BY MENGISTEAB TESHOME
Regional economic cooperation and integration can also support the implementation of the 2030 Agenda by generating large opportunities for enhancing employment and incomes across the region. These opportunities can directly support the achievement of some of the Sustainable Development Goals, particularly Goal 8: promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.
The large investment in transport, energy and ICT infrastructure promoted by developing and deepening regional economic cooperation and integration (RECI) also contributes directly to Goal 7: ensure access to affordable, reliable and modern energy for all, and Goal 9: build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. Moreover, the favorable impact of RECI on economic growth across the region can contribute to the mobilization of much needed public resources, without which it would be difficult for low-income countries to make much progress in achieving the Goals.
The relationship between RECI and the 2030 Agenda is bidirectional. RECI can support the attainment of the Sustainable Development Goals, while the Goals will likely play a vital role in guiding the implementation of RECI. This can happen, for instance, by ensuring that infrastructure projects have favorable social and environmental, as well as economic, impacts. Ensuring that infrastructure projects connect small, low-income and geographically distant countries with the main markets of the region and placing high priority on dealing with transboundary vulnerabilities and risks are other ways in which the 2030 Agenda can inform how RECI can be most effectively implemented.
A number of nations are working hard to meet the set agenda through building relations in various ways. As part of the effort Ethiopia and Somalia consolidate in the aviation sector to enhance the integration of the region via the whole Africa. Of late, Somalia Transport and Civil Aviation Minister, Fardowsa Osman Egal and her delegation recently paid official working visit to Ethiopia.
The Director General of Somalia Civil Aviation Authority, Ahmed Moalim Hassan stressed; “Strong cooperation in civil aviation sector will enable Ethiopia and Somalia strengthens their economic integration and people to people ties.” As part of the visit Ethiopia and Somalia signed an agreement to work on the development of the aviation sector in partnership.
In an exclusive interview with local media, Somalia Civil Aviation Authority Director General Ahmed Moalim said Ethiopia and Somalia are keen to enhance their economic cooperation and people to people ties, specifically in civil aviation sector.
He also pointed out that the recently signed agreement will help to expedite economic integration and people to people ties between the two nations. According to him, the agreement is essential for the operation of Ethiopian Airlines in giving unlimited access flights to Somalia.
If the restriction of movement of people and goods are lifted, the economic cooperation of Ethiopia and Somalia will be boosted, he added. The Director General, pointed out that the agreement would enable the two countries strengthens their economic cooperation by ensuring the free movement of people, goods and services between the two countries.
The agreement comes in the context of the direction of implementing Agenda 2063 of the Africa. ‘’we are heading in to liberate the entire sky in the continent , Africa will have open sky policy that will remove this old fashion bilateral service agreement in which the Airlines will fly to any point in Africa need of bilateral service agreements.’’
The agreement also consists of technical cooperation between the two civil aviation authorities to exchange experience, share knowledge and training in the field of aviation, it was learned. According to Ahmed Moalim, Ethiopian Airlines can assist the people of the two sisterly countries to integrate and move across the borders.
The Director General of the Ethiopian Civil Aviation Authority, Getachew Mengistie on his part, said that the new agreement is the renewal of the previous deal that was signed about 34 years ago. The agreement aims at working together in the field of aviation with the view to enhancing Somalia’s aviation capacity, he added.
The new agreement is expected to enhance the trade, tourism and investment cooperation between the two countries. It is to be noted that the leaders of Ethiopia and Somalia had agreed to further strengthen cooperation on bilateral and regional issues during Somalia’s President Hassan Sheikh Mohamud visit to Addis Ababa last September.
During the occasion, the leaders of the two countries had also reaffirmed their commitment to further strengthen the relationship between the nations.
According to the International Trade Centre (ITC) report of 2022 the African Continental Free Trade Area (AfCFTA) serves as a framework to boost intra-African trade and develop intraregional value chains. The start of trading under the AfCFTA as of 1st January 2021 sets a key milestone for a single market with a combined gross domestic product close to 2.5 trillion euro. Liberalizing tariffs alone is estimated to increase intraregional trade potential by more than 17 billion euro. Removing other market frictions and channeling investment into growth sectors could help realize 19 billion euro in intraregional trade potential that currently remains untapped.
Building a single market with a clear, strong regulatory framework across 54 signatory countries presents an opportunity to develop new regional value chains and increase value-added trade and employment. It will open doors to a consumer base of 1.3 billion people, projected to reach 2.5 billion by 2050, and creates strong incentives for investment.
Africa represents 15 percent of the global population, but only takes the share of 2.3 percent of world’s exports. Commodities and natural resources continue to dominate exports to the world. Meanwhile, 14 percent of its exports are destined for African markets, including a relatively high share of semi-processed or processed products. Exports in the region are more diversified and technologically advanced than exports overseas.
Intra-African value chain integration reduces dependency on unprocessed goods and natural resources as exports. Integration thus paves the way towards higher value addition and a more diversified export basket.
According to various sources the relations between the peoples of Somalia and Ethiopia stretch back to antiquity, to a common origin. The Ethiopian region is one of the proposed homelands of the Horn of Africa’s various Afro-Asiatic communities.
Somalia is Ethiopia’s natural outlet into the Indian Ocean and the Gulf of Aden, just as Ethiopia is the natural hinterland of Somalia. The 1,500 kilo- meters of boundary line between them form an artificial barrier.
African regional integration was a dream of many of the continent’s leaders, and gave impetus to the creation of the Organization of African Unity (OAU) in 1963. Over the years, many other institutions were also established in Africa’s different regions.
The Ethiopian Herald January 19/2023
