rate as calculated according to the definition of the young people. Poverty affects 60% of the regional International Labour Organization has been low and population and the Gini index was estimated at around stable (4.7%) since the beginning of the decade, it 45% over 1990–2014.14 In some countries, inequality should be noted that extended unemployment and increased over that period, particularly in countries in underemployment are very high (70%). Figure 4 shows conflict (the Central African Republic, Chad, and DRC). that the agriculture sector is the largest employer in Inequalities mainly translate as limited access to basic the region, with an employment rate of about 70%. social services (education and health), a lack of jobs It is followed far behind by services (20%) and the and economic opportunities for women and young industrial sector (11%).
12 International Monetary Fund. Central African Economic and Monetary Community (CEMAC): Staff Report on the Common Policies in Support of Member Countries Reform Programs. July 2018 13 The Ibrahim Index of Governance in Africa draws on 166 variables from 34 sources. Combined, the variables help to define 95 indicators, 14 sub-categories, and 4 categories that make up an overall governance score. The four categories are security and the rule of law, participation and human rights, sustainable economic development, and human development. 14 African Development Bank. 2018 African Economic Outlook. 2018.
20 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025
2.2.6 Backed by a monetary union with a fixed exchange rate, CEMAC adopted an economic and financial reform programme (PREF) in July 2016. The programme has three objectives that are mainly focused on fiscal policy, namely: (i) strengthen tax policy by raising indirect tax rates (VAT and excise duties) and reduce direct taxation; (ii) improve public expenditure; and (iii) harmonise procedures and coordinate fiscal policies. In addition, countries in the region have Figure 2: Exchange Reserves in Figure 3: CEMAC - Fiscal concluded an IMF staff- CEMAC, July 2014–December Indicators 2014–22 2017 monitored agreement on 1 2 0 macroeconomic policies
1 2 –5 and frameworks that 0 –1 1 1 underpin the regional 5 –1 8 1 5 strategy to correct fiscal –2 6 5 –2 and external 12 4 0 –3 imbalances. Budget 20 1 1 1 1 1 2 2 2 2 14 5 6 7 pr8 pr9 pr0 pr1 pr2 surpluses expected to be Capital expenditureoj. oj. ( leftoj. scaleoj. oj.) Non-oil revenue (left scale Overall non-oil fiscal balance, excl. grants recorded in 2019 in all Sources: Authorities of the Economic and Sources: Authorities of the Economic and Monetary countries in the region Monetary Community of Central Africa; IMF Community of Central Africa; IMF calculations. except in Cameroon, calculations. Congo, and Equatorial Guinea.At the origin of this expected easing in public finance we note the increase in revenues from hydrocarbon exploitation, following a higher than expected increase in crude oil prices, coupled with an increase in oil production in some countries and steady decline in budgetary expenditure. Annex 4 highlights the trends of key macroeconomic and social indicators in the Central Africa region. 2.2.7 Central Africa is lagging behind in governance, and this weakens the efficiency of institutions and reduces the impact of public policies on development. In 2016, the average Ibrahim Index of Governance in Africa13 (IIAG) score for ECCAS was 44/100, compared to an average of 50.8/100 for Africa. Between 2005 and 2016, overall governance deteriorated particularly in CAR (30.5/100), Congo (42.8/100) and Cameroon (46.9/100). In addition, the abundance of natural resources and rich biodiversity have led to illegal exploitation and struggle for their control. 2.3 Social Context and Cross-cutting Issues 2.3.1 The social context is marked by persistent poverty, high inequality and high Figure 4: Employment Trends by Sector unemployment, especially among women Figure 4: Employment Trends by Sector and young people. Indeed, poverty affects 80 60% of the regional population, while the 60 Gini index was estimated at around 45% over the 1990-2014 period14. There was even 40 increased inequality over that period in some 20 countries, particularly those in conflict (DRC, 0 CAR, and Chad). Inequalities mainly refer to 2010 2011 2012 2013 2014 2015 2016 2017 limited access to basic social services Agriculture services (education and health), lack of jobs and economic opportunities for women and young people, poor distribution and limited access to Education systems areland very weak,and natural both in infrastruc resources- (AEOon the 2018region’s). tropicalWhile rainforests the (official) include unemploymenta reduction rate as defined by ture and in the quality of education . Despite progress in forests’ surface area and a degradation of their in young people’s access12 IMF:to education, Report on thethe Common quality ofPolicies composition.in Support of CEMAC Climatic Countries' risks Reformconsist Programmes, mainly of Julyhigh 2018 training remains a structural13 This challenge index puts that together hampers 166 variables temperatures, from 34 different bush sources fires, to forest measure loss, governance. bad weather, The combined variables help to define 95 the competitiveness of theindicators, labor force. 14 sub15 -Incategories addition, and 4 categorieschanging that rivermake uppatterns, the overall floods, governance and sdroughts.core. The four To categories of indicators that make up overall governance are security and the rule of law, participation and human rights, sustainable economic development, and human high unemployment rates,development. especially among young combat the effects of climate change, Central African vocational trainees and14 theAfrican graduates Development of more Bank: tradi African- Economiccountries, Outlook, like other 2018. African countries, have undertaken tional higher education, indicate a mismatch between to implement mitigation5 and adaptation measures at education systems and the needs of the private sector. the international, regional, and national levels. More Strengthening and harmonizing curricula, especially specifically, they formed intended nationally determined in technical and vocational education and training, as contributions that became nationally determined well as promoting regional centers of excellence and contributions after the Paris Climate Agreement. skills development in growth-promoting sectors, will Support for implementing these contributions is help to increase employability. This would advance a priority for Central Africa: it offers promising Agenda 2063’s goals to support young people as the opportunities to mobilize funding and should figure drivers of Africa’s renaissance. in regional strategic plans.
In terms of economic opportunities, human de- velopment, and participation in decision-making, 2.5 FRAGILITY FACTORS AND the status of men and women differ. The African SOURCES OF RESILIENCE Gender Equality Index is estimated at 53.4 for the region, compared to 61.7 for Southern Africa and 54.0 Central Africa is affected by many fragility factors for East Africa. These figures indicate the importance (sections 2.1 and 2.2). More particularly, the Bank of continuing to promote women’s economic empow- recognizes the Central African Republic, Chad, and erment by removing obstacles to their participation in DRC as countries in transition. cross-border trade and regional enterprises. The region’s ample potential could constitute a significant source of resilience. Forest resources, 2.4 ENVIRONMENT, CLIMATE oil, solid and precious minerals, and agriculture are CHANGE, AND GREEN GROWTH foreign exchange-generating resources and engines of growth in the region. Exploiting them transparently The population of Central Africa largely depends and efficiently could guarantee long-term economic on activities related to forestry, agriculture, energy, and social development. and water. The potential impacts of climate change
15 Programme d’Analyse des Systèmes Educatifs de la CONFEMEN. PASEC2014 Education System Performance in Francophone Sub-Saharan Africa: Competencies and Learning Factors in Primary Education. 2015.
21 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 Transition countries in Central Africa need to be It is supported by recovering commodity prices.17 treated differently and further integrated into the Fiscal consolidation efforts are under way through regional economy. These countries face unique economic programs with the International Monetary challenges in terms of infrastructure, the business Fund, including CEMAC’s economic and financial climate, investments, employment, and governance. reform program. These efforts benefit from favorable For that reason, the AfDB’s Committee on Operations factors related to the rise in oil prices, but risks related and Development Effectiveness recommended that the to volatility and to the security environment remain. RISP-CA take account of fragility and security issues as On the whole, Central Africa expects to see real GDP well as disparities between countries in the region. Annex increase by 3.6% in 2019 and 3.5% in 2020. 2 provides a summary analysis of regional fragility based on the Country Resilience and Fragility Assessment16 Currently, the falling prices of extractive raw mate- tool. rials in the region, particularly oil, creates a favor- able context for accelerating the implementation of the reforms required to diversify economies and 2.6 THE ECONOMIC OUTLOOK transform their structure. These reforms include improving governance and developing intra-regional Growth in Central Africa is gradually recovering trade to stimulate strong, sustainable, transformative, but remains below growth for Africa as a whole. and inclusive growth.
16 The country resilience and fragility assessment, known as the CRFA, is the first multilateral development tool to measure countries’ capacities and pressure levels. It produces a nuanced understanding of countries’ fragility and entry points to strengthen resilience. The tool complements the country policy and institutional assessment (the CPIA) by looking more holistically at resilience and fragility factors, particularly regional impacts, the environment, governance policy, and security. 17 African Development Bank Group. Central Africa Economic Outlook 2019. 2019.
22 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 23 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 III. THE REGIONAL INTEGRATION AGENDA: STATUS, CHALLENGES, OPPORTUNITIES, AND LESSONS LEARNED
3.1 THE STATUS OF REGIONAL of CEMAC, ECCAS, the African Union, the United INTEGRATION IN CENTRAL Nations Economic Commission for Africa, and the AFRICA Bank. ECCAS has since initiated an internal reform process with a view to becoming more efficient and The Institutional Framework better able to fulfill its mission.
Central Africa is characterized by an overlap of The Bank approved its new Development and regional institutions with similar objectives and Business Delivery Model in June 2016. This reform mixed performance, which have sought to eliminate allows the AfDB to streamline management processes the problems inherent in fragmented national markets so as to improve the institution’s efficiency, enhance its with a view to creating an integrated regional space with financial performance, and increase its development optimal conditions for a larger market. The main regional impact. To that end, the Bank established five regional institutions in Central Africa are CEMAC, ECCAS, the centers, one of which is the Central Africa Regional Economic Community of the Great Lakes Countries, Development and Business Delivery Office (RDGC), and the Lake Chad Basin Commission. CEMAC’s six which covers the six CEMAC countries and DRC. member countries also belong to ECCAS; Burundi Burundi and Rwanda, which belong to ECCAS, are and Rwanda are active in the East African Community; covered by the Regional Office for East Africa (RDGE), Angola and DRC are also members of the Southern while Angola and Sao Tome and Principe, also ECCAS African Development Community; and Burundi, DRC, members, are attached to the Regional Office for and Rwanda are members of the Common Market Southern Africa (RDGS) for operational purposes. for Eastern and Southern Africa. As regards the negotiations for economic partnership agreements Infrastructure (Transport, Energy, and Information between the European Union and CEMAC countries, and Communication Technology) which aim to establish a free trade area between the two, it should be noted that only Cameroon has signed The shortage of high-quality, accessible regional an interim agreement. The reluctance of other CEMAC infrastructure throughout ECCAS seriously hampers countries to do likewise testifies to their difficulty in economic and social development and the regional harmonizing their economic and trade cooperation integration efforts made by regional member instruments. In addition to a common monetary policy countries with the Bank’s support. The situation is and related macroeconomic convergence criteria, aggravated by the landlocked location of some countries CEMAC has applied since October 2017 the Additional and countries’ poor implementation of reforms designed Act of 25 June 2013 abolishing visas for all CEMAC to free the movement of persons, goods, and services. nationals travelling within the CEMAC zone. The greatest deficits in infrastructure concern transport (roads, railways, inland waterways, seaports and air At the 13th Conference of ECCAS Heads of State transport), energy, and information and communication and Government, held in Brazzaville in October technology. Central Africa’s transport system consists 2007, the parties resolved to harmonize CEMAC mainly of roads, which account for between 80% and and ECCAS. They established a streamlining steering 90% of freight movement and nearly 99% of passenger committee (the Comité de pilotage de la rationalisation movement. But most roads are not paved (just 4.1% des communautés économiques régionales en Afrique of 186,415 km of roads were paved in 2006) and at 3.5 Centrale (COPIL/CER-AC)) that includes representatives km/100 km², road density in Central Africa is among
24 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 the lowest on the continent.18 As for railway networks, communication services is also limited. In the they are disjointed and rare, while river transport is AfDB’s Central Africa region, about 1 in 100 inhabitants only handled by small operators. Finally, as illustrated subscribes to fixed-line telephony, compared to 49 in in Annex 3, transport costs are extremely high, due 100 for mobile telephony. Furthermore, 46% of the mainly to the length of road corridors, unfavorable population has access to the 3G mobile network and regulations, formal and informal market structures, 29% subscribes to the mobile broadband network. For uncertain freight transit times, and non-tariff barriers. ECCAS as a whole, 1 in 100 inhabitants has access to a In January 2004, ECCAS adopted the Central Africa fixed telephone and 73 in 100 to a mobile telephone. In Consensual Transport Master Plan, which aims to addition, 26% of inhabitants have access to the active provide the region with safe, reliable, efficient, and mobile broadband network, with regional coverage of affordable transport infrastructure and facilitate the 47% for 3G. The price of access is high, corresponding free movement of people and goods. to 11.2% of the region’s gross national income compared to 9.3% for sub-Saharan Africa and 3.7% for the rest Despite a very high potential for hydroelectricity, of the world. Only 10% of ECCAS households have Central Africa has low rates of access to modern access to a computer and the Internet. These figures energy (electricity, liquefied petroleum gas, and conceal disparities between the countries, disparities kerosene). The region has huge fossil and renewable which are attributable to countries’ different levels of energy resources but rural and semi-urban populations development (Table 3.2 in Annex 3). have limited access to energy. This contrasts with the increase in the access-to-electricity rate noted Intra-Regional Trade and Investments in the continent and the world over the past decade. More specifically, Central Africa has less power grid Central African intra-regional trade (trade within interconnections than other African regions: with ECCAS) accounts for barely 2% of the region’s total the exception of the planned electricity connections trade (Table 1). This situation is due to several factors, between Cameroon and Chad, DRC and Congo, and including the low production of tradable goods, an DRC and Angola, there are no links between countries embryonic industrial fabric, a shortage of infrastructure, in the region. Several power plants are currently being numerous tariff and non-tariff barriers, and countries’ rehabilitated (e.g. Inga) or need to be rehabilitated reluctance to implement reforms for the free movement (e.g. Boali). of goods and persons. The ECCAS zone has five tariff profiles: CEMAC’s common external tariff, the East Despite recent progress in mobile telephony and African Community (Burundi and Rwanda), Angola, broadband Internet, the population’s access to DRC, and Sao Tome and Principe.
18 United Nations Economic Commission for Africa. Report on Infrastructure Development in Africa: Priority Areas and Interventions. December 2015.
25 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 Table 1: Intra-African Trade by Economic Area, 2017
Economic Area AMU CEN-SAD COMESA EAC ECCAS ECOWAS IGAD SADC AFRICA WORLD
Exports to Percent of total exports
AMU 4.4 6.0 2.2 0 0.4 1.5 0.3 0.3 7.9 100
CEN-SAD 2.2 9.3 2.9 1.0 1.6 6.6 1.3 3.5 15.4 100
COMESA 2.4 6.8 12.2 3.7 3.5 0.5 5.4 10.8 21 100
EAC 0.3 10.6 26.7 18.8 11.1 0.7 15.0 13.9 37.9 100
ECCAS 0.1 1.3 3.0 0.2 1.8 0.6 0.1 4.6 6.7 100
ECOWAS 0.3 11.5 0.3 0 2.0 10.8 0 5.2 18.3 100
IGAD 0.3 12.4 17.9 11.7 5.6 0.4 15.5 6.8 28.5 100
SADC 0.4 2.6 9.2 1.5 2.8 1.1 1.1 20.9 24.3 100
AFRICA 1.5 6.2 5.3 1.2 2.2 3.5 1.5 9.7 17.7 100
WORLD 0.7 1.8 1.0 0.2 0.3 0.7 0.3 1.0 3.4 100
Source: United Nations Conference of Trade and Development (unctadstat.unctad.org) AMU=Arab Maghreb Union; CEN-SAD=Community of Sahel-Saharan States; COMESA=Common Market for Eastern and Southern Africa; EAC=East African Community; ECCAS= Economic Community of Central African States; ECOWAS=Economic Community of West African States; IGAD= Intergovernmental Authority on Development; SADC=Southern African Development Community
Alongside 38 other African countries, ECCAS’s for economic operators in the region, particularly in 11 member countries acceded to and signed the landlocked countries (Annex 3). Agreement Establishing the African Continental Free Trade Area (AfCFTA) on 21 March 2018. This The Finance Sector and Capital Markets agreement provides for eliminating at least 90% of tariff barriers on goods imported from other state parties The region’s financial system, which is mainly over 5 to 15 years.19 The agreement is a profound dominated by the banking sector, is not dynamic aspiration of the continent’s heads of state and seeks enough. This hampers the region’s ability to finance to stimulate intra-African trade. Currently ratified by economies as a means to develop regional markets. some 10 states, AfCFTA requires 22 ratifications to For example, in the CEMAC zone, total assets are enter into force. In the ECCAS zone, only Chad and estimated at 25% of regional GDP and the sector’s Rwanda have ratified it so far. activity is dominated by banks whose business model is mainly based on a restrictive credit policy whose The Central African region’s business climate does high fees are a barrier to all but large companies. not attract sufficient investment or stimulate the Access to finance for small and medium-sized private sector. Per capita foreign direct investment enterprises is limited and constitutes a major challenge flows in the ECCAS zone fell by 55% between 2011 in the region. As at 31 December 2016, CEMAC’s and 2015, dropping from US $337.6 to US $153.20 banking system counted 52 banks that provide very Most local investments come from supplier credits, little medium-term financing (3 to 7 years) and impose forcing companies to mobilize their cash flow, profits, rigid access conditions. Long-term financing (over and depreciation provisions. The accumulation of 7 years) is scarce and accounts for 3% of loans. arrears due to the current economic downturn is Finally, the proportion of companies with a credit line affecting all economic sectors and weakening the is 9% in Central Africa versus 23% in sub-Saharan finances of small and medium enterprises and financial Africa, and the self-financed investment rate of institutions. Excessive documentation formalities, Central Africa companies is 93% compared to 79% cumbersome customs procedures, and inefficient in sub-Saharan Africa. port operations cause additional costs and delays
19 United Nations Economic Commission for Africa. African Continental Free Trade Area: Towards the finalization of modalities on goods. June 2018 20 These figures were calculated by the AfDB, the African Union, and the United Nations Economic Commission for Africa, based on data from the Organisation for Economic Co-Operations and Development and the United Nations Conference on Trade and Development.
26 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 3.2 CENTRAL AFRICA’S CHALLENGES 2015 to December 2017. The completion report on AND OPPORTUNITIES the strategy, approved by the Bank’s Committee on Operations and Development Effectiveness in June Central Africa is grappling with many challenges 2018, identified several lessons, particularly the need that it must overcome to establish the foundations for (i) greater state involvement in the implementation for successful regional integration. These challenges of regional reforms and operations; (ii) strong include (i) peace-building to break the vicious circle of leadership by regional economic communities when instability and fragility; (ii) infrastructure development implementing integration projects; (iii) streamlining (transport, energy, information and communication governance, fragility, and resilience issues in strategies technology, shared waters); (iii) the operationalization and operations; (iv) stronger project preparation, and harmonization of the ECCAS and CEMAC free implementation, and monitoring mechanisms; (v) trade areas; (iv) the reduction of non-tariff barriers; specific indicators to monitor country progress (v) human and institutional capacity building at the on regional integration; (vi) the establishment or regional level; (vi) economic diversification and the strengthening of frameworks for dialogue with development of productive capacities; (vii) improvement stakeholders; and (vii) more complementarity between of the business climate; (viii) the response to climate country strategy papers and the RISP. In addition, it change, the rational management of natural resources, is necessary to improve the measuring, monitoring, and protection of the environment; (ix) the mobilization and quality of jobs and economic opportunities of domestic resources and stronger public-private generated by operations, as well as to integrate partnerships; (x) youth employability; and (xi) the skills development (vocational training and technical leadership and involvement of senior authorities in education) into operations to increase employability. implementing harmonized ECCAS/CEMAC instruments. These lessons confirm the main recommendations Notwithstanding these challenges, the region has of the Independent Development Evaluation unit,21 significant potential, including an abundance of good in particular: (i) adopt an approach that is proportion- arable land, a predominantly young population (the ate and adapted to the regional context; (ii) have an “demographic dividend”), diversified ecosystems, and operational indicative program; (iii) disseminate the abundant forest and shared water resources. More than regional integration program to stakeholders more half of the region’s population (133.5 million people actively; (iv) improve policy dialogue and leadership in seven RDGC countries) is under 25 years old and at the regional level; (v) support the private sector; (vi) constitutes an ample available workforce. (This can also plan operations more realistically; and (vii) continue be a major challenge for countries with few employment to build capacity in regional economic communities. opportunities, and structures and training programs that do not match labor market needs.) Furthermore, The Committee on Operations and Develop- the region occupies a strategic geographical position ment Effectiveness noted the support of its straddling the other regions of the continent. Developing members for the pillars of RISP-CA 2019–2025 its many high-potential navigable waterways could and made several recommendations: (i) make improve intra-regional trade. sure to design the strategy so as to maximize its chances of achieving expected outcomes; (ii) take into account issues relating to fragility, disparities 3.3 LESSONS LEARNED FROM THE between countries, and human capacity building; BANK’S EXPERIENCE (iii) strengthen dialogue with national and regional authorities as well as with development partners; Past Strategies and Lessons (iv) be more selective, investing in areas where the Bank has a comparative advantage; and (v) The first Central African RISP, covering 2011–2015, draw on Independent Development Evaluation’s was approved in April 2011 and extended in June findings.
21 African Development Bank; Addressing Regional Integration Challenges in Central Africa: Evaluation of the Regional Integration Strategy and Operations of the African Development Bank, 2011-2016 - Summary Report. Independent Development Evaluation, March 2018.
27 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 The Regional Portfolio Performance Review22 Preparation Facility of the New Partnership for Africa’s Development, known as NEPAD-IPPF). It is evident The Bank’s Active Portfolio in the Central African that the Bank wants to help redress the region’s poor Region (RDGC). As at 31 August 2018, the AfDB’s intra-regional infrastructure, which is one of the main active portfolio of multinational operations in Central obstacles to integration and trade. The transport and Africa consisted of 44 operations worth a total of energy sectors alone received 92.7% of commitments UA 779.55 million, compared to 29 operations and for 26 projects, or 59.1% of projects by number UA 676.86 million in May 2017 (the date of the last (Figure 5). This distribution aligns with the guidelines portfolio review). This 15.2% increase in the volume of RISP 2011–2017, the first pillar of which concerns of commitments shows the Bank’s willingness to the development of regional infrastructure, as well as support integration activities in the region through with the first pillar of the Bank’s Ten-Year Strategy, several financing windows (the AfDB, the African which is consistent with the Bank’s High 5s. Annex Development Fund, the Transition Support Facility, the 4 details the composition of the active multinational African Water Facility, and the Infrastructure Project operations portfolio as at 31 August 2018.
Figure 5: Sector Breakdown of Multinational Operations
Social Multisector Finance 0.2% 1.2% Agriculture 0.1% 2%
Environment Communication 3.6% 0.1% Energy Transport 50.5% 42.2% Water/Sanitation 0.2%
Portfolio Monitoring and Evaluation. The performance staff dedicated to monitoring operations in the region. of the active portfolio (i.e. ongoing projects that had The AfDB’s new Implementation Support Division become effective) is deemed satisfactory with an and the sector teams hold regular meetings on these overall score of 2.5 on a scale of 1 to 4 (Annex 5).23 and other weaknesses, and an action plan is being This performance is slightly weaker than in 2017, when implemented to improve project performance. The the score stood at 3.0. A qualitative analysis of projects indicative lending program for 2019–2015 reflects the not yet implemented shows that the proportion of maturity of the projects in the pipeline, this maturity projects requiring close monitoring is still high, mostly being an important consideration for quality at entry because of delays in signing financing agreements and rapid implementation. The Bank, regional economic and delays in fulfilling the conditions prior to the first communities, and countries also monitor portfolio disbursement. It should also be noted that, at the issues during dialogue missions organized by RDGC. Bank’s institutional and internal level, the deterioration The key project performance indicators are analyzed in portfolio performance is partly due to the lack of in Annex 6.
22 The Central Africa Regional Portfolio Review covers seven countries: Cameroon, the Central African Republic, Chad, Congo, the Democratic Republic of Congo, Equatorial Guinea, and Gabon. 23 The portfolio performance review was based on 15 of 44 supervised projects in the active portfolio in the Central African region.
28 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 The 2018 Portfolio Performance Improvement Aid Coordination. Regional economic communities Plan. Following the regional portfolio performance lack internal expertise and a good understanding review conducted in May 2017, the AfDB prepared a of project implementation rules and procedures. Performance Improvement Action Plan. The monitoring As a result, to implement projects, they often rely of the implementation of this plan suffered from a lack on ad hoc project implementation units within their of staff (the directorate general in charge of Central technical departments. Despite this reinforcement, the Africa employed only one country program officer out organizations continue to experience shortcomings in of the six proposed). Furthermore, supervision missions procurement and financial management. The Bank’s did not allow generic measures to be monitored support for institutional capacity building within regularly, only project-specific actions. This lack of ECCAS (the Institutional Capacity Building Support concerted action between the Bank’s departments Project) encourages these efforts. Furthermore, in (RDGC, the African Development Institute, the Fiduciary 2019, the Bank will organize a fiduciary clinic for all and Financial Management and Procurement Policy regional economic communities and supra-state Department, the Financial Control Department, etc.) structures in charge of implementing projects to made it impossible to implement the generic measures identify suitable training modules. The clinic will set out in the Performance Improvement Action Plan. be preceded by reflection on the effectiveness and Following an analysis of the current portfolio, therefore, limits of the organizations’ interventions in project the same actions were recommended anew and a implementation for both the physical and the intangible monitoring system was established (Annex 7). components of the projects (the facilitation of trade and transport). This exercise should help better define The Bank Group’s Performance. The supervision regional economic communities’ role in coordinating of regional projects should be reinforced. Fourteen and supervising regional integration projects and active operations went unsupervised in 2018 because programs. of persistent sociopolitical unrest in the Central African Republic and the presence of Boko Haram in the Lake The Bank’s Comparative Advantage and Positioning Chad Basin region. Notwithstanding these challenges, given the Bank’s presence in the region’s countries, The Bank has positioned itself as an essential arrangements should be made with sector divisions to partner in Central Africa for diversifying economies supervise projects. Operationalizing the Development and deepening regional integration. The presence and Business Delivery Model will also help to solve of country offices has facilitated close dialogue with monitoring difficulties. In this regard, the transfer of national authorities, and consultations have been RDGC from Abidjan to Yaoundé is underway. The organized with ECCAS, CEMAC, and specialized mission program for the last quarter of the year was regional institutions (the Central African Power Pool, prepared with particular emphasis on projects lagging the Commission of Central African Forests, the behind on supervision. The delivery team established by Bank of Central African States, the Central African Management as well as the appointment of all division Banking Commission, and others). Dialogue has been managers will ensure that reinforced multidisciplinary underpinned by the Bank’s leadership in supporting teams respect a frequency of at least two supervision infrastructure development, improving people’s living missions of regional projects each year. In addition, conditions, and preserving the environment. But the the recruitment of a chief development economist in Bank should also carefully explore how it can help RDGC will strengthen the measuring and monitoring the region’s countries to better integrate. Because of of employment indicators to underscore the regional debt limits in some countries (Congo and Cameroon) integration strategy’s impact on inclusive economic and low allocations in others (the Central African growth. Finally, increasing the frequency of dialogue Republic and Chad, in particular), the Bank should be and aid coordination missions to support country engaged alongside other partners—the World Bank, offices will upgrade the Bank’s portfolio management the International Monetary Fund, the United Nations and help it mobilize cofinancing. Economic Commission for Africa, the European Union, the Agence française de développement, and The Performance of Regional Economic Communities others—to identify cofinancing investments that favor and Executing Agencies in Portfolio Management and regional integration.
29 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 30 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 IV. THE BANK GROUP’S REGIONAL INTEGRATION STRATEGY IN CENTRAL AFRICA 2019–2025
4.1 THE RATIONALE FOR THE BANK’S In March 2018, the Bank adopted the Regional INTERVENTION Integration Strategic Framework (RISF) 2018–2025 for all regions of the continent. The Bank’s new Central African countries joined regional economic RISF follows the institution’s adoption of the High communities to bring their economies closer and to 5s and a new Development and Business Delivery promote development on the basis of cooperation Model, two mechanisms designed and implemented and solidarity. In addition to the political objective of subsequent to the Regional Integration Policy and regional and continental unity, Central African leaders Strategy for 2014–2023. Closely aligned with the High are seeking to overcome three major obstacles to 5s and the business model, the AfDB’s new RISF rests development: (i) the small size of markets, (ii) the lack of on three pillars: (i) the connectivity of the electricity structural complementarities, as evident in the limited network and infrastructure (transport infrastructure number of low-value-added primary export products and information and communication technology); (ii) and basic minerals; and (iii) dependence on imports trade and investment; and (iii) financial integration. of intermediate and finished goods. The nature of these obstacles shows that regional integration is RISPs are the Bank’s instruments for the best way for the region to accelerate economic operationalizing the RISF. The RISP of each of Africa’s diversification, strengthen governance, and support regions is tasked with applying the RISF to that region structural transformation within countries themselves. while taking the region’s priorities for integration into account. When implementing the previous RISP for The African Union’s Agenda 2063 and its Boosting Central Africa (2011–2015, extended to December Intra-African Trade initiative seek to materialize 2017), the Bank demonstrated its capacity to fuel regional integration in the various regions of the integration in the region by financing transport, energy, continent. Agenda 2063 sets an ambitious target capacity building, and environmental protection for intra-regional trade in all of Africa to grow from projects. The RISP also provides an opportunity to 10% in 2012 to around 50% by 2045, as integration integrate national priorities into regional strategies, deepens. The RISP-CA 2019–2025 will support this while maintaining the principle of subsidiarity. The vision in the Central African region with a target of 6% new Development and Business Delivery Model by 2025. In another move toward regional integration, better harmonizes national and regional priorities in March 2018, 49 African countries signed the AfCFTA through strategic mechanisms and effective dialogue agreement, which could play a key role in increasing with national, regional, and continental institutions. intra-regional trade from 15% in 2014 to 25% in 2040 In this regard, the Bank’s field offices will contribute (depending on efforts to liberalize). Intra-African trade directly to regional integration by integrating regional is expected to increase by 25–30% for industrial considerations into their country strategy papers. products alone; for agricultural and food products, the Annex 8 highlights the links between the region’s increase is expected to be between 20% and 30%, country strategy papers and the Central Africa RISP and in the energy and mining sectors, between 5% 2019–2025. and 11%. The industrial sectors that would benefit most from AfCFTA measures to expand trade are Regional integration can reduce pockets of textiles, clothing, leather, wood and paper, vehicles fragility and strengthen resilience in the area. and transport equipment, electronics, and metals.24 Given the region’s security, economic, and social
24 United Nations Economic Commission for Africa. An empirical assessment of the African Continental Free Trade Area modalities on goods. November 2018.
31 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 challenges, a well-coordinated and effective regional significant potential of highly diversified ecosystems approach is important to produce more benefits, and abundant forest and water resources in the region. offer economic opportunities to the population, These challenges and opportunities are analyzed in and improve the conditions of women and young section 3.2. people. In response to the overall challenges facing Central Africa, RISP-CA 2019–2025 aims to support economic 4.2 THE OVERALL GOAL AND diversification and structural transformation by PILLARS OF THE RISP-CA 2019– increasing intra-regional trade. The Bank intends 2025 to achieve this objective through two pillars that were approved by the Committee on Operations As mentioned in the combined completion report of the and Development Effectiveness in June 2018: (i) RISP 2011–2017 and the regional portfolio performance reinforcing regional infrastructure (energy, transport, review,25 Central Africa is still grappling with many and information and communication technology); challenges and weaknesses that it must overcome and (ii) supporting reforms to develop intra-regional to establish the foundations for successful regional trade and building regional economic communities’ integration. In addition to addressing these constraints, institutional capacity (Figure 6). the Bank’s strategy will need to take advantage of the
Figure 6. The Overall Goal and Pillars of the RISP-CA 2019–2025
Support economic Overall Goal diversification and structural transformation by improving intra-regional trade
Reinforce regional infrastructure Support reforms for intra- Two Pillars (energy, transport, and regional trade and build information and communication regional economic technology) communities' institutional capacity
With this strategy, the Bank hopes to triple intra- criteria drawn from several sources: (i) lessons learned regional trade in Central Africa (and within ECCAS in from previous RISPs and Independent Development general), from 2% currently to 6% by 2025. As a basis Evaluation’s findings; (ii) sector diagnostic studies; for the RISP’s strategic and operational choices in (iii) two economic and sector work reports (one on this regard, the Bank intends to use rational selection the industrialization of the timber sector in the Congo
25 African Development Bank and African Development Fund (Central Africa Regional Development and Business Delivery Office (RDGC), Regional Integration Coordination Office (RDRI). Combined Regional Integration Strategy Paper (RISP) 2011–2017 Completion and Regional Portfolio Performance Review Report. 15 May 2018.
32 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 Basin and one on the investment environment); (iv) Support the preparation of infrastructure projects. input from regional stakeholders; (v) coherence with the The Bank will assist ECCAS and CEMAC in preparing African Union’s Agenda 2063, the strategic priorities and implementing projects under the Central of CEMAC and ECCAS, the Bank’s Ten-Year Strategy, Africa Consensual Transport Master Plan26 and the the High 5s, the RISF 2018–2025, and the Bank’s other Programme for Infrastructure Development in Africa. relevant strategies; (vi) complementarity between More precisely, it will support periodic evaluations of the Bank’s support and the interventions of other the master plan to identify implementation difficulties development partners; and (vii) an analysis of the and recommend solutions. Project preparation will Bank’s comparative advantage. be supported by resources from the Infrastructure Project Preparation Facility of the New Partnership Given numerous fragility factors and the diversity for Africa’s Development and from Africa50.27 In of ecosystems in the region, the AfDB also intends consultation with regional authorities, the Bank will to pay attention to the rational management of ensure that its interventions concentrate on projects natural resources, the climate, and environmental that contribute significantly to regional integration. protection. It will make sustained efforts to seek partnerships and cofinancing.
4.3 STRATEGIC INTERVENTION Support the promotion of multimodal transport networks. AREAS AND A RESULTS The Bank intends to adopt a development corridors FRAMEWORK approach by concentrating on road, rail, and water networks. It no longer conceives regional transport Strategic Intervention Areas networks solely as means to transport goods, but also as a way to promote social and economic development Pillar 1: Reinforce regional infrastructure (energy, in surrounding areas. The competitiveness of several transport, and information and communication sectors depends heavily on transport costs. This technology). Quality infrastructure that is easily dependence is becoming increasingly significant for accessible to the population is a strong basis for exports from areas that are far from a coastline and regional integration. Pillar 1 of the Bank’s activities exports from landlocked countries (the Central African will focus on access to energy and water, electricity, Republic, Chad). In the absence of good facilitation transport corridors, and information and communication mechanisms, transporters often incur additional costs technology. Activities will be grouped around three attributable to the lack of infrastructure or the poor strategic thrusts: (i) optimize multimodal transport state of existing infrastructure. Consequently, the Bank networks by focusing on the emergence of development will pay attention to economic links and opportunities corridors, and contribute to the security and sustainable in and around corridors by combining the financing improvement of air transport; (ii) increase energy and of those corridors with parallel investments in trade better manage cross-border water resources; and (iii) facilitation. Its specific objectives for the transport improve information and communication technology sector consist of (i) facilitating the free movement to link markets. of persons and goods, and (ii) physically integrating countries through quality infrastructure to promote Strategic Thrust 1: Optimize multimodal transport and enhance inter-state and regional trade. The Bank networks. The main purpose of this strategic thrust will also support private sector activities along cross- is to develop surface infrastructure (roads, bridges, border corridors, especially activities concerning small railways, inland waterways) and air infrastructure in and medium enterprises and the activities of women order to spur competitiveness and stimulate sustainable engaged in cross-border trade. In addition, the Bank economic growth. Investing in infrastructure is essential will support the implementation of the World Trade to the structural transformation and diversification of Organization’s Trade Facilitation Agreement in Africa. Central African economies. Certain rail networks, particularly between Cameroon and Chad, will be extended and/or modernized.
26 Adopted in Brazzaville on 24 January 2004, the Central Africa Consensual Master Plan for Transport has three components: infrastructure, the facilitation of transport, and a geographic information system. 27 In 2012, in their Declaration on the Programme for Infrastructure Development in Africa, African heads of state called for innovative solutions to facilitate and accelerate the development of infrastructure in Africa. In response, and following extensive consultations with African stakeholders, the AfDB proposed to establish a new delivery vehicle known as Africa50. Africa50 is an investment bank for infrastructure in Africa that concentrates on high-impact national and regional projects in the energy sector, the transport sector, the water sector, and information and communication technology.
33 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 In this regard, the AfDB will prefer public-private Action 2: Support the development of transboundary partnerships when financing corridors that combine water resources. Transboundary water resources roads, railways, inland waterways, and maritime and port offer important opportunities to develop industry, interfaces. agriculture, and fisheries; to increase food security; and to manage resources sustainably. In addition, Facilitate air transport. As a reliable and substantial they often produce hydropower. As such, the Bank will alternative to surface transport, air transport can support the development and integrated management leverage economic growth and development and of water resources. promote regional integration. The Bank will support the establishment of suitable air safety frameworks Strategic Thrust 3: Improve information and to ensure that air transport stimulates regional communication technology. Information and competitiveness. The Bank proposes three principal communication technology has the potential to activities: (i) improving the institutional and regulatory transform businesses through innovation. It is essential framework, (ii) supporting the implementation of the to developing regional trade and freeing the movement Yamoussoukro Decision on the liberalization of the air of persons because it reduces administrative costs and transport market, and (iii) improving civil aviation safety delays in import, export, and transit procedures. It would and security to reduce accidents. These activities are be wise to deploy wireline broadband infrastructure in line with the action plan for the improvement of air (optical fiber) to ensure terrestrial connections between transport in Central Africa that was adopted on 16 countries in Central Africa. It would also be advisable September 2008 by ministers of transport and was to support the development of intra-regional and endorsed by the Conference of ECCAS Heads of State international data flows. and Government in Kinshasa on 24 October 2009. Support the development of broadband networks Facilitate waterborne transport on rivers and lakes. and cross-border broadband interconnections. The Bank will support the development of inland The Bank’s main interventions in this area will consist navigation in efforts to secure multimodal transport of promoting a regional digital market through data, systems. The river network in Central Africa includes particularly through (i) support for a coherent and more than 22,000 km of inland waterways that figure harmonized regional information and communication in the Central Africa Consensual Transport Master technology policy and a regulatory environment Plan’s first priority program network. Rivers constitute conducive to creating a secure and competitive regional a strategic and vital link in the region’s transport and data market; (ii) the development of wireline broadband service system. Waterways are a cheap, energy- infrastructure ecosystems that pay attention to the efficient, and eco-compatible form of transport. unique needs of landlocked countries such as the Central African Republic, Chad, and others, as well Strategic Thrust 2: Increase access to energy and as the development of access networks, including better manage transboundary water resources. in rural areas, to foster the digital inclusion of the Energy, including the interconnection of electricity population; (iii) the promotion of digital technologies grids, is essential for accelerating industrialization. as a means of reinforcing regional infrastructure (e.g. Consequently, the Bank plans two actions: using the capacity provided by optical fiber installed along electricity transmission links within and between Action 1: Build the capacity of the Central African the countries, railway lines, etc.); (iv) the development Power Pool and increase energy. Specifically, efforts of data storage and transmission facilities, including will be made to (i) better design and implement regional regional Internet exchange points and data centers, and energy production and interconnection projects; (ii) support for a regional data regulatory framework that better prepare energy projects for financing, among can promote regional solutions; (v) capacity building other things through partnerships and cofinancing; for initial and continuous digital training centers to fill (iii) harmonize legal and regulatory frameworks; (iv) the huge gap in digital infrastructure, applications, and increase grid connections and the production and services; and (vi) a contribution to the establishment distribution of electricity; and (v) expand access to of regional technology parks, business incubators/ electricity for households and small and medium accelerators, and similar vehicles to address the enterprises. problem of youth unemployment in the region.
34 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 Support the establishment of harmonized national digital in charge of streamlining (the Comité de pilotage de identity systems. Supporting harmonized national digital la rationalisation des communautés économiques identity systems will facilitate the free movement of régionales en Afrique Centrale (COPIL/CER-AC)) was persons within Central Africa. The Bank’s interventions approved by the Chairman of ECCAS in 2012 and the will seek to (i) support the establishment of regional Chairman of CEMAC on 31 March 2015. The Bank will and national data storage centers, (ii) develop the continue to provide technical and institutional support foundations of e-government for the establishment of for this streamlining, particularly as regards customs services such as e-Visa, (iii) promote the use of common regulations, common external tariffs, rules of origin, and open standards and norms for the interoperability sanitary and phytosanitary standards, and regulations of various national digital identity systems, and (iv) governing public-private partnerships. In addition, the support the establishment of a regulatory framework Bank will help to implement the continental free trade for data protection and security. area through technical support (capacity building and knowledge products). Support the establishment of interoperable digital financial services.Establishing interoperable Support private sector development and improvements digital financial services will go far to facilitate to the investment climate. The private sector has played national and regional financial transactions. The a key role in all markets where regional integration has Bank’s interventions will consist of (i) supporting been initiated and accelerated, and Central Africa is the establishment of interoperable digital financial unlikely to be an exception. The private sector is crucial services at the country and regional levels; (ii) to mobilizing private investment in tradable goods, fostering a coherent and harmonized regional which are essential to sustain productivity growth, framework for co-regulating the digital and banking increase exports, and build export know-how, all of sectors; (iii) supporting regional initiatives so as to which increase intra-regional trade. Industries operating build the capacities of national and regional actors at a regional scale also need private investments involved in digital financial services; and (iv) helping to process local products on the spot at a more to incentivize the development of digital financial advanced level, thus create value as well as jobs. services. For these reasons, the Bank will support adopting and implementing reforms and harmonizing policies Pillar 2: Support reforms to develop intra-regional regarding investment, public-private partnerships, trade and build regional economic communities’ public procurement, industrialization, and related institutional capacity. Pillar 2 has three strategic matters. thrusts: (i) develop trade and investment, (ii) develop the finance sector, and (iii) build human and institutional Among other things, the reforms envisioned by capacity. the Bank aim to substantially protect investors by guaranteeing them nondiscriminatory and fair treatment, Strategic Thrust 4: Develop intra-regional trade full protection and security, compensation in the event and investment. The Bank will promote integration of expropriation, and the possibility of repatriating the by working on markets and intra-regional trade. It will income generated by their investments. The reforms collaborate with ECCAS, CEMAC, and other partners include access to dispute settlement mechanisms such to stimulate productive sectors by developing regional as regional or international arbitration, and the right for value chains and supporting the harmonization of investors to initiate litigation directly against the state market rules and structures to facilitate the movement hosting their investments in the event of a violation of goods and people. of substantive provisions at the government level. Lastly, the Bank will support training and raising the Support streamlining regional economic communities. awareness of national and regional stakeholders about Streamlining CEMAC and ECCAS, which overlap, is the Organization for the Harmonization of Business Law vital to deepening economic integration in Central in Africa (Organisation pour l’Harmonisation en Afrique Africa. The work on this project stems from the 13th du Droit des Affaires) through the organization’s national Conference of ECCAS Heads of State and Government, commissions and regional economic communities. held in 2007 in Brazzaville, Congo. A steering committee
35 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 Support the development of regional value chains. the Bank will increase its support for ECCAS’s work If Central Africa wants to accelerate economic implementing the World Trade Organization’s Trade diversification and integrate into the global economy, Facilitation Agreement in Africa. This agreement it must prioritize developing regional value chains in aims to simplify, standardize, and harmonize several sectors. Doing so would be a good opportunity countries’ trade procedures and make them more for the countries of the region to increase cross-border transparent. trade in intermediate goods, which is essential for strengthening the industrial fabric. Building these value Support the development of trade in services and chains depends on many factors, particularly logistics intellectual property. The Bank wishes to support the and the institutional and legal environment. For this development and circulation of goods and services in reason, the Bank has financed a study on sustainably the Central African region. It will help regional economic industrializing the timber sector in the countries of the communities remove obstacles to the cross-border Congo Basin. The Bank will also support developing movement of people, including skilled labor, so as to value chains in livestock and fisheries, cotton, and stop aggravating skills deficits and unduly restricting other areas over the next seven years. intra-regional trade. In addition, the protection of intellectual property rights is essential to establishing Support the elimination of non-tariff barriers and the an enabling environment for investment and trade facilitation of trade. The reduction or, even better, and encouraging African efforts to promote economic the elimination of non-tariff barriers is a prerequisite development through innovation. Intellectual property for deepening economic cooperation in the region. rights encourage the development of new technologies Barriers to the movement of factors of production for agricultural and industrial production. Such rights also and intermediate goods are costly to economic attract domestic and foreign investment and facilitate operators. In Central Africa, the problem of non-tariff the transfer and trade of technology, all of which are barriers is acute. The Bank will conduct substantial vectors of economic and social growth. In order to economic and sector work on transport and transit develop globally recognized value-added products, costs and times along Central African corridors. This attract investment in knowledge-based industries, will help establish a regional mechanism for electronic motivate innovation, and increase trade, Central Africa monitoring and the elimination of barriers. In addition, therefore needs to build and improve its capacity to
36 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 protect these rights. In addition, effective intellectual Organization for the Harmonization of Business Law in property protection is vital for protecting public health Africa (Organisation pour l’Harmonisation en Afrique du and safety. For all these reasons, the Bank will support Droit des Affaires), and the African Intellectual Property CEMAC, ECCAS, and the African Intellectual Property Organization. Given the importance of infrastructure Organization in developing ways of increasing and projects to the RISP-CA 2019–2025, the Bank will improving capacity as regards intellectual property. also seek to build regional economic communities’ capacity to maintain the region’s road networks and Strategic Thrust 5: Develop the finance sector and corridors. help mobilize domestic resources. The countries of Central Africa need to develop domestic savings and Integrate climate change and gender measure; optimize capital mobilization mechanisms. This requires reduce fragility. The Bank will pay special attention passing reforms to improve economic governance, to fragility issues and will support resilience-building creating suitable financial products, and developing activities. Operations could, for example, support specialized financial institutions to accelerate the ecosystem conservation in the Congo Basin, financing of Central African economies. When finance build resilience to food insecurity, or support the instruments operate effectively and are led by well- socioeconomic reintegration of vulnerable groups. capitalized, properly regulated financial institutions, The Bank will also pay special attention to assessing they foster growth and dynamism in the private sector. jobs and economic opportunities created and/or to The Bank will therefore support a deeper finance sector, be created through its operations, and supporting financial integration, and financial inclusion in the CEMAC women engaged in cross-border trade. zone, where achievements will be extended to the ECCAS region. In practical terms, the Bank’s operations will Economic and sector work. The Bank plans to carry seek to improve regional financial governance, reinforce out three major economic and sector studies during mechanisms to build and mobilize local savings, and the RISP-CA’s implementation period: (i) an in-depth strengthen financial inclusion. The Bank will also support study on transit and transport costs and non-tariff building regional institutions’ capacity and helping measures along the main corridors of Central Africa, to establish long-term financing. Ultimately, a more (ii) an assessment of the impact of trade facilitation integrated finance sector that can conduct transactions measures and the African Continental Free Trade in complete security will be vital to increasing intra- Area (AfCFTA) in Central Africa, and (iii) a study on regional trade and investments in the region. employment and labor market outcomes in Central Africa. In addition to these studies, the Bank intends Strategic Thrust 6: Build human and institutional to produce a yearly report on the status of regional capacity. The Bank will support CEMAC and ECCAS integration in Central Africa in collaboration with in generating knowledge and building technical CEMAC, ECCAS, and other development partners. capacity so that the two organizations can better This report will serve as a basis for an annual regional fulfill their missions, particularly when monitoring forum on regional integration that will give countries, infrastructure projects and coordinating, harmonizing, regional economic communities, the private sector, and streamlining regional programs. The pillars and civil society, and development partners a platform operational sectors named in this strategy have strong for dialogue. potential to create jobs and economic opportunities, especially for young people, thus contributing to Implementing the RISP-CA will require investments inclusive and sustainable growth. This said, it will be of UA 3.185 billion, corresponding to 30 operations necessary to build capacity for measuring, monitoring, over a seven-year period (2019–2025). About and ensuring the quality of the jobs and economic 88% of the planned funding will be devoted to opportunities thus generated. To increase employability, reinforcing regional infrastructure (energy, transport, it will also be necessary to develop skills through and information and communication technology) vocational training and technical education in targeted while 12% has been earmarked for developing intra- investment sectors (transport, energy, information regional trade and building institutional capacity in and communication technology, water, etc.). Taking regional economic communities. With regard to the past experiences into account, the Bank will focus risk of fragility in the region, the infrastructure and more on specialized institutions such as river basin institutional capacity-building components of the commissions, the Central African Power Pool, the indicative program are expected to strengthen the
37 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 resilience of the countries of the region. Beyond In addition to regularly monitoring operations as per these interventions, the AfDB also plans specific the Bank’s internal procedures, progress towards the operations, for example those mentioned in 4.2.23 objectives indicated in the RISP’s results matrix will (strengthen resilience to food insecurity, promote the be evaluated during a mid-term review in 2022 and socioeconomic reintegration of vulnerable groups, during the preparation of the completion report in and conserve ecosystems in the Congo Basin). This 2025. The monitoring will be conducted by the Bank approach aligns with the Bank’s vision of reducing in close consultation with the regional authorities, fragility and building resilience within states. It also CEMAC and ECCAS. The mid-term review will be complements the value-chain-supports projects prepared in collaboration with regional stakeholders financed by the Bank as part of its country strategy so that intermediate outcomes are considered and papers. Annex 9 presents the indicative multinational the strategy adjusted accordingly. RDGC will prepare project program for 2019–2025. Implementing this regular reports on the achievement of outputs and program will depend on the availability of resources outcomes in coordination with the Regional Integration and countries’ interest in regional and multinational Coordination Office (RDRI) and the Bank’s country projects. offices. Annex 11 presents the change theory for the RISP-CA (in French only). Monitoring and Evaluation and a Results Measuring Framework The RISP-CA 2019–2025 expects to achieve eight principal outcomes: (i) better quality of transport and The implementation of RISP-CA 2019–2025 will greater access to regional markets; (ii) improved access be monitored on the basis of a results measuring to reliable and affordable energy for the population framework (Annex 10). The framework summarizes and the private sector; (iii) better-connected transport the key causal chain factors of the Bank’s sector infrastructure; (iv) denser terrestrial interconnections interventions, from inputs to short- and medium-term and national fiber-optic backbones; (v) a harmonized effects and impact. It presents baseline data and sets and operational institutional framework that promotes targets for each indicator. intra-regional trade and investment; (vi) a more dynamic finance sector with more domestic financing for the
38 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 private sector; (vii) more decent employment and At the continental level, the objectives and pillars sustainable economic opportunities, especially for of the RISP-CA are consistent with the African young people; and (viii) stronger capacities within Union’s approach to integration. With Agenda regional economic communities to manage and 2063,29 the African Union mainly seeks to strengthen implement regional projects. continental integration by (i) facilitating cross-border trade in goods; (ii) developing transport, energy, and telecommunications infrastructure to connect more 4.4 ALIGNMENT WITH THE people; (iii) freeing the movement of people; (iv) PRIORITIES OF THE CONTINENT, promoting growth and capital flows across national THE BANK, AND THE REGION borders; and (v) producing information and knowledge products to promote economic competitiveness and The RISP-CA’s objectives are in line with the Bank’s social well-being. priorities, particularly the High 5s, whose Integrate Africa pillar needs to be supported by the other four pillars At the level of regional institutions, the RISP takes (Feed Africa, Light Up and Power Africa, Industrialize into account ECCAS’s strategic vision for 202530 Africa, and Improve the Quality of Life for the People of and CEMAC’s regional economic program for Africa). Regional integration supports the other four pillars 2017–2021.31 The overall goal of ECCAS’s strategic in turn. The RISP-CA is also consistent with the Bank’s vision for 2025 is to promote and strengthen harmonious Ten-Year Strategy (2013–2022), which aims to support cooperation and balanced and self-sustaining Africa’s progress towards real economic development development in economic and social activity while and social cohesion (inclusive growth), while fostering raising living standards. The implementation of this sustainable use of natural resources (green growth).28 In vision is underpinned by a medium-term strategic this regard, the Bank recognizes five operational priorities plan, adopted in July 2017. Meanwhile, CEMAC’s that enable it to carry out its actions: infrastructure economic plan for 2017–2021 has two missions: (i) to development, regional economic integration, private reinforce physical integration by developing regional sector development, governance and accountability, transport corridors, increasing energy production and and qualifications and technologies. Finally, the pillars interconnection, and ensuring the emergence of a of RISP-CA 2019–2025 are aligned with those of RISF digital market; and (ii) to accelerate trade integration 2018–2025, approved in March 2018, namely (i) energy by facilitating the free movement of goods, services, and infrastructure connectivity, (ii) trade and investment, and people, and to accelerate economic diversification and (iii) the integration of financial markets. and job creation.
28 African Development Bank Group. At the Center of Africa’s Transformation: Strategy for 2013–2022. 2013. 29 African Union. Agenda 2063: The Africa We Want. 2015. 30 Communauté économique des états de l’Afrique centrale. Vision stratégique de la CEEAC à l’horizon 2025. 2007. 31 Communauté économique et monétaire des états de l’Afrique centrale. Programme économique régional : programme opérationnel 2017–2021.
39 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 40 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 40 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 V. IMPLEMENTATION OF THE STRATEGY
5.1 COUNTRY DIALOGUE ISSUES 5.3 ALLOCATION AND FINANCING AND REGIONAL ECONOMIC COMMUNITIES In its position as cofinancier, the Bank will play a catalytic role in mobilizing the resources needed There exists as yet no formal framework for to implement the RISP-CA 2019–2025. This position consultations between key development partners is made possible by the leverage effect of the Bank’s on regional integration in Central Africa. However, financial contributions to projects and programs. To the Bank, the United Nations Economic Commission for that end, the Bank will draw on African Development Africa, and the European Union recently collaborated Fund country resources, the African Development on a number of initiatives to better coordinate their Fund’s regional operations window, AfDB resources, operations. Furthermore, in November 2018, the and a number of other mechanisms, such as the Economic Commission for Africa invited the Bank Transition Support Facility, the African Water Facility, through RDGC to participate in a regional coordination the Infrastructure Project Preparation Facility of the mechanism for technical and financial partners in New Partnership for Africa’s Development (known as Central Africa. The Bank and its partners agree that NEPAD-IPPF), the Middle Income Countries Fund, the private sector can significantly help address and other multilateral and bilateral trust funds. In the the challenges of employment and wealth creation, same vein, the Bank will pay attention to promoting particularly by taking part in regional value chains, the private sector, particularly through operations that especially in the area of timber and green jobs. For include the private sector and support the mobilization this reason, support for the private sector has been of domestic resources, which would promote economic an important aspect of the discussions. In addition, diversification and intra-regional trade. With this in the Bank remains at the forefront of innovative mind, the Bank will pursue its exchanges within the approaches to infrastructure financing designed African Investment Forum with a view to mobilizing to mobilize additional financial resources, as is the more private financing for the implementation of the case with Africa50. Finally, the Bank supports the indicative program. Alongside other development establishment of appropriate frameworks to promote partners, the Bank will strive to incorporate resource public-private partnerships, the sharing of knowledge mobilization activities into its operations cycle in order and best practices, access to strategic networks and to increase cofinancing: it expects that relocating the databases, the development of investment platforms Central Africa Business Delivery office to Yaoundé, and business opportunities, and more. Cameroon, will enable it to strengthen dialogue with other development partners in this regard. Furthermore, the Bank plans to improve its internal coordination 5.2 INTERNAL AND EXTERNAL with a view to better using the trust funds that it ARRANGEMENTS manages. Lastly, the Bank’s support for the merger of Central Africa’s stock exchanges should enable Internally, RDGC and RDRI will monitor the the private sector (especially pension funds) and the implementation of the RISF-CA with the support of population to contribute to financing projects that the Bank’s field offices in Central Africa. Externally, support diversification and regional transformation. the seven countries in RDGC (Cameroon, Central African An indicative regional and multinational operations Republic, Chad, Congo, DRC, Equatorial Guinea, and program for the RISP-CA is proposed in Annex 9. The Gabon), members of ECCAS, will implement the RISP- key to success will be to ensure that operations are CA under the supervision of ECCAS and CEMAC in coordinated and prioritized and that the necessary close collaboration with other development partners. resources are mobilized, both internally and externally.
41 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 5.4 POTENTIAL RISKS AND investments that appear more financially and politically MITIGATION MEASURES profitable in the short term.32 Governments sometimes tend to favor the Bank’s domestic operations over The principal risks to the RISP-CA lie in the programs to promote intra-regional trade and continuing deterioration of Central Africa’s political strengthen regional integration. To counter these and security environment, low oil prices, and tendencies, the Bank will establish and strengthen the poor capacity of human and organizational frameworks for dialogue on regional integration, among resources (Table 2). Moreover, at country level, other things by organizing an annual regional forum multilateral operations—which are implemented on integration and by making use of the regional over the long term—often compete with domestic office in Yaoundé, Cameroon.
Table 2: Risks and Mitigation Measures
Risks Mitigation Measures
Monitor and support the stabilization efforts of Central African countries through the 1. Continued deterioration Council for Peace and Security in Africa and the operations of the Central African of the political and security Multinational Force; mobilize the international community in several countries in environment the region (the Central African Republic, the Democratic Republic of Congo, etc.); make good use of Bank instruments for fragile states.
Support ongoing stabilization initiatives in the region, such as the Central African 2. Non-recovery of oil prices Economic and Monetary Community’s economic and financial reform program and and other low commodity prices budget support programs; strengthen country dialogue on the need for economic diversification.
3. Weak human and organizational capacities within regional economic communities, Continue capacity building within regional economic communities; support human particularly for monitoring the capital development. implementation of multinational projects
4. Limited financial and human resources for multinational Identify additional financial resources for multinational operations, including trust operations at the African funds. Development Bank
5. Vulnerability to climate change, which may affect Include climate analysis and adaptation measures in projects and programs. extractive projects
When implementing operations in transition coun- economic communities, governments, the private tries, the parties should exercise relative flexibility sector, and the other development partners. The Bank in accordance with the Bank’s guidelines.33 Finally, will continue to lead in areas where it has proven its the RISP-CA 2019–2025 will proceed on the basis of comparative advantage. strengthened partnerships, particularly with regional
32 African Development Bank Group. Regional Integration Policy and Strategy (RIPoS) 2014–2023. 2015. 33 African Development Bank Group. Operations Guidelines of the Fragile States Facility (FSF); African Development Bank Group (Transition Support Department). African Development Bank Group Strategy for Addressing Fragility and Building Resilience in Africa 2014-2019.
42 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 43 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 VI. CONCLUSION AND RECOMMENDATIONS
The RISP-CA 2019–2025 will guide the Bank’s actions the sustainable management of natural resources for to promote economic cooperation and deepen inclusive and green growth. regional integration in Central Africa over the next seven years. It will operationalize the Bank’s RISF The preparation of the RISP-CA 2019–2025 followed 2018–2025 in the region, taking into account recent several stages: the preparation of the concept note in developments, the willingness expressed by political May 2018, peer review of the concept note on 8 June authorities in the region, the priorities of institutions 2018, the regional team’s review of the concept note that support regional integration, the increased role on 13 June 2018, the Committee on Operations and of the private sector as the main engine of growth, Development Effectiveness’s approval of a proposal for and governments’ role as agents and facilitators of the RISP-CA’s pillars on 25 June 2018, the preparation structural reforms designed to diversify their country’s mission with ECCAS and CEMAC from 9 to 10 July 2018, economy and achieve structural transformation. The and consultations with the same two institutions from 10 RISP-CA is aligned with the operational priorities of to 13 September 2018. The RISP-CA 2019–2025 was ECCAS and CEMAC. It reflects the Bank’s experience then reviewed by the regional team on 18 October 2018 with interventions in support of regional integration and by the Operations Committee on 12 December 2018. and it builds on current regional and continental Its submission to the Board of Directors of the AfDB initiatives. and the Board of Directors of the African Development Fund is scheduled for 30 January 2019. The RISP-CA 2019–2025 will be underpinned by interventions to reduce the infrastructure deficit and Management requests that the Board of Directors connect markets, and by measures to harmonize of the AfDB and the Board of Directors of the and streamline policies at the regional level to African Development Fund approve the Central promote intra-regional trade and cross-border Africa Regional Integration Strategy Paper 2019– investment. In addition, the RISP-CA will support the 2025 period as well as the level of assistance development of human and institutional capacity and proposed.
44 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 45 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 46 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Annex 1: Selected Macroeconomic and Socioeconomic Data on Central Africa
Table 1.1 - Basic macroeconomic data for Central Africa, 2008-2020 Real GDP growth rate (%)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(e) 2019(p) 2020(p) Cameroon 2.9 1.9 3.3 4.1 4.5 5.4 5.9 5.7 4.6 3.5 3.8 4.4 4.7 Central African Republic 2.1 1.7 3.0 3.3 4.0 -36.7 1.0 4.8 4.5 4.0 4.3 5.0 5.0 Chad 3.1 4.2 13.6 0.1 8.9 5.7 6.9 1.8 -6.4 -3.8 2.8 4.2 5.8 Congo 5.6 7.8 8.7 3.4 3.8 3.3 6.8 2.6 -2.8 -3.1 2.0 3.7 -0.1 Democratic Republic of Congo 6.2 2.9 7.1 6.9 7.1 8.5 9.5 7.7 1.7 3.7 4.0 4.5 4.6 Equatorial Guinea 17.8 1.3 -8.9 6.5 8.3 -4.1 0.4 -9.1 -8.6 -2.9 -7.9 -2.7 -2.5 Gabon 5.3 -2.3 6.3 7.1 5.3 5.5 4.4 3.9 2.1 0.5 2.0 3.4 3.4 Central Africa 6.8 2.4 4.2 4.9 6.1 4.0 5.9 3.3 0.2 1.1 2.2 3.6 3.5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(e) 2019(p) 2020(p) Central Africa 6.8 2.4 4.2 4.9 6.1 4.0 5.9 3.3 0.2 1.1 2.2 3.6 3.5 East Africa 5.4 4.8 8.0 5.4 3.0 7.2 5.8 6.5 5.1 5.9 5.7 5.9 6.1 North Africa 5.1 3.0 4.1 -0.2 12.0 0.8 1.5 3.7 3.2 4.9 4.3 4.4 4.3 Southern Africa 4.5 0.1 4.3 3.9 4.1 3.6 3.0 1.6 0.7 1.6 1.2 2.2 2.8 West Africa 5.8 5.9 9.2 5.0 5.1 5.8 6.1 3.2 0.5 2.7 3.3 3.6 3.6 Africa 5.3 3.3 5.8 2.9 7.3 3.6 3.7 3.5 2.1 3.6 3.5 4.0 4.1
Inflation (%)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(e) 2019(p) 2020(p) Cameroon 5.3 3.0 1.3 2.9 2.4 2.1 1.9 2.7 0.9 0.6 1.1 1.1 2.0 Central African Republic 9.3 3.5 1.5 1.2 5.9 6.6 11.6 4.5 4.6 4.1 3.9 3.3 3.2 Chad 8.3 10.1 -2.1 1.9 7.7 0.2 1.7 6.8 -1.1 -0.9 2.1 2.3 2.3 Congo 6.0 4.3 0.4 1.8 5.0 4.6 0.9 3.2 3.2 0.5 1.5 1.6 2.0 Democratic Republic of Congo 18.0 46.1 23.5 14.9 0.9 0.9 1.2 1.0 2.9 41.5 27.7 14.9 10.5 Equatorial Guinea 4.7 5.7 5.3 4.8 3.4 3.2 4.3 1.7 1.4 0.7 0.6 1.4 1.9 Gabon 5.3 1.9 1.4 1.3 2.7 0.5 4.5 -0.1 2.1 3.0 2.8 2.3 2.5 Central Africa 8.1 11.4 5.5 5.0 3.2 1.9 2.4 2.3 1.6 9.3 7.3 4.7 4.1 Annex 1: Selected Macroeconomic and Socioeconomic Data on Central Africa
Table 1.1 - Basic macroeconomic data for Central Africa, 2008-2020 Real GDP growth rate (%)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(e) 2019(p) 2020(p) Cameroon 2.9 1.9 3.3 4.1 4.5 5.4 5.9 5.7 4.6 3.5 3.8 4.4 4.7 Central African Republic 2.1 1.7 3.0 3.3 4.0 -36.7 1.0 4.8 4.5 4.0 4.3 5.0 5.0 Chad 3.1 4.2 13.6 0.1 8.9 5.7 6.9 1.8 -6.4 -3.8 2.8 4.2 5.8 Congo 5.6 7.8 8.7 3.4 3.8 3.3 6.8 2.6 -2.8 -3.1 2.0 3.7 -0.1 Democratic Republic of Congo 6.2 2.9 7.1 6.9 7.1 8.5 9.5 7.7 1.7 3.7 4.0 4.5 4.6 Equatorial Guinea 17.8 1.3 -8.9 6.5 8.3 -4.1 0.4 -9.1 -8.6 -2.9 -7.9 -2.7 -2.5 Gabon 5.3 -2.3 6.3 7.1 5.3 5.5 4.4 3.9 2.1 0.5 2.0 3.4 3.4 Central Africa 6.8 2.4 4.2 4.9 6.1 4.0 5.9 3.3 0.2 1.1 2.2 3.6 3.5
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(e) 2019(p) 2020(p) Central Africa 6.8 2.4 4.2 4.9 6.1 4.0 5.9 3.3 0.2 1.1 2.2 3.6 3.5 East Africa 5.4 4.8 8.0 5.4 3.0 7.2 5.8 6.5 5.1 5.9 5.7 5.9 6.1 North Africa 5.1 3.0 4.1 -0.2 12.0 0.8 1.5 3.7 3.2 4.9 4.3 4.4 4.3 Southern Africa 4.5 0.1 4.3 3.9 4.1 3.6 3.0 1.6 0.7 1.6 1.2 2.2 2.8 West Africa 5.8 5.9 9.2 5.0 5.1 5.8 6.1 3.2 0.5 2.7 3.3 3.6 3.6 Africa 5.3 3.3 5.8 2.9 7.3 3.6 3.7 3.5 2.1 3.6 3.5 4.0 4.1
Inflation (%)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(e) 2019(p) 2020(p) Cameroon 5.3 3.0 1.3 2.9 2.4 2.1 1.9 2.7 0.9 0.6 1.1 1.1 2.0 Central African Republic 9.3 3.5 1.5 1.2 5.9 6.6 11.6 4.5 4.6 4.1 3.9 3.3 3.2 Chad 8.3 10.1 -2.1 1.9 7.7 0.2 1.7 6.8 -1.1 -0.9 2.1 2.3 2.3 Congo 6.0 4.3 0.4 1.8 5.0 4.6 0.9 3.2 3.2 0.5 1.5 1.6 2.0 Democratic Republic of Congo 18.0 46.1 23.5 14.9 0.9 0.9 1.2 1.0 2.9 41.5 27.7 14.9 10.5 Equatorial Guinea 4.7 5.7 5.3 4.8 3.4 3.2 4.3 1.7 1.4 0.7 0.6 1.4 1.9 Gabon 5.3 1.9 1.4 1.3 2.7 0.5 4.5 -0.1 2.1 3.0 2.8 2.3 2.5 Central Africa 8.1 11.4 5.5 5.0 3.2 1.9 2.4 2.3 1.6 9.3 7.3 4.7 4.1 47 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Overall Budgetary Balance (% of GDP)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(e) 2019(p) 2020(p) Cameroon 2.2 -0.3 -0.6 -1.6 -0.8 -3.6 -3.5 -2.2 -5.7 -4.9 -2.6 -2.1 -1.6 Central African Republic -1.3 -0.6 -1.5 -2.4 0.0 -6.6 3.0 -0.7 1.7 -1.5 1.0 0.6 0.2 Chad 3.6 -9.2 -4.2 2.4 0.5 -2.1 -4.2 -4.7 -2.5 -0.8 0.1 0.2 0.5 Congo 27.2 4.9 15.7 16.0 7.3 -4.5 -11.3 -41.7 -12.9 -12.5 -4.8 -5.2 -3.6 Democratic Republic of Congo -1.1 0.9 -1.0 -1.0 1.7 3.1 1.2 -0.3 -0.9 0.1 -0.6 0.0 0.3 Equatorial Guinea 20.4 -3.1 -4.5 0.8 -7.3 -5.9 -4.8 -3.3 -3.7 -2.9 -0.9 -0.5 0.3 Gabon 11.0 6.8 2.7 1.7 6.2 -3.1 6.0 -1.1 -4.7 -3.6 -0.3 0.5 1.8 Central Africa 8.7 0.0 0.7 1.9 0.6 -2.2 -2.0 -4.7 -4.0 -3.0 -1.4 -1.0 -0.3
Current Account Balance (% of GDP)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(e) 2019(p) 2020(p) Cameroon -1.2 -3.1 -3.1 -2.6 -3.3 -3.5 -4.0 -3.8 -3.2 -2.7 -3.2 -3.1 -3.1 Central African Republic -9.9 -9.1 -10.2 -7.5 -4.6 -3.1 -5.6 -9.5 -10.0 -9.4 -8.3 -7.3 -7.0 Chad 3.7 -9.2 -9.0 -5.6 -8.7 -9.2 -9.0 -10.1 -10.7 -6.6 -4.3 -4.3 -4.5 Congo -1.2 -14.2 7.8 -3.2 17.7 1.7 -11.6 -42.9 -70.1 -13.2 4.0 5.1 0.8 Democratic Republic of Congo -0.8 -6.0 -10.1 -5.0 -4.3 -5.2 -4.8 -3.9 -3.7 -3.6 -1.1 1.9 2.4 Equatorial Guinea 1.1 -9.7 -20.2 -5.7 -1.1 -2.5 -4.3 -16.3 -0.6 -1.3 -2.7 -2.9 -3.9 Gabon 21.6 4.4 14.9 21.0 17.6 7.0 7.3 -5.7 -10.2 -4.9 -1.5 -0.4 -0.8 Central Africa 3.2 -5.7 -4.2 -0.6 1.4 -2.4 -4.1 -9.0 -9.3 -4.3 -2.0 -1.0 -1.3 48 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Exchange Rate (local currency unit per US dollar)
Inflation Exchange Rate (%) (LCU/$) 2017 2018 (e) 2019 (p) 2020 (p) 2015 2016 2017 2018 (e)
Cameroon 0,6 1,1 1,1 2,0 591,4 593,0 582,1 530,2
Central African Rep. 4,1 3,9 3,3 3,2 591,4 593,0 582,1 530,2
Chad -0,9 2,1 2,3 2,3 591,4 593,0 582,1 530,2
Congo 0,5 1,5 1,6 2,0 591,4 593,0 582,1 530,2
Congo, Dem. Rep. 41,5 27,7 14,9 10,5 926,0 1 010,3 1 464,4 1 839,4
Equatorial Guinea 0,7 0,6 1,4 1,9 591,4 593,0 582,1 530,2
Gabon 3,0 2,8 2,3 2,5 591,4 593,0 582,1 530,2
Central Africa 9,3 7,3 4,7 4,1 ......
Africa 7,4 10,1 9,8 8,3 ......
Sources: AfDB Statistics Department, various domestic authorities; International Financial Statistics and AfDB estimates.
Table 1.2 - Basic Indicators in Central Africa, 2018
GDP based on PPP Population Land area Population Density GDP per Capita Annual real GDP growth valuation (thousands) (thousands of km2) (pop / km2) ( PPP valuation, $) (average over 2010-2020) (en millions de dollars) Central African Rep. 24 678 475 52 95 068 3 852 4,5 République Centrafricaine 4 737 623 8 3 620 764 0,2 Chad 15 353 1 284 12 30 320 1 975 3,6 Congo 5 400 342 16 30 665 5 679 2,6 Congo, Dem. Rep.Congo. 84 005 2 345 36 72 872 867 5,9 Equatorial Guinea 1 314 28 47 29 764 22 654 -2,9 Gabon 2 068 268 8 38 280 18 515 4,0 Central Africa 137 555 5 365 26 300 588 2 185 3,5 Africa 1286 206 30 049 43 6764 685 5 259 4,0
Sources: United Nations, Department of Economic and Social Affairs, Population Division, World Population Prospects, The 2017 Revision. AfDB Statistics Department, various domestic authorities and AfDB estimates. 49 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Table 1.3 - Demand Composition and Growth in Central Africa, 2017–2020
2017 2018 (e) 2019 (p) 2020 (p) Final Gross Capital External Sector Gross Gross Consumption Formation Total Final Gross Capi- Total Final Capital Total Final Capital Consump- Exports Imports Consump- Exports Imports Consump- tal Forma- Exports Imports Formation Formation Private Public Private Public Exports Imports tion tion tion tion - Total - Total - Total
% of GDP Real Percentage Growth Real Percentage Growth Real Percentage Growth
68,5 19,1 28,2 9,1 39,1 63,9 4,4 8,2 3,9 7,0 4,0 8,0 4,0 6,1 4,7 8,3 4,4 6,4 Cameroon Central African 93,5 14,1 8,0 6,6 17,0 39,2 3,2 6,8 4,9 3,3 4,1 8,8 4,5 4,6 4,4 9,1 3,7 5,2 Rep. 85,8 10,0 1,5 4,8 26,2 28,4 2,2 5,0 5,1 4,3 2,1 6,0 7,2 2,2 4,3 6,0 8,4 4,7 Chad 51,5 21,6 20,2 9,3 65,5 68,1 -2,3 -21,9 4,0 -12,9 -2,6 -0,3 1,9 -10,1 -4,3 -27,2 1,1 -18,1 Congo Congo, Dem. 73,9 5,5 22,0 2,4 35,5 39,3 -22,9 9,8 22,7 -25,8 -8,5 4,6 11,1 -10,4 -2,8 4,6 8,1 -3,1 Rep. Equatorial 49,0 19,8 4,1 10,7 42,4 26,0 -1,3 -0,2 -13,9 0,4 -2,5 -1,4 -3,1 -2,4 -4,4 -2,0 -0,7 -3,8 Guinea 47,5 16,1 28,9 5,0 40,6 38,1 3,3 1,6 0,7 2,0 3,6 0,1 3,5 1,1 2,7 1,6 3,5 0,9 Gabon Central Africa 66,8 11,5 18,0 4,9 32,9 34,1 -4,2 2,2 6,2 -10,4 -0,1 2,8 5,3 -4,0 1,0 -0,1 4,6 -2,8
Africa 68,7 13,6 13,7 9,5 22,7 28,1 1,3 4,4 2,9 -1,4 2,7 5,3 3,4 2,3 3,5 5,1 2,9 3,3
Sources: AfDB Statistics Department, various domestic authorities and AfDB (e) estimates and (p) projections. Table 1.4 - Public Finances in Central Africa, 2017–2020 (percentage of GDP)
2017 2018 ( e) 2019 (p) 2020 (p)
Total Total Total Total Total Total Total Total Overall expenditure Overall expenditure Overall expenditure Overall revenue expenditure revenue revenue revenue balance and net balance and net balance and net balance and grants and net lending and grants and grants and grants lending lending lending Cameroon 15,6 20,4 -4,9 16,4 19,0 -2,6 16,3 18,4 -2,1 15,8 17,4 -1,6 Central African Rep. 14,5 16,0 -1,5 16,8 15,8 1,0 16,4 15,7 0,6 15,7 15,6 0,2 Chad 14,4 15,2 -0,8 14,9 14,8 0,1 14,6 14,4 0,2 14,7 14,1 0,5 Congo 32,7 45,1 -12,5 30,8 35,6 -4,8 29,2 34,4 -5,2 27,8 31,3 -3,6 Congo, Dem. Rep. 11,6 11,5 0,1 9,5 10,1 -0,6 8,9 8,9 0,0 8,6 8,2 0,3 Equatorial Guinea 21,8 24,7 -2,9 22,0 22,9 -0,9 21,6 22,1 -0,5 21,6 21,4 0,3 Gabon 18,8 22,5 -3,6 19,2 19,4 -0,3 19,7 19,2 0,5 22,4 20,5 1,8 Central Africa 16,4 19,4 -3,0 16,4 17,8 -1,4 16,1 17,0 -1,0 16,0 16,3 -0,3 Africa 21,7 28,0 -6,3 21,2 27,8 -6,6 21,3 26,8 -5,5 22,2 26,7 -4,5
Sources: AfDB Statistics Department, various domestic authorities and AfDB estimates. Table 5 - Balance of Payments Indicators in Central Africa, 2017–2020 50 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Table 1.5 - Balance of Payments Indicators in Central Africa, 2017–2020 Trade balance Current account balance Current account balance ($ million) ($ million) (as % of GDP) 2017 2018 (e) 2019 (p) 2020 (p) 2017 2018 (e) 2019 (p) 2020 (p) 2017 2018 (e) 2019 (p) 2020 (p) Cameroon - 426 - 418 - 746 -1 166 - 922 -1 257 -1 306 -1 398 -2,7 -3,2 -3,1 -3,1 Central African Rep. - 244 - 281 - 296 - 314 - 161 - 160 - 154 - 159 -9,4 -8,3 -7,3 -7, Chad 306 777 917 1 074 - 656 - 549 - 588 - 672 -6,6 -4,3 -4,3 -4,5 Congo 1 970 3 877 4 268 4 794 -1 048 383 506 82 -13,2 4,0 5,1 ,8 Congo, Dem. Rep.Congo. - 158 3 157 5 228 6 879 -1 349 - 385 686 929 -3,6 -1,1 1,9 2,4 Equatorial Guinea 2 913 3 441 3 196 3 182 - 149 - 344 - 369 - 490 -1,3 -2,7 -2,9 -3,9 Gabon 2 549 3 593 3 739 3 966 - 713 - 267 - 66 - 161 -4,9 -1,5 -0,4 -0,8 Central Africa 6 909 14 144 16 305 18 414 -4 999 -2 579 -1 291 -1 870 -4,3 -2,0 -1,0 -1,3 Africa -132 249 -145 208 -131 203 -123 546 -156 015 -150 609 -121 383 -104 063 -6,8 -6,5 -5,0 -4,0 Sources: AfDB Statistics Department; Table 1.6 - Sector Contributions to GDP Growth (%), 2014–2018
Agriculture Industry Services Cameroon 0,9 1,8 2,3 Central African Rep. -0,1 0,3 3,1 Chad 1,6 1,0 -1,0 Congo Rep. of -0,1 1,1 1,3 Average 2014-16 Congo Dem. Rep. 0,8 3,2 2,4 Equatorial Guinea 0,1 -5,6 -0,5 Gabon 0,5 0,5 2,5 Central Africa 0,7 0,9 1,6 Cameroon 0,9 0,4 2,1 Central African Rep. 0,6 0,9 1,3 Chad 1,3 -3,2 -1,8 Congo Rep. of -2,0 -2,6 0,1 2017 Congo Dem. Rep. 0,3 3,5 0,8 Equatorial Guinea 0,1 -3,5 1,0 Gabon 0,2 -0,6 1,2 Central Africa 0,5 -0,2 0,7 Cameroon 1,0 1,0 2,0 Central African Rep. 3,7 1,0 -1,0 Chad 2,3 0,5 -2,6 Congo Rep. of 0,3 -1,1 1,6 2018 Congo Dem. Rep. 0,7 1,6 1,9 Equatorial Guinea 0,2 -5,6 -1,5 Gabon 0,3 0,3 2,3 Central Africa 0,3 1,4 0,8
Sources: AfDB Statistics Department;
51 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 52 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Table 1.7: External Debt Accumulation in Central African Countries, 2008-18 (% of GDP)
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cameroon 4,5 4,9 5,6 6,3 8,2 11,4 14,9 19,4 19,6 22,5 23,6 Central African Rep. 25,6 9,0 9,0 8,0 9,9 15,0 35,0 32,6 28,2 27,9 23,6 Chad 15,6 27,4 24,6 20,7 20,5 21,8 29,1 25,0 27,1 28,7 26,0 Congo 64,0 58,8 19,7 21,2 25,9 32,1 36,0 80,5 87,1 86,7 67,4 Congo Dem. Rep. 71,0 74,8 26,3 22,6 21,4 19,5 18,9 20,8 22,4 21,5 21,0 Equatorial Guinea 0,5 4,5 8,0 6,7 7,3 6,2 5,6 8,8 9,1 9,0 10,3 Gabon 13,8 20,3 16,8 15,4 16,6 24,2 25,3 33,3 35,6 40,6 37,4 Central Africa 24,8 28,6 15,4 14,3 15,3 17,5 19,6 25,5 26,7 28,1 27,1 Sources: AfDB Statistics Department;
Table 1.8 - Demographic Indicators in Central Africa, 2018
Population Urban Population Distribution by age (%) fertility rate Growth rate (% of total) 0-14 15-64 65+ (per woman) (Naissances Cameroon 2,6 56,4 42,5 54,3 3,2 4,6 Central African Rep. 1,7 41,4 42,8 53,5 3,6 4,7 Chad 3,0 23,1 46,9 50,6 2,5 5,7 Congo 2,6 66,9 42,1 54,5 3,4 4,5 Congo, Dem. Rep. 3,3 44,5 46,2 50,8 3,0 5,9 Equatorial Guinea 3,6 72,1 37,0 60,1 2,8 4,5 Gabon 2,1 89,4 35,9 59,7 4,4 3,7 Central Africa 3,0 46,0 45,1 51,9 3,0 5,5 Africa 2,5 42,5 40,6 55,8 3,5 4,4
Sources: United Nations, Department of Economic and Social Affairs, Population Division, World Population Prospects, The 2017 Revision. AfDB Statistics Department, various domestic authorities and AfDB estimates. 53 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Table 1.9 - Poverty and Income Distribution Indicators in Central Africa, 2014–2017 International poverty National poverty line* Survey Survey line Survey Gini year Population below the year Population below the year Index** poverty line (%) poverty line (%), $1.9 Cameroon 2014 37,5 2014 23,8 2 014 46,6 Central African Rep. 2008 62,0 2008 66,3 2 008 56,2 Chad 2011 46,7 2011 38,4 2 011 43,3 Congo 2012 63,9 2011 37, 2 011 48,9 Congo, Dem. Rep. 2011 46,5 2012 77,1 2 012 42,1 Equatorial Guinea 2006 76,8 ...... Gabon 2017 33,4 2017 3,4 2 017 38,0 Central Africa ...... Africa ...... Notes: * The national poverty line is defined as two-thirds of the average consumption. ** The Gini coefficient is defined on income distribution.
Sources : Domestic authorities and World Bank, Online Database, Country DHS,
Table 1.10 - Basic Health Indicators in Central Africa
Life expectancy at birth Health personnel (per 100 Prevalence of (years) 000) Undernourished 2018 2010-2016 in Total Population, Nurses and 2016 Physicians Total Male Female Midwives Cameroon 59,1 58,0 60,2 7,3 8,3 52,0 Central African Rep. 53,6 51,6 55,6 61,8 ...... Chad 53,5 52,3 54,8 39,7 4,4 30,9 Congo 65,5 63,9 67,2 37,5 9,5 82,4 Congo, Dem. Rep. 60,4 58,9 62,0 ...... Equatorial Guinea 58,2 57,0 59,7 ...... Gabon 66,8 65,2 68,5 9,4 40,6 289,8 Central Africa 59,5 58,0 60,9 24,9 8,5 58,0 Africa 63,1 61,4 64,9 18,5 33,6 123,3 Sources: ADB Statistics Department, Life expectancy at birth and HIV/AIDS from UN Revision 2015, Undernourishment prevalence and food availability: FAO, Food Insecurity Online Database Total health expenditure and public health expenditure: WHO Online Database.
54 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Table 1.11 - Basic Education Indicators in Central Africa
Estimated adult literacy rate, 2010- Public Gross enrolment ratio, Primary 2017 (%) expenditure 2010-2017 (people over 15) on education 2000-2016 Total Male Female Total Male Female (% of GDP) Cameroon 71,3 78,3 64,8 113,2 119,0 107,2 3,0 Central African Rep. 36,8 50,7 24,4 105,7 120,0 91,5 1,2 Chad 22,3 31,3 14,0 88,1 99,0 77,0 2,8 Congo 79,3 86,4 72,9 104,2 100,6 107,8 6,2 Congo, Dem. Rep. 77,0 88,5 66,5 108,0 108,4 107,6 2,2 Equatorial Guinea 95,0 97,3 92,4 61,6 61,8 61,3 ... Gabon 82,3 84,9 79,9 138,7 140,8 136,6 2,7 Central Africa 68,8 78,9 59,5 106,5 109,5 103,5 2,1 Africa 65,5 77,0 62,6 99,5 101,6 97,4 4,9
Sources : ADB Statistics Department ; UNESCO Institute for Statistics (UIS) Database November 2018;
Domestic Authorities.
Table 1.12 - Basic Labor Indicators in Central Africa, 2018
Unemployment rate, Employment to population ratio, 15+ Labour force participation rate, 15+ Total
Total Female Youth Total Female Male Cameroon 73,0 67,6 50,6 76,4 71,4 81,4 4,2 Central African Rep. 67,4 59,2 48,4 76,8 70,8 83,1 5,8 Chad 66,9 60,3 49,7 71,6 64,0 79,3 5,9 Congo 61,8 59,2 34,3 70,4 67,6 73,2 11,3 Congo, Dem. Rep. 69,7 68,3 43,9 71,4 70,6 72,3 3,7 Equatorial Guinea 54,7 51,3 24,7 83,1 72,0 92,9 7,6 Gabon 41,6 31,2 10,8 52,4 42,9 61,7 19,5 Central Africa 69,1 65,9 45,1 72,3 69,5 75,3 4,7 Africa 59,6 51,0 40,1 65,9 55,5 75,9 7,8
Sources: International Labour Organisation, ILOSTAT Database 55 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Table 1.13 - Intra-Central Africa Trade, 2017
Dem. Rep. Central African Equatorial Central Cameroon Chad Congo of the Gabon Africa World Republic Guinea Africa Exports to =====> Congo (Millions of US $) Cameroon .. 27,7 135,5 49,4 18,5 38,4 43,9 313,4 480,5 3 233,0 Central African Republic 3,3 .. 1,6 0,1 .. .. 0,0 5,0 17,8 124,3 Chad 7,5 0,5 .. 0,3 .. .. 0,1 8,3 10,8 1 343,7 Congo 145,7 1,2 0,1 .. 19,5 6,2 40,3 213,0 656,9 5 428,0 Dem. Rep. of the Congo 0,0 .. .. 97,0 ...... 97,0 2 199,1 7 764,6 Equatorial Guinea 27,4 .. .. 265,1 ...... 292,5 387,1 5 200,0 Gabon 16,7 5,9 3,7 54,1 3,6 22,9 .. 106,9 325,7 5 477,0
Dem. Rep. Central African Equatorial Central Cameroon Chad Congo of the Gabon Africa World Republic Guinea Africa Imports <===== from Congo (Millions of US $) Cameroon .. 1,6 5,6 147,8 0,0 28,5 6,5 190,0 973,9 5 104,7 Central African Republic 27,5 .. 0,6 1,6 .. .. 1,6 31,2 61,1 351,0 Chad 247,4 1,8 .. 0,1 .. .. 40,5 289,8 426,7 1 964,5 Congo 96,8 0,1 0,3 .. 99,4 281,6 154,9 633,1 1 979,3 6 398,2 Dem. Rep. of the Congo 22,4 .. .. 23,2 ...... 45,7 2 362,1 5 215,9 Equatorial Guinea 110,6 .. .. 16,8 ...... 127,4 169,0 3 108,6 Gabon 62,6 0,0 0,1 23,4 0,0 8,5 .. 94,7 269,1 2 822,6 Source: UNCTAD Annex 2: Fragility and Sources of Resilience within the Economic Community of Central African States
The Economic Community of Central African States average of nearly 70%. There are many obstacles to (ECCAS) is currently composed of eleven member the economic transformation of ECCAS, most of which countries (Angola, Burundi, Cameroon, Central African are due to poor governance of the countries concerned Republic (CAR), Chad, Congo, DRC, Gabon, Equatorial and the weak capacity of their institutions. Guinea, Sao Tome and Principe, Rwanda and Rwanda), four of which are recognized by the Bank as being in Despite the good economic performance recorded, Category 1 fragility situation (Burundi, CAR, DRC and the social situation in the ECCAS community has Chad). The Economic and Monetary Community of been a cause for concern; four of the countries (Chad, Central Africa (CEMAC) forms an integral part of ECCAS, CAR, DRC, and Burundi) are among the ten worst while RDGC covers 7 ECCAS countries, including all ranked countries in the world according to the Human CEMAC countries and DRC. Development Index (HDI), and three (CAR, DRC, and Burundi) among the ten worst ranked according to In general, the region’s fragility is multifaceted, and largely their GDP per capita. In both cases, DRC, Burundi and reflected at the political, security, socio-economic and CAR, with a combined population of just under 100 institutional levels. At the political and security levels, million, are, on average, driving the region into extreme the region faces challenges concentrated in three poverty. Social indicators have deteriorated much more geographical poles, namely the Great Lakes region, the in countries at war where the humanitarian situation of Lake Chad Basin, and the Gulf of Guinea. The causes displaced persons and victims of conflicts has worsened of the region’s political fragility are closely linked to: (i) significantly, affecting the region with implications for the absence of political alternation; (ii) weaknesses in strengthening social exclusion and inequality. the protection of human rights; (iii) lack of transparency in resource management; and (iv) electoral processes Inequalities in the distribution of wealth are high, with a that continue to increase political fragility by creating Gini coefficient of 45.6 on average. The unemployment social tensions in several countries (Burundi, Congo, rate varies between 20% and 35% depending on the Gabon and DRC). country. The public sector is the main provider of formal employment, and the informal economy employs more The extreme material poverty of the population, poor than 50% of the working population (80% in DRC, governance of soil and subsoil resources (hydrocarbons 70% in Chad and Congo). The precarious situation of and minerals), porous borders and the failure of the population and, particularly, youth unemployment government services in some parts of their territories are important factors that contribute to instability in are aggravating factors that exacerbate conflicts. many parts of the region. As regards gender, women The spectre of civil war continues to loom, to varying are generally among the categories most affected in degrees, over some countries in the region. the region by situations of fragility, especially with widespread gender-based sexual violence (GBV). Regarding the economic situation, most of the countries depend heavily on the oil sector, except Burundi and Inadequate infrastructure is one of the main causes Rwanda. Such dependence is the root cause of obstacles of the current fragility in ECCAS zone, particularly in to economic diversification, which mainly concern: (i) energy and transport, which hamper private sector a reduced production base and inadequate transport development and inter-regional exports. However, infrastructure; (ii) low competitiveness and inadequate Central Africa is the part of the continent with the investment; and (iii) a multiplicity of tariff and non-tariff greatest hydropower potential, owning 58% of Africa’s barriers to trade in the region. On average, 35% of potential. Despite this potential, the energy situation regional GDP is generated by the oil and mining sectors. in the Member States is far from satisfactory, and Crude oil is the region’s leading export product and the is an obstacle to the establishment of an efficient main source of budgetary revenue, accounting for an industrial structure.
56 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 Governance in the region is highly deficient; its key formation of regional GDP and provides on average indicators remain low and below the regional averages only 9% of export revenues. In addition, most countries of Africa. This weakness, coupled with the weak allocate less than 5% of their budgets to agriculture, capacity of institutions, are hampering economic contrary to the recommendation of the 2003 Maputo transformation of the region. Transparency and Declaration, which recommends that this allocation accountability in the management of public resources should be at least 10%. are limited because of the weak public institutions responsible for monitoring government action, as well Institutional and financial responses have been provided as civil society and lack of information on resource by most governments to avoid slippages and mitigate revenues, especially natural resources, in the region. risks associated with the various sources of fragility despite external conditions and constraints. However, Most of the countries in the region continue to be the responses have not been sufficient to stem the at the bottom of the World Bank’s Doing Business situation of widespread poverty affecting all countries ranking, and the business environment in the region in the region and all social categories. remains unattractive, while private investment remains well below what is required to boost the region’s However, the region has immense sources of resilience economies. Despite the political will to improve the given its great agro-ecological diversity and abundant business climate, the conditions are not yet favourable, natural resources, its advantageous geostrategic and exogenous shocks and socio-political unrest in location in the centre of the continent and its mining the ECCAS zone discourage private investors. natural resources, to name but a few, which could offer reassuring opportunities. Indeed, the region is The ECCAS zone remains the least integrated on the a distinct area with the co-existence of the Saharan continent; trade between regions is by far the lowest ecological zones, located on the northern borders compared to other regional economic communities. of the Republic of Chad, the Sahel zones of the Far The poor integration is mainly due to infrastructure North of Cameroon and part of Chadian territory, the deficit, the maintenance of tariff and non-tariff barriers forest areas that cover more than 50% of the surface within the region, the low diversification of economies, area of the sub-region, as well as mountainous areas and the low human capacity. The foreign trade in and a large coastal area, which extends from the ECCAS countries is dominated by commodity exports, Cameroonian coast to the Angolan coast. In addition, particularly oil, mining and agricultural products, for the sub-region has 346.2 million hectares of forest, which these countries have no influence over their 135.5 million hectares of pasture, and 26.9 million international prices. hectares of arable land. Similarly, the region has the world’s greatest untapped hydropower potential, Finally, the sub-region remains generally a food-insecure which is a major strategic asset for the sub-region zone, with high rates of malnutrition in some regions. to develop a competitive, low-cost and sustainable The agricultural sector contributes only 21% to the energy supply.
57 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 58 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Annex 3: Selected Infrastructure Data on Central Africa
Table 3.1 - Infrastructure Development Indices in Central Africa, 2010–2018
Country/ Indicator 2010 2011 2012 2013 2014 2015 2016 2017 2018 Region Africa Infrastructure Development Cameroon 15.02 15.74 16.58 16.79 18.20 18.98 19.03 19.29 19.81 Index (AIDI)2 I. Transport composite index 2.96 2.92 2.89 2.86 3.75 3.70 3.65 2.62 2.59 II. Electricity composite index 4.95 5.24 5.19 5.16 5.19 5.25 5.27 5.21 4.81 III. ICT composite index 0.71 1.01 2.26 3.94 5.83 10.79 11.88 18.01 21.50 IV. WSS composite index 58.28 59.00 60.44 60.44 54.28 55.19 56.03 56.97 57.22 Central African Africa Infrastructure Development 9.06 9.59 10.19 10.52 11.20 11.72 11.87 11.83 11.95 Republic Index (AIDI) I. Transport composite index 2.27 2.25 2.24 2.22 3.17 3.03 3.00 3.04 3.01 II. Electricity composite index 0.58 0.57 0.55 0.54 0.59 0.60 0.62 0.61 0.49 III. ICT composite index 0.19 0.38 1.06 1.92 2.45 3.98 2.52 3.30 4.26 IV. WSS composite index 44.12 45.83 45.83 45.83 38.50 39.13 39.30 40.53 40.67 Africa Infrastructure Development Chad 4.18 4.78 5.28 5.46 6.05 6.76 6.64 6.81 7.24 Index (AIDI) I. Transport composite index 1.13 1.13 1.12 1.12 1.14 1.13 1.12 1.26 1.26 II. Electricity composite index 0.07 0.10 0.14 0.16 0.17 0.17 0.17 0.13 0.13 III. ICT composite index 0.23 0.42 1.03 2.01 3.26 5.20 2.82 4.42 5.38 IV. WSS composite index 21.97 22.70 23.91 23.91 21.47 21.98 22.09 22.89 22.94 Africa Infrastructure Development Congo 10.19 10.82 11.29 13.12 13.40 14.17 14.47 14.95 17.53 Index (AIDI) I. Transport composite 2.48 2.43 2.38 2.34 2.37 2.33 2.30 2.88 2.27 II. Electricity composite index 2.32 2.15 2.16 2.10 2.03 1.99 1.93 6.61 6.19 III. ICT composite index 0.86 1.35 3.59 7.05 9.14 13.62 3.06 6.19 14.66 IV. WSS composite index 40.83 40.83 40.83 40.83 40.17 40.72 41.25 43.22 43.44 Democratic Africa Infrastructure Development Republic of 5.96 6.46 6.56 6.81 7.57 8.09 8.16 8.17 8.15 Index (AIDI) Congo I. Transport composite index 1.55 1.54 1.54 1.53 1.56 1.55 1.54 1.64 1.64 II. Electricity composite index 1.90 2.25 2.37 3.40 5.56 5.62 7.60 1.94 1.85 59 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
III. ICT composite index 0.24 0.40 0.70 1.41 2.37 4.17 7.89 11.23 6.99 IV. WSS composite index 24.51 24.51 25.00 25.00 29.85 30.31 30.71 31.51 31.93 Equatorial Africa Infrastructure Development 14.55 14.76 14.90 17.30 17.03 17.71 17.93 17.97 18.21 Guinea Index (AIDI) I. Transport composite index 2.62 2.62 2.61 2.61 2.57 2.56 2.55 2.73 2.74 II. Electricity composite index 2.54 2.46 2.38 2.38 2.31 2.31 2.29 2.00 8.61 III. ICT composite index 0.61 0.79 1.57 5.53 9.21 13.58 8.02 11.84 14.67 IV. WSS composite index 61.37 61.37 61.37 61.37 51.57 51.34 51.09 50.02 50.07 Africa Infrastructure Development Gabon 24.14 24.85 25.27 25.90 26.97 27.98 27.75 28.08 30.67 Index (AIDI) I. Transport composite index 4.54 4.46 4.39 4.31 4.32 4.24 4.16 4.01 3.93 II. Electricity composite index 21.97 22.72 22.49 23.27 23.74 24.67 25.44 24.23 20.61 III. ICT composite index 2.13 2.60 5.21 9.04 15.09 24.65 15.91 20.79 25.97 IV. WSS composite index 59.78 59.78 59.78 59.78 65.51 66.07 66.60 68.43 68.49
Source : Département des statistiques de la BAD
Table 3.2 - Access to Services
People us- Telecommunications, 2016 Access to ing at least People using at least electricity, basic Percentage basic Main te- 2016 sanitation Mobile line of Indivi- drinking water ser- lephone line (% of po- services, per 100 inha- duals vices , 2015 per 100 inha- pulation) 2015 bitants using the (% of population) bitants (% of popu- Internet lation) Cameroon 4,5 79,9 25,0 60,1 65,3 38,8 Central African Rep. 0,0 27,2 4,0 14,0 54,1 25,1 Chad 0,1 38,6 5,0 8,8 42,5 9,5 Congo 0,3 105,8 8,1 56,6 68,3 15,0 Congo, Dem. Rep. 36,7 6,2 17,1 41,8 19,7 Equatorial Guinea 0,9 47,1 23,8 67,9 49,6 74,5 Gabon 1,0 149,6 48,1 91,4 87,5 40,9 Central Africa 0,9 49,0 10,3 27,1 48,5 22,9 Africa 2,1 78,5 23,7 51,6 63,3 38,0
Sources: ADB Statistics Department; Telecommunications : International Telecommunication Union - ICT Indicators Online Database. Electricity : United Nations Statistics Division, Energy Statistics Database - online database Water supply coverage and sanitation coverage: WHO / UNICEF Joint Monitoring Programme (JMP) for Water Supply and Sanitation, 2015 Update. 60 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Domestic authorities
Table 3.3 - Obstacles to Trade in Africa’s Regions
Sub-Saharan Developed Variable Africa North America South America Central America Asia Africa Countries Infrastructure Level: Container port traffic (WDI) 0.09 0.07 0.75 0.11 0.12 0.38 0.65 Air passengers, per capita (WDI) 0.23 0.25 2.6 1.6 1.43 0.93 1.18 Quality of port infrastructure (1 = low to 7 = high) (WDI) 3.64 3.64 5.35 5.21 3.65 4.15 4.17 Line navigation connectivity index (WDI) 14.38 12.72 50.64 58.51 24.16 16.36 35.11 Infrastructure efficiency rating (LPI) 2.32 2.34 3.75 3.73 2.56 2.43 2.92 Customs efficiency rating (LPI) 2.35 2.39 3.58 3.53 2.52 2.5 2.88 International navigation efficiency rating (LPI) 2.52 2.52 3.56 3.4 2.76 2.81 3.01 Timeliness rating (LPI) 2.87 2.86 4.09 3.88 3.21 3.1 3.44 Overall logistics efficiency rating (LPI) 2.49 2.51 3.74 3.68 2.77 2.69 3.05 Trade Costs: Customs bureaucracy (1 = inefficient to 7 = efficient) (WDI) 3.6 3.6 5 4.6 3.5 3.7 4.3 Export lead time (days) (DB) 29.3 30.9 10.2 9.8 19.8 15.4 20 Import lead time (days) (DB) 36.4 38.5 9.3 9.7 24.3 15.3 21.6 Export costs (dollars per container) (DB) 2.149 2.302 1.054 1.395 1.809 1.181 1.026 Import costs (dollars per container) (DB) 2.819 3.056 1.102 1.570 2.020 1.329 1.092 Others: Starting a business (days) (DB) 31.2 33.3 11.2 6.5 72.4 26.9 30.5 Starting a business (cost as % of per capita income) (DB) 69.7 74 4.1 7.2 27 39.8 24.1
Sources: World Bank, Doing Business (DB) Indicators, database on logistic performance (LPI) and Development Indicators in the world (WDI).
Table 3.4 - Doing Business Rankings in Central Africa, 2018
Cross-border trade Export lead Export Costs Import lead times Distance from the border Import Costs (USD) ranking times (time) (USD) (time) Region Sub-Saharan Africa 53 137 188 807 239 987 ECCAS 44.7 160 319 1267 370 1484 ECOWAS 56 138 163 657 216 930,47 EAC 49 141 167 603 364 1064 SADC 60 118 210 944 195 842 Europe and Central Asia 84 58 56 305 53 280 OECD 94 25 15 185 12 137
Source: World Bank, Doing Business (DB) Indicators Figure 7: Consensual Road Network of Central Africa
61 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 62 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Annex 4: Multinational Operations Portfolio as at 31 August 2018
Approval Commit. Net # Project Code Country Project Name Sector Window Into Force Eff.1st Dis Act 1 Disb FinDisbDat Disb. Age Date Date Loan
DRC- LAKES EDWARD AND ALBERT INTEGRATED FISHERIES & 1 P-Z1-AAF-006 Multinational Agriculture ADF 20/05/2015 14/09/2015 14/09/2015 08/06/2016 12/10/2016 30/06/2021 6.00 19.1 3.3 WATER R
CHAD - PROGRAMME TO STRENGTHEN RESILIENCE TO 2 P-Z1-AAZ-024 Multinational Agriculture ADF 15/10/2014 04/12/2014 04/12/2014 05/08/2015 23/12/2015 30/06/2020 9.77 20.4 3.9 INSECURITY
CIVIL SOCIETY AND GOVERNMENT CAPACITY BUILDING WITHIN 3 P-Z1-C00-029 Multinational Environment OTHERS 13/07/2011 31/08/2011 15/10/2012 15/10/2012 27/11/2012 30/09/2018 2.66 85.8 7.1 THE RE
INTEGRATED REDD PILOT PROJECT AROUND BIOSPHERE 4 P-Z1-C00-031 Multinational Environment OTHERS 22/07/2011 31/08/2011 31/08/2011 09/08/2013 12/09/2013 30/09/2018 1.95 98.4 7.1 RESERVE
5 P-Z1-C00-054 Cameroon BIODIVERSITY CONSERVATION PROJECT IN CENTRAL AFRICA Environment ADF 22/07/2013 16/12/2013 16/01/2015 16/01/2015 30/04/2015 31/12/2018 0.25 80.6 5.1
6 P-Z1-C00-056 Multinational BIODIVERSITY CONSERVATION PROJECT IN CENTRAL AFRICA Environment ADF 22/07/2013 17/12/2013 17/12/2013 16/01/2015 06/05/2015 31/12/2018 0.25 84.6 5.1
7 P-Z1-C00-059 Multinational BIODIVERSITY CONSERVATION PROJECT IN CENTRAL AFRICA Environment ADF 22/07/2013 11/11/2013 11/11/2013 16/01/2015 30/04/2015 31/12/2018 2.50 96.4 5.1
8 P-Z1-CZ0-013 Cameroon SYSTEM RESILIENCE REHABILITATION AND STRENGTHENING Environment ADF 17/12/2014 02/07/2015 11/11/2015 15/03/2016 25/07/2016 30/09/2019 12.50 10.1 3.7
9 P-Z1-CZ0-015 Multinational SYSTEM RESILIENCE REHABILITATION AND STRENGTHENING Environment ADF 17/12/2014 14/05/2015 14/05/2015 15/03/2016 25/07/2016 30/09/2019 2.19 28.4 3.7
10 P-Z1-CZ0-016 Multinational SYSTEM RESILIENCE REHABILITATION AND STRENGTHENING Environment ADF 17/12/2014 09/03/2015 09/03/2015 15/03/2016 25/07/2016 30/09/2019 5.35 16.5 3.7
AIR TRANSPORT SECTOR SUPPORT PROJECT IN CENTRAL 11 P-Z1-DA0-012 Multinational Transport ADF 06/07/2015 18/09/2015 23/12/2015 23/12/2015 14/01/2016 31/12/2019 2.00 13.1 3.2 AFRICA
CONSTRUCTION OF KETTA-DJOUM ROAD PHASE 2 - 12 P-Z1-DB0-083 Multinational Transport ACFA 30/05/2017 30/05/2017 26/01/2018 26/01/2018 26/01/2025 37.90 0.0 1.3 CAMEROON
CONSTRUCTION OF KETTA-DJOUM ROAD PHASE 2 - 13 P-Z1-DB0-083 Cameroon Transport AfDB 21/10/2015 05/04/2016 05/08/2016 06/09/2016 01/11/2016 31/12/2020 51.62 10.3 2.9 CAMEROON
14 P-Z1-DB0-088 Multinational CONGO- NDENDE-DOLISIE ROAD PROJECT AND FACILITATION Transport OTHERS 23/02/2015 25/04/2016 25/04/2016 24/02/2017 21/06/2017 30/06/2019 2.83 19.3 3.5
15 P-Z1-DB0-088 Congo CG CONGO- NDENDE-DOLISIE ROAD PROJECT AND FACILITATION Transport ADF 18/12/2013 19/02/2014 22/06/2015 22/06/2015 23/03/2016 30/06/2019 30.49 22.7 4.7
16 P-Z1-DB0-144 Multinational TRANS-AFRICAN ROAD (RTS) PROJECT - CHAD Transport ADF 11/12/2013 19/03/2014 19/03/2014 15/07/2014 02/06/2015 31/12/2019 20.40 39.3 4.7
17 P-Z1-DB0-144 Chad TRANS-AFRICAN ROAD (RTS) PROJECT – CHAD Transport ADF 11/12/2013 19/03/2014 24/10/2014 30/10/2014 10/06/2016 31/12/2019 20.90 45.6 4.7
18 P-Z1-DB0-167 Congo CG CONSTRUCTION OF KETTA-DJOUM ROAD PHASE 2 - CONGO Transport AfDB 21/10/2015 17/12/2015 11/01/2017 11/01/2017 03/03/2017 31/12/2020 101.62 28.1 2.9
DETAILED STUDY PROJECT FOR CONSTRUCTION OF BRIDGE 19 P-Z1-DB0-173 Multinational Transport OTHERS 22/09/2016 30/03/2017 30/03/2017 29/11/2017 10/04/2018 30/06/2019 2.20 18.6 1.9 OVER NTEM
CAMEROON-REGIONAL INTEGRATING ROAD NETWORK 20 P-Z1-DB0-181 Cameroon Transport AfDB 11/12/2017 24/05/2018 02/08/2018 31/12/2022 27.72 0.0 0.7 PROJECT IN THE
CAMEROON-REGIONAL INTEGRATING ROAD NETWORK 21 P-Z1-DB0-181 Cameroon Transport ADF 11/12/2017 24/05/2018 31/12/2022 9.40 0.0 0.7 PROJECT IN THE 63 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
CHAD-REGIONAL INTEGRATING ROAD NETWORK PROJECT IN 22 P-Z1-DB0-203 Multinational Transport ADF 11/12/2017 07/03/2018 07/03/2018 31/12/2022 17.50 0.0 0.7 LOWER
CAMEROON - FEASIBILITY STUDIES FOR DEVELOPMENT OF 23 P-Z1-DC0-021 Multinational Transport ADF 28/11/2017 31/12/2021 2.00 0.0 0.8 THE LINE
24 P-Z1-DC0-037 Multinational CHAD - FEASIBILITY STUDIES FOR DEVELOPMENT OF THE LINE Transport ADF 28/11/2017 07/03/2018 07/03/2018 31/12/2021 2.00 0.0 0.8
25 P-Z1-EAZ-047 Multinational SUPPORT PROJECT FOR ESTABLISHMENT OF OBT AND PPI Water Sup/Sanit OTHERS 11/08/2017 25/10/2017 25/10/2017 25/10/2017 25/04/2018 31/12/2019 0.92 08.6 1.1
SUPPORT PROJECT TO ECCAS FOR ESTABLISHMENT OF LOW- 26 P-Z1-EAZ-053 Multinational Water Sup/Sanit OTHERS 13/09/2017 11/01/2018 11/01/2018 19/02/2018 31/12/2019 0.77 0.0 1.0 LEVEL ORGAN.
27 P-Z1-FA0-026 Multinational CAR-DRC GRID INTERCONNECTION FROM THE SYSTEM Power ADF 19/09/2012 17/12/2012 17/12/2012 14/08/2014 30/03/2015 30/12/2019 29.73 13.9 6.0
28 P-Z1-FA0-035 DRC NELSAP INTERCONNECTION PROJECT - DRC Power ADF 27/11/2008 28/05/2010 28/05/2010 27/04/2012 11/07/2012 31/12/2018 27.62 33.3 9.8
SUPPORT PROJECT FOR INGA DEVELOPMENT AND ACCESS TO 29 P-Z1-FA0-045 Multinational Power ADF 20/11/2013 07/01/2014 07/01/2014 29/09/2014 11/09/2015 31/12/2019 39.41 12.6 4.8 ELECTRICITY
SUPPORT PROJECT FOR INGA DEVELOPMENT AND ACCESS TO 30 P-Z1-FA0-045 Multinational Power ADF 20/11/2013 07/01/2014 07/01/2014 29/09/2014 06/03/2015 31/12/2019 5.00 42.2 4.8 ELECTRICITY
31 P-Z1-FA0-047 Multinational CAR-DRC GRID INTERCONNECTION FROM THE SYSTEM Power ADF 19/09/2012 20/02/2013 20/02/2013 14/08/2015 11/09/2015 30/12/2019 5.55 08.7 6.0
NEPAD- 32 P-Z1-FA0-054 Multinational SUPPORT FOR INGA - 3 DEVELOPMENT Power 23/08/2013 07/01/2014 07/01/2014 29/09/2014 12/03/2015 31/12/2019 1.43 78.0 5.0 IPPF
33 P-Z1-FA0-072 Multinational CAMEROON-CHAD GRID INTERCONNECTION PROJECT Power AfDB 15/12/2017 31/12/2022 182.42 0.0 0.7
34 P-Z1-FA0-072 Multinational CAMEROON-CHAD GRID INTERCONNECTION PROJECT Power ADF 15/12/2017 31/12/2022 6.00 0.0 0.7
35 P-Z1-FA0-078 Multinational RUZIZI III – DRC Power ADF 16/12/2015 14/11/2016 14/12/2016 06/11/2017 19/01/2018 31/12/2022 60.00 0.5 2.7
STUDY ON CAMEROON-CHAD GRID INTERCONNECTION 36 P-Z1-FA0-081 Cameroon Power ADF 07/10/2013 29/01/2014 03/09/2014 23/10/2014 15/12/2014 30/09/2018 1.25 74.0 4.9 (CAMEROON)
NELSAP INTERCONNECTION PROJECT - DRC - 37 P-Z1-FA0-104 Multinational Power ADF 05/07/2016 20/10/2016 20/10/2016 21/06/2017 31/12/2018 8.04 0.0 2.2 SUPPLEMENTARY GRANT
38 P-Z1-FA0-152 Multinational CAMEROON-CHAD GRID INTERCONNECTION PROJECT Power ADF 15/12/2017 07/03/2018 07/03/2018 31/12/2022 27.50 0.0 0.7
39 P-Z1-GZ0-001 Multinational FEASIBILITY STUDY FOR GABON-ICT BACKBONE PROJECT Communication OTHERS 29/12/2017 20/02/2018 20/02/2018 20/02/2018 31/12/2019 0.61 0.0 0.7
40 P-Z1-HAA-060 Multinational DEVELOPMENT BANK OF CENTRAL AFRICAN STATES (BDEAC) Finance OTHERS 05/02/2010 26/05/2010 26/05/2010 29/04/2011 13/05/2011 31/10/2018 0.72 60.0 8.6
41 P-Z1-IZ0-025 Multinational YOUTH SOCIO-ECONOMIC REINTEGRATION SUPPORT PROJECT Social ADF 25/05/2016 14/10/2016 14/10/2016 23/02/2017 28/04/2017 28/06/2019 0.70 73.9 2.3
42 P-Z1-IZ0-027 Multinational YOUTH SOCIO-ECONOMIC REINTEGRATION SUPPORT PROJECT Social ADF 25/05/2016 06/10/2016 06/10/2016 25/07/2017 26/02/2018 28/06/2019 0.90 33.7 2.3
43 P-Z1-K00-034 Multinational INSTITUTIONAL CAPACITY BUILDING SUPPORT PROJECT Multi-Sector ADF 19/12/2012 24/04/2013 24/04/2013 21/11/2013 13/12/2013 30/09/2018 7.00 62.3 5.7
44 P-Z1-KZ0-035 Multinational ECCAS TRADE FACILITATION CAPACITY BUILDING Multi-Sector ADF 29/03/2017 21/07/2017 21/07/2017 09/10/2017 08/12/2017 30/03/2020 2.00 12.5 1.4
TOTAL 779.55 13.0 3.5 64 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Annex 5: Implementation Progress Ratings of Supervised Projects in Central Africa
Implementation Progress (IP) Rating Development Objective (DO) Rating
Overall Project Name Status Rating Compliance with System and Implementation Progress towards Progress towards IP Rating DO Rating clauses Procedures and financing IPR Outputs IPR Outcomes
3,5 2,7 3,0 3,1 3,0 4,0 3,0 3,0 NPPP 1 CIVIL SOCIETY AND GOVERNMENT CAPACITY BUILDING WITHIN THE RE 3,5 3,0 4,0 3,5 4,0 4,0 4,0 3,8 NPPP 2 INTEGRATED REDD PILOT PROJECT AROUND BIOSPHERE RESERVE 3,5 2,0 2,0 2,5 2,0 2,0 2,0 2,3 PP 3 BIODIVERSITY CONSERVATION PROJECT IN CENTRAL AFRICA - CAMER 3,5 2,5 2,5 2,8 2,0 2,0 2,0 2,4 PP 4 BIODIVERSITY CONSERVATION PROJECT IN CENTRAL AFRICA-CHAD 3,5 2,5 2,5 2,8 2,0 2,0 2,0 2,4 PP 5 BIODIVERSITY CONSERVATION PROJECT IN CENTRAL AFRICA-CAR 3,0 3,0 3,0 3,0 3,0 3,0 3,0 3,0 NPPP 6 REHABILITATION AND STRENGTHENING OF RESILIENCE – CAMEROON 3,0 3,0 3,0 3,0 3,0 3,0 3,0 3,0 NPPP 7 REHABILITATION AND STRENGTHENING OF RESILIENCE – CAR 3,0 3,0 3,0 3,0 3,0 3,0 3,0 3,0 NPPP 8 REHABILITATION AND STRENGTHENING OF RESILIENCE – CHAD 4,0 3,0 2,0 3,0 2,0 3,0 2,5 2,5 PPP 9 CONSTRUCTION OF KETTA-DJOUM ROAD PHASE 2 - CAMEROON 3,7 3,7 2,5 3,3 1,0 1,0 1,0 2,1 PP 10 TRANS-AFRICAN ROAD (RTS) PROJECT - CHAD 4,0 3,0 2,0 3,0 2,0 3,0 2,5 2,5 NPPP 11 CONSTRUCTION OF KETTA-DJOUM ROAD PHASE 2 - CONGO 3,0 3,0 3,0 3,0 3,0 3,0 3,0 3,0 NPPP 12 PROJECT TO SUPPORT THE CREATION OF AN OBT AND PPI PROJECT TO SUPPORT THE CREATION OF A TRANSBOUNDARY BASIN 3,0 3,0 3,0 3,0 3,0 3,0 3,0 3,0 NPPP 13 ORGANIZATION 4,0 3,0 3,0 3,3 3,0 3,0 3,0 3,2 NPPP 14 CAR-DRC GRID INTERCONNECTION FROM THE SYSTEM 3,0 3,0 2,3 2,8 2,0 2,0 2,0 2,4 PP 15 NELSAP INTERCONNECTION PROJECT – DRC 4,0 3,0 3,0 3,3 3,0 3,0 3,0 3,2 NPPP 16 CAR-DRC GRID INTERCONNECTION FROM THE SYSTEM 3,0 3,0 2,3 2,8 2,0 2,0 2,0 2,4 PP 17 NELSAP INTERCONNECTION PROJECT - DRC - SUPPLEMENTARY GRANT 4,0 2,7 3,0 3,2 3,0 3,0 3,0 3,1 NPPP 18 PROJECT TO SUPPORT THE SOCIO-ECONOMIC REINTEGRATION OF YOUTHS 3,5 3,0 2,7 3,1 3,0 3,0 3,0 3,0 NPPP 19 INSTITUTIONAL CAPACITY BUILDING SUPPORT PROJECT 3,5 2,9 2,7 3,0 2,6 2,7 2,6 2,8 TOTAL IPR System Legend (rating scale of 1 to 4) Sources: Baobab, September 2018 Very Satisfactory Performance (3.5-4) Légende du système EER (échelle de notation de 1 à 4) Satisfactory Performance (2.5-3.49) Unsatisfactory Performance (1.5-2.49) Very Unsatisfactory Performance (1-1.49) Annex 6: Key Performance Indicators of Multinational Projects Under Review in 2018
Conditions/compliance with clauses. As regards in RECs to control procurement procedures and the overall portfolio, it should be noted that the submission of low-quality documents to the Bank average time for signing financing agreements is for review. In addition to these aspects, there are 4.6 months. When the time exceeds three months, delays in works execution, supply and consultancy it exposes projects to cancellation as stipulated by contracts and the Bank takes a long time to give no Presidential Directive (PD 02/2015). In addition, the objection opinions. average time taken to fulfill the conditions precedent to the first disbursement has been reduced by two Financial performance/project implementation months since the last review, from 15.8 months to and financing: Financial performance has improved 13.5 months. However, the average time for actual in light of the declining percentage of operations disbursement is 17.6 months, which is above the 6 that receive disbursements late. 13.3% of the rated months stipulated by PD 02/2015. Urgent action is operations were deemed unsatisfactory and 27.3% needed for the 12 projects that have not yet received of the operations were noted in the “Flashlight” report any disbursement because this situation is likely compared to 54% in the previous review, for various to result in extension of the initial implementation reasons: signed but no disbursement after more schedule. If a project can no longer be implemented than 3 months, or no disbursement for more than during the initial period, the Bank and donor will 2 years, or less than 50% disbursement after three either cancel the balance at closure, with loss of 30% years; 12 operations (34% of the portfolio) have not of the resources already mobilized, or extend the yet received any disbursement at all. Consequently, implementation period with the consequence of very the disbursement rate stands at only 13.04% after high transaction costs (excessive commitment fees, 3.5 years of implementation. This reflects long delays higher administrative costs, and postponed response in fulfilling the conditions precedent to the first times to development issues). It should be mentioned, disbursement (13.5 months on average) and to signing however, that some of the difficulties that reduce of the loan agreement (4.6 months on average). The countries’ ability to honour certain commitments regional portfolio is also facing delays in providing are external, such as the economic crisis linked to justifications for use of revolving capital funds, the fall in oil prices (Congo, Cameroon, Gabon, etc.) difficulties in mobilizing countries’ contributions to or the conclusion of a programme with the IMF that ECCAS budget, and delays in the submission of limits countries’ debt capacity. However, the quality audit reports. of operations at the entry needs to be improved to have good knowledge of design parameters and Activities and achievements/progress towards improve knowledge of the institutional environment. RBLF outputs: The low capacity of REC staff to With regard to compliance with the general conditions, implement projects is reflected in the fact that many the projects are up to date in the submission of projects are behind schedule. Indeed, the deadline for quarterly activity reports, although efforts are needed the last disbursement for 8 projects was extended. to ensure that audit reports are submitted on time.. In addition, the performance of some contractors was poor. With the exception of projects that have Procurement of goods and services/project not yet started, the performance of the evaluated systems and procedures: Despite the Bank’s efforts operations is generally satisfactory. . in supporting CEMAC and ECCAS and an overall satisfactory performance rating (a score of 3 out Development impact/progress towards RBLF of 4), there is still a high rate (38%) of operations effects: Projects currently having a tangible facing procurement difficulties. This is due to: (i) poor development impact include: (i) the Ketta Djoum programming of procurement activities without an Road Construction Project; (ii) the Cameroon-CAR- adequate and regularly updated procurement plan; Chad Corridor Transport Facilitation Project; (iii) the (ii) weak capacity of the Implementation Units located Cameroon-Nigeria Transport Facilitation Project,
65 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 PACEBCO and PRODEBALT. The impact of the problematic project (PPP) compared to 4 PPs and other projects is not yet visible on the ground due 1 PPP during the last review in 2017. Thus, the rate to delays in their implementation schedule (delays of projects at risk fell from 17.2% to 13.6%, while in procurement) or to the fact that they are in the the rate of commitments at risk deteriorated from start-up phase. Nevertheless, the development 5.6% to 9.2%. The average age of the portfolio impact of these operations should be more visible projects has reduced from 5.1 to 3.5 years since as the Bank, RECs and the countries concerned the last review. This reduction is due to the entry of combine their efforts to improve the pace of project new operations and the closure of several projects, implementation. To that end, a monitoring system including three (3) old projects. However, the portfolio will be established by the Central Africa Regional still has two old operations (at least 8 years) and a Office (RDGC). significant number of older operations that require concrete and proactive measures to accelerate their Project Status: The portfolio under review has five implementation.. (5) problematic projects (PP) and one (1) potentially
Table 6.1. Some Key Performance Indicators (August 2018)
RPPR Indicators 2017 2018 Operations (#) 29 44 Total commitment (UAM) 676.9 779.5 Total disbursement (UAM) 257.2 101.6 Disbursement rate (%) 38.0 13.04 Potentially problematic project (#) 1 1 Problematic projects (#) 4 5 Projects at risk (#) 5 6 Average age of projects (years) 5.1 3.5 Old projects 5 2 Conditions precedent to first disbursement not yet fulfilled (#) 1 8 Approved but not signed after more than 90 days 1 3 Project to be closed in 12 months with less than 60% disbursement 3 3 Less than 50% disbursement after three years of effectiveness 0 1 Less than 50% commitment (contracts signed) after two years from the effective 4 5 date No disbursement for more than 2 years 4 2 Signed but no disbursement after more than 3 months 4 6
66 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 67 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Annex 7: 2018 Portfolio Performance Improvement Plan, 2018
Issues Actions to Undertake Expected Outcomes and Monitoring Indicators Responsible Deadline QUALITY OF PROJECTS AT ENTRY 1. Delays in signing the financing 1.1 Further decentralize the signing of financing agreements to 1.1.1 Most of the financing agreements are signed by DGs and AfDB 31/12/2018 agreements DGs and Country Managers Country Managers (RDVP) AfDB 2.1.1 The average time taken to fulfill the conditions precedent to 2. Delays in fulfilling the conditions 2.1 Take early action to fulfill the conditions precedent to the (RDGC)/ 30/12/2018 the first disbursement for new projects is reduced to 3 months, in precedent to the first disbursement first disbursement during the project preparation phase RECs accordance with PD 02/2015 concerned 31/06/2018 3. Delays in the payment of 3.1 Establish a mechanism for the gradual disbursement of 3.1.1 Counterpart funds are fully paid at the end of the fiscal year GVT/REC counterpart funds counterpart funds due for projects. concerned.
4.1 Conduct campaigns to encourage States to pay their 4.1.1 States’ contributions to ECCAS budget are paid during the ECCAS contributions at workshops organized under the current PARCI 31/12/2018 year. 4. Delays in the payment of and PAI-CEEAC under preparation countries’ contributions to ECCAS budget 4.2 Strengthen dialogue with ECCAS in order to promote 4.2.1 Regional integration contribution is established to provide a ECCAS/ the application of the Community Integration Contribution to sustainable financing mechanism for operations and functioning AfDB 31/12/2018 enable ECCAS to have internal resources at its disposal. of ECCAS (RDGC)
EFFICIENT MANAGEMENT OF MULTINATIONAL PROJECTS 30/06/2018
6.1 Organize a fiduciary clinic for all RECs and supra-State 6.1.1 Fiduciary clinics are organized to identify training modules AfDB bodies in charge of implementing multinational projects specific to the problems identified. (ECAD/SNFI) 6. Inadequate knowledge of project management rules and procedures
31/12/2018 6.2 Organize training sessions in accordance with the training 6.2.1 Training sessions on procurement are organized for staff of AfDB programme prepared by the clinic Project Implementation Units located in RECs (ECAD/SNFI)
7.1.1 All new projects have a monitoring and AfDB 7. Weaknesses of the project 7.1 Establish within ECCAS Secretariat an operational evaluation mechanism thanks to PARCI and PAI- (RDGC) / 31/12/2018 monitoring and evaluation system monitoring and evaluation system for all Bank projects CEEAC support ECCAS 68 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Issues Actions to Undertake Expected Outcomes and Monitoring Indicators Responsible Deadline AfDB 31/12/2018 8.1 Comply with the frequency of project supervision and 8.1.1 Projects are supervised at least twice (three times for high- (RDGC) monitoring missions in the field. risk projects) 8. Frequency of supervision and monitoring missions 8.2 Establish a system for monitoring the implementation of 8.2.1 A system is established to monitor the implementation of AfDB 31/12/2018 supervision mission recommendations recommendations made by supervision missions. (RDGC)
9.1 Systematically recruit external auditors six months PIU/TM Ongoing following fulfilment of the conditions precedent to the first 9.1.1 Audit reports are submitted on time. 9. Delays in the submission of disbursement for the first three fiscal years for all new projects. audit reports, and poor quality of audit reports produced 9.2 Automatically launch the recruitment of new auditors at the 9.2.1 All projects have an auditor to audit the accounts at any RDGC/SNFI Ongoing end of the first auditors’ current contracts time.
10. Delays in the submission of AfDB 10.1 Match the amount of revolving capital with the pace of 10.1.1 The amount of revolving is reviewed to ensure that it is in justifications for use of revolving (RDGC/ 31/12/2018 project implementation. line with the pace of project implementation. capital advance FIFC) 69 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Annex 8: Alignment of Country Strategy Papers with the RISP-CA 2019–2025
CSP and RISP-CA 2019-2025 Alignment
Pillar 2 : Support reforms for the N° Country Period Ongoing CSPs Pillar 1 : Strengthen development of regional infrastructure intra-regional trade Comments (energy, transport and and strengthen ICT) the institutional capacities of the RECs
Pillar 1: Strengthening infrastructure for inclusive and In essence, the regional strategy is in line with the sustainable growth; X country’s priorities, in that it places particular emphasis 1 Cameroon 2015-2020 Pillar 2: Strengthening sectoral governance for effective on reducing the infrastructure gap and increasing and sustainable investment. X investment. The objectives and pillars of the RISP and the CSP Pillar 1: Promoting agro-industrial value chains are in line. Indeed, both strategies will focus on 2 Congo 2018-2022 X supporting economic diversification to accelerate structural transformation at regional and national levels Pillar 2: Strengthening human capital and governance X respectively, thus demonstrating their perfect synergy. Pillar 1: Support for economic diversification through Gabon 2016-2020 infrastructure development and improvement of the The regional strategy is in line with national priorities. In X X 3 business climate essence, the interventions planned under Pillar 1 of the CSP are reflected in the RISP’s strategic areas. Pillar 2: Support for human development strategy
Pillar 1: Supporting the transformation of agriculture to The strategic orientations proposed in the CSP and RISP diversify the economy X aim to support the Government and RECs respectively 4 Equatorial Guinea 2018-2022 Pillar 2: Building capacity for public policy formulation and in their economic diversification strategy. In this respect, implementation X capacity building interventions are perfectly aligned. Pillar 1: Support for agricultural development and The RISP is aligned with the country’s priorities. The X infrastructure in support of social inclusion Bank’s interventions will build regional infrastructure Central African 5 2017-2021 (energy, ICT, etc.). The Bank also aims to promote the Republic Pillar 2: Strengthening institutional capacity and development of intra-regional trade through support for governance X institutional capacity building and reforms.
Pillar 1: Development of infrastructure to support private In essence, the regional strategy is in line with the investment and regional integration X country’s priorities, since it places particular emphasis Democratic 6 2013-2017 on infrastructure development to support regional Republic of Congo Pillar 2: Strengthening the capacity of the Government to increase public revenues and establish an incentive integration and increased investment; and integrates X framework for private investment capacity building.
Pillar 1: Infrastructure development for strong and more The Central Africa RISP 2019-2025 is aligned with diversified economic growth X national priorities. Pillar 1 aims to develop transport and 7 Chad 2015-2020 Pillar 2: Support for reforms to increase the effectiveness energy infrastructure at the regional level; while Pillar of public action and the attractiveness of the economic 2 aims to provide support for trade and investment X framework reforms. 70 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Annex 9: Indicative Multinational Operations Programme 2019-2025
FINANCING INSTRUMENT (UA Million)1 No. PROJECT NAME SECTOR TYPE (SO/NSO YEAR BENEFICIARIES TOTAL AfDB ADF OTHERS CO-FIN COST
PILLAR 1 : REINFORCE REGIONAL INFRASTRUCTURE (ENERGY, TRANSPORT AND INFORMATION AND COMMUNICATION TECHNOLOGY)
Project to build the bridge over the Ntem River and facilitate Cameron, Equatorial 1 Transport SO 2020 223 0 0 0 223 transport on the Kribi-Campo-Bata corridor Guinea
Tshikapa-Kandjaji-Kandjaji-Kamako-Angola Border Road 2 Transport SO 2022 0 150 0 0 150 Angola, DRC Development Project (219 km)
3 Road-Rail Bridge Project Transport NSO 2021 40 60 0 400 500 Congo, DRC
Project for construction of the Ouesso-Bangui-Ndjamena road Congo, CAR, Chad, 4 Transport SO 2022 40 80 50 170 and river navigation DRC
Rehabilitation of the Goma-Rutshuru-Bunagana-Uganda 5 Transport OS 2022 25 25 0 0 50 DRC, Uganda border road (219 km)
Study for the construction of a bridge between Bangui and Zongo and development of Bangui-Zongo-Kisangani- CAR, DRC, Burundi, 6 Transport SO 2020 0 0 3 0 3 Bujumbura and Kisangani-Kampala roads and transport Uganda facilitation
Air transport sector support project in Central and West Africa, 7 Transport SO 2021 0 20 0 0 20 ECCAS Phase II
Access roads project for the road-rail bridge over the Congo 8 Transport SO 2022 30 30 0 0 60 Congo, DRC River
Cameroon, Gabon Study on interconnection of electricity networks of Cameroon, 9 Energy SO 2020 0 0 2 0 2 and Equatorial Gabon and Equatorial Guinea Guinea
Study on Chollet hydropower development project and 10 Energy SO 2021 0 0 3 0 3 Cameroon, Congo associated lines
CAR, DRC, 11 Dimoli hydropower development project and associated lines Energy NSO 2025 100 160 186 400 846 Cameroon and Congo 71 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Construction of a 110/132 kV interconnection line between 12 Energy SO 2021 0 30 0 0 30 CAR, DRC CAR and DRC
Study on the dam construction project and development of 13 Energy SO 2023 0 0 3 0 3 CAR, Congo, DRC Palambo power plant
14 Interconnection of Gabon-Congo power grids Energy SO 2024 143 0 0 143 Gabon, Congo
Central African Regional Fibre Optic Backbone Project (CAB), 15 components for Gabon (Phase 1), DRC (Phase 1), Cameroon ICT SO 2021 100 150 50 200 500 ECCAS (Phase 2) and Congo (Phase 2)
Multinational Trans-Saharan Fibre Optic Backbone Project, 16 ICT SO 2022 0 60 0 40 100 Chad and CAR Chad and CAR Components
Sub-Total Pillar 1 701 765 247 1090 2803
PILLAR 2: SUPPORT REFORMS FOR THE DEVELOPMENT OF INTRA-REGIONAL TRADE AND BUILD REC INSTITUTIONAL CAPACITY
CEMAC (Cameroon, Congo, Gabon, 17 CEMAC Financial Sector Deepening Program, Phase 1 Finance SO 2019 0 8 2 0 10 Equatorial Guinea, CAR, Chad)
CEMAC (Cameroon, Congo, Gabon, 18 CEMAC Payment Systems Interoperability Project Finance SO 2020 0 22 0 0 22 Equatorial Guinea, CAR, Chad)
CEMAC (Cameroon, Congo, Gabon, 19 CEMAC Financial Sector Deepening Program, Phase 2 Finance SO 2023 0 16 4 0 20 Equatorial Guinea, CAR, Chad)
Cameroon, Congo, Programme to support integrated development of the timber 20 Industry SO 2020 10 30 0 10 50 Gabon, Equatorial sector in the Congo Basin (PADIB-BC) Guinea, CAR, DRC)
Programme for sustainable integrated livelihood management 21 Agriculture SO 2024 0 30 0 0 30 ECCAS (livestock, fisheries and forestry) in the Congo Basin
Capacity 22 Regional integration support project in Central Africa (PAIR-AC) SO 2020 0 15 10 0 25 CEMAC/ ECCAS Building
In-depth study on transit and transport time and costs in 23 Trade ESW 2020 0 1.5 0 0 1.5 CEMAC/ ECCAS Central Africa 72 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Study on the employment situation and labour market Economic and 24 ESW 2024 0 0 1 0 1 ECCAS /CEMAC dynamics in Central Africa Sector Work
Project for establishment of technological and academic Capacity 25 SO 2022 0 10 0 0 10 ECCAS centres of excellence (PETU) in Central Africa Building
Youth entrepreneurship support project in rural and semi-urban Capacity 26 SO 2019 0 40 0 0 40 ECCAS areas in Central Africa (PREJAC) Building
Capacity building support project for ECCAS General Capacity 27 SO 2020 0 15 0 0 15 ECCAS Secretariat (PARC-CEEAC) Building
10 COMIFAC countries (Burundi, Cameroon, Congo, Ecosystems conservation support programme in the Congo Climate and Gabon, Equatorial 28 SO 2019 0 40 0 78.1 118.1 Basin 2 (PACEBCO) environment Guinea, Rwanda, CAR, DRC, Sao Tome and Principe, Chad)
7 CILSS countries (Burkina Faso, Programme for building resilience to food insecurity in the Fragility and 29 SO 2020 0 10 0 0 10 Gambia, Mali, Sahel - Phase 2 resilience Mauritania, Niger, Senegal and Chad)
Lake Chad Basin Project to support the socio-economic reintegration of Fragility and (Cameroon, Niger, 30 SO 2022 10 20 0 0 30 vulnerable groups, Phase 2 resilience Nigeria, Chad, CAR, Libya)
Sub-Total of Pillar 2 20 257.5 17 88.1 382.6
TOTAL RISP-CA 2019–2025 721 1022.5 264 1178.1 3185.6
Annex 10: Results-Based Logical Framework for the RISP-CA 2019-2025
OVERALL GOAL SUPPORT ECONOMIC DIVERSIFICATION AND STRUCTURAL TRANSFORMATION THROUGH IMPROVEMENT OF INTRA-REGIONAL TRADE
Indicative Baseline Risks and Mitigation Sector Objectives Bank Operations Indicators Target Means of Verification Amount (UA Situation Measures Million)
Pillar 1: Reinforce regional infrastructure (energy, transport and ICT)
Optimize multimodal Support for the Number of 0 1 Final reports of the study Risks : 3 transport networks preparation of project studies (PD and FD) infrastructure projects conducted - Further deterioration Support for the New or upgraded 0 2000 Km ECCAS (PCDT-AC), of the security 703 promotion of cross-border CEMAC and AfDB reports and socio-political multimodal transport roads (km) context; networks - Non-recovery of oil prices and further deterioration Air transport facilitation Air transport, 3 766 240 5 000 000 ASECNA statistics, IATA of the economic 20 passengers (2014) (2025) statistics, World Bank environment; transported data - Low adherence of RECs and Member States;
Number of 1 4 ICAO Audit Reports - Limitation of the airports certified Bank’s financial and for ICAO safety human resources and security dedicated to standards multinational River transport Volume of 1% 3% CICOS Reports operations. 40 trade by inland waterways Increase access to Capacity building for Number 0 4 ECCAS and AfDB reports 627 energy and improve the Central African of studies the management of Power Pool (PEAC) conducted for the transboundary water interconnection resources of power grids Power generation and Power 0 1600 ECCAS, AfDB and World grid interconnection transmission Bank reports lines constructed (kV)
Newly created 0 1200 ECCAS, AfDB and World energy capacity Bank reports (Megawatt)
Electricity access 23% 30 ECCAS, AfDB and World rate for the Bank reports population
Support for Proportion of 1% 3% ECCAS and AfDB reports 40 development of the population transboundary water travelling by resources waterways
Improve information Support for the Proportion of the 16.95% 22% ITU, AfDB and World 360 and communication development of population using Bank reports technology broadband ICT the Internet (%) networks and cross- border broadband interconnections.
Pillar 2: Support reforms for intra-regional trade development and build REC institutional capacity
73 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 Develop intra-regional Support REC Number of 0 5 ECCAS, CEMAC and Mitigation Measures: 25 trade and investment streamlining process tariff profiles AfDB reports harmonised - Make good use of the Bank’s instruments for Number of 1 12 ECCAS, CEMAC and fragile States; community texts AfDB reports harmonized - Strengthen political dialogue/ Strengthen Support for Number of laws 0 7 Doing Business ranking, governance/ improvement of the adopted ECCAS, CEMAC and regional investment climate AfDB Reports integration; - Seek and mobilize cofinancing;
Support for Contribution 14.50% 20% ECCAS, CEMAC, World - Monitor and 70 development of of the Bank and AfDB reports support regional value chains manufacturing stabilization sector to regional efforts of GDP (%) Central African countries through the Proportion 0.69% 10% ECCAS and AfDB reports Peace and of products Security Council exported with (COPAX), value greater operations of than $100,000 the Multinational (%) Import lead time 370 259 ECCAS, CEMAC, World Force for 25 (hours) Bank and AfDB reports Central Africa (FPMAC),
- Increased mobilization of the international community in several Export lead time 319 223 ECCAS, CEMAC, World countries in the (hours) Bank and AfDB reports region (CAR, DRC,
Support for elimination Transport costs 1484 1038 ECCAS, CEMAC, World of non-tariff barriers on road corridors Bank and AfDB reports and trade facilitation and inland waterways, for imports (Dollar)
Transport costs 1267 886 ECCAS, CEMAC, World on road corridors Bank and AfDB reports and inland waterways, for exports (Dollar)
Share of intra- 2% 6% Yearbook of ECCAS regional trade (%) statistics, UN COMTRADE
Develop the financial Deepening of CEMAC Total financial 25% (2015) 30% in 2025 BEAC reports 20 sector and support financial sector sector assets domestic resource as%age of GDP mobilization
Net credit to 11% 20% BEAC reports private sector/ GDP (%) Strengthening of Banking rate (%) 12% 20% BEAC reports 10 financial integration and development of financial inclusion in CEMAC zone
Build human and Support for Regional Proportion 14% 17% UNESCO, ECCAS and 120 institutional capacity Centres of Excellence of students AfDB reports pursuing studies in technical or vocational education or training (%) REC capacity building Number of 5 20 ECCAS, CEMAC and 25 technical AfDB reports assistants provided to regional organizations Number of 1 5 Study feedback reports 5 economic and sector works conducted
Include climate Support for ecosystem Degradation 30% (2018) 22.5% (2025) Surveys, AfDB reports 40 change and gender, conservation in the rate of the and reduce fragility Congo Basin Congo Basin (conservation achievements, net deforestation and net degradation) on 2006 basis reduced (%)
74 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025 Pilier 1 : Renforcer les
Pilier 2 : Soutenir les réformes pour le 75 MULTINATIONAL: CENTRAL AFRICAREGIONAL INTEGRATION STRATEGY PAPER 2019-2025
Annex 11: The Change Theory for the RISP-CA 2019–2025
The change theory presented in the figure below illustrates the links between the activities, outputs and outcomes of RISP-CA 2019-2025. It therefore plays a crucial role in the preparation and implementation of a monitoring and evaluation approach to this strategy, and will assess the Bank’s contribution to outcomes achieved in deepening regional integration by identifying and testing causal links. It also focuses on the outcomes achieved and how they will be achieved, as well as on arguments for their being achieved or not and identification of factors that could facilitate or hamper success.
Inputs Activities RISP pillars Outputs Intermediate outcomes Final outcomes Impacts
Increased access to reliable, Financial resources: range Infrastructure built or rehabilitated Regional Integration Strategy Pillar 1 : Reinforce high-quality and sustainable of lending and grant (transport, integrated regional Power Paper regional public services (transport, instruments Pools, ICT) infrastructure energy, ICT) (energy, Increased intra-regional transport, and trade Regional interventions design, Human resources: information and Decrease in costs (travel and implementation, supervision and Intra-regional systems developed expertise, systems, etc. communication freight, energy costs) risk management technology)
The Bank’s comparative Enhanced mobility and Monitoring evaluation and Procedures, policies and standards advantage, reputation and accessibility for people, learning harmonized convening power businesses and trade
Increase in private sector development and Sustainable, integrated Regional value chains Industrial policy and regulatory competitiveness and inclusive growth Policy dialogue created, risk sharing and frameworks harmonized diversification increased
Pillar 2 : Support Reduced intraregional trade and Increased investment flows Building partnerships reforms for investment barriers and increasing and job creation intra-regional investment opportunities trade and build regional economic Reduced restrictions on cross-border Leveraging additional resources communities’ financial activities institutional Improved access to broader Knowledge products and capacity Cross-border innovative financial financial and capital markets, analytical work solutions in particular for SMEs Financial sector stability and Cost-efficient payment systems growth
Improved capacity of regional Harmonized human capital and a more economic communities and effective institutional framework national governments
Knowledge produced, disseminated, and applied (Footnotes) 1 The amounts are indicative and will depend on country absorptive capacities. 2 The African Infrastructure Development Index (AIDI) is produced by the African Development Bank. It has several key objectives, including: (i) monitor and evaluate the status and progress of infrastructure development across the continent; (ii) assist in resource allocation within the framework of ADF replenishments; and (iii) contribute to policy dialogue within the Bank and between the Bank, RMCs and other development organizations. The AIDI database includes: [1] the global AIDI index,[2] the transport composite index,[3] the electricity composite index,[4] the ICT composite index; and[5] the water supply and sanitation composite index. These components are broken down into 9 indicators that have a direct or indirect impact on productivity and economic growth. The observations are based on data collected under the Infrastructure Knowledge Programme for Africa (AIKP) hosted by the African Development Bank (see http://www.infrastructureafrica.org/), as well as other data sources. A full description of IDIA is available in English at the following address: https://www.icafrica.org/fileadmin/documents/Knowledge/AFDB/ Economic_Brief_-_The_Africa_Infrastructure_Development_Index_01.pdf
76 MULTINATIONAL: CENTRAL AFRICA REGIONAL INTEGRATION STRATEGY PAPER 2019-2025