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2ND ROUNDTABLE ON EQUITY IN INTRA AFRICAN TRADE-INDUCED INDUSTRIALISATION AND INTEGRATION PUBLIC-PRIVATE-PEOPLE-PARTNERSHIP (4Ps) “LIVING LABS” IN FAST-TRACKING Continental Free Trade Areas (CFTA) BEFORE 2025.
(SEPTEMBER 18TH -22ND, 2017.)
1.0 Background

This is part of a series of past and future Roundtables on Equity in Intra-African Trade-Induced Industrialization and Integration, which is a joint initiative of Pan-African Strategic and Policy Research Group (PANAFSTRAG) and Thabo Mbeki African Leadership Institute (TMALI), South Africa. The Roundtable series on Equity in Intra- African Trade-Induced Industrialization and Integration was set within the context of the increasing marginalization of African countries in the global trade and economy. The Roundtable series evolved based on the increasing will by African Union (AU) member countries at Regional Level to implement AU and Existing Protocols on Cross Border Management and Free Movement of African Nationals. These protocols are indispensable for boosting Intra-African Trade in Tasks.


The first Roundtable on Trade, Industrialization and Integration in Africa with TMALI as the Host met on 26th and 27th August 2016, in Pretoria, South Africa with the financial support and participation of United Nations Economic Community for Africa (UNECA) and came up with policy briefs with recommendations.
A post-Roundtable Meeting between partners including UNDP in Pretoria on 15th November 2016 revalidated these policy recommendations. Amongst the policy recommendations were two key take-away:

1. Thabo Mbeki African Leadership Institution (TMALI) and Pan African Strategic and Policy Research Group (PANAFSTRAG) are to serve as facilitators in bringing together all relevant stakeholders in Africa currently working and ready to contribute to the regional and continental integration through Trade Induced industrialization for Integration.

2. The Responsibility of developing a Concept Note on bringing together these stakeholders in form of Public-Private Sector Partnership (3Ps) was solely that of
PANAFSTRAG.

In developing the concept paper, the need for another ‘P’ came up in line with the current trend of Public-Private-People Partnership (4Ps) which Delft University of Netherlands has transformed into the “Living Labs”
The Living Labs Research approach studies innovation in complex real world settings. A living Lab is a form of action research in which real world partners are involved. A Living Lab goes beyond a mere pilot. Relevant stakeholders-both public and private-collaborate in a user-driven innovation instrument. The experimental setting provides a neutral ground where companies and institutions are usually willing to set aside differences, overcome obstacles, and focus on creative collaborations resulting to innovative solutions. The Living Lab facilitates collaborative action. It signals commitment, momentum of change and the opportunity to act and innovate.
The Living Lab is being proposed as a facilitating platform for national/regional/continental stakeholders to work together as business (Services, manufacturing, trading, etc), public institutions; especially appointed public Servants in relevant public institutions, Professionals and Trade Unions, Universities/Think-Tanks, Consumer Protection CSOs and every stakeholder involved in Industrialization, Trade and Integration.

1.1 Defining Public-Private-People-Partnership (4Ps)
The Public in this situation consists of two elements namely;


1. Elected Officials and their appointed Appointees who approve Policies in line with their political manifesto.

2. Bureaucrats/Technocrats who assist in formulating the policy from the manifesto and after political approval; implement, monitor and provide feedback to the Political Authority.
The Private Sector covers from micro, small through medium-scale to manufacturers, industries, investors, corporate bodies, private sector funded philanthropic foundations looking beyond Corporate Social Responsibilities (CSR) to help fill the gap in the corporate sector for enhancing the benefits of free trade and integration in reducing inequality and poverty. It includes the social entrepreneurs and innovators who are on the increase in Africa and are making increasing economic and social impact within and across national borders in Africa.
The People Sector is made up of customers, users, Community-Based Organizations (CBOs) and Non-Governmental Organizations (NGOs), scholars from Universities and think tanks, and international organizations who are analysts of the challenges of the progress towards an African Economic Community by continuous peoples’ data mining and feedback through holistic review, case studies and innovative recommendations.

2.0. RATIONALE
The Living Lab has some key characteristics making it suitable for the platform to be established. First and fore most it is an innovation in real-life environment. Secondly, it is a suitable working model for 4Ps. Additionally, the importance of the “People” element in terms of citizens as consumers, users and customers with purchasing power are emphasized in their engagements with multiple stakeholders and pursuance of collaborative roles.
With respect to the Intra-African Trade, there is already an existing political will by the elected officials and their Appointees. It is the responsibility of the Bureaucrats/Technocrats irrespective of the party in power to implement and actualize Intra-African Trade.
In line with Mrs. Graca Machel’s powerful observation that there is lack of knowledge on the role, bureaucrats/technocrats stand to play in economic and social dynamics of African Countries-be they English, French or Portuguese speaking. She rightly notes that Africa has adopted colonial public sector governance mechanisms, rather than critically exploring what would be the best to serve their own people. This has led to two different systems (2Ps-Civil Service and Business) moving in parallel directions.
Mrs. Machel went on to say that ‘the bureaucrats/technocrats must also engage with the people (Public-People) with respect to issues, policies and strategies and not for social and basic services provision only’ (Machel). This is obviously the case at national level within the proposed Regional Free Trade Areas and more so at the Continental levels.
According to a research paper Afri-can or Afri-can’t. 10 Myths to debunk on Africa from Euler Hermes Economic Research written by G. Kibala Bauer, Stephane Colliac and Ludovic Subran Intra-African trade, driven by improved regional integration efforts, has increased from 10% of total trade in 2000 to 16% in 2014, a boon for Africa's diversification efforts as 60% of intra-African trade is in manufacturing” (George Kibala Bauer, 2016).
This brief summary of substantial progress on the ladder to CFTA is in line with United Nations Economic Commission for Africa (UNECA) Economic Report on
Africa 2015 on ‘Industrializing Though Trade’. The report highlights that despite uncertainty in the global economy and weakening commodity price, growth momentum is continuing. Growth is underpinned by increasing domestic demand [1] coupled with improving regional environment and macro-economic management, increasing public investment-especially in infrastructure, a buoyant services sector and increasing trade and investment ties with emerging economies. (UNECA,Economic Report on Africa 2015). Crucially, the report suggests that Africa should accelerate regional integration and adopt the Continental Free Trade Area (CFTA) to boost its internal trade of manufactured goods
Increasing focus on intra-African trade is also a sign of progress on the ladder to actualizing the Abuja Treaty (1991) hoping member states will prioritize based on the recent Kagame Report to the AU Summit on the Focus, Realignment, Management and Finance of the African Union. One of the key recommendations of the Report was for NEPAD to be ‘fully integrated into the Commission, possibly as the “Development Agency” of the African Union but it is also indispensable that the structure must be “aligned with the agreed priority areas and underpinned by an enhanced results-monitoring framework.’
Furthermore, the UNECA series “Assessing Regional Integration in Africa” (ARIA) have called for the rationalization of Regional Economic Communities (ARIA II, 2006) and strengthening of regional integration. It has highlighted that a common market combining Africa’s mostly small and fragmented economies would lead to economies of scale, making African countries more competitive and provide opportunities for ties in other areas, such as innovation. Rationalization of regional institutions could be extended to Regional Mechanisms.

Experiences gained so far suggests there are still the following challenges
1. The need for the number of Regional Mechanisms to be rationalized and then structured within the RECs as per ARIA 2.
2. The need to harmonize National procedures and processes at the levels of the RECs in order to foster a working Customs Union.
3. The need to operationalize and enhance Regional Free Trade Areas especially in the Economic Community of West African States, East African Communities(EAC), Southern African Development Communities (SADC) and Community of Eastern and Southern Africa (COMESA) and the TFTA.
4. The need to put in place an actionable platform like the proposed Living Labs in order to engage all stakeholders to overcome the above challenges in the implementation of the Regional FTAs and the Continental Free Trade Area (CFTA).
5. The transformation of the Regional Monetary Zones e.eg in West and Central Africa and Rand Dominated Southern Africa as the building blocks for African common currency(Sub-Saharan) leading to the African Monetary Union by 2020.
6. The evolution of the implementation of “Smart Protectionism Policy” for promoting relatively matured sectors and simultaneously protect and support fragile sectors of the national and regional economies.

7. The need to imbibe the change from the trade in products only to trade in tasks and activities in addition to promoting the increasing role of services within the Region, and the Continent.
The new trend of deglobalisation and protectionism led by USA, create the compulsion to transform the above challenges into opportunities for fast tracking the African industrialization through Intra-African trade, using creative and innovative ways, policies and praxis. According to Euromonitor International, 2017 is a year of uncertainty hence, most emerging economies including Africa should brace up for the unexpected. Global prices, consumption patterns, sales amongst other things will change giving rise to seeking alternative/new ways.
The recommendation of the Kagame Report calls for a structure for meeting those challenges above through the full integration of a transformed NEPAD as Agency into the AU Commission while eliminating the duplication of policies, activities and mobilization of resources with many Divisions and Technical Commissions of the AU.

3.0 Objective of the Round-table Conference
The objective of the 2nd Roundtable is to introduce the Living Labs for Stakeholders (4Ps) for structured Intra/Inter Stakeholders’ Consultations on the challenges above and the themes below. They will act as an informal platform for feeding into the formal process and advocacy in order to Boost Intra-African Trade-Induced Industrialization in the context of the CFTA.
4.0 Themes/Contents of the Roundtable.
1. The Roundtable becomes a Living Lab, which will BE THE PLATFORM FOR the bureaucratic/business/people interface as defined above, in order to be able TO CREATE an informal FEEDBACK AND ADVOCACY mechanism for Boosting Intra African Trade. The discussions will focus on:
a) How many firm steps we have taken and how many more steps do we need to take within the CFTA framework to fast-track intra-African, Trade Induced Industrialization.
b) The Structural changes needed to move workers from lower productivity to higher productivity sector as in Asia and Latin America where there is an increased economic growth.
c) Enhancing competitiveness in Africa, which lacks global competitive industries and services. It must also focus on taking up trade in tasks and services as part of the Regional/Continental/ global trade-based tasks that can lead to a break-through in all the markets.
d) Convincing development-partners to support Trade-induced Industrialization as a base for regional/continental integration. Some are doing so already with the free movement of people programme of the AU (2008-2018) by the German government.
e) Redefining the roles and responsibilities of each of the stakeholders in addition to their joint responsibilities at the interface mentioned above in terms of their capacity to perform (tools, resources, methodology and outcomes).
i for Smart Protectionism at national/regional/continental levels.
ii, Defining and proposing tasks to enhance trade in tasks including services at regional and continental level.

2. The need to strengthen the existing mechanism for the reviewing, monitoring, evaluation and feedback through establishment of Sub-Living Labs of stakeholders for the validation of policy and process. This includes in terms of physical and transport infrastructure and maintenance, of appropriate Technology and ICT Systems and others. Focus will be on:
i. Constant reviewing, improving and harmonizing of national Processes and Procedures for cross-border and intra-regional cooperation within the Regional and Continental Border Management/Free Movement Instruments.
ii. The fast tracking of policy establishing regional, legal and legislative framework of a harmonized Single Window Systems in all member Countries.
3. The “pros and cons” of the transformation of the New Partnership for Africa’s Development (NEPAD) into a fully integrated Development Agency of the African Union Development, in line with Rwanda’s President Paul Kagame’s recommendations to the AU Summit of January, 2017 in Addis Ababa.


5.0 Expected Outcome.
The Introduction and acceptance of Living Labs as an informal Continental, Regional and National Stakeholders Consultations platform for continuous and regular interface of all stakeholders needed to enhance the implementation of decisions taken at the formal level with respect to intra-African industrialization and CFTA. These Living Labs become the enablers for boosting intra-African trade driven by the peoples of Africa at all levels.
The meeting in Nairobi will develop the ‘Terms of References’ for the Living Labs for stakeholder consultations at National/Regional/Continental levels with the Partners(Regional Offices) and Participants as participants. The terms of reference will be built within the framework of Commodity-Based industrialization and development of Value-Added, utilizing the abundant Human Capital in the Continent.
Further, the Living Labs will build on the past reports, recommendations and efforts in order to come up with outline plans for the full integration of NEPAD as an Agency of the African Union Commission with focus on Development, Industrialization and Trade.

5.1 Post Living-Labs Follow-Up.
In line with the 3-day programme, the final session of the 3rd day will be dedicated to the discussion and drawing up the TORs for the Living Labs at Regional and National levels including COMESA. They will take the lead with the Regional and in some cases National Offices of ECA, AfDB, NEPAD National Agencies.

In addition to the participants who are from all the geographical areas of the RECs at the Living Labs in Nairobi, they will identify additional Stake holders with LLISA in South Africa for Southern and Eastern African including COMESA, The Co-Creation HUB in Lagos for Anglophone West Africa and the African Diaspora University with IDEP in Dakar will cover the Francophone CFA areas of West and Central Africa.

The living Labs can operate virtually but has to meet once a year before the annual Roundtable on Continental Market Integration for CFTA.
An attempt will be made to get a serving or ex-President or Prime Minister to be the Champion of the Living Labs at Regional and Continental Summits.

6.0 Partners.
Pan-African Strategic and Policy Research Group (PANAFSTRAG) is organizing the conference in collaboration with the Thabo Mbeki African Leadership Institute (TMALI)- South Africa, the African Association for Public Administration and Management (AAPAM) and the Pan-African Chamber of Commerce and Industry (PACCI).

7.0 Participation Details
Resource Persons are from European Networks of Living Labs (ENOLL).Living Labs of Southern Africa (LLISA) African Union (AU); African Development Bank (AFDB); UN Economic Commission for Africa (ECA); Regional Economic Commissions (RECs) IDEP, NEPAD, AFREXIM BANK, AFRICAN TRADE INSURANCE AGENCY, IST-AFRICA-Living Labs. Consumer International.
The Selected Collaborators include Trade Law Centre (TRALAC)-Stellenbosch, South Africa; Borderless Alliance-West Africa in Accra, Ghana; TRADEMARK- Nairobi, Kenya; African Institute for Economic Development and Planning (IDEP)- Dakar, Senegal; African Economic Research Consortium-Nairobi, Kenya; South African Institute of International Affairs (SAIIA)-Economic Diplomacy Programme (Trade); Consumer Council of Zimbabwe, Consumer, Information Network of Kenya, National Federations of Consumer Associations of Cote D’Ivoire, Co-creation Hub, Nigeria other Nominees by Partners and sponsors.
7.1 Venue
Nairobi with African Association for Public Administration and Management (AAPAM) as the host.

7.2 Dates
Mid-September 2017 (3 full days)

7.3 Sponsors
African Development Bank (AfDB), African Union (AU) and UN Economic Commission for Africa (ECA).
References
Bauer, G. K., Colliac, S. and Subran, L (2016). “Afri-can or Afri-can’t? 10 Myths to debunk on Africa” in Euler Hermes Economic Research Economic Insight.
Euromonitor International (2017)
Griffioen-Young, H. (November 2011). The Living Labs Cassandra.
Machel, G. (2016) Radical Changes to Spur Development and Transformation.
Paul Kagame (January 2017) Address by President Kagame at the Retreat of AU Heads of State and Govt. The News Times
United Nations Economic Commission for Africa (2015). Industrializing through Trade Economic Report on Africa 2015.
 
[1] purchasing power of the people which is very relevant to production and trade

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