AFRICA

The Next Decade

Arthur Gerstenfeld
Raphael J. Njoroge

www.businessbooksusa.com

3
Africa: The Next Decade

Other books by Arthur Gerstenfeld

and Raphael J. Njoroge

Books by Arthur Gerstenfeld

1. International Business and Education: A Focus on Africa and United

States (with Raphael Njoroge), Transglobal Literacy, Inc. 2004.
2. U.S. Manufacturing Facing Global Competition, (Ed.) WPI, March
1988.
3. Manufacturing Research Perspectives: USA/Japan, (Ed) Elsevier
Publishers, 1987.
4. Manufacturing Research: Organizational and Institutional Issues,
(Ed) Elsevier Publishers, 1987
5. Science Policy Perspectives: USA/Japan, (Ed) Academic Press, 1982.
6. Technological Innovation: Government/Industry Cooperation, (Ed)
John Wiley Publisher, 1979.
7. Effective Management of Research and Development,
Massachusetts, Addison-Wesley, 1970 (English and translated into
Japanese).

Books by Raphael J. Njoroge

1. Education for Renaissance in Africa, Trafford Publishing, B.C.

Canada, 2004
2. (With Arthur Gerstenfeld) International Business and Education: A
Focus on Africa and United States. Transglobal Literacy, Inc. 2004.
3. (With G. A. Bennaars) Philosophy and Education in Africa (Fourth
Reprint), Transafrica Press, 2000 (First Edition, 1986)..
4. Philosophy and Education for Liberation and Creativity, Kenyatta
University, Nairobi, 1990.
5. (With G. Bennaars) Social Education and Ethics (Book II), Transafrica
Press, 1986.
6. (With G. Bennaars) Social Education and Ethics (Book I), Transafrica
Press, 1985.

6
 Arthur Gerstenfeld, Ph.D.
Professor of Management and Industrial Engineering,
Department of Management, Worcester Polytechnic Institute, MA, U.S.A.

Dr. Arthur Gerstenfeld received his Ph.D. from MIT and is Professor
of Management and Industrial Engineering at Worcester Polytechnic
Institute, Worcester, MA. He has been the Director of several grants
concerned with Africa. His original exposure to Africa was twenty years
ago when he visited South Africa as part of a proposal to install a new
type of air traffic control training system. Dr. Gerstenfeld is the patent
holder for those systems. Since then he has been to Africa more than
fifteen times and will be returning again in October, 2005. He has pub-
lished several articles about Africa with Prof. Raphael J. Njoroge and is
active in the Corporate Council on Africa. He is Co-Director of the WPI-
Namibia Project Center. As co-faculty advisor with Prof. Vernon-
Gerstenfeld in Namibia in 2004 Dr. Gerstenfeld co-directed projects in
water management, energy efficient housing, and aquaculture.

Raphael J. Njoroge, Ph.D.

Professor of Philosophy and Education,
Worcester Consortium of Colleges and
Research Associate, Worcester Polytechnic Institute, MA, U.S.A.

Dr. Raphael J. Njoroge received his Ph.D. from the University of

Nairobi in Kenya. He has been professor of philosophy, education and
social sciences at the University of Nairobi and Kenyatta University
where he has been Chairman of the Department of Educational
Foundations, Dean of the Faculty of Education and Director of the Bureau
of Educational Research. Having been born and initially educated in
Kenya, he has in-depth knowledge of various aspects of African life. He
has been external examiner for the Universities of Botswana, Swaziland
and Zambia, and has worked as a member of the Committee for the
Education Deans of East African Universities. Currently, he is professor
at the Worcester Consortium of Colleges and Research Associate at
Worcester Polytechnic Institute where he has published several articles
on Africa with Prof. Arthur Gerstenfeld.

7
 Africa: The Next Decade

AFRICA TODAY
Madeira
Algiers Tunis
(Portuguese)
Tangier
Constantine
Rabat Oran TUNISIA
Casablanca
MOROCCO Ghardaia
Marrakech Tripoli Banghazi Alexandria
Canary islands
(Spanish) Cairo

Laayune Tindouf ALGERIA

LIBYA
EGYPT
WESTERN
SAHARA Al Jawf Aswan
Tamanrasset
CAPE
VERDE MAURITANIA MALI Port Sudan
Nouakchott
NIGER Red Sea
Faya-Largeau
Praia Nema Timbuktu Agadez ERITREA
SENEGAL CHAD
Dakar Khartoum Asmara
Niamey Zinder
GAMBIA Bamako Lake Chad Al Fashir
Banjul BURKINA FASO DJIBOUTI
Bissau Kano N'Djamena
GUINEA GUINEA Ouagadougou SUDAN Djibouti
BISSAU Maiduguri
BENIN Berbera
Conakry GHANA
Freetown Abuja Addis Ababa SOMALIA
CÔTE TOGO Waw
SIERRA D'IVOIRE Lake Porto NIGERIA
LEONE Volta Novo CENTRAL ETHIOPIA
Monrovia Yamoussoukro Lagos AFRICAN REPUBLIC
LIBERIA Lomé CAMEROON
Abidjan Accra Douala Bangui Juba
Malabo
Yaoundé Lake Rudolf
EQUATORIAL GUINEA Bata UGANDA Mogadishu
Kisangani Kampala
São Tomé Libreville KENYA
SÃO TOMÉ GABON CONGO RWANDA Lake Nairobi
& PRÍNCIPE Príncipe DEM. REP. Kigali Victoria
OF CONGO
Brazzaville Bujumbura
BURUNDI Mombasa
Pointe-Noire Kinshasa Lake TANZANIA Pemba
Angola Kananga Tanganyika Zanzibar SEYCHELLES
(Cabinda) Kalemie Dar es Salaam
Ascension
(British) Victoria
Luanda Mbeya
Kasama
Lubumbashi COMOROS
MALAWI Lake
Lobito Luena Moroni
Kitwe Nyasa
ANGOLA Lilongwe
St. Helena
ZAMBIA Nacala Mayotte
(French)
(British) Namibe Lusaka
Mahajanga
Lake Kariba
Harare MADAGASCAR
ZIMBABWE MAURITIUS
Beira Antananarivo
NAMIBIA Bulawayo Port Louis
Saint Denis
Windhoek
BOTSWANA MOZAMBIQUE Reunion
Toliara (French)
Gaborone
Pretoria
Maputo
Luderitz Johannesburg
SWAZILAND Mbabane
Maseru
LESOTHO Durban
SOUTH AFRICA
Cape Town Port Elizabeth

Business Books International

Size 11,709,908 sq miles/30,328,662 sq. km Island nations Six, with Equatorial Guinea part landbased
Second largest continent after Asia Madagascar is world’s 4th largest island
Distance North-South 5,000 miles/8,000 km Population At 800 million 13% of world total
East-West 4,700 miles/7,560 km Speak more than 1,000 languages
Mountains Highest: Mt. Kilimanjaro 19,340 ft/5,895 m Density Average of 26 people per sq. km
Ranks sixteenth worldwide Well below Asia’s 116 and Europe’s 102
Lakes Lake Victoria is world’s 3rd largest Resources 8.2 % of world’s oil, 7.7% of its natural gas
Lake Tanganyika is 7th largest 11% to 45% of world’s strategic minerals
Rivers Longest: Nile is 4,180 miles/6,690 km Economy Average 4% growth in output from 1994-1998
World’s longest river Per capita income $315—one-third Asia’s
Countries 53 countries of which 15 landlocked Investment Return on US investment in 1997 was 25.3%
Largest: Sudan, Algeria & DR of Congo Exceeded 16.2% in Asia and 12.3% worldwide
8
Contents
ACKNOWLEDGMENTS 11

FOREWORD 13

PREFACE 15

CHAPTER 1
RESPONSIBILITY OF AFRICA: GOOD GOVERNANCE 19

CHAPTER 2
ECONOMIC INTEGRATION OFAFRICA 44

CHAPTER 3
AFRICAN GROWTH AND OPPORTUNITY ACT 65

CHAPTER 4
LEADERSHIP IN HIGHER EDUCATION 87

CHAPTER 5
BUSINESS AND INTERNATIONAL EDUCATION 103

CHAPTER 6
HIV/AIDS IN AFRICA 121

CHAPTER 7
WATER CRISIS IN AFRICA 135

CHAPTER 8
FUNDING FOR GROWTH 153

CHAPTER 9
AFRICA 2015 167

BIBLIOGRAPHY 181

INDEX 189

9
Foreword
The next ten years on the continent of Africa are critical. The year
2015 will hopefully mark a transition in Africa to political responsibility,
prosperity, and health. This is essential for Africa and the rest of the
world. Drs. Arthur Gerstenfeld and Raphael Njoroge have written a
provocative book about the transformation needed for Africa to reach
its potential in the next decade.
The authors took a leap of faith several years ago when they applied
for a grant under the U.S. Department of Education’s Business and
International Education Program for research into water resources,
aquaculture, and other related areas in Namibia by undergraduate
students from the Worcester Polytechnic Institute. This grant not only
helped strengthen relationships between WPI administrators, faculty
and students and their Namibian counterparts. It also led to a series of
high-level conferences at WPI with African dignitaries including
Namibian Secretary of Education Nahas Angula and the WPI’s
participation in the Corporate Conference on Africa Summit Conference.
Two subsequent grants are focusing on partnering U.S. and African
educators with industries on both sides of the Atlantic.
The Business and International Education (BIE) program currently
funds programs at some 60 institutions. The program began 1958, when
the U.S. Congress realized that the nation’s defense, security, and welfare
were inseparably linked to education. Since 1983 it has provided
funding to universities, four-year colleges, and community systems to
educate and prepare the citizenry for the global marketplace. In my
position at the U.S. Department of Education, I have had the good fortune
to work intimately with institutions of higher education throughout the
U. S. and world to improve the teaching of international business
teaching and implement programs to increase collaboration among
businesses worldwide. I am proud to have been associated with the
authors of this book in their outstanding programs.
As Tom Friedman’s said in his groundbreaking book, The Lexus and
the Olive Tree, it is the “software” of the country that will lead to economic
prosperity. The “software” is a well-educated work force that is globally
competent. The American Council on Education defined “globally
competent” as a broad term that ranges from the in-depth knowledge
required for interpreting information affecting national security, to the

13
Africa: The Next Decade

skills and understanding that foster improved relations with all regions
of the world. It involves, among other things, foreign language
proficiency and the ability to function effectively in other cultural
environments and value systems, whether conducting business,
implementing international development projects, or carrying our
diplomatic missions.
Having been awarded several grants under our program, Drs.
Gerstenfeld and Njoroge have the in-depth knowledge and passion to
write a book on the transformation of the African continent. While not
ignoring the immense problems that Africa faces, this is a hopeful book
that looks at the bright prospects facing the African continent as long as
political and economic responsibility and prosperity, health and
education are vigorously pursued.
Drs. Gerstenfeld and Njoroge are zealous about the role of education
in the transformation of the political and economic landscape. They
have experienced this on a first-hand basis by teaching and observing
students and faculties around the world. These gentlemen are agents
for change and are actively engaged in Africa to revolutionize the face
of education. Their book addresses the need to envision a global
community where education is an important step towards promoting
stability and prosperity for all.
Africa: The Next Decade is bound to stimulate interest in Africa and
inspire readers to want to get involved in its transformation. It shows
us all how a relatively small sum of money in the hands of a few
committed people can do much to improve the lives of many. As
Margaret Mead said “Never doubt that a small group of thoughtful
committed citizens can change the world, indeed it’s the only thing that
ever has.”

Sarah T. Beaton
Chief, International Studies Program
International Education Programs Service
U.S. Department of Education

The views expressed within this foreword are solely of the individual and are not necessarily those
of the U.S. Department of Education, nor do they express U.S. Department of Education policy.

14
 Chapter 1

RESPONSIBILITY
OF AFRICA:
GOOD GOVERNANCE

Introduction

“The issue of good governance and capacity-building is what we

believe lies at the core of all of Africa’s problems. Until that is in place
Africa will be doomed to continue its economic stagnation.”1
Blair Commission Report, 2005

This chapter addresses one of the most vital preconditions for

development, that is, good governance. By ‘governance’ we mean the
capacity of government and the public services to create the economic,
social and legal framework which will enhance economic growth and
allow the participation of all people, and take steps to ensure that the
poor, who have often been excluded from that participation, are in-
cluded in it. All the recommendations we have made in this book would
come to naught without it.
Without good governance the following consequences would ad-
versely impact the ideas of development proposed in this book. First,
the economic integration of Africa, which we consider in chapter two
as a further vital ingredient in economic growth, would be compro-
mised. Second, the operations of AGOA, which we discuss in chap-
ter three as one of the means of improving the economic condition
of Africa would not produce the desired results. Third, leadership in
higher education, which we discuss in chapter four as an indispens-
able factor in capacity-building, would not be achieved. Fourth, edu-
cation and business, which we treat in chapter five, would not coop-

19
Africa: The Next Decade

erate to contribute to development, especially economic growth. Fifth,

the fight against HIV/AIDS, which we discuss in chapter six as one
of the hindrances to capacity building would not be fought effec-
tively. Sixth, the water crisis in Africa, which we discuss in chapter
seven as necessary for health and agricultural development, would
be exacerbated. Seventh, funding for growth, which is the subject of
chapter eight, would be wasted effort for the funded money would
be used for purposes for which it is not intended.
This chapter is divided into six parts.
First, we set the stage by referring to the statements made by two
prominent leaders, namely President Thabo Mbeki of South Africa,
and Kofi Annan the Secretary General of United Nations, with re-
gard to the question of good governance in Africa. Both leaders em-
phasize the need for Africa to take responsibility for its direction.
We also refer to similar statements made by the African Union in
its Constitutive Act, and the Blair Commission Report which was
produced with participation of prominent African leaders. The ma-
jority of the Commissioners were from Africa with varied experi-
ences as political leaders, public servants, and in the private sector.
Second, we discuss the sense in which Africa has not taken re-
sponsibility for its development. Here we discuss the reactive ten-
dency in African governance as manifested in reluctant institution-
alization of multipartism, clinging to monocrop industries, Struc-
tural Adjustment Programs (SAPs), and use of developmental theo-
ries that do not adequately reflect that African political, economic
and social reality.
Third we delve into corruption as one of the ways in which Af-
rica has failed to take responsibility for its own development. Cor-
ruption is found in all levels of society and all African institutions
and often involve foreign companies and foreign government repre-
sentatives.
Fourth, we discuss some of the concepts that we consider to be
central to the idea of Africa taking responsibility for its own devel-
opment with special emphasis on Pan-Africanism and African Unity.
We insist on the need to have benchmarks to determine achieve-
ment of developmental goals especially for issues pertaining to HIV/
AIDS and Water Crises. Benchmarks already exist for integration of
Africa up to 2015 and beyond as we explain in chapter two entitled
“Economic Integration of Africa.”

20
 The Responsibility of Africa: Good Governance

Fifth we discuss the role of education in preparing the learners to

recognize and fight the cancer of corruption. Our emphasis will be on
formal and non-formal education as they are defined in the relevant
section of this chapter.
Picture: UNDPI

African leaders at the formation of the African Union. From left to right: South African
President Thabo Mbeki, UN Secretary General Kofi Annan, Mozambican President Joaquim
Chissano, Togo President Gnassingbé Eyadema, and Libyan leader Muammar Qaddafi.

Sixth, we write the conclusion that emphasizes the importance of

collaboration among all institutions of society to fight corruption as
Africa faces the challenges of the 21st century.

Mbeki, Annan and African Union:

Responsibility of Africa

The importance of good governance is emphasized by President

Thabo Mbeki of South Africa in his Millennium Africa Recovery Pro-
gram (MAP). The fundamental goal of this Program is good gover-

21
Africa: The Next Decade

nance characterized by democracy and upholding of human rights,

sound economic management free from corruption and short-
sightedness, and fighting HIV/AIDS and other infectious diseases
in the African continent.
Mbeki’s idea is echoed by the United Nations Secretary General Kofi
Annan in the context of New Partnership for Development (NEPAD)
which we discuss in the entitled “Funding for Growth.”
The NEPAD strategic framework document arose from a mandate
given to the five initiating Heads of State (Algeria, Egypt, Nigeria, Sene-
gal, South Africa) by the Organization of African Unity (OAU), the pre-
decessor of African Union (AU) to develop an integrated socio-economic
development framework for Africa. The 37th Summit of the OAU in July
2001 formally adopted the strategic framework document.
Annan maintains that Africa’s ownership and leadership of NEPAD
represents “an important and welcome reassertion of the principle of
responsibility for its development.”
Accordingly, the first part of his report highlights the actions that
Africa itself has taken to advance NEPAD’s ambitious goals.
Annan points out that on the political front, one of the most “in-
novative” achievements has been the creation of the African Peer
Review Mechanism.
It is a voluntary process by which participating countries agree
to monitor, review and learn from each other’s experiences in pro-
moting good political and corporate governance, sound economic
management and respect for human rights.
As of July, 2003, 16 African countries had acceded to the Mecha-
nism and a panel of eminent persons has been appointed to run it. It
was expected that reviews of four participating countries would be-
gin before the end of the year. NEPAD’s economic and social priori-
ties include:
• The elaboration of a comprehensive African agricultural development plan,
which will form the basis for concrete projects in specific countries and re
gions.

• The preparation of a NEPAD health program, which reaffirms African coun

tries’ commitment to allocate at least 15 per cent of their budgets to health
(e.g. for fighting HIV/AIDS) and calls on Africa’s external partners to contrib
ute $22 billion annually.

22
 The Responsibility of Africa: Good Governance

• A NEPAD education program that “fast tracks” expansion of primary

education.

• Measures to develop Africa’s roads, railways and energy and communica

tions networks; promote tourism and industrialization; and protect the envi
ronment.

Annan, however, also cites some constraints within Africa to the

implementation of the New Partnership. These include weak links be-
tween African regional economic groupings and the NEPAD Imple-
mentation Committee, limited institutional capacities to plan and imple-
ment development programs, insufficient efforts to popularize NEPAD
within Africa and inadequate funding by African governments.
The African Union, in its Constitutive Act, maintains that
Governance in Africa must address the following problems:
• First, achieving greater unity and solidarity among African countries and the
peoples of Africa.

• Second, accelerating the political and socio-economic integration of the conti

nent.

• Third, promoting and defending African common positions on issues of inter

est to the continent and its peoples.

• Fourth, establishing the necessary conditions which enable the continent to

play its rightful role in the global economy and in international negotiations.

• Fifth, promoting sustainable development at the economic, social and cul

tural levels as well as the integration of African economies.

• Sixth, coordinating and harmonizing the policies between the existing and
future Regional Economic Communities for the gradual attainment of the ob
jectives of the African Union.

• Seventh, advancing the development of the continent by promoting research

in all fields, particularly in science and technology.

• Eighth, working with relevant international partners in the eradication of

preventable diseases and the promotion of good health of the continent.

An analysis of the Constitutive Act of the African Union shows

that it is set to reform Africa’s institutions. A new generation of Af-
rican political leaders is emerging and is bent on transcending the
restrictive rules of the former Organization of African Unity which has
been succeeded by the African Union that is supported by this new
generation. The old Organization of African Unity (OAU) had a restric-
tive policy of ‘non-interference’ in the internal affairs of other African
countries.

23
Africa: The Next Decade

The African Union has rejected this ‘non-interference’ clause. In-

stead of the ‘non-interference’ policy of the OAU the African Union
(AU) has a policy of ‘non-indifference’ to the suffering of citizens of
neighboring countries whose leaders do not promote democracy, peace
and human rights.
The African union has instituted NEPAD (discussed above), with
its Peer Review Mechanism, as the instrument through which ef-
forts are made to discover what policies and government systems
have been shown to be most effective elsewhere, and encourage the
execution of such policies and government systems in Africa.
These initiatives and bodies have still to prove their worth but as
the Blair Commission Report points out “ the first signs are encour-
aging”2 The Report accentuates the position of the African Union
regarding the powerful link that exists between political and eco-
nomic development or, in more specific terms, between good gover-
nance and creation of wealth. The Report notes that despite three
decades of overall economic stagnation, growth exceeds 5 percent
in 24 separate countries in sub-Saharan Africa in 2003.3 This growth
is manifested in a new entrepreneurship, a growing middle class,
pressure groups and community organizations holding their gov-
ernments to account.

Inadequacy of Reactive Mode of Governance

We are arguing that Africa cannot take responsibility for its de-
velopment without being the primary engine of its own growth. This
presupposes growth-oriented creativity from within the continent
itself. But creativity is not given on a silver platter. We have to de-
velop and work for it. It begins with a thought, with an idea we are
passionate about, like the Millennium Africa Recovery Program
(MAP) of Mbeki, mentioned above.
Various studies show that what Africa needs is proactive gov-
ernance not just reactive people. In many African countries the in-
troduction of multipartism, which comprises forms of government
consisting of many political parties, was a reactive move. Many Af-
rican leaders did not want it. They wanted to perpetuate one-party
governments, which were dictatorial and oppressive. These African
leaders were forced by international forces to give allegiance to
multipartism. They were warned by donor countries that if they did
not democratize they would lose financial aid. This stance by the

24
 The Responsibility of Africa: Good Governance

donors was a coercive measure that contributed to the institutionaliza-

tion of multipartism in African countries.
This reactive tendency of African leaders is well represented by a
former president of Kenya, Daniel arap Moi, in a statement at a meet-
ing in the city of Nairobi at a venue called Kasarani, in December
1991 when he declared, in Swahili, that he felt pressure from outside
and that he had no alternative but go the multiparty way despite his
reluctance: “Mimi ninafinywa kwa sababu ya umaskini, lakini hamjui.
Wacha tufungue mlango kwa hii kitu multipartism.” (I have been pres-
sured because of poverty, but you don’t know about it. Let us open the
doors to this multipartism).4
From the economic perspective, the economies of Africa have
tended to react to whatever economic whims there may be in the
Western world. This does not mean that Africa should not look for
markets outside Africa. Capitalism, in which Africa is steeped at the
moment, is an economy that responds to markets. So there is noth-
ing wrong with reacting to what appear to be lucrative markets.
However, the habit of reacting to outside forces may enter the wrong
bandwagon, unreflectively. Some markets are short-lived, others are
based on the policies of other countries, and these policies can change.

Rejection of Reactive Behavior, Acceptance

of New Ideas
A word of caution is now necessary. Rejection of reactive be-
havior in Africa should not be viewed as a negation of the practice
of borrowing ideas from more developed countries. If this were so,
the number of creative ideas would shrink. Indeed what we often
call creative ideas are sometimes borrowed elsewhere through the
process of cultural diffusion, and then they are improved on by the
borrower in terms of adjustment to new situations.
This activity of making borrowed ideas relevant to situations that
are different from the places of their origin is an exercise in creative
thought. For instance, the borrowed idea of economic unions has
been expressed in terms of different types of economic unions that
exist in Africa, such as the Southern African Development Community
(SADC) and the Economic Community of West African States
(ECOWAS). Hence, although we may consider the regional economic
unions to be products of cultural diffusion in the sense described
above, they are products of creativity to the extent that they meet
the needs of the African continent.

25
 Chapter 2

ECONOMIC
INTEGRATION
OF AFRICA

Introduction

The economic integration of countries in Africa is expected to

continue to grow. The 1991 Abuja Treaty proposed the creation of African
Economic Community by 2015.
In this chapter we aim at providing a picture of the different economic
regions of Africa with special reference to the Southern African
Development Community (SADC) as a paradigm of the integration
process that is taking place in different economic regions of Africa.
Within the SADC itself we will give special attention to the role of South
Africa in enhancing the integration of the region to which it is a major
player. Any student of Africa or any businessman interested in doing
business in Africa needs to know the basic economic dynamic going in
the African countries, especially the phenomenon of economic
integration of the various regions of Africa.
Such knowledge would enable the student or the businessman to
see that every African country is within a structure or system of countries
comprising an economic region. With this understanding the
businessman, for instance, would know that engaging in business in
any one African country means being plunged in a web of other African
countries that give him further business opportunities beyond the
capabilities of his initial country of venture. For instance, if a person
wants to do business in Namibia he should see that, as the Corporate
Council on Africa observes, Namibia is a “good asset for prospective
foreign investors looking at Namibia as a gateway to the Southern
African region.”1

45
Africa: The Next Decade

In business terms, therefore, establishing business in Namibia

would be a viable opening to the SADC markets, for the Namibia
economy is intrinsically tied up with that of the Southern African
Development Community (SADC) which comprises 14 African
countries: Angola, Botswana, Democratic Republic of Congo, Malawi,
Tanzania, Zambia, Zimbabwe, Lesotho, Swaziland, Mauritius,
Seychelles, South Africa, Mozambique and, of course, Namibia.
Similarly, starting a business in Nigeria would mean having access
to the Economic Community of West African States (ECOWAS)
which includes, among others, Ghana, Nigeria, Guinea, Gambia,
Sierra Leone and Liberia.
Other economic regions are the Economic Community of Central
African States (ECCAS), the Intergovernmental Authority on
Drought and Development (IGADD) in Northeast Africa. All these
regions are integrated under the African Economic Community
(AEC). This means being involved in business in Namibia, for
instance, implies being engaged in business not only within the SADC
but also within the African Economic Community.
In this chapter we will, first, discuss the rationale behind the
establishment of economic regions in Africa. Second, we will discuss
the historical factors that laid the foundation for SADC and the factors
that have made it work. Third, we will describe a new Worcester
Polytechnic Institute (WPI) project to be undertaken in South Africa
under the title: “South Africa: The Engine of Growth” in view of the
business opportunities provided by South Africa as one of the Big
Emerging Markets.

Rationale for establishing Regional

Economic Communities
“Inspired by the success of the European Union and encouraged by
the UN-sponsored Economic Commission for Africa, based in Addis
Ababa, Ethiopia, African leaders have sought to create regional entities
capable of promoting regional cooperation and integration.”2
These regional entities, such as SADC, have been created as a
foundation for achieving a higher goal transcending these regional
entities. That higher goal was expressed by the Lagos Plan of Action
for the Economic Development of Africa, 1980-2000, a vision outlined
by the then Organization of African Unity (OAU) which has been
succeeded by the African Union (AU). That OAU vision proposed

46
 Economic Integration of Africa

SOUTHERN AFRICAN DEVELOPMENT

COMMUNITY (SADC)

TUNISIA
MOROCCO

ALGERIA
LIBYA
WESTERN EGYPT
SAHARA
CAPE
VERDE
MAURITANIA
MALI NIGER
SENEGAL CHAD ERITREA
GAMBIA
BURKINA FASO DJIBOUTI
GUINEA GUINEA BENIN SUDAN
BISSAU SOMALIA
SIERRA TOGO
GHANA NIGERIA CENTRAL
LEONE ETHIOPIA
CÔTE AFRICAN REPUBLIC
LIBERIA D'IVOIRE CAMEROON
EQUATORIAL GUINEA
UGANDA KENYA
CONGO
SÃO TOMÉ GABON DEM. REP. RWANDA
& PRÍNCIPE OF CONGO
BURUNDI TANZANIA
SEYCHELLES

COMOROS
ANGOLA
ZAMBIA MALAWI
MADAGASCAR
NAMIBIA ZIMBABWE MAURITIUS
SADC Member States
BOTSWANA MOZAMBIQUE

SWAZILAND

SOUTH LESOTHO
AFRICA

Business Books International

the establishment of an African Economic Community (AEC) that would

be based on an African Common Market (ACM).3
The commitments in the Lagos Plan of Action and the Final Act of
Lagos were translated into concrete form in Abuja, Nigeria, in June
1991 when the Organization of African Unity (OAU) Heads of State
and Government signed the Treaty establishing the African Economic
Community (AEC). The AEC Treaty has been in operation since May
1994, and so far the AEC has established direct working relations with
the Economic Community of West African States (ECOWAS) in the
West African Region; the Economic Community of Central African
States (ECCAS) in the Central Region; the Common Market for East and
Southern Region in the East and Southern Africa (COMESA) in the East
and Southern Region; the Southern African Development Community

47
Africa: The Next Decade

(SADC) in the Southern Region.4 The Abuja Treaty has set modalities
for establishing the AEC; they consist of six stages of variable duration
over a transition period not exceeding thirty four years from the date of
entry into force of the Treaty.
The six stages are as follows: first, the strengthening of existing
Regional Economic Communities (RECs) and establishing new ones
in regions where they do not exist (5 years); second, at the level of
REC, establishing tariff and non-tariff barriers, strengthening of
sectoral integration particularly in the fields of trade, agriculture,
money, finance, transport, communications, industry, energy as well
as coordination and harmonization of the activities of RECs (8 years);
third, at the level of each REC, the establishment of Free Trade Area
and a Customs Union (10 years); fourth, coordination and
harmonization of tariff and non-tariff barriers among various RECs
with a view to establishing a Continental Customs Union (2 years);
fifth, establishment of an African Common Market (ACM) (4 years);
sixth, consolidation and strengthening of the structure of ACM,
including free movement of peoples and factors of production,
creation of a single domestic market and Pan African Economic and
Monetary Union, African Central Bank and African Currency as well
as establishment of a Pan African Parliament (5 years).5
African leaders offer several rationales for seeking regional
cooperation and integration.6
First is the firm belief that there is strength in numbers. In order to
effectively compete within an increasingly competitive international
economic system, dominated by economic superpowers such as the
United States and Japan as well as powerful regional economic entities
(e.g. European Union), African countries must band and pool their
respective resources.
Second, African countries desire to promote self-sustaining economic
development and particularly the industrialization of the African
continent. Cognizant of, and struggling with, the reality that many of
their countries are economically impoverished and lack the tools for the
creation of advanced industries, African leaders believe that they can
build upon the individual strengths of their neighbors to forge integrated
and self-sustaining economies.
Third, regional economic schemes are perceived as the best means
for creating self-reliant development, thereby reducing and eventually
ridding the African continent of the ties of dependency inherited from
the colonial era.7 For instance, African leaders are concerned that

48
 Leadership in Higher Education

HIGHER EDUCATION PARTNERSHIPS

ALO (USAID) (12 OF 80 SHOWN)

MOROCCO TUNISIA

Indiana State U.
ALGERIA
LIBYA
WESTERN EGYPT
SAHARA

Montana State U.
CAPE MAURITANIA MALI
VERDE NIGER
SENEGAL CHAD ERITREA
GAMBIA BURKINA
FASO Cornell U.
GUINEA GUINEA Ohio U. SUDAN
BISSAU BENIN
TOGO NIGERIA SOMALIA
SIERRA ETHIOPIA
LEONE GHANA CENTRAL
CÔTE
LIBERIA D'IVOIRE CAMEROON AFRICAN REPUBLIC Univ. of Illinois
EQUATORIAL GUINEA
CONGO
UGANDA KENYA Tufts University
SÃO TOMÉ GABON DEM. REP. RWANDA School of Medicine
& PRÍNCIPE OF CONGO
BURUNDI SEYCHELLES
TANZANIA
Ohio State U.
COMOROS
ANGOLA MALAWI
Indiana State U.
ZAMBIA
MADAGASCAR
NAMIBIA ZIMBABWE
Worcester Polytechnic MAURITIUS
BOTSWANA MOZAMBIQUE
Institute
SWAZILAND
LESOTHO
Boston Univ.
SOUTH
Spellman College AFRICA Oregon State U.

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Board, helps formulate ALO programs and plans. The agreement with
USAID supports association efforts to promote campus-led international
development programs in keeping with the goals and interests of U.S.
higher education, USAID, and institutions in cooperating countries.
With regard to Africa ALO has promoted a variety of partnerships,
and here we describe eight such partnerships through ALO.9
First, the partnership between The Ohio State University and
Sokoine University of Agriculture in Tanzania is developing a
practical agribusiness management program through links between
the educational partners and the private agribusiness sector.
Second, the Texas A&M University, Corpus Christi-Lamar
University/Insituto Technologico de Saltillo U.S.-Mexico Training,

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 HIV/AIDS in Africa

SHARP CONTRASTS IN THE INCIDENCE

OF HIV/AIDS ACROSS THE CONTINENT

TUNISIA
MOROCCO

ALGERIA
LIBYA
WESTERN EGYPT
SAHARA
CAPE
VERDE
MAURITANIA
MALI NIGER
SENEGAL <2% HIV/AIDS CHAD ERITREA
THE GAMBIA
BURKINA FASO DJIBOUTI
GUINEA GUINEA BENIN SUDAN
BISSAU SOMALIA
SIERRA TOGO
GHANA NIGERIA CENTRAL
LEONE ETHIOPIA
CÔTE AFRICAN REPUBLIC
LIBERIA D'IVOIRE CAMEROON
<5% HIV/AIDS
EQUATORIAL GUINEA UGANDA
CONGO KENYA
SÃO TOMÉ GABON DEM. REP. RWANDA
& PRÍNCIPE OF CONGO
BURUNDI TANZANIA
SEYCHELLES

COMOROS
ANGOLA
ZAMBIA
MALAWI
BOTSWANA MADAGASCAR
ZIMBABWE MAURITIUS
NAMIBIA

>37% HIV/AIDS MOZAMBIQUE

SWAZILAND
LESOTHO

>28% HIV/AIDS SOUTH

AFRICA
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The main point is the political openness and commitment regarding the
disease. Other countries in Africa, including South Africa have not been
open with the people and that denial has cost many lives.
A report presented at the 12th Conference on Retroviruses in February
2005 claims that the decline in Uganda’s HIV prevalence rate was due
to the deaths of infected individuals.9 In other words, according to this
report, condom use may have played a role in Uganda’s falling HIV
rate, but abstinence and faithfulness did not. If this report turns out to
be correct, that throws into doubt the long-held “ABC” approach favored
by many in the health community.
We believe that the three prong approach being used by Uganda is
the right approach even if one cannot show which part of the formula is
helping the most. After all, it is hard to argue against abstinence, and
one-partner relationships but failing that, condom use should be
encouraged strongly and be made available to the entire population. It

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