African Union's entry into the G20 provides a unique opportunity for the continent to reflect the development needs of the Global South
Africa is home to a number of very underdeveloped countries in the world, in terms of socio-political infrastructure and lags in economic development.
Although endowed with an abundance of natural resources and gifted talents, the continent is engulfed by the most unpleasant levels of poverty, has the weakest progress of human capital development and the least share of world exchange.
Despite of the fact that majority of African countries have passed the threshold of fifty years of Independence, the mainland has continued to be a host to some of the poorest countries globally, most of them still struggling to develop the basic social and physical structures and infrastructures that can put them on the path of development and accompanied by high unemployment rates and other social problems like disease.
Africa Union (AU) Formation
On May 25 1963, 32 African states that had achieved independence at that time agreed to establish the OAU to rid the continent of colonization and apartheid, safeguard the sovereignty and territorial integrity of Member States and promote the unity and solidarity of African states. In its later years the OAU was criticized for becoming a mere talking shop.
In 2002, OAU was disbanded to create the African Union (AU), with a vision to support an integrated, prosperous, and peaceful Africa, boost development, eradicate poverty and bring Africa into the global economy, and representing a dynamic force in the global arena.
Potential
Africa has enormous potential for economic and political power. The continent represents around 20% of the world's territory and is home to with the world’s youngest and fastest-growing population with productive potential above the average of other countries. This indicates a significant potential workforce, as well as upward economic growth.
It is the third most populous region in the world, behind China, emerging as a magnet for consumer markets and products, making it an attractive destination for global supply chains.
The region holds 60% of the world's renewable energy assets and 50% of the minerals essential for low-carbon technologies including aluminum, cobalt, copper, lithium and manganese needed for high-tech and green products like smartphones and solar panels.
The continent has at least a fifth of the world’s reserves in a dozen metals critical for the energy transition, including about 19% of those needed for electric cars. As the global push for cleaner energy intensifies, demand for such metals will soar, an electric car, for example, needs about six times more minerals than a traditional vehicle.
Africa also offers opportunities to green supply chains by tapping the continent’s green hydrogen potential and renewable energy resources, particularly solar. To seize these comparative advantages, Africa Union needs to comb African countries to enhance productivity through technology adoption, improve logistics and leverage trade agreements.
AU Trade Agreements
AU received full membership status to the G20 last year, a move that elevated the continent to the same status as the European Union and 19 other countries. Africa's permanent membership in the G20 offers new perspectives and provides a unique opportunity for the continent to shape global economic and financial policies that reflect its development needs and issues that are dear to the developing countries or the Global South.
African Union's entry into the G20 is a historic milestone that symbolizes not only the recognition of its economic and demographic potential, but also its rise as an influential player in global governance.
African economies can become major participants in global supply chains by harnessing their vast resources of materials needed by high-technology sectors and their own growing consumer markets.
To help them capitalize on their comparative advantages, the report recommends policy actions to ensure an attractive business and investment environment and new market opportunities.
Africa Single Currency
While traditionally each country has maintained its own separate, national currency, several governments in the African Union trust that this may not be the most efficient economic arrangement, and having a single currency will facilitate a stable commerce for the continent’s economic development.
For a long time, there have been propositions to set up an African Economic Community to promote trade, and the African Central Bank (ACB) with a single currency, referred to as the afro or afriq, as a way to accelerate economic integration.
The date for the currency to be established and circulated is not yet finalized, although the Abuja Treaty that created the African Economic Community called for an African Central Bank to be implemented by 2028.
This idea will be benchmarked on the European experience in setting up a Central Bank for the continent. Countries that share strong economic ties may benefit from a common currency. This can allow for closer integration of capital markets and facilitates trade.
With its wide range of advantages, including the total removal of exchange rate costs and trade tariffs, there has been great enthusiasm amongst African countries to establish a common currency for the continent.
It is believed that with a single stable currency, all member states will achieve improved Intra Africa trade volumes, increased production capacities, free movement of labor and capital across the continent.
Currently, there are still trade barriers among member states and many African nationalities still require travelling Visa to visit other neighboring African countries. Countries like Uganda has made serious progress on visa application, they now issue the visa upon arrival at the airport. However, these are happening in isolated countries in Africa.
Türkiye Relations with the African Union
In 2005, Türkiye became an observer member of the AU and was declared strategic partner of the Continent at the Summit held in 2008.,
In addition to the bilateral relations of Türkiye with the African countries, relations with the African Union (AU) are getting stronger. Türkiye became an observer member of the AU in 2005 and was declared strategic partner of the Continent at the Summit held in 2008. The relations attained a sustainable mechanism at the First Türkiye-Africa Partnership Summit in Istanbul, which was held on 18-21 August 2008.
Türkiye and Africa have agreed to implement projects simultaneously in various fields along with the five-year schedule program, which was adopted with "The 2015-2019 Joint Implementation Plan" at the Second Türkiye-Africa Partnership Summit, held in 2014 in Malabo, the capital of Equatorial Guinea. In this context, projects developed according to the priorities of the African countries, in the fields of trade and investment, peace and security, education and culture, youth empowerment and technology transfer, rural economy and agriculture, energy and transportation have been implemented.
In addition, Türkiye took the decision to carry out “Ministerial Review Conferences” with the AU, during the Summit meetings to be held every five years. The Second Türkiye-African Union Ministerial Review Conference was held in Istanbul in 2018.
Türkiye hosted the Third Türkiye-Africa Partnership Summit in 2021, in Istanbul with the participation of 38 African countries, under the auspices of H.E. Mr. Recep Tayyip Erdoğan, the President of the Republic of Türkiye.
The AU also aims to develop and enhance its relations and strategic partnership with Türkiye, to enhance their partnership, based on inclusive growth and sustainable development of both partners.
Reference
A. Enaifoghe etal (2018), Africa regionalism
MA Olanrewaju (2012), The transformation of OAU
TB Andersen (2013), Economic growth in Africa
J Adibe (2023), African Union's Permanent Membership of G20
A Ntembe (2022), A Single Currency for Africa: Challenges and Possibilities
EE Tepecikliogu (2017), Economic relations between Turkey and Africa: challenges and prospects
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