Revista de Economía y Negocios

The Impact of Multi-membership on Intra-trade Performance in African Economic Communities

Abstract

Tolessa Shanko Kerore*

African Regional Trade Agreements (RTAs) are anticipated to boost the member country's economic growth and development. Africa currently has eight regional economic communities. Due to regional economic integration, notably trade agreements between African regions, the majority of African countries are members of multiple regional economic communities, creating a multi-membership (spaghetti bowl). The objective of the study is to assess the effect of multi-membership in African economic communities on intra-trade performance among COMESA, IGAD and EAC using a pooled Ordinary Least Squares (OLS) regression model. The research revealed that having numerous memberships hinders rather than fosters intra-regional trade and regional integration. Similar to earlier research, multiple memberships burden African governments with significant time, energy, and resource costs and make them manage conflicting policies. The study recommend that implementation of the Continental Free Trade Area (CFTA) which aims to establish a single continental market for goods and services, free movement of businesspeople and investments, expand intra-African trade, and increase the appeal of the continent as a global trade region. This is expected to eliminate the multi-membership to various regional economic communities of Africa.