URBANIZATION AND INDUSTRIALIZATION

44
ECONOMIC REPORT ON AFRICA 2017
These shifts will require imports to have a bigger
share of capital-intensive intermediate goods and
the embedded technology in these goods to be
fully exploited. 6 And, while taking full advantage
of its abundant natural resource base, Africa
should strengthen its value chains, particularly in
manufacturing.
TRAVEL DOMINATES AFRICA’S
SERVICE EXPORTS
Africa’s share in global trade in services, standing
at just 2.2 per cent over the period 2010–2015,
is even lower than its share in global merchandise
trade of 3.1 per cent. At 42 per cent in 2010–2015,
travel dominated Africa’s exports of services.
In the other direction 47 per cent of its service
imports were “other services,” such as insurance,
pensions, financial services and charges on the use
of intellectual property (figure 1.14).
REGIONAL INTEGRATION
MAKES SOME PROGRESS
The Abuja Treaty—signed in Abuja, Nigeria in 1991,
and which entered into force in 1994—provides a
Africa’s share in global trade in
services remain low, standing
at an average of just 2.2 per
cent over the period 2010–
2015, lower than its share in
global merchandise trade.
clear roadmap for successive regional integration
steps in Africa. The third stage of Africa’s
integration, as per the Treaty, specifies that all
regional economic communities (RECs) are expected
to have established a free trade area (FTA) and a
customs union by the end of 2017. Currently only
the Economic Community of West African States
(ECOWAS) and East African Community (EAC) have
an FTA and a customs union, while the Common
Market for Eastern and Southern Africa (COMESA),
Southern African Development Community
(SADC), ECOWAS and Economic Community of
Central African States (ECCAS) have only an FTA.
For COMESA a customs union was launched in June
2009 but fell far short of full implementation, as
with the ECCAS FTA (UNECA–AUC––AfDB, 2016).
Member states of the COMESA, SADC, EAC and
ECOWAS FTAs have all committed to eliminating all
tariffs on intra-regional imports.
Figure 1.14 Composition of Africa’s services trade, 2010–2015 average
Exports
2%
Imports
0%
29%
27%
47%
38%
42%
15%
Goods-related services Transport Travel Other services
Source: ECA calculations based on UNCTAD (2016b).