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Ghana in search of regional integration agenda
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Ghana in Search of Regional Integration Agenda 75 in sensitive sectors and the imposition of restrictions on imports and the use of foreign exchange. 97 This kills the rationale for creating bigger markets to facilitate the growth of viable production enterprises. Intrinsically linked to the problem above is the fact that, the private sector, which is the engine of economic growth, has not been actively involved in the effort to advance integration by the various African States. It is the lack of home-grown entrepreneurial capacity and skills which account for the excessive dependence of African economies on imported products. 98 Lack, or a low level of intra-African trade, constitutes yet another stumbling block to positive integration in Africa. African countries produce the same things and, therefore, compete with one another in a kind of vertical order(i.e. trading with Europe), rather than horizontally(i.e., among themselves). Hence, no meaningful trade can take place among countries in one bloc. Note that we have already indicated that integration is trade-induced. Further, there is no adequate transport infrastructure to support intra-African trade. Even when tariffs have been reduced and intra-country transport links are open, the costs of transport between countries forming a cooperation bloc tend to be high. 99 The African Development Report 2003 laments Africa's abysmal performance in this area thus:African regional arrangements have not succeeded in appreciably expanding intra-African trade, increasing Africa's trade or enhancing the region's overall economic growth…..Inter-regional trade has stagnated at around 10 percent of Africa's total trade 100 . Tables 2 and 3 below give ample testimony to the aforesaid. Table 2: Intra- REC Trade(1970 1999) (percentage of Total Export) 1970 1980 1985 1990 1995 1996 1997 1998 1999 AFRICA AMU 1.4 0.3 1.0 2.9 3.8 3.4 2.7 3.3 2.5 CEMAC 4.9 1.6 1.9 2.3 2.2 2.3 2.1 2.3 1.6 COMESA 9.1 6.1 4.7 6.6 7.8 8.0 7.9 8.6 7.5 ECOWAS 2.9 10.1 5.2 7.8 9.8 9.4 9.7 11.8 12.2 SADC 8.0 2.0 3.8 4.8 8.7 9.4 10.4 10.2 9.3 UEMOA OTHERS 6.5 9.6 8.7 12.9 10.0 9.8 11.8 11.6 12.7 E.U 59.5 60.8 59.2 65.9 62.4 61.4 55.5 57.0 62.6 NAFTA 36.0 33.6 43.9 41.4 46.2 47.6 49.1 51.7 54.6 MERCOSUR 9.4 11.6 5.5 8.9 20.3 22.7 24.8 25.0 20.5 ASEAN 22.9 18.7 19.8 19.8 25.4 25.4 25.0 21.7 22.2 Source: World Bank: World Development Indicators, 2001. p. 333 97 In 2006, for instance, Nigeria banned the importation of about 40 products(33 of which affected Ghana), even though Nigeria is signatory to the ECOWAS Protocol on Free Movement of Goods, Persons and Services, and Establishment. 98 Gradually though all the integrative groupings in Africa are incorporating the private sector. The AU has established the Private Sector Forum which meets ahead of each and every AU Summit. Similarly, the SADC, ECOWAS, and COMESA have Private Sector representation and participation at their fora. Although this is a recent phenomenon, it is a welcome one indeed. 99 Under the NEPAD the African Development Bank is tasked to fund quite a substantial number of infrastructural projects. Much has been achieved in this direction. 100 AfDB, African Development Report 2003: Globalization and Africa's Development, Oxford, Oxford University Press, 2003, p191