“Assessing Regional Integration in Africa” (ARIA III),
Key Points of the Report

- The report shows that RECs did better at controlling inflation and budget deficits than they did at reducing external debt ratios. Debt relief helped some countries in improving on external debt targets

- Budget deficits generally remain an area of difficulty due to pressures on government spending (e.g. on social development)

- Economic growth rates as an important convergence variable are also generally encouraging across Africa
- The environment for financial integration remains precarious. There is general lack of financial depth as money and capital markets are relatively underdeveloped, coupled with a limited array of financial instruments

- On the positive side, cross-border direct and portfolio investments are on the upward trend, particularly in SADC area as many stock exchanges are being established and harmonisation of listing requirements and trading procedures is taking place.

- There is however, only one Regional Stock exchange: Bourse de Valeur Immobiliere (BRVM) serving UEMOA countries
- CEMAC and UEMOA are already monetary unions in terms of having a single currency. This has been part of their structure from the outset.

- The rest of the RECs have plans to become monetary unions within a span of 5-10 years.

- Monetary union cannot be achieved overnight. As it implies deeper level of integration, greater efforts are required towards achieving a single market in each REC.