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North Africa More African Than Ever: Maghreb Countries Towards ECOWAS

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North Africa More African Than Ever: Maghreb Countries Towards ECOWAS Strategic Sectors | Economy & Territory Panorama North Africa More African than Ever: Maghreb Countries towards ECOWAS Bruce Byiers – the overtures towards ECOWAS and COMESA Poorva Karkare seem to also reflect changing political interests as European Centre for Development Policy well as greater opportunities for trade and economic Management (ECDPM), Maastricht cooperation. In fact, the moves may be seen as ef- forts to politically cement the economic ties that al- Strategic Sectors | Economy & Territory ready exist, particularly looking at West Africa. Maghreb Countries Look South Though North Africa has long been seen as separate Links to West Africa from the rest of the continent, recent years have brought growing rhetoric around the engagement of Maghreb The ECOWAS region includes 335 million people, countries with sub-Saharan Africa. This appears to fol- or a third of the total sub-Saharan African population, low rising trade and investment flows, improved trans- and has a combined GDP of $700 billion (as of 284 port connections as well as greater political coopera- 2014). The region is an increasingly important market tion. Though these economic ties are not new, as this for North African goods and services. As Charts 38 note discusses, levels remain low and thus have the and 39 below show, exports from Maghreb countries potential to grow. It may be this along with the desire to to ECOWAS increased almost ten-fold between re-engage politically that is driving recent discourses 2000 and 2017, from less than $200 million to over on engaging with the rest of Africa. $1.8 billion, with a particular rise in Moroccan goods The sense that North African engagement with sub- entering the market. Imports from ECOWAS to the Saharan Africa is rising rests on the request by Maghreb Maghreb, on the other hand, have also increased, countries to join regional economic communities (RECs) though more slowly. Nonetheless, Maghreb countries’ in sub-Saharan Africa: Morocco has formally request- trade with ECOWAS is still a small share of their over- ed membership of the Economic Community of West all trade, and the values involved are much lower than African States (ECOWAS); Tunisia joined the Com- for their trade with the European Union. mon Market for Eastern and Southern Africa (COME- There is therefore potential to further increase trade SA) and has ECOWAS “observer” status. Though relations and economic cooperation between these partly a response to the ineffectiveness of the Arab regions. The low levels of intra-regional trade in the Maghreb Union (AMU), classified by some as a “zom- Maghreb (only three percent, compared to 10 percent 2019 bie” organization,1 and the Community of Sahel-Sa- in ECOWAS) are said to cost each country an esti- haran States (CEN-SAD),2 both African Union-rec- mated 2.5% of GDP annually3 and 220,000 job op- ognized RECs covering the North African countries portunities. Closer ties within and between African 1 GRAY, Julia. “Life, death or zombie? The Vitality of International Organizations.” International Studies Quarterly, 62(1): 1-13, 2018. www.research gate.net/publication/323912619_Life_Death_or_Zombie_The_Vitality_of_International_Organizations. Mediterranean Yearbook 2 Please consult the interactive map by ECDPM, based on previous work on regional integration, for an overview of African countries’ member- ship to different regional blocs https://ecdpm.org/dossiers/political-institutional-dynamics-regional-organisations-africa/. 3 HANMI Med. Med. G , Lamine. “Tunisia joins West Africa trade bloc, eyes export market,” Middle East Online, 21/07/2018. https://middle-east-online.com/ IE en/tunisia-joins-west-africa-trade-bloc-eyes-export-market. RECs, especially ECOWAS could potentially bring Apart from economic interests, security imperatives economic benefits for these countries. in the Sahel also contribute to the growing interest in ECOWAS and West Africa more broadly. The threat Panorama of terrorism in the region has propelled further politi- There is therefore potential to further cal cooperation from North Africa to deal with this increase trade relations and economic crisis. Algeria especially has played a more promi- cooperation between these regions nent role than others in this regard. CHART 38 Exports to ECOWAS 2,000 - 1,800 - 1,600 - 1,400 - 1,200 - Strategic Sectors | Economy & Territory 1,000 - US$ million 800 - 600 - 400 - 200 - 0 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 285 Morocco Tunisia Mauritania Algeria Libya Egypt Source: ITC Trademap. CHART 39 Imports from ECOWAS 800 - 700 - 600 - 500 - 400 - US$ million 300 - 2019 200 - 100 - 0 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Mediterranean Yearbook Morocco Tunisia Mauritania Algeria Libya Egypt Med. Med. Source: ITC Trademap. IE Apart from economic interests, stuffs to machinery and chemical goods. According security imperatives in the Sahel also to African Development Bank estimates,8 some 85 Panorama contribute to the growing interest percent of Morocco’s outward foreign direct invest- ment (FDI) goes to sub-Saharan Africa, in sectors in ECOWAS and West Africa like banking, insurance, infrastructure and telecom- munications. FDI to ECOWAS countries specifically amounted to US$153 million in 2015.9 As King Mo- Each to His Own... but Building on Past hammed of Morocco said on the eve of rejoining the Relations AU, the country’s links with Africa “[...] have remained strong and African sister nations have always been Up until recently, Maghreb countries have mainly re- able to rely on us.” lied on national strategies to pursue their interests in Tunisia’s engagements in ECOWAS have been very sub-Saharan Africa, each finding their own niche.4 different compared to Algeria’s. Its private sector Morocco has seen the most dramatic changes to its played a crucial role in forging relations with the re- relations with the rest of Africa in the past few years. gion, which, in turn, have shaped the country’s ap- After leaving the AU for 33 years, the country was proach as it looks for new markets.10 These private Strategic Sectors | Economy & Territory readmitted in 2017. It then applied to join ECOW- interests have created enough momentum so that the AS. Moroccan exports to ECOWAS have grown at Tunisian government is now looking to invest in trans- almost 15 percent a year for almost two decades, port links and increasing the presence of its banks in with the bloc accounting for 35 percent of Moroc- the region. The country is a member of the Common co’s total exports to sub-Saharan Africa.5 On aver- Market for Eastern and Southern Africa (COMESA) age, half the goods entering ECOWAS from North since 2018, and in 2017 attained observer status in Africa are Moroccan. The country has also made sig- ECOWAS. Even so, trade with the ECOWAS region nificant investments in infrastructure through its pub- remains smaller than that of Morocco or Egypt. 286 lic enterprises. For instance, there are now weekly Mauritania was part of ECOWAS before leaving in shipping links to 37 ports in 21 countries6 in the 1999. It is said that the country viewed the regional region. Casablanca7 is a regional air transport hub bloc’s move to turn itself into a customs and mone- where Royal Air Maroc has 170 flights to 30 destina- tary union as affecting their economic sovereignty.11 tions. Itissalat al-Maghreb, the country’s largest tel- That may be changing, with Mauritania signing an as- ecom company, generated 43 percent of its turnover sociation agreement with ECOWAS in 2017. Inte- from its West African subsidiaries. Its interests are not gration with West Africa is expected to bolster trade limited to only infrastructure however – Attijariwafa, flows along the country’s Road of Hope (Route de the country’s largest (public) bank has 443 branches l’Espoir), a coastal highway for Moroccan trade with in the region. Private sector companies also have a Senegal, whose east–west road links the capital, sizeable presence in industries, ranging from food- Nouakchott, to Mali and Burkina Faso.12 It wants to 4 DE GROOF, E. et al. (2019) “North Africa’s Double Pursuit – Part I.” Discussion paper No. 238, January 2019. ECDPM. https://ecdpm.org/ wp-2content/uploads/DP238-North-Africa-double-pursuit-Part-1-looking-north-moving-south-continent-to-continent-ECDPM- January-2019.pdf. 5 LÔ, Moubarack “Relations Maroc-Afrique subsaharienne: quel bilan pour les 15 dernières années?” November 2016. OCP Research Paper 2019 www.policycenter.ma/sites/default/files/OCPPC-RP1610v2.pdf. 6 BYERS, Bruce and AbdErrAHIM, Tasnim. “Morocco’s accession to ECOWAS: Building bridges or rocking the boat?”, ECDPM blog, 19/02/2018. https://ecdpm.org/talking-points/moroccos-accession-ecowas-building-bridges-rocking-boat/. 7 NORTH AfrICA POST. “Morocco reaps diplomatic gains of soft power in Africa,” 10/04/2019. http://northafricapost.com/29771-morocco- reaps-diplomatic-gains-of-soft-power-in-africa.html. 8 NORTH AfrICA POST. “Moroccan companies ‘thrive’ in West Africa – The Economist says,” 24/07/2018. http://northafricapost.com/24672- moroccan-companies-thrive-in-west-africa-the-economist-says.html. 9 FDI stock rose from US$492 to US$976 million between 2010 and 2014 (Impact Report, 2017). 10 Mediterranean Yearbook Ibíd. 11 FREEDOM HOUSE. Freedom in the world Report 2019: Mauritania. https://freedomhouse.org/report/freedom-world/1999/mauritania. 12 KEDE, Shoshana. “Mauritania at a crossroads,” African Business Magazine 18 April 2019. https://africanbusinessmagazine.com/region/ Med. Med. IE north-africa/mauritania-at-a-crossroads/. cut down the costs of trading with its neighbours and message of intent from President Sisi “to bring Africa crack down on illegal trading and smuggling. Moreo- closer together, both politically and economically” at 17 ver, the Mauritanian diaspora plays a significant role the Africa Forum in 2018, which was hosted by Panorama in the trading economy in many sub-Saharan Afri- Egypt.
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