EN    EN EN 
 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 1.10.2008 
SEC(2008) 2538 
  
COMMISSION STAFF WORKING DOCUMENT 
 
accompanying the 
COMMUNICATION ON REGIONAL INTE GRATION FOR DE VELOPMENT IN 
ACP COUNTRIES  
 
The Regional Strategy Papers an d Indicative Programmes of the 
10th European Development Fund  
 
  
{COM(2008) 604} 
{SEC(2008) 2539}  
 
EN 2   EN TABLE OF CONTENTS 
1. Overview.................................................................................................................... .. 4 
2. West Africa ................................................................................................................. .6  
2.1. Situation in the region .................................................................................................. 6  
2.2. Issues and challenges for the regional integration process .......................................... 6 
2.3. State of play and way forward for the regional integration process ............................ 7 
2.4. Proposal for a regional strategy be tween the EC and West Africa.............................. 9 
2.5. EC response strategy.................................................................................................. 10 2.6. Main elements of the re gional indicative programme ............................................... 10 
3. Eastern and Southern Africa ...................................................................................... 13 
3.1. Situation in the region ................................................................................................ 13 3.2. Issues and challenges for the regional integration process ........................................ 14 
3.3. State of play and way forward for the regional integration process .......................... 14 
3.4. Proposal for a regional strategy between th e EC and Eastern and Southern Africa and 
the Indian Ocean ........................................................................................................ 16 
3.5. EC response strategy.................................................................................................. 16 3.6. Main elements of the re gional indicative programme ............................................... 17 
4. Southern African Development Community (SADC) ............................................... 19 4.1. Situation in the region ................................................................................................ 19 4.2. Issues and challenges for the regional integration process ........................................ 20 
4.3. State of play and way forward for the regional integration process .......................... 20 
4.4. Proposal for a regional strategy between the EC and SADC..................................... 21 4.5. EC response strategy.................................................................................................. 21 4.6. Main elements of the re gional indicative programme ............................................... 22 
5. Central Africa............................................................................................................. 2 4 
5.1. Situation in the region ................................................................................................ 24 5.2. Issues and challenges for the regional integration process ........................................ 24 
5.3. State of play and way forward for the regional integration process .......................... 25 
5.4. Proposal for a regional strategy be tween the EC and Central Africa ........................ 27 
5.5. EC response strategy.................................................................................................. 27 
 
EN 3   EN 5.6. Main elements of the re gional indicative programme ............................................... 27 
6. Caribbean ................................................................................................................... 29 
6.1. Situation in the region ................................................................................................ 29 6.2. Issues and challenges for the regional integration process ........................................ 29 
6.3. State of play and way forward for the regional integration process .......................... 30 
6.4. Proposal for a regional strategy between the EC and the Caribbean ......................... 31 6.5. EC response strategy.................................................................................................. 32 6.6. Main elements of the re gional indicative programme ............................................... 32 
7. Pacific..................................................................................................................... .... 34 
7.1. Situation in the region ................................................................................................ 34 
7.2. Issues and challenges for the regional integration process ........................................ 35 
7.3. State of play and way forward for the regional integration process .......................... 36 
7.4. Proposal for a regional strategy between the EC and the Pacific .............................. 38 7.5. EC response strategy.................................................................................................. 38 7.6. Main elements of the re gional indicative programme ............................................... 39  
 
EN 4   EN  
1. O VERVIEW  
The 10th EDF regional strategies and programmes  are the primary instrume nt of EC support to 
ACP regional integration. These documents, wh ich are the result of  a political dialogue 
between the EC and ACP regions, include:  
– A joint analysis of the state of play of regional integration;  
– A joint assessment of the challe nges confronting each ACP region;  
– A joint response strategy including, in the RIP, priorities for the allocation of EC financial 
resources.  
The framework for the Regional Strategies  is based on the ACP-EC Partnership 
Agreement, in particular the part relating to regional coope ration and regional integration, 
including the economic cooperati on pillar which envisages the conclusion of the Economic 
Partnership Agreements (EPAs). 
The European Consensus on Development of 20 December 2005 underlined the 
multidimensional character of poverty eradicat ion and indicated the following sectors of 
Community intervention according to their contribution to pove rty alleviation: the link 
between trade and development; the support fo r regional integration and cooperation; the 
importance of economic infrastructure; food se curity and rural deve lopment; governance and 
support for economic and institutional reforms; conflict prevention.  
In the case of Africa, the Joint EU-Africa Strategy adopted in December 2007 underpinned 
the EU-Africa Partnership on the basis of the pr inciples of solidarity and partnership between 
equals, which shall be realised through a strengthened political dialogue. In  this regard, the 
EU-Africa Partnership on trade, regional integration and infrastru cture presents three types of 
priority efforts in which regional organizations play a crucial role: supp ort for the strategy of 
African integration; increasing African capacit y in the fields of regulation, standards and 
quality control; and implementing the EU-A frica Partnership on infrastructure.  
Other important strategic documents that have informed the new regiona l strategies under the 
10th EDF are the Global Climate Change Alli ance initiative and the EU Aid for Trade 
strategy. 
The 10th EDF shows a strongly increased emphasis on regional integration . While the 
overall EDF substantially increased from the 9th to the 10th EDF, the regional envelope almost 
doubled to €1.78 billion, reflec ting EU-ACP consensus on th e importance of regional 
integration for development.  
The new RSPs/RIPs will res pond to the challenges  jointly identified by the EC and each 
region, and respond broadly to five main prio rities: strengthening re gional institutions; 
building regional integrated markets; s upporting business development; connecting 
infrastructure networks; developing regional policies for sustainable development. More 
precisely, they will:  
– Provide, in all regions, support for regional mechanisms to foster peace and stability , 
prevent and manage conflicts, and fight securi ty threats (such as organised crime), thus 
furthering a broadly-defined regi onal human security agenda. In West, Southern and East 
 
EN 5   EN Africa, EDF support will help st rengthen the regional pillar of  the pan-African architecture 
of peace and security. 
– Pay particular attention to regional economic integration , with almost 75% of the 
indicative appropriation (i.e . €1.3 billion) likely to be  devoted to this area. 
– Within the regional economic integration agenda, focus on specific regional priorities , 
with an emphasis on the completion of more integrated markets; the development of 
productive capacities; and the improvement of  infrastructure networks and enhanced 
regional cooperation for the promotion of sust ainable energy policies. There will be a 
particular focus on EPA support measures: almo st half of the Caribbean RIP would be 
allocated to their EPA commitments. 
– Reflect the diversity of ACP regions  in terms of their priorities for sustainable 
development. This applies, in particular, to the sec ond focal sector in th e Pacific (fisheries) 
and in Central Africa (forestry). Support for f ood security and agriculture is foreseen in 
West Africa, and for land, water and marine  resources management in East Africa. 
– Support good regional governance , with an emphasis on capacity-building for non-state 
actors.  
The following sections give a more detailed ov erview of each RSP/RIP. However, Regional 
Strategy Papers are being finalised. The informa tion provided here is without prejudice to the 
formal adoption of the programmes by the Commission. 
 
EN 6   EN 2. W EST AFRICA  
The formulation of the strategy and the regional programming covers the region of West 
Africa, comprising the 15 Member States of the Economic Community Of Western African 
States (ECOWAS) and Mauritania. Poverty le vels in West Africa remain alarming. The 
attainment of the Millennium Development Goal s (MDGs) remains, in light of current trends, 
difficult to reach. The region comprises 13 LDCs  (Least Developed Countries). Similarly, the 
16 countries of the region are characterised by severe economic vulnerability, a low GDP per 
capita and basic social indicators lower than the average for sub-Saharan Africa. ECOWAS 
and the West African Economic and Moneta ry Union (WAEMU) are the two Regional 
Organisations (ROs) mandated for the 10th ED F regional programming , which also includes 
Mauritania, although not a member stat e of either ECOW AS or WAEMU. 
2.1. Situation in the region  
Among the major difficulties that the region face s, nothing has led to more destabilisation and 
impoverishment in all respects than armed conflict . Indeed, nine of the fifteen ECOWAS 
member states were identified in  2006 as being in a situation of  "fragility" owing to conflict. 
New challenges are also emerging in the region related to organised cr ime (drug trafficking, 
human trafficking, money launderi ng, terrorist networks).  
It is urgent to consolidate democracy  and achieve a high level of social and political 
cohesion in order to prevent conflicts. During the last fifteen years, the majority of the 
countries of the region have attempted to take  up this challenge and embarked, at different 
levels, on a process of democra tisation. The practice of democr atic pluralism has gradually 
settled in the region with the holding of free elections, constitutional reforms to limit the term of the presidential office and consolidate th e division of powers, freedom of opinion and 
greater respect of human rights. In addition, th e resolution of the conflicts in Liberia and 
Sierra Leone and the ongoing crisis resolution in  Côte d'Ivoire mark a new chapter in peace 
and political stability at the regional level. Important progress remains to be achieved however.  
Boosted by the rise in the price of raw materials, the absence of "active conflicts", increased 
macroeconomic stability and a considerable increase in official development aid, robust economic growth  in West Africa has been maintained in  recent years. However, West Africa 
remains a fragmented and slightly integrated region, with the EU remaining its main trading 
partner.  
2.2. Issues and challenges for the regional integration process  
The region faces major challenges which are both political and economic. In political  terms, 
West Africa is a region with certain countries s till undergoing a fragile democratic transition, 
others in the process of crisis resolution or in a post-conflict situation, where open or 
embryonic conflicts severely impede developmen t and cross-border criminality develops.  
In economic  terms, the fragmentation of the economic  area, the lack of infrastructure for 
development and a weak industrial base associ ated with low competitiveness levels, are 
factors that hinder regional integration, economic growth an d poverty reduction. In the longer 
term, the structural rise in prices of ener gy and agricultural products, as well as climate 
change, will constitute a political, as well an economic, challenge.  
 
EN 7   EN There is however a strong political will in the re gion to persevere with the process of regional 
integration. The main objective is to pr omote peace, stability, democracy and good 
governance in the region and to  create a broad, open and competitive economic area.  
This in itself, coupled  with the challe nge of opening to the outs ide world, represents a 
challenge. It is in this contex t that the region perceives the o pportunities and chal lenges of an 
Economic Partnership Agreement  (EPA) with the EU. The EPA has to serve as a catalyst 
for development, underpinned by enhanced tr ade relations and development cooperation 
which contributes to the consolidation of re gional integration and growth for sustainable 
development of the countries of the region.  
2.3. State of play and way forward fo r the regional integration process  
ECOWAS and the WAEMU share the same obj ective of regional integration and have 
decided to implement jointly a "strategy of a cceleration of the integration process in West 
Africa". This strategy envisage s a co-operation mechanism a nd convergence between the two 
regional organisations. It is articulated in the West Africa Regional  Growth and Poverty 
Reduction strategy paper  drawn up by the two regional organi sations. The four priorities of 
the common Regional Strategy are:  
– Conflict management and the promotion of  democracy and good governance to strengthen 
social cohesion and the eff ectiveness of policies;  
– Deepen integration of the economic area to re duce trade costs and increase competitiveness 
in order to accelerate diversif ication and enhance growth;  
– Development/interconnectivity of infrastructu re and harmonisation and coordination of 
sectoral policies in support of the integration of the economic area and the enhancement of 
its competitiveness;  
– Strengthening of human capital and facili tation of mobility through a common space in 
order to support growth a nd make it distributive.  
The common objectives of the document were tran slated into separate priority action plans, 
but which are complementary and convergent between ECOWAS ("Vision 2020: Towards the 
people's ECOWAS") and WAEMU ("Pr ogramme Economique Régional"). 
Important progress has been made in the implemen tation of the priority pillars of the regional 
strategy and the new phase of EC-West Africa c ooperation should allow the consolidation of 
the acquis and the deepening of the integration process.  
"Conflict Prevention, Promotion of Democracy and Governance" 
The relationship between conflict prevention,  conflict management, peace and security 
features explicitly in the agenda of ECOWAS, which has become particularly proactive and has gained considerable experience in "Preven tive Diplomacy and Media tion". This proactive 
approach, which is conducted in co-operation with the United Nations, the European Union 
and the African Union, came to the fore in the ma nagement of the confli cts in Côte d'Ivoire, 
Togo, Sierra Leone and recently in Guinea, although the reaction time and decision-making 
could be improved. Two protocol s (incorporated in the revised Treaty) on Non-aggression 
and Mutual Assistance in defence matters, const itute the historical basi s of regional policies 
with regard to security, peace, confli ct prevention and conflict management.  
In the field of security , ECOWAS has adopted the Conve ntion on Small Arms and Light 
Weapons. This has resulted in the setting-up of  a "light weapons" unit and an operational unit 
 
EN 8   EN ECOSAP in Bamako. The Heads of State of the region have approved the establishment of 
the ECOWAS Standby Force (ESF) which forms part of the African Standby Force (ASF) 
under the umbrella of the African Union.  
In the field of governance , ECOWAS strengthened its expert ise in electoral assistance and 
monitoring and has created a speci al unit for this purpose. The or ganisation seeks, in the long 
term, to engage its member states in a proces s of harmonising their cons titutions and electoral 
legislation. ECOWAS now has a Common Approach on Migration  which was adopted by the 
Heads of State C onference in 2008.  
In the fight against organised crime , ECOWAS has advanced seve ral initiatives including a 
regional fund and an operational unit. In the fight against m oney laundering and the financing 
of terrorism, the GIABA (Groupe  Inter-Gouvernemental d'Action Contre le Blanchiment de 
l'Argent en Afrique) is now operational. Fina lly, ECOWAS is preparing a common approach 
on human trafficking, in particular  the trafficking of children.  
"Deepening Integration of  the Economic Area"  
One of the major achievements was the establishment of a WAEMU customs union , which 
came into force on 1 January 2000. The harmonisati on of the trade liberalisation schedules of 
ECOWAS and WAEMU, based on the WAEMU TEC, decided at the ECOWAS Heads of 
State Conference in January 2003,  also constitutes an importa nt step forward and should 
allow for the creation of a regional  customs union in the short term.  
The realisation of the ECOWAS customs union , initially scheduled for 1 January 2008, was 
deferred. In order to move to a customs union for the whole of West Africa, a balance will 
have to be found between countries  that want to liberalise certain  products to keep consumer 
prices down and those that want to pr otect them to protect local production.  
The establishment of a common market  is less advanced. There are difficulties at four levels: 
the need to strengthen internal liberalisation;  the significant gap between the adoption of 
agreements and protocols at the regional leve l and the reluctance of Member States to 
implement them effectively at  the national level; the conti nuing existence of tariff and non-
tariff barriers in the majority of states; and the lack of regional interconnectivity in transport 
and telecommunications.  
The dismantling of internal tariffs and the redu ction of non-tariff barri ers constitute the two 
major elements for free movement of goods  within the region. As  a result of the 
harmonisation of the trade lib eralisation schedules of EC OWAS and WAEMU in 2003, tariff 
preferences are based on rules of origin co mmon to both institutions. The Convention of 
Interstate Road Transit (TRIE – Transit Ro utier Inter-États) o ffers a common regional 
legislative framework for coope ration in road transport.  
In the field of investment and the free movement of services , the region has made important 
progress in financial integra tion, particularly in the WA EMU area which has set up an 
integrated financial market. Regional organisa tions have deployed reso urces and are making 
efforts to develop micro-finance to facilita te saving and access to credit for the poor. The 
insufficient level of mutual recognition of unive rsity degrees presents a genuine obstacle to 
access to the service market, as West African c ountries increasingly enjoy a critical mass of 
experts able to export their services both within and without the region.  
Important progress has been ach ieved in the area of the free movement of persons . However 
protection of the rights of residency and establishment remain weak, requiring the 
harmonisation of national legislation relating to the labour market and property rights.  
 
EN 9   EN The standardisation and quality control  activities are very often limited to microscopic 
examination and often focus only phytosanitary aspects. Only some countries have capacities 
in the fields of standardisation and accreditatio n. At the regional level,  the extension of the 
"WAEMU Quality Programme", when fully ope rational, should allow the adoption of a 
framework for establishing a regional system of accreditation/certific ation, standardisation 
and quality promotion.. With regard to trade-related rules  (competition, intellectual property 
and public procurement), the work is at the pr eliminary stage of harm onising and developing 
a regional legislative framework.  
"Sectoral Policies and Development and Inte rconnectivity of Infrastructure"  
ECOWAS formulated an agricultural policy  (ECOWAP), adopted in January 2005, aiming 
to ensure the region's food security and san itary quality as well as enhancing regional 
production. ECOWAS and CILSS (Comité perm anent Inter Etats de Lutte Contre la 
Sécheresse dans le Sahel) signed, in December 2006, a memorandum of understanding of 
which the objective is to make CILSS the technical implementati on agency of ECOWAS 
programmes. WAEMU, for its part, adopted th e Agricultural Policy of the Union (PAU, 
2001) which aims to contribute in a sustainable way to meet the alimentary needs of the 
population, the economic development of th e Member States and poverty reduction.  
Regarding the development of interconnectivity , road transport remains the overriding 
priority. ECOWAS adopted a "Priority Road Transport Programme" (PTRP – Programme de 
Transport Routier Prioritaire), the objective of which is to facilitate trade and to accelerate 
regional economic integration. More recently, and in accordance with the NEPAD action plan, ECOWAS and WAEMU have implemente d a Regional Facilitation Programme of 
Transport and Inter-state Road Transit. In the field of telecommunications, the regional 
organisations launched actions with the aim of harmonising legisl ative and regulatory 
frameworks. Moreover, ECOWAS launched it s second programme, Intelcom II, for the 
rehabilitation and modernisation of connect ions between the Member States. WAEMU has 
formulated a Regional Economic Programme (REP) in which infrastructure represents 70% of 
actions foreseen in the first five-year period. 
In the field of energy , ECOWAS aims to strengthen cooperation and the harmonisation of 
energy policies of the Member  State through the implementation of a programme for the 
development, generation and distribution of elect ricity on a regional leve l (WAPP) and a from 
West Africa Gazoduc project connecting Nige ria to Togo, Benin and Ghana. Meanwhile, 
WAEMU has formulated a Community energy programme, the main components of which 
are the promotion of renewable energy, the interconnec tivity of electrical supply networks and 
the adoption of an integrated energy planning system.  
The upgrading and improvement of companies'  competitiveness constitute the two major 
components of the private sector policy .  
2.4. Proposal for a regional strategy between the EC and West Africa  
The overall objective is to contribute to the de epening of the process of regional economic 
integration of West Africa and its gradual in clusion in the global economy, enhancing their 
growth and improving their competitiveness.  Community aid is based on the aim of 
convergence of both integration processes (ECOWAS and WAEMU), while respecting the 
pragmatic and flexible approach of the region that allows different speeds of integration. 
 
EN 10   EN 2.5. EC response strategy 
The strategy is based on the three pillars of the partnership between the EU and the region: 
political dialogue as reflected by the ministerial troïkas; coop eration relating to development 
through support for the integra tion agenda and to commercial  matters as reflected by the 
EPAs. The objective is to suppor t the deepening of the region's integration agenda, and to 
facilitate the application of co mmunity commitments. An important  role will have to be given 
to the regional aspects of the EPA programme s for development in the regional development 
strategy. 
Regional integration and EPA 
The region is to be assisted in the consolid ation and convergence of the customs unions of 
WAEMU and ECOWAS, as well as in the streng thening of the common market through, i.a. 
macroeconomic stability, growth, implementati on of free movement of goods, services and 
persons, and facilitation of  inter-state payments.  
Certain sectoral policies that are a priority fo r the consolidation of the common market could 
be strengthened: energy, agri culture and food security, e nvironment and transport.  
The region is also to be supported in implem enting the EPA effectively to benefit from the 
opportunities it offers and to reduce the possi ble costs resulting from its implementation. 
Account should be taken of the acquis of the ne gotiations of the EPA with the region of West 
Africa regarding the development dimension of the Agreement and areas already agreed with 
the region and with the two signatory countries of the interim agreement, Côte d'Ivoire and 
Ghana. Implementation modalities of the accompanying measures approved by both signatory countries of the interim agreement for the pe riod before the signature of a regional EPA 
should be envisaged. Moreover, support could be envisaged to maximise benefits at the 
regional level of the implementation of the Action Plan drawn up under the Special 
Partnership between Cape Verde and the EU.  
Peace, security and good governance  
The overall objective is to contribute to a significant improvement of governance and of 
regional stability through: support for ECOW AS capacity in the areas of safeguarding 
regional stability and conflict prevention, coupled with an in -depth political dialogue; a 
regional policy on migration; the fight agains t proliferation of small arms and other 
munitions; electoral assistance and observati on; and promotion of good governance and fight 
against terrorism.  
2.6. Main elements of the regional indicative programme 
The RIP total indicative allocation for West Africa amounts to €598 million. This envelope 
will be distributed as follows: 
Focal area 1: Deepenin g of regional integration, enhancem ent of competitiveness and EPA 
(€419 million)  
This focal area is divided into the following components:  
– support to the implementation of reforms and ad justments related to the establishment of 
the customs union and the common market (incl uding the free circulatio n of people and of 
capital) and the consolidation of macroeconomic  stability. Actions related to the customs 
union include the implementation of the common tariff, trade facilitation and the modernisation of the customs administrations. 
 
EN 11   EN – support the implementation of the EPA by  maximising the expected benefits 
(implementation of rules on SPS, TBT, intellectual property, competition, public 
procurement, investment, services) and minimi sing the cost of adjust ment (contribution to 
the absorption of the net fiscal impact, in complementary with fiscal reform); 
– strengthening the competitiven ess of the productive sector (based on the regional study 
prepared with the support of UNIDO; 
– support to food security at regional level; 
– strengthening of the institutional cap acities of regional organisations;  
– support the policy for regional in terconnectivity (inclu ding co-financing with NIPs for key 
transnational infrastructure).  
Focal area 2: Strengthening of good go vernance and regional stability (€120 million) 
This focal area is divided into the following components:  
– support to the establishment of the ECOWAS Standby Force (ESF) and in particular its 
civil aspects;  
– support to the formulation and implementati on of a regional polic y with regard to 
migration in connection with the policies of freedom of movement and of combating 
human trafficking;  
– support to the implementation of the regional programme of tackling the proliferation of 
small arms and other munitions; 
– support to the ECOWAS in electoral assistance  policies and in prep aration of electoral 
observation missions; 
– support to actions and initiativ es of ECOWAS and African Un ion in the promotion of good 
governance, the fight against terrorism, actions in th e field of SSR/DDR, money 
laundering and trafficking of drugs and humans. 
This implementation of this focal area will be  coupled with an in-depth political dialogue 
aiming at the promotion of democratic values, respect for human rights,  the rule of law and 
good governance. 
Non-focal area (€59 million) 
Regional policies in the area of human development (enhancement of research and of regional 
institutions in the areas of health, education and culture) , environment and sustainable 
management of natural resources (e.g. energy) will be supported, as we ll as non-state actors 
and the monitoring and management of the RI P and of the technical  cooperation facility. 
Implementation methods  
The implementation of the programme will be based on the procedures of the recipient 
(contribution agreements), on the one hand, and the importance of financing mechanisms specific to the region, such as a regional fund fo r EPA established in accordance with the aid-
effectiveness principles  of the Paris Declaration, on the other. This fund shall channel 
financing for the implementation of this stra tegy, in particular th e "EPA programmes for 
development".  
 
EN 12   EN Co-financing with the European Regional Deve lopment Fund (ERDF) will be considered to 
enhance the co-operation between the region and the EU's relevant outermost regions 
(Madeira, Açores and Canarias).  
 
EN 13   EN 3. E ASTERN AND SOUTHERN AFRICA AND THE INDIAN OCEAN  
The Member States which form part of the ESA -IO region are heterogeneous in terms of size, 
economic structure, as well as resources endowment. Th ey however share a common 
objective to address poverty reduction through regional economic inte gration and trade.  
The Regional Organisations (R Os) which are concerned with the ESA-IO RSP are COMESA, 
EAC, IGAD and IOC. The four ROs have deci ded to pursue the collaboration they started 
under the 9th EDF, to jointly prepare and im plement the 10th EDF RSP/RIP for the ESA-IO 
region.  
Substantial progress has been made in ESA -IO countries towards MDGs with targets 
achieved on goals covering education, ch ild health, safe water provision and 
telecommunications. 
However, despite these advances, it is highly  unlikely that the rate  of progress may be 
sufficient to reach the targets by the due date  (i.e. 2015). Moreover, in planning terms, 
reported progress made on many of these targets needs to be re-examined in light of the 
expected 34% increase (about 115 million) in  the population in ESA/IO countries by 2015. 
This will affect the extent to which economic  growth can be translated into improved 
standards of living, and provision for improvement  in basic facilities such as food, housing, 
schools, jobs, water and sanitation, energy prod uction and access, waste management and the 
protection of the natural environment. 
3.1. Situation in the region  
The ESA region has particularly complex region al, political, social and economic dimensions. 
These include the confluence of various cultures  and religions; autonomy or territorial claims 
(many of them related to ethnic and religious identity); disputed borders, population growth, 
climate change and related pressures on natural resources; proliferati on of small arms and 
light weapons (SALW) and arms trafficking across the region. As a result, during the post-
independence period the region ha s suffered from numerous intra- regional conflict s. The four 
Regional Organisations (ROs) of COMESA, EAC, IGAD a nd IOC have been actively 
involved in developing and implementing conf lict prevention and arbitration systems. 
On the political side, and as a general rule, most one-party governments have been replaced 
with democratic systems a nd multi-party democracies. Election processes have been 
strengthened, though efforts are still n eeded on credibility and legitimacy.  
Poverty reduction is seen as the major economic  challenge for the regi on and is the overall 
focus of the region’s economic policies. For povert y reduction to take pla ce there is a need to 
have sustainable economic growth in a peaceful environment coupled with equitable distribution of wealth. Minimum but not sufficient, conditions for economic growth include 
diversifying the expor t base; reducing costs of doing bus iness (partly through improving the 
efficiency of the transport, communications  and energy sectors); and creating an enabling 
environment for the private sect or to invest and operate.  
 
EN 14   EN 3.2. Issues and challenges for the regional integration process  
The economic integration agenda is being de veloped in parallel th rough COMESA and EAC, 
with the ultimate goal in both ROs to achieve a full customs union, a common market and a monetary union. In this context, the role of IGAD and IOC is to promote their sub-regional 
specificities, such as small islands vulnera ble economies, the importance of sustainable 
management of natural resources (notably coastal and marine resources), and ensuring 
productivity gains in agriculture to guarantee food security. An important constraint lies in the 
limited energy supply. Despite the existence of high potential for energy generation, the 
COMESA region is facing serious ener gy deficits and high energy costs. 
The political agenda is explicitly considered by EAC, which aims at  achieving a political 
federation. In addition, COMESA and IGAD have  a mandate to address peace and security 
under the broader umbrella of the AU, while EA C and IOC also address issues of peace and 
security. Ultimately, in the ESA-IO region the process of convergence in these agenda would 
allow the attainment of the AU objective of an African Economic Community in the long term. 
The decision taken by the region to remain uni ted as a negotiating party for a comprehensive 
ESA EPA and EAC EPA constitute a challenge and a further opportunity to strengthen the 
process of regional integration. A deeper a nd well functioning regional internal market, 
progressively and asymmetrically opened to the EU, can contribute to generate economic 
growth. 
3.3. State of play and way forward fo r the regional integration process  
Over recent years, Africa has established a co ntinental Peace and Security framework, the 
African Peace and Security Architecture (A PSA), based on the AU Protocol on Peace and 
Security. The APSA includes several comp onents, namely the AU Peace and Security 
Council (PSC), the Panel of the Wise, the Cont inental Early Warning System (CEWS) and the 
African Standby Force (ASF).  
Sub-Regional Organisations (S RO)/Regional Mechanisms (RMs)  such as the ESA-IO ROs 
are pillars and building blocks of the APSA. Th eir relevant structures (e.g. regional early 
warning systems) are to feed into the continental set-up and the linkages with the AU are of paramount importance.  
To accelerate regional economic integration, ESA -IO Member States recognise the need to 
increase commitment in linking economic in tegration measures like CUs and Common 
Markets with a minimum of joint legislative and political structures. In this respect, EAC has 
adopted a comprehensive political integration agenda. 
EAC’s ultimate objective is to establish a Poli tical Federation. So far,  EAC has undertaken 
sensitization and consultation meetings in Member States since 2007, and EAC countries 
have signed a MoU on defence which will be translated into a protocol. Multi sectoral committees have been formed on human rights, electoral councils, anti corruption bodies in 
view to come up with a common framework fo r the region. People’s views and consensus is 
the cornerstone to sustainable political federation. This work is taken forward by the East 
African Legislative Assembly. 
 
EN 15   EN The COMESA Treaty recognises that peace and s ecurity are fundamental pre-requisites to 
social and economic development and also vita l to the achievement of regional economic 
integration objectives of the Common Market. 
COMESA's role in addressing issues of peac e and security currentl y focuses on conflict 
prevention through preventive diplomacy. COMESA  has held annual consultations between 
different stakeholders such as parliamentaria ns and civil society in issues of peace and 
security. COMESA has now embarked on two ke y programmes: Post Conflict Reconstruction 
and Development (PCRD) and Early Warning, aiming at strengthening the capacity of national institutions in prom oting peace and security. 
IGAD also plays role in this area, as its mandate was expanded in 1996 to include co-
operation in political affairs,  the promotion and maintenan ce of peace and security, and 
humanitarian affairs. Notably, conflict preven tion, management and resolution is a priority 
area, and Member States of IGAD have signed a Pr otocol on Conflict Early Warning and a 
Response Mechanism. IOC’s role in political cooperation has been expanded in 2008 to include the promotion and mainte nance of peace and security. 
Convergence of the Trade Agenda 
All ROs recognise the need for co-ordination a nd harmonisation of trade policies and 
programmes. The Summits of COMESA, EAC and SADC have since 2001 initiated this 
process through specific declarations which le d to the establishment of a Tripartite 
Mechanism including a Task Force at the Secretariat level. Following several meetings of the Tripartite Task Force, a Tripartite summ it is planned for October 2008. The Summit is 
expected to provide political  impetus for a more pro-activ e harmonisation of the regional 
agendas and programmes. 
From a technical point of view, there is potenti al to harmonise the trade regimes of COMESA 
and EAC. Although COMESA’s CET is based on a four band tariff structure, two of them are 
zero-rated and correspond to the same categories of products th at are covered by EAC’s first 
tariff band which is also zero ra ted. If COMESA and EAC are to merge their CUs, they will 
also have to adopt th e same CET and CTN.  
COMESA, with EAC and SADC, s ee the need to address the is sue of non-tariff barriers and 
their removal if the cost of trade is to be decreased. The organisations are working on a NTB 
monitoring mechanism, with sign ificant inputs from non-state act ors, which will allow NTBs 
to be recorded and eliminated. In a similar ve in, continued efforts are required to adjust to 
international SPS standards, in order to improve the region’s access to markets in the 
developed world, in particular re garding agricultu ral products.  
COMESA and EAC use the same Rules of Origin which apply to all tariff lines and which are 
based on either wholly produced or substant ial transformation criteria. Controls on the 
issuance of certificates of orig in and validation procedures ar e in operation. There is also a 
dispute settlement mechanism us ed, with the final level of recourse being the COMESA and 
EAC Courts of Justice. 
 
EN 16   EN 3.4. Proposal for a regional strategy betw een the EC and Eastern and Southern 
Africa and the Indian Ocean 
The overall objective is to cont ribute to the eradication of pove rty in member countries by 
supporting economic growth and de veloping trade. The specific obj ectives are to support the 
regional integration agendas of the ROs; to strengthen regional cooperation and to support the 
integration of the region into the global economy.  
In accordance with the principle of alignment, the RSP will support the strategies of the ESA 
region. The focus of the response strategy is therefore on:  
Consolidating the regional economic integration agenda.  
To achieve this objec tive, interventions will focus on tr ade policy issues, addressing supply 
side constraints, adjustment costs and buildi ng productive capacities; and deepening regional 
integration by preparing for a common intern al market and a monetary union by achieving 
free movement of people and labour, right of  establishment, macroeconomic convergence, 
and supporting sectoral policies. For both these themes, the development matrices would be 
taken into account. 
Promoting political integration and cooperation  in the region, also by addressing peace and 
security and good governance. 
The response strategy is consistent with ot her ongoing processes, in  particular the EPA 
negotiations with their development agenda  and the Horn of Africa Initiative.  
The Strategy also takes into consideration the harmonisation proce ss among ROs leading to 
policy convergence.  
3.5. EC response strategy 
In supporting the region's agendas, the R SP will focus on deepening regional economic 
integration and furthering the regional political cooperation agenda also foreseeing a series of 
flanking measures aimed at assisting the region  to tackle regional po litical problems in a 
coordinated fashion. More precisely: 
Deepening regional integration  
Support will go at fully implementing the customs unions and moving towards a common 
internal market (and eventually monetary uni on) through the implementation of the necessary 
regulatory framework, providing fi nancial support for the trade liberalisation process and its 
possible economic and fiscal costs.  
It will also aim at leveraging funds for trade -related infrastructure to deepen regional 
integration and ensure the sustainable manageme nt of the natural reso urces (e.g. energy) of 
the region as a core asset for livelihood systems so  that it provides a basis for sustainable food 
security.  
Strengthening the political inte gration/cooperation process  
 
EN 17   EN The aim is to build a coherent regional view  on the concept of good gove rnance, establishing 
regional mechanisms for early warning, confli ct prevention, management and resolution, 
post-conflict reconstruction, and overall capacity  building in the areas of peace and security. 
3.6. Main elements of the regional indicative programme 
The RIP total indicative allocation for the ES A-IO amounts to € 645 million. This envelope 
will be distributed as follows1: 
Focal area 1: Regional econom ic integration (€548 million) 
This focal area is divided into the following components:  
– Trade-related assistance and cap acity-building: assistance to the ROs in implementing their 
economic integration mandates;  
– Alleviation of the impact of economic and fiscal adjustments on public expenditure;  
– Support to private sector development;  
– Infrastructure: development of a comprehensive regional transport, energy and 
communication policy and development of infra structure proposals on the basis of the 
regional Transport and Communication Stra tegy and Priority Investment Plan; 
– Improvement of land and water resources mana gement to develop agricultural and food 
production;  
– Improvement of the capac ity of the region in de riving economic benefits from its marine 
resources and managing it in a sustainable way;  
– Conservation of natural resources and sustai nable management of environment and energy 
resources.  
Focal area 2: Regional political inte gration/cooperation (€64 million)  
This focal area is divided into the following components:  – Support to the regional pillar of the pan-African architectur e of conflict prevention, peace 
and security;  
– Support to post conflict reconstruction fo r conflicts with a regional dimension;  
– Launch of a structured dialogue with regi onal partners on govern ance and security.  
Non-focal area (€32 million)  
                                                
 
1 This distribution includes € 30 million earmarked for activities under the Initiative for CEPGL (Communauté 
Economique des Pays des Grands Lacs / Great Lakes Economic Community Countries), in complementarity with the support under the Central Africa RIP. 
 
 
EN 18   EN – Assisting the region in knowledge developm ent and capacity building (including for non-
state actors and cooperation betwee n education institutions in the region and fostering co-
operation between academic and economic fields); 
– Enhancing capacity development of ROs and improve inter-regional coordination support 
to IRCC)  
Implementation methods 
Two financing mechanisms will be employed. C ontribution Agreements will be used where 
appropriate. In all other cases (n otably taking into account the size and the nature of projects), 
traditional financing agreements will be the preferred financing mechanism.  
The ROs may collaborate with ot her countries or regions as we ll as Overseas Countries and 
Territories (OCTs) and Outermost Regions (OR) of the EU to implement projects in the context of this Regional Indicative Program me. Specific attention will be given to the 
development of a concerted EDF and Eur opean Regional Development Fund (ERDF) 
programming, with a view to strengthen AC P/OR functional cooperation at ESA regional 
level.  
The ROs may also participate in projects of other regions, notab ly neighbouring regions. 
Adequate funding for such participation shall be made available in the framework of this RIP. 
The region itself may co-operate in pan- African and intra-ACP cooperation schemes, 
including those involving non-ACP developing countries. 
 
EN 19   EN 4. S OUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)   
The SADC Regional Strategy Paper and the Re gional Indicative Programme will support the 
fourteen countries of the Southe rn African Development Community2 (SADC); they may also 
support the Southern African Customs Union3 (SACU) whose members are all also members 
of SADC and, in specific cases, non-state/civil society actors. The region is composed of a 
highly diverse set of countries in terms of  size, level of development and economic 
specialization; seven are LDCs. Overall, achieving the MDG by 2015 remains a very difficult 
challenge: about 45 % of the population (250 million people) still lives on $1 a day.  
In respect of most other ACP regions, So uthern Africa presen ts a highly complex 
configuration of regional or ganizations membership. Most notably, eight of the SADC 
fourteen members are also members of either COMESA or EAC. 
The three organizations are in the process of discussing the implications of such situation 
within a tripartite dialogue. In the meantime, providing support to regional economic 
integration requires that this re ality be taken into account and that consistent and balanced 
solutions are identified for all countries  and regional organizations involved. 
4.1. Situation in the region  
After several decades of  political confrontatio n and instability, Southe rn Africa is now a 
relatively peaceful and stable region with a positive, albeit still limited, economic growth 
trend. However challenges persist in the area  of democracy, peace and security, notably in 
Zimbabwe, where the political situation and the dramatic economic crisis impacts on the 
region and has provoked significant migration flows. In Angola and the Democratic Republic 
of Congo, post-conflict situations  give also rise to specific issues such as the need for 
repatriation of refugees and internally displaced people. 
The region is also the worst affected in th e world by HIV/AIDS, which has greatly reduced 
life expectancy. 
Economic growth and convergence have been pos itive for the last five years, although below 
the targets necessary to achieve the MDG, whic h would require a higher rate of investment. 
Furthermore the sustainability of economic gr owth is compromised by the fact that the 
economies of the  majority of Member States’ are poorly  diversified and depend mostly on 
natural resources. All in all, translating the economic gains of  the last years into poverty 
reduction remains an overarching challenge in  the region. Despite being relatively well 
endowed in natural resources, SADC is one of the poorest regions in the World. Further, some 
of the countries in the region rank also  among the most unequal in the world.  
The global increase of food prices has aggrav ated and already perv asive problem of food 
insecurity in the region, affecting in particular  the most vulnerable gr oups of the population. 
SADC's advancement towards reaching the MDG on hunger is substantially off track. More than a third of the population is undernourished. A lthough efforts to addr ess food insecurity 
have been undertaken, new environmental, econo mic and social shocks have hit the region 
placing a large number of people, whose coping st rategies have eroded further, under threat.  
                                                
 
2 The 15 members to SADC are: South Africa, Botswana, Lesotho , Namibia, Swaz iland, Angola, 
Mozambique , Zimbabwe, Zambia , Malawi , DRC , Tanzania , Mauritius and Madagascar (LDC in bold) . 
Seychelles reintegrated SADC at the August 2008 Summit.  
3 Botswana, Lesotho, Namibia, Swaziland and South Africa.  
 
EN 20   EN 4.2. Issues and challenges for the regional integration process  
The region faces a number of economic and political challenges that in the coming years will 
determine its progress in the fi ght against poverty and toward higher sustainable development: 
– The solution of the current Zimbabwe political and economic crisis, that can be crucially 
facilitated by actions at the regional level; 
– The strengthening of the busin ess and investment environm ent, including through support 
for physical infrastructure. 
– The streamlining of the regional integration agenda across the diffe rent organizations 
involved. Multiple national memberships of regional economic communities continue to pose a challenge for defining a reliable regi onal Agenda and eventu ally achieving closer 
economic integration.  
The negotiations of Economic Partnership Agre ements between the SADC countries and the 
EC have taken place against this background of multiple memberships of regional economic communities: less than half of the current SADC  membership chose to be part of the SADC 
EPA group. In 2008, Malawi, Zambia, Zimbabwe, Madagascar, Mauritius and Seychelles are 
negotiating the EPA within the Eastern and Sout hern Africa grouping (ESA), Tanzania with 
the Eastern African Community (EAC) and DRC with the Central Africa configuration.  
As for the SADC EPA group, Botswana, Lesotho, Namibia, Swaziland (BLNS) and 
Mozambique initialled an Interim EPA with th e EC at the end of 2007. In 2008 negotiations 
have continued with these countries –plus Sout h Africa and Angola- with the aim to conclude 
a full EPA by the end of 2008. In the SADC Inte rim EPA, the BLNS countries, all members 
of SACU, agreed to open their markets on th e basis of the tariff regime included in the 
bilateral agreement between the EU and South Africa (the TDCA) envisaging to achieve more 
than 86% of trade coverage by 2015. Mozambique  will liberalise subs tantially its traded 
goods within 10 years (2018). Botswana, Leso tho, Swaziland and Mozambique have also 
agreed to continue negotiations on services and investment in 2008.  
Another key factor will be the role adopted by South Af rica, the region's economic and 
political heavyweight. Its strong involvement is essential to give a positive impulse and 
direction to the regional process. 
In the face of these challenges, the SADC secretariat is constrained by insufficient human and 
financial resources. As a result, the secretariat's ability to meet the extensive requirements of 
its mandate and implement the region's  integration Agenda is hampered. 
4.3. State of play and way forward fo r the regional integration process  
SADC is an intergovernmental organization funded in 1992 on the basis of the former 
Southern African Development Co-Ordin ation Conference (SADCC). The regional 
integration agenda and policy perspectives of the region are reflected in the SADC Regional 
Indicative Strategic Developmen t Plan (RISDP) and the Strategic Indicative Plan for the 
Organ on Peace and Security (SIPO) both launched in 2003. These documents reflect the two parallel tracks of SADC inte gration project: a tr ade integration track (a market-driven 
economic project with an emphasis on trade an d investment) and a development integration 
track (a politically-driven pr ocess that deals with politic al and security issues). 
 
EN 21   EN The RISDP reaffirms the commitment to good po litical, economic and corporate governance 
within a democratic environment, the participati on of civil society, the re spect for the rule of 
law and the participation in the AU NEPAD programme. 
The SIPO establishes the roadmap and legal in struments for the implementation of the Organ 
and the Protocol on Politics, Defence a nd Security Cooperation, embodying a range of 
policies and institutional mechanisms at the regional level for promoting and maintaining 
peace and stability. 
On trade integration, the S ADC countries established a free trade area in August 2008, 
liberalizing 85% of all products by the end of  the year and the remaining 15%, including 
sensitive products, by the end of 2012. The RISDP sees the FTA as a first step towards the 
establishment of a customs union in 2010 and a common market in 2015. As EAC (where 
Tanzania is a member) is already an operati onal customs union and COME SA plans to launch 
its customs union in 2008, potentially includ ing eight SADC members, inter-regional 
coordination is crucial in this area. 
SADC has adopted or is in the process of adop ting or ratifying more than thirty Protocols and 
other agreements notably on Transports, Communications, Standards, Fisheries, Taxation, Macroeconomic Convergence, Finance and Investme nt. The choice of pr oceeding via specific 
Protocols rather than on the basis of a single coor dinated Treaty implies that progress in 
implementation varies between the different areas covered.  
4.4. Proposal for a regional strate gy between the EC and SADC  
The main objective is to increase economic growth and reduce poverty in the SADC region 
through higher levels of regional economic inte gration. The specific ob jective is the wider 
economic integration agenda of  the full SADC membership not ably through the planned Free 
Trade Area and SADC Custom s Union and the successful imp lementation of the Economic 
Partnership Agreement for the SADC group. In addition the strategy aims to reinforce the 
political stability, integration and democratic momentum of the region. Both objectives are 
consistent with the AU-EU Strategy for Afri ca and working plan a nd the SADC RISDP and 
SIPO. 
4.5. EC response strategy 
Interventions are foreseen under two main areas: regional ec onomic integration and trade; 
political cooperation. More precisely: 
Regional economic integration and trade 
The aim is to assist SADC countries to meet  the challenges of the implementation of the 
SADC Free Trade Area, Customs Union and the SADC-EU Economic Partnership 
Agreement. There will be two components. Th e first will support implementation of the 
SADC-EU EPA in those SADC countries th at are members of the SADC EPA group, 
consistently with the prioritised needs iden tified by the Regional Preparatory Task Force 
(RPTF). The second component  will provide wider support to  SADC economic integration 
and trade policies, incl uding investment promotion, regional infrastructure and food security.  
Regional political cooperation 
Investment will go in the embedding of governan ce, peace and security, which are vital to 
support and strengthen the recent achievements in  the region. Support will also be granted to 
the regional pillar of the Pan-African architect ure of conflict prevention, peace and security 
and associated flanking policies. Most activities will take the fo rm of capacity building in the 
context of regional governance including a regional political in tegration programme. 
 
EN 22   EN 4.6. Main elements of the regional indicative programme 
The RIP total indicative allocation for SADC amounts to €116 million. This envelope will be 
distributed as follows: 
Focal area 1: Regional econom ic integration (€92.8 million) 
This focal area is divided into the following components:  
– Trade Integration: simplification of the rules of  origin in the context of the SADC Protocol 
on Trade; cooperation on customs matters (assist SADC countries  to meet the requirements 
of the WCO Framework); capacity-building fo r sanitary and phyto- sanitary control; 
upgrading of Standards Bodies; support for the removal of technical barriers to trade.  
– Support for structural reforms in SADC: agri culture and livestock;  fisheries (including 
fisheries management through research monito ring, control and survei llance); sectors with 
potential for smallholders (for instance : small scale farming and cattle holding, 
fishing/aquaculture, horticulture,  small scale mining, handicraft) ; assessment of the impact 
of revenue losses and improvement of reve nue collection methods (including possibly 
additional financial support to  counterbalance net revenue lo sses); facilitation of economic 
adjustments required by the implementation of regional integratio n policies (including 
social and economic costs of adjustment).  
– Infrastructure development: support the region in developing its policy environment and 
projects derived from the SADC Regional Infrastructure  Development Master Plan, 
notably in the field of energy, transport, and telecommunication, and in implementing the 
SADC Protocol on Transport, Communications and Meteorology.  
– Food security policy and information managemen t: assist SADC in fulfilling its facilitating 
and coordinating functions through the Agri cultural Information Management System 
(AIMS).  
– Capacity building: support measures identified by an Institutional Assessment as being 
necessary to raise the Secretariat’s admini stration, financial management and technical 
levels of capacity to standa rds commensurate with its role as the executive arm of a major 
African economic community. This  includes in particular suppor t to the Secretariat for the 
implementation of trade agreements, the assi stance of SADC National Committees and the 
mainstreaming of gender and HIV issues.  
Focal area 2: Regional political cooperation (€17.4 million)  
This focal area is divided into the following components:  
– Good governance: this includes cap acity building assist ance for the further implementation 
of the SADC Principles and Guidelin es Governing Democratic Elections.  
– Regional pillar of pan African  architecture of peace and security: accompanying the 
operationalisation of the SADC Stand-by For ce by ad-hoc training of police forces; 
strengthening the capacity of the Regional Ea rly Warning Centre in terms of logistics, 
technical tools and professiona l skills; mediation: training of mediators and experts.  
– Disaster management 
 
EN 23   EN Non-focal area (€5.8 million)  
– Technical Cooperation Facility  
– Support to non-state actors  
Implementation methods 
Based on the recommendations of the 2007 Institutional Assessment study, a major 
assumption is that SADC will become eligib le to receive assist ance through Contribution 
Agreements by 2010 (subject to the Secretariat being assesse d as having the capacity to 
implement a Contribution Agreement or having put in place measures that would provide 
such capacity). 
Should the SADC Development Fund (Article 24 of the SADC Treaty) become successfully 
operational within the time span of the 10th ED F, the feasibility of channelling financial 
support to it will be assessed.  
Without prejudice to the programming arrangeme nts concluded between the EC and South 
Africa, contributions from the European Progr amme for Reconstruction and Development in 
South Africa, which South Africa has earmarked or  will earmark for regi onal activities in its 
Multi-annual Indicative Programmes, may complement the resources from the EDF for 
regional activities under this Re gional Indicative Programme.  
In addition, one of the prime policy measures to  be taken by SADC to implement its regional 
strategy is close cooperation with the other regional organi sations which are involved in 
economic integration activities - notably the Common Market of East and Southern Africa 
(COMESA) - with a view to coordinate th e implementation of the respective Regional 
Indicative Programmes of the SADC and the East and Southern Africa (ESA) regions. 
Coordination is ensured through the Interregi onal Coordination Committee in which SADC is 
participating and the dedicated SADC-C OMESA-EAC Tripartite task force.  
Coordination will also continue to be pursu ed with the National Indicative Programmes of 
SADC Member States.  
 
EN 24   EN 5. C ENTRAL AFRICA  
The 10th FED for Central Africa covers a geogra phical region of 5.4m km², and represents a 
population of about 90 million people. The region includes 8 countries: the 6 countries of 
CEMAC (Cameroon, Republic of Congo, Gabon, Equatorial Guinea, CAR - Central African Republic, Chad) as well as the Democratic Republic of Congo (DRC) and São Tomé e 
Principe (members of CEEAC). The region corre sponds to that of the EPA negotiating group.  
The group of Central African countries will  probably not attain the MDGs. Among the 8 
countries, there are 3 middle-income countri es (Cameroon, Congo-Brazzaville and Gabon; 
Equatorial Guinea is still classified as an LDC despite growing income levels).  
5.1. Situation in the region  
The political  situation in Central Africa is fragile, and the conflicts in the Great Lakes region 
and Darfur constitute a factor of instability. In addition to international initiatives, such as the 
European Mission to Chad and CAR (EUFOR), initiatives are undertaken by the region, such 
as the CEEAC mission in CAR and the establishm ent of a regional capacity in the field of 
peace and security by CEEAC. The region needs progress in terms of governance . Several 
countries of the region are considered amongst th e most corrupt (Transparency International). 
In economic  terms, Central Africa is ch aracterised by an abundance of natural resources such 
as wood, oil, metals and other mining commoditie s. Some of these economies are integrated 
to global markets mainly through exports of fo ssil fuels, which represent nearly 40% of 
regional GDP. Intra-regional trade is very wea k. The main obstacles to sustainable growth 
are: a) a narrow production base with low pr oductivity, sensitive to external shocks, b) low 
employment creation and low level of investme nt; c) an unattractive bus iness environment; d) 
severe access problems for landlocked countries; 
Transport  in the region is principally based on the road network, but there are no reliable 
connections between the capitals, and the cost of transport is ex tremely high. Insular countries 
also have problems with interconn ectivity and aviation security. The energy  sector of region's 
countries is characterised mainly  by (i) a high hydro-electric potenti al, (ii) a low percentage of 
the population with access to basic energy serv ices, (iii) important oil resources (Congo, 
Guinea, Gabon, Cameroon and Chad). Despite the abundance of energy sources, producers 
and consumers face high costs and access difficulties.  
Concerning environment , Central Africa's forests contain the most importan t source of bio-
diversity in Africa with a large number of ra re or endangered specie s. The situation is 
threatened by forest fragmentation due to ag riculture, exploitation for forestry and mining, 
and demographic growth. The forestry sector re presents between 5 and 13% of GDP, and on 
average 10% of the basin's external trade.  
5.2. Issues and challenges for the regional integration process  
The region faces challenges which require import ant efforts from all regional actors and the 
support of the international community. A challe nge of particular im portance is the weak 
engagement of member states and the impor tance of short term national interests over 
medium term regional interests. 
Stability and security  is a priority linked with a subs tantial improvement of political 
governance. The intervention capacity of CEEAC in this domain has still to be improved, and 
capacity building will have to be continued. 
 
EN 25   EN Several challenges exist for economic integration . The implementation of regional norms 
and reforms is incomplete at national level. It will therefore be necessary to work towards the 
effective implementation of the CEMAC cust oms union (and its extension to the DRC and 
São Tomé e Principe) as well as the free circul ation of people and the establishment of an 
effective common market. To do so regional or ganisations need to be strengthened by 
improving their capacities and governance.  
Despite the importance of monetary stability, re gional integration does not seem to have had a 
significant effect on growth, diversification  and competitiveness  of the region These poor 
results could be explained by  the persistence of several obstacles to an effective 
implementation of regional integration, including : fragmentation of infrastructure and basic 
services (including tran sport and energy) ; the persistence of  non tariff barriers to trade; an 
adverse business environment ; weak access to cr edit (despite over-liqui dity of banks); and 
insufficient professional capacity.  
The challenge of deepening regional integratio n is allied with the challenge of opening the 
economy to the world. Following the signature of the interim EPA  by Cameroon at the end of 
2007, the negotiations to complete a full re gional agreement continue. Accompanying 
measures include strengthening of capacities, improvement of productive sectors, deepening 
of regional integration and improving business e nvironment. A contribution is also foreseen 
to help mitigate the net fiscal impact of tr ade liberalisation, along with fiscal reforms.  
Environmental  challenges are the preservation of protected areas and the reduction of 
deforestation; improvement of transparency an d governance of natural resource sectors, and 
effective implementation of legislation a nd the fight against illegal exploitation.  
Regional solidarity  should take into account the different  economic and political situations of 
countries in the region. The effective payment of  contributions by member  states to regional 
institutions would be a first step of regional solidarity. A subsequent challenge is the 
mobilisation of funds  at regional level as well as from development partners to support the 
regional integrat ion process.  
Capacity and implementation issues : An improvement in the capa city of the two regional 
organisations – CEMAC and CEEAC – to rationa lise their agendas, find synergies together 
and advance towards a progressive convergence remains an essential condition for the success of the region in its development efforts. The strengthening of integra tion must be conceived 
as a process which contains both deepening an d enlargement: (i) the deepening of CEMAC to 
create a solid core and an effectively integrat ed zone based on the current regional integration 
process and (ii) the enlargement of this zone  to include DRC and São Tomé e Principe, and 
convergence with CEEAC in order to attain the critical mass necessary for a regional market. 
Particular attention should be given to the creation of condition for the effective integration of 
DRC. 
Finally, even if the partial overlap of the two institutions risks slowing down the regional 
integration process, its position in the centre of  the continent constitutes a high potential to 
open to the rest of Africa and a role for the de velopment of the continent, in particular for 
trans-African corridors. 
5.3. State of play and way forward fo r the regional integration process  
Regional integration in Central Africa is char acterised by overlapping mandates and weak co-
ordination of two regional inst itutions, and insufficient owners hip of the regional integration 
process by member states.  
 
EN 26   EN CEMAC  (Communauté Économique et Monétaire de  l'Afrique Centrale) was created in 
1994. The regional integration is still limited, w ith advances in norms, but not enough in 
terms of effective implementation. Important in stitutional reforms have been undertaken, 
which are likely to have a positive impact on the institutional framework. CEMAC is developing a regional economic programme  with an action plan for 2015 and foresees the 
re-launch of FODEC (Fond de développement co mmunautaire) which will dispose of 20% of 
the profits of the Bank of Central African Stat es (BEAC) to finance integration projects. 
CEMAC is the most advanced organisation in ec onomic integration in Central Africa. It is a 
customs union  as well as a monetary union, but its implementation is neither complete nor 
uniform. This overall problem risks affecting the customs union and the institution's credibility. The harmonisation process with DRC and São Tomé e Principe (which are not 
part of CEMAC but are in CEEAC and in the Ce ntral Africa EPA group) ha s started, but must 
be strengthened. The same problems of incomplete  implementation and distortions exist in the 
fiscal  area and in the free circulation of people. In the area of trade-related rules  some 
initiatives are being developed on competition and technical norms, but no common action is 
foreseen yet in other areas such as intelle ctual property and public procurement.  
CEEAC  (Communauté Économique des États d'Af rique Centrale) was created in 1983, and 
currently unites 10 countries (Angola, Burundi, Cameroon, CA R, Congo, Gabon, Equatorial 
Guinea, Chad, DRC and Sao Tome e Principe).  CEEAC suffered a crisis during the '90s, 
largely caused by conflicts in 7 of the th en 11 member states. Since 1999, CEEAC has 
gradually restarted its activities, notably in th e area of conflict preven tion. The priorities for 
2015 are (i) peace and security, (ii)  infrastructure (notably transport) and (iii) energy, water 
and environment. CEEAC has just endorsed a document of strategic vision for 2025, but the 
institution is still in the initial phase of structuring and recruiting personnel. The CEEAC Free 
Trade Area  was launched in 2004 and is being progres sively implemented with a view to 
harmonise the process with CEMAC. For free m ovement of persons, a regulation exists for 
certain categories of community nationals, and a convention on mutual assistance and judicial 
co-operation has been adopted.  
Beyond economic and trade integration, the devel opment of sectoral approaches is taking 
place under the leadership of both CEMAC and CEEAC: a) for transport , a master plan in 
Central Africa was adopted in 2003; and for inland navigation issues the CICOS 
(Commission International du Ba ssin Congo-Oubangui-Sangha), was created as a specialised 
institution of CEMAC b) for energy  a regional approach is also developed, with the creation 
in 2003 of the PEAC ("pool énergétique de l'Af rique Centrale") which has become a body of 
CEEAC. c) for industry , a regional approach is proposed by CEMAC, but there is still an 
effort to be made for the application of bus iness rules (OHADA treaty) and for the reduction 
of administrative burdens d) for  environment  the approach is strongly integrated by the 
creation of COMIFAC (Conf erence des Ministres en charge des forêts d'Afrique Centrale) for 
the orientation, co-ordination and decision ma king of sub-regional initiatives. A convergence 
plan was adopted and a treaty came into force in 2006. In October 2007, CEEAC gave the 
status of "specialised institutions" to COMI FAC and COREP (Comité Régional des pêches du 
Golfe de Guinée). e) for agriculture and food security  (an area which becomes increasingly 
important in the region) a regional a pproach is currently being developed. 
Cooperation for macro-economic stability  is particularly well-developed in CEMAC, even 
though the multilateral surveillance mechanism is not yet sufficiently effective. The 
unavailability of reliable and harmonised data is an important obstacle, an d a regional statistic 
Fund has just been created. The harmonisation of  public finances is an area for further 
improvement for future years. 
 
EN 27   EN With regard to political integration , CEEAC was designated by the African Union as 
reference organisation for Cent ral Africa for the continental architecture of peace and 
security. It created a Peace and Security Council for Ce ntral Africa (COPAX). Non-
aggression and mutual assist ance pacts were signed by me mber states in 1996 and 2000 
respectively. A department for human integr ation, peace, security and stability was 
established at the Secretary General level. An early warning mechanism (MARAC) and the multinational force of Central Africa (FOMAC ) are currently being implemented. Within 
CEMAC, a non-aggression, solidarity and mutu al assistance pact between members was 
concluded in February 2005. The multinational force of CEMAC (FOMUC) has been present 
on the territory of CAR from 2002 to June 2008 in a peace operation financed by the EC and 
France to maintain peace and security. This fo rce is now under the responsibility of CEEAC. 
5.4. Proposal for a regional strategy between the EC and Central Africa  
The general objective is to contribute to an  inclusive economic gr owth, contributing to 
poverty reduction. The specific objective is to s upport the regional integr ation process of the 
Central African region in a context of good governance as its inte gration in the world 
economy. The strategy will support the process of rationalisation and convergence launched 
by the two regional organisations. EC response strategy 
5.5. EC response strategy  
The response strategy will c over two focal sectors: 
Support to economic and trade agenda  
In supporting trade and economic regional integrat ion, the objective is to  deepen the regional 
economic integration process, to support integr ation of the region in the world economy and 
to implement EPAs (accompanying measures) The Strategy will support economic diversification, competitiveness, business envi ronment and infrastructure and the sectoral 
strategies (including environment)  
Political integration 
The support aims at the consolidation of regional stability. It will contribute to strengthening 
the capacity of the region in the area of peace and security (cons olidation of the early warning 
system, political and diplomatic actions, support to civil society, training) in synergy with the 
support given at pan-African level. 
5.6. Main elements of the regional indicative programme 
The RIP total indicative allocation for Centra l Africa amounts to € 165 million. This envelope 
will be distributed as follows: 
Focal area 1: Support to economic and tr ade agenda (including natural resource 
management at regional l evel) (amount: 85-90%)  
This focal area is divided into the following components  
– The implementation of a regional integr ation agenda: harmonisation and internal 
liberalisation (implementation of a common market) and extern al (common external tariff 
and liberalisation) and contribute to mitig ate the costs related to these reforms. 
– Support to economic growth and diversifica tion, and improvement of competitiveness, 
business environment, and physical in frastructures (transport , energy);  
 
EN 28   EN – Sectoral policies: environment, agricultu re, interconnectivity, higher education, etc 
Focal area 2: Support to the political inte gration agenda of the region (amount: 5-8%) 
The support will continue and develop the re sults of ongoing cooperation and accompany the 
development of the capacity of CEEAC in th e area of conflict prev ention and resolution.  
Non focal area : Institutional support and technical cooperation facility . Moreover, an amount of € 
15 million is earmarked for activ ities under the Initia tive for CEPGL (Communauté Economique 
des Pays des Grands Lacs / Economic Comm unity of the Great Lakes Countries), in 
complementarity with the s upport under the ESA RIP.  Implementation methods 
CEMAC and CEEAC should continue their e fforts to refine their synergies and 
complementarities. The aim is to optimise the effectiveness of co-operation while advancing 
in the harmonisation and rationa lisation process launched by the AU. A dialogue mechanism 
between CEMAC and CEEAC will be established in the framework of implementation of the 
RIP and support will be given for this. 
A fund managed by the region could be establishe d to manage part of the resources of the 
RIP.  
For other development partners, synergy at re gional level is being explored with Member 
States (support for the regional economic pr ogramme of CEMAC and also for peace and 
security), with the World Bank and the African Development Bank (mainly for the facilitation 
of transport and instituti onal support to regional organisations ) and with other partners for the 
environment in the framework of the pa rtnership for forests in the Congo basin. 
 
EN 29   EN 6. C ARIBBEAN  
6.1. Situation in the region  
The Caribbean region consists mainly of sma ll island states and suffers from the many 
disadvantages that derive from small size (n arrow range of resources; high dependence on 
international trade, and hence vulnerability to global developments). The Caribbean states are 
also more vulnerable  than many other developing countrie s due to the inte raction of the 
following socio-economic and natural characteristics: limited land resources and difficulties in waste disposal management; geographic remote ness and isolation; li mited diversification 
and very open economies; weak institutional cap acity and high costs of basic infrastructure; 
environmental/ecological vulnerability. 
The countries of the re gion are predominantly multi-party democracies , and hold regular 
national elections, with well deve loped local government structur es. This has been confirmed 
by the numerous successful election processe s conducted in the Caribbean throughout 2005-
2008 allowing incumbent governments to return  to office or changes of governments. 
Transitions to new governments, where ther e have been changes, have been smooth. 
Nevertheless, the need to support the regional institutions persists. 
National administrations and democratic institutions  are in place and generally well 
consolidated. These democratic institutions are entrenched in the constitutions of most of the Member States. In some instances, the in stitutions require capacity development to 
successfully carry out their mandates and to implement their work programmes. Accountability structures are in place and are operational in most CARIFORUM Member 
States. They are part of the fo rmal national governance structures. 
An overall growth of 3.9% was reported for 2007, with growth  rates ranging between 7.5% in 
the Dominican Republic and 1% in Dominica. A sl ow down compared to the previous year in 
which the surge in commodity prices, and signi ficant public and private investment ahead of 
the Cricket World Cup had boosted the economic performance and led to  impressive growth 
rates, e.g. in the case of Trin idad and Tobago of 12% or Antigua and Barbuda (11%). The 
slowdown can be attributed largely to global financial shocks and rising food, oil prices. 
While the outlook for 2008 is positive for most countries, inflationary pressures and the slowdown in the global economy emanating from developments in the US, including the depreciation of the US dollar, are likely to pose downside risk to any projections with the 
notable exception of exports to the area of Euro influence.  
6.2. Issues and challenges for the regional integration process  
Considerable challenges for the regional integra tion process remain, both at the level of the 
OECS, CARICOM and Cariforum. 
The gains made by the OECS would be consolid ated through the creatio n of an integrated 
system of governance. The Economic Union will pr ovide an appropriate platform from which 
the ultimate objective of politic al union among the Member States of the OECS can be easily 
visualised and the effort required for its  attainment can be  better assessed. 
In the context of the CSME the free movement of  services entails the removal of all barriers 
to the right of establishment, and the free move ment of persons entails providing for the free 
 
EN 30   EN movement of specified skills, contingent rights, facilitation of travel and an equivalence and 
accreditation infrastructure. 
All of these initiatives are to be complemented by the harmonisation of laws in all the relevant 
areas. These laws are to be enacted in to legislation in each Member State. 
The purpose of creating the Single Economy is to establish a single economic space in 
CARICOM. The key policy perspectives are the adoption of common sectoral programmes 
and the establishment of common support meas ures. The sectoral pr ogrammes and enabling 
environment will focus on industry, micro and small enterprise development, services, 
tourism, agriculture, transportation and en ergy. Common support m easures will involve 
Human Resource Development, Research an d Development, Environmental Protection, 
Intellectual Property Rights, Investment Polic ies and Incentives, Macro-Economic Policies, 
Monetary Policy, Financial Infrastructure, Social  Infrastructure and Public/Private Sector 
relations. 
The European Commission and 15 CARIFORUM countries initialled an Economic 
Partnership Agreement (EPA)  on 16 December 2007. CARIFORUM and its Member States 
will need to put in place the institutional, legal and other frameworks in order to be able to fully implement EPA provisions. This will requ ire existing and new technical and financial 
EU support within the context of  future EDF cycles, EU Member  States and other donors. In 
the Joint Declaration on Development Co-ope ration, annexed to the EPA agreement, the 
Member States of the European Union have c onfirmed their intention to ensure that an 
equitable share of Member States’ Aid for Trade commitments will benefit the Caribbean 
ACP States, including for funding programme s related to the implementation of this 
Agreement. In that same Joint Declarati on, both CARIFORUM and the EU agreed on the 
benefits to be derived from regional deve lopment mechanisms, including a regional 
development fund, accessible to all CARIFORU M States, to mobilise and channel EPA 
related development support. 
The initialisation of the EPA in December 2007 calls for regional integration to be firmly 
established; this means that the CARIFORUM countries are under consid erable pressure to 
continue making substantive adjustments in a number of areas to ensure the de facto 
implementation of a progressive liberalisation.  
6.3. State of play and way forward fo r the regional integration process  
The Organisation of Eastern Caribbean States ( OECS )
4 is the inner circ le of Caribbean 
economic/monetary integration, incorporating seven of the smaller Caribbean states. 
Established in 1981, its main objective is econo mic integration among its member states. In 
2006, they announced plans for full economic union with a new proposal for an OECS treaty 
outlining the steps to be followed in establishing an economic union. 
The next circle and main pillar of regional integration in the Caribbean region is the 
Caribbean Community, or CARICOM . The three main areas of activity of this regional 
organisation are: economic co- operation; co-ordination of fo reign policy; and functional 
cooperation including health, education, youth, sports, scienc e and tax administration.  
                                                 
4 Antigua and Barbuda, Dominica, Grenada, Montserrat,  St Kitts and Nevis, St Lucia and St Vincent and 
the Grenadines. Anguilla and the British Vi rgin Islands are associate members. 
 
EN 31   EN Virtually all Members States (12 out of 14) CARICOM are engaged into a Regional 
Integration process aiming at establishing a CARICOM Single Market & Economy 
(CSME).  The CSME, which contributes to deepen ing the integration process based on both 
market and economic integration, has taken sh ape under the Revised Treaty of Chaguaramas 
and is essentially about the creation of a seamless economic space. When completed, the 
CSME will provide for the free movement of goods, services, capital, labour and right of 
establishment and harmonised laws a nd regulations affecting commerce.  
The establishment of CSME has been a two-stage process . In 2006, the Single Market 
component of the CSME was launched and will  be devoted, during 2008 and 2009, to achieve 
harmonization in several areas of economic po licy, including the broadening of monetary 
cooperation and establishment of a single curre ncy, as well as unified tax and incentive 
systems. In a second stage, a full monetary union will be established between 2010 and 2015, 
and structural policies will be coordinated in several sectors. 
A third organisation, CARIFORUM , was created in 1992 as a pol itical group to conduct the 
relations with the EU and in cluding not only the CARICOM Member States, but also the 
Dominican Republic, Haiti and Suriname (bot h non-members at the time) and Cuba. Since 
then, CARIFORUM has expanded its activities in a range of sectoral a nd thematic policies. 
CARIFORUM actively implements measures to improve efficiency and pursue deregulation 
and regional co-ordination in transport and communications  and related areas. In respect of 
agriculture and fisheries , CARIFORUM members pursue stra tegies of rationalisation, 
increasing competitiveness levels, export divers ification and adherence to international 
standards. CARIFORUM continues to pursue initiatives in the manufacturing  sector to 
increase international competitiveness and to promote and support the development of 
international business, ICT and tourism. 
The Region pursues policie s intended to spread the benefits of tertiary and university level 
education . The region is committed to poverty eradication , achieving the MDGs and 
empowerment of vulnerable groups, gender inequa lity, the exposure of its youth and its rich 
culture. Its approach to youth issues must seek to focus on HIV/AIDS and illegal drugs, 
training for remunerative employment and empowerment.  
CARIFORUM Member States will undertak e accompanying measures which integrate 
disaster and environment management  and pursue good governance strategies which 
promote economic, social and human developm ent and provide an environment in which 
people can prosper.  
The special CARICOM summit on security  has decided on a range of  measures, including an 
Action Plan to curb the high leve ls of crime in the region. Closel y linked to this is also the 
strengthened co-operation in the figh t against drugs and related crimes.  
Finally, a free trade area between the Dominican Republic and CARICOM  has been 
established, and all Caribbean c ountries are also part of the Association of Caribbean States 
(ACS) . 
6.4. Proposal for a regional strategy between the EC and the Caribbean  
Since 1975 the EC has been the largest grant donor to the Caribbean region. Overall 
EC/CARIFORUM cooperation is aimed at poverty reduction through interventions in 
economic regional integration and cooperation, as well as addressing vulnerabilities and 
social issues.  
 
EN 32   EN The overall aim is the beneficial integration of the Caribbean region into the world economy 
through sustainable economic growth, regional  cohesion and stability, and continued 
improvements in living conditions. This stra tegy supports regional in tegration processes 
aimed at establishment of a harmonised economic  space for the generati on of sustainable and 
equitable economic growth, and in cludes in a coherent manner th e EPA. This is intended to 
facilitate the region in structural transforma tion and the repositioning  of its economy in 
response to global developments. 
6.5. EC response strategy 
The 10th EDF Regional Support Strategy is based on the policy ag enda of CARIFORUM 
States and the Communication on the Caribbean of 2 Marc h 2006, as well as on the 
CARIFORUM-EC Economic Part nership Agreement (EPA). 
The Regional Strategy (RS) take s into account the recent politic al developments which point 
to stability in the Region including restora tion of the democratic process in Haiti and 
assistance to that country in it s development efforts. It also ta kes into account historical and 
current economic features and trends in CARI FORUM. More particularly, the RS seeks to 
frame the assistance to CARIFORUM countries in their economic dive rsification efforts, 
namely to move away from overdependence on  commodity exports and into services. Such 
assistance is provided through s upport for regional integratio n and cooperation efforts aimed 
at developing economic competitiveness and gr adual entry into the global economy. The RS 
takes into account the speci al relationship between the CARIFORUM and the EU through 
provisions to assist the region in fully im plementing and deriving maximum development 
benefits from the CARIFORUM/EC EPA. Lastl y, the RS also takes in to account the physical 
and social vulnerabilities having the potential  to negatively impact on regional economic and 
social development. 
The primary focus of the strategy is to provide  support to regional inte gration and cooperation 
among CARIFORUM countries taki ng into account the needs related to the implementation 
of the EPA.  
The themes selected for intervention are based on the various integration and cooperation 
processes in which CARIFORUM Member States are involved, namely the OECS, the CARICOM, enlargement of regi onal markets and the need to build capacity to meet EPA 
commitments. The intent is to achieve a concen tration of focus for the interventions to be 
made under the regional programme.  
The Response Strategy is also coherent with the National Indicative Programmes of the 10
th 
EDF. Focal areas of the NIPs are in th e area of governance and competitiveness or 
infrastructure/interconn ectivity (Haiti, Suriname and G uyana), macroeconomic budgetary 
support (Jamaica) or poverty reduction (Grena da). Non-focal sectors focus among other 
things on Governance (Guya na, Trinidad and Tobago), good governance in the tax area 
(Barbados, Belize, Dominica, Grenada, St. Lu cia, St. Kitts & Nevis, St. Vincent & the 
Grenadines) as well as capacity bui lding related to EPA (Jamaica).  
6.6. Main elements of the regional indicative programme 
The RIP total indicative allocation for the Cari bbean amounts to €165 million. This envelope 
will be distributed as follows: 
Focal area: Regional economic integrati on/cooperation and EPA prio rity areas (€143 
million) 
 
EN 33   EN This focal area is divided into the following components:  
– CARICOM Integration (€24.4 million) : suppor ting the process of CARICOM integration 
including the establishment of a Single Market Economy (CSME), an area of free 
circulation of goods, services, people and capital; 
– OECS Economic Union (€6.6 million): supporting and deepening of OECS integration and 
support for OECS integration into the CSME 
– Strengthening Intra-CARIFORUM regional  co-operation (€23.1 million): focusing on 
Dominican Republic/Haiti bilate ral cooperation; supporting cl oser cooperation between 
CARICOM and the Dominican Republic 
– Investing in human capital (€9.9 million): preparing the people and institutions of 
CARIFORUM to respond to the challenges pos ed by global trade and economic realities, 
including the CARIFORUM-EU EP A, in partnership with Caribbean centres of excellence, 
such as regional universities. 
– EPA implementation (€72.6 million): supporting priority EPA implementation and 
accompanying measures at the OECS, CARICOM and CARIFORUM levels. 
– Integration and cooperation in the wi der Caribbean (€6.6 m illion): supporting 
CARIFORUM/Départements d'Outre-Mer ( DOM)/OCT integration and cooperation; 
supporting CARIFORUM-cooperati on with Latin American Caribbean countries and sub-
regional institutions or integration processes. 
Non-focal area: Addressing vulnerabili ties and social issues (€22 million) 
– Crime and security cooperation (€10 milli on): supporting regional security cooperation 
structures building on the CARICOM Ac tion Plan and foster CARIFORUM-wide 
cooperation in the fight against illicit drugs and related crimes; 
– Civil society participation (€8 million): prom oting stakeholder owners hip and participation 
in the development, integration and cooperation processes in the region.  
– Institutional support / programme implementation (€4 million). 
Implementation methods 
The implementation modalities will be designed to secure timely pr ogramming and efficient 
implementation through a limited number of projects/programmes and through the use of 
quick disbursing mechanisms which maintain tran sparency and accountabili ty. In this context, 
at the occasion of the 3rd EU-Cariforum Summit (Lima, Ma y 2008) both regions have made a 
high level commitment to "work together to ac hieve optimal disbursement rates, through the 
adoption of innovative and flexible implementa tion mechanisms". Leaders also confirmed 
that "the best way of establishing the regiona l development fund referred to in the EPA Joint 
Declaration on Development Cooperation, by th e nearest possible date , as an effective 
channel for aid disbursement". 
 
EN 34   EN 7. P ACIFIC  
For the purposes of EU external relations and development cooperation, the Pacific region 
includes 15 states that are parties to the EU-ACP Cotonou Partnership Agreement. The 
Pacific region comprises 6 least developed coun tries, one low income  country, five lower 
middle income countries and three upper middle income countries.  
All 15 Pacific ACP countries ar e regarded as small island development states. They are 
heterogeneous in terms of si ze (land area varies from 21 km² for Nauru to 400,000 km² for 
Papua New Guinea), economic stru cture, as well as resources  endowment. They however 
share a common objective to address sustainable economi c growth through regional 
integration and trade. 
Progress toward reaching the Millennium Devel opment Goals has been made overall but it is 
uneven. The Pacific region has performed well in  reducing poverty and in advancing primary 
education. Progress towards gender parity in se condary school is not as good, and in health 
improvements has been slower, particularly in low income countries. HIV is on the increase 
in many Pacific ACP, with Papua New Guinea al ready reaching generalised epidemic rates. 
Finally, Pacific island countries rank among th e most vulnerable in the world to natural 
disasters. 
In 2005 Pacific Forum Leaders adopted an Agreem ent establishing the Pacific Islands Forum 
an intergovernmental organisation opening the way for a more structured and formalised 
procedure. This provided new impetus to the EU  relations with the Pacific Islands, resulting 
in a Strategy for a strengthen ed partnership between the EU and the Pacific adopted in May 
2006. The Strategy has three components: i) the relationship / political dialogue between the 
EU and the Pacific countries; ii) developm ent action focused on governance, regionalism and 
the sustainable management of natural resour ces and iii) more efficient aid delivery.  
The Regional Organisation (RO) which is  mandated by the Pacific ACP for EDF 
programming is the Pacific Islands Forum Secr etariat (PIFS) to which 14 of the 15 Pacific 
ACP belong. Timor Leste is not a member of the PIFS but has observer status at the annual 
Leaders meeting of the Forum.  
7.1. Situation in the region 
Overall, most Pacific ACP States are relati vely young democracies and face a wide range of 
development challenges that include govern ance and capacity development of public 
institutions. There is still a need for state consolidation .  
The Pacific islands have maintained satisfactory levels of national safety and security  and 
addressed on their own and by means of regional  assistance and co-operation the instances of 
political instability and conflic t that have occurred notably  since 2000. The main causes of 
conflict in the region are often related to et hnic differences, land disputes, disparity of 
economic opportunity and a lack of  confidence in the ability of central governments to resolve 
provincial differences. 
Apart from the case of Timor Leste, where a UN peace-keeping force has been deployed since 
October 1999, peace and security issues have always been dealt with internally by the region. A regional mechanism referred to as the Biketa wa Declaration has been in force since 2000. 
Requests for assistance and mediation under the Biketawa Declaration were taken up on two 
occasions: the Regional Assistance Mission to the Solomon Islands (RAMSI) following 
ethnic tensions in 2003 and the Pacific Regional  Assistance to Nauru (PRAN) after near 
 
EN 35   EN economic collapse in 2003/4. The Pacific Islands Fo rum also played key role in the political 
process which followed the military coup in Fiji in December 2006. As a result Fiji committed to hold parliamentary elections  by March 2009. The Forum and Fiji have 
established a high-level work ing group that meets regularly and considers main issues 
concerning the situation in Fiji. 
Governance and democratization  in the Pacific region have improved in the last few years, 
including in the area of media ow nership and control, the involve ment of civil society and the 
participation of external observers in electoral  processes. However, some of these changes 
have been top-down and the situa tion in Fiji, in particular, is extremely complex as regards a 
return to free elections. The low literacy levels  and social vulnerability  in the Solomon Islands 
leave room for the electoral processes to be manipulated. In the highly literate Kingdom of 
Tonga, which experienced rioting in 2006, domestic  legislation is being revised to expand 
democratic suffrage.  
As regards the macroeconomic situation, the region’s combined GDP is projected to grow by 
4.5% in 2008, up from an average of 2.8% between 2005 and 2007.  
The economies of Papua New Guinea (PNG), Vanua tu and Solomon Islands (which together 
comprise more than 70% of the PACP popul ation) are now growi ng at 6%. Good macro-
economic policies are being increasingly applied in  most countries, most remarkably in PNG. 
Responsible fiscal policies have reduced deficits  and helped to keep inflation low. However, 
inflation remains a risk in the Melanesian countri es due to their heavy inflows (aid and forest 
revenue in the Solomon Islands, commodity re venue for PNG and East Timor, and property 
investments for Vanuatu). The economies of Fiji and Tonga, on the contrary, have been 
contracting in the wake of political instability and inflation has increased. 
Smaller Island States
5 (SIS) economies have grown at less than 3% for the last three years, 
four of them at less than 2%.  
Overall, growth has occurred in several sectors but remains volatile in the Pacific. It is 
estimated that economies will need to grow annua lly at about 7% to 8% to create employment 
and improve livelihoods.  
The environmental profile of the Pacific region is characterised by high degrees of endemism 
and levels of biodiversity, but relatively small numbers of species, high degree of 
vulnerability to a wide range of natural events a nd high economic depende nce on the marine 
and coastal environment. Pacifi c island countries actually rank among the most vulnerable in 
the world to natural disasters. 
7.2. Issues and challenges for the regional integration process 
The Pacific region faces important challenge s towards regional integration. First and 
foremost, it is challenged by the physical geography , being the largest ge ographical entity in 
the world. Small countries are scattered on a huge ocean and transport connections are 
extremely expensive. The region is also very di verse in terms of size of the countries, their 
resource end economic base.  
As regards the partners of the regional institutions, there are asymmetries  between the Pacific 
islands on one hand and Australia and New Zeal and on the other. These two blocs are quite 
different from the economic, historical and cultu ral point of view and different objectives may 
also have to be reconc iled in regional forums.  
                                                 
5 Tuvalu, Kiribati, Cook Islands, Niue, Nauru, Palau and RMI 
 
EN 36   EN In the short term, regional cooperation and inte gration in the Pacific may work best at the 
political level, while economic/commercial inte gration is a longer term  strategic objective. 
Pacific ACP progress towards economic integrati on uses a step by step approach and applies 
the subsidiarity principle in much the same wa y as has been increasi ngly applied in the EU. 
The regional integration process among the Pacific countries was in stitutionalised in the early 
2000 and evolved into an agreement to give the Pacific Islands Forum  legal personality in 
2005. The Forum is supported by ten Regional Organisations  with technical mandates 
ranging from higher education to fisheries, tourism and energy.  
The Economic Partnership Agreement  (EPA) with the EU aims to use trade as an 
instrument for development, through a compre hensive WTO compatible trade agreement and 
through its synergetic implementation with de velopment cooperation. EPA will be reciprocal 
but asymmetric in favour of the Pacific AC P. Negotiations entered a crucial phase during 
2007, when the deadline jointly set by ACP and EU in the Cotonou Agreement and reflected 
in the WTO waiver was approaching. Unde r time pressure, negotiations focused on 
preserving ACP market access complying with th e parameters for a WTO-compatible free 
trade area. An interim Economic Partnership was therefore initialled with Papua New Guinea 
and Fiji. Significant progress ha s been made since then in a number of areas including 
principles, trade in goods, fisheries, devel opment cooperation and dispute settlement.  
The decision taken by the Pacific Forum ACP to  remain united as a negotiating party for a 
comprehensive Pacific EPA constitutes a challenge and a further opportunity to strengthen the process of regional integration. A deeper a nd well functioning regional internal market, 
progressively and asymmetrically opened to the EU and other key trading partners, can 
certainly contribute to economic growth. 
7.3. State of play and way forward fo r the regional integration process 
In 2005, Forum Leaders adopted the Pacific Plan for Regional Cooperation and 
Integration  (the 'Pacific Plan' 2005-2010), which includes an Economic Partnership 
Agreement (EPA) with the EU as one of its economic growth objectives.  
The Pacific Plan's overarching goal is to enha nce and stimulate economic growth, sustainable 
development, good governance and security for P acific countries through regionalism. It has a 
number of strategic objectives developed around four pillars: 
– Economic growth: the Plan aims to increase trade and investment; improve infrastructure 
and service deliver and enhance private sector participation 
– Sustainable development: it aims to re duce poverty; improve natural resource and 
environmental management; improve health , education and training; improve gender 
equality; involve youth and promot e sports and cultural values. 
– Good governance: the Plan aims at improve d transparency, accountability, equity and 
management efficiency 
– Security: the Plan aims to achieve improved political and social conditions for stability and 
safety. 
Concerning trade and economic integration , progress has been made towards the 
establishment of a number of free trade agreements.  
The Pacific Island Countries Trade Agreement (PICTA)  aims to establish a free trade area 
between the 14 Forum Pacific ACP countries by 2017. 11 states have so far ratified and six 
 
EN 37   EN countries have announced domestic re gulations for trading under PICTA6. No customs union 
is foreseen at this stage. It currently covers trade in goods, an d in 2007 it was agreed to extend 
its provisions to services. 
The Melanesian Spearhead Group (MSG) Preferential Trade Agreement  concerns the 
four Melanesian states of Vanuatu, PNG, th e Solomon Islands and Fiji. The MSG provides 
for the gradual and progressive removal of tariff and non-tariff barriers between trading 
parties, and full liberalisation by 2013. It covers both goods and services but the schedule to 
the Agreement covering trade in services has not been developed yet. The final outcome of 
the MSG Agreement should be a customs union. The MSG was formally recognised as a sub-regional organisation in March 2007 and the MSG Secretariat wa s officially opened in Port 
Vila (Vanuatu) in May 2008.  
The Pacific Agreement on Closer Economic Relations (PACER) is a Forum-wide 
framework agreement including Au stralia and New Zealand. It entered into force in 2002 and 
eleven Forum members have ra tified it so far. PACER intends to promote regional economic 
integration and supports the progressive inte gration of the Forum region into the world 
economy. Negotiations on a detailed trade agreement, required for liberalisation, may begin in 
late 2008. Meanwhile, Forum Trade Ministers have  agreed to look into the possibility of a 
more comprehensive framework for trade and economic cooperation whic h would at the very 
least include trade in serv ices, known as "PACER-Plus". 
The Pacific region has made remarkable progre ss in advancing regional integration through 
regional cooperation in developing common sectoral policies for sustainable development , 
particularly for the management of natural re sources and the provision of social services.  
As regards fisheries , three organizations ar e responsible region-wide for managing fisheries 
in the Western and Central Pacific Ocean thro ugh a regional approach: the Pacific Islands 
Forum Fisheries Agency (FFA), that runs a vessel monitoring system, the Secretariat of the Pacific Community (SPC), that carries out scien tific research on the stat e of fish stocks, and 
the Western and Central Pacific Fisheries Co mmission (WCPFC) that determines the total 
allowable catch and level of fishing effort in the area governed by the so called "Tuna 
Convention". The Convention entered into for ce in June 2004 and the European Community 
is a full member. 
FFA members and in particular the subset of Parties to the Nauru Agreement (PNA) have 
established a number of regional arrangements which reflect the fact that highly migratory 
species like tuna require special management c onsiderations due to their movement between 
Exclusive Economic Zones (EEZs) of coastal stat es as well as onto the high seas. Another key 
regional initiative is the Niue Treaty on C ooperation in Fisheries Surveillance and Law 
Enforcement in the South Pacific Region.  
Pacific island countries are the mo st vulnerable to the impact of climate change . In 2005 
Forum Leaders endorsed the Pacific Islands  Framework for Action on Climate Change 
(PIFACC) as a regional platform for deepen ing and broadening climate change cooperation.  
The region has also adopted the Pacific Is lands Regional Oceans Policy to improve the 
understanding of the oceans  and sustainably develop and manage ocean resources. The 
Regional Pacific Disaster Risk  Reduction and Disaster Mana gement Framework for Action 
provides another coordinated “all hazards” approach. National and mitigation responses for civil protection and community risk management  are assisted by the South Pacific Sea Level 
                                                
 
6 Cook Islands, Fiji, Niue, Samoa, Solomon Islands and Vanuatu 
 
EN 38   EN and Climate Monitoring Network, which uses sophisticated sea level monitoring gauges in 12 
countries and territories  across the Pacific.  
The provision of education  and health services poses practi cal challenges to the Pacific ACP 
with scattered islands and remote rural commun ities because of high costs and efficiency 
barriers. The establishment of the Pacific Asso ciation of Technical an d Vocational Education 
Training (PATVET) as a peer network of regi onal training institutions  is a good example of 
progress in this area. Meanwhile, impressive  progress has already been made in higher 
education, which is traditionally provided at the regional level by universities7 with highly 
evolved distance education facilities. 
Basic education is also pursued through regi onal cooperation: the seven-year old Forum 
Education Action Plan (FBEAP) will be evalua ted in 2008 with a view to developing a 
regional education support mech anism. The EDF and NZAID ha ve jointly funded the Action 
Plan. 
The regional response for the provision of health services  has focused on telemedicine and 
the adoption of a regional strategy for comb ating HIV/AIDS and other sexually transmitted 
infections STIs. The mid-term review of this strategy showed some ev idence of reduction in 
risk behaviour in several countries. The strategy  will be extended for a further five years to 
cover 2009-2013, as agreed by the Leaders Foru m in 2007. A regional framework is also 
envisaged by the WHO to strengthen preventi on and control of non-communicable diseases 
(leading cause of death in Pacific Island countries and territories). 
7.4. Proposal for a regional strategy between the EC and the Pacific  
The overall objective is to contribute to the su stainable development of  the Pacific ACP by 
supporting economic growth at the same time as  preserving the natura l resources and the 
fragile island environments on  which such growth is predi cated. Specific objectives are to 
support the regional economic integration agenda as  set out in the Pacific Plan and to flank 
this with environmental sustainability measur es. Adaptation to climate change will be a 
particular concern, given the extreme vulnerability of Pacifi c islands to the effects of global 
warming and sea-level rise.  
7.5. EC response strategy 
The Response Strategy is guided by the EU P acific Strategy and the Pacific Plan, which 
address the main challenges of the Pacifi c ACP countries. The Response Strategy thus 
proposes to place greater emphasi s on support to regional cooperat ion and integration in order 
to build up a critical mass, including by c onsiderably increasing the 10th EDF regional 
financial envelope compar ed to previous RIPs.  
The main focus will be on the 'four pillars' of  the Pacific Plan, econom ic growth, sustainable 
development, good governance and security. More precisely: 
Regional economic integration, EPA and regional sectoral policies 
The aim is to enhance sustainable livelihoods by exploiting economic  opportunities through 
regional cooperation and economic integration in Pacific ACPs. This will be done through 
supporting the full implementation of the Foru m ACP-wide PICTA, implementing regional 
economic initiatives for building human capacity for provision of services, and investing in 
                                                 
7 Fiji School of Medicine and USP in Fiji (which also has cam puses in Vanuatu and Samoa) a nd the University of Technology 
(UNITECH) and the University of PNG (UPNG) in PNG  
 
EN 39   EN other productive sectors of regiona l importance. This will also le verage funds for trade-related 
infrastructure to deep en regional integration. 
Sustainable management of natural  resources and the environment 
The objective is to ensure that economic growth  is sustainable and will not deplete natural 
resources and the environment, so that both ar e preserved for future generations of Pacific 
Islanders. This will be achieved by promoting and strengthening sustainable development and management of marine and land resource s, including ecosystems, through governance, 
practices and capacity at all levels. 
7.6. Main elements of the regional indicative programme 
The total indicative allocation for the RIP of the Pacific region amounts to € 95 million. This 
envelope will be distributed as follows: 
Focal area 1: Regional Economic Integration (€ 45 million) 
This focal area is divided into the following components:  
– Assist the region in meeting its regional econo mic integration objectives particularly by 
facilitating regional trade arrangements and integrating into the world economy, notably 
through the EPA. 
– Assist the region in devel oping its economic resource base  in key productive sectors. 
– Create an enabling environment and expand the regi on’s export base in order to be able to 
respond to the opportunities provided by regiona l and international trade arrangements. 
– Contribute to the region’s efforts to devel op a well educated labour force, capable of 
adapting to rapidly changing regiona l and global markets and services. 
Focal area 2: Sustainable Management of Natural Resources and the Environment (€ 40 
million) 
This focal area is divided into the following components:  
– Assist the region in devel oping cost effective solutions to natural resources and 
environmental development challenges. 
– Address vulnerability issues in  the Pacific, in particular those associated with fragile 
ecosystems, waste management, disaster prep aredness and adaptation to climate change. 
Fragile habitats will be protected through waste management, rene wable energy generation 
and disaster preparedness (tak ing special account of the risks posed by sea-level rise in the 
many atoll islands) so that the tourist, recreat ional and living environm ent is preserved for 
future generations. 
Non focal area (€ 10 million) 
The financial envelope will be used for inst itutional capacity building through the financing 
of a Technical Cooperation Facili ty project (€3 million) and giving technical support to the 
RAO (€3 million). Funds will also be committe d to assist non-state actors (€4 million).  
Flanking measures aimed at assi sting the Pacific ACP tackle regional political problems in a 
coordinated fashion will be promoted through the region-to-region EU-PIF Political Dialogue 
launched in 2008 and supported where appropriate from budget mechanisms such a the 
Stability Instrument.  
 
EN 40   EN Implementation methods 
Two financing mechanisms will be employed. Cont ribution Agreements will be the preferred 
channel, provided that the RAO has demonstrat ed, by means of an institutional assessment, 
that it meets interna tional standards in management, accoun ting, audit and procurement. In all 
other cases (notably taking into  account the size and the nature of proj ects), traditional 
financing agreements would be used.  
If the Trade Development Facility (TDF) were set up and if such a Facility would be a more 
efficient channel for the financing of certain  RIP activities, funds for implementing such 
activities could be channe lled through the TDF.  
 
EN 41   EN List of acronyms  
ACP African, Caribbean, Pacific 
ADB African Development Bank 
AIMS Agricultural Information Management System 
ASF African Standby Force AU African Union 
CAR Central African Republic 
CARICOM Caribbean Community and Common Market CARIFORUM Caribbean Forum 
CEEAC Communauté Économique des États d'Afrique Centrale 
CEEMAC Communauté Économique et Monétaire de l'Afrique Centrale 
CET Common External Tariff 
CICOS Commission Internationale du Bassin Congo-Oubangui-Sangha CLISS Comite Permanent Inter-états de Lutte Contre la Sécheresse dans le Sahel 
COMESA Common Market for Eastern and Southern Africa 
COMIFAC Conférence des Ministres en charge des forêts d'Afrique Centrale COPAX Peace and security council for Central Africa 
CSME Caribbean Single Market Economy 
DDR Disarmament, demobilisation and re-integration DDU Déclaration en Douane Unique 
DOM Département a l'outre mer 
DRC Democratic Republic of Congo EAC East African Community 
EC European Commission 
ECODRUG ECOWAS Anti Drug Fund ECOSAP ECOWAS Small Arms Control Programme 
ECOWAP ECOWAS Agricultural Policy 
ECOWAS Economic Community of West African States EDF European Development Fund 
EEZ Exclusive Economic Zones 
ELAC Economic Commission for La tin America and the Caribbean 
EPA Economic Partnership Agreement 
ERDF European Regional Development Fund ESA Eastern and Southern Africa 
ESF ECOWAS Standby Force 
EU European Union EUFOR European Mission to Chad and CAR 
FBEAP Forum Education Action Plan 
FFA Pacific Islands Forum Fisheries Agency FODEC Fond de développement communautaire 
FOMUC CEMAC multi-national force 
FTA Free Trade Area GCCA Global Climate Change Alliance 
GDP Gross Domestic Product 
GIABA Groupe Intergouvernemental d'Action Contre le Blanchiment de l'Argent en Afrique HIV Human immunodeficiency virus 
IGAD Intergovernmental Authority on Development 
IO Indian Ocean IOC Indian Ocean Commission 
IRCC Inter-regional Co-ordinating Committee 
LDC Least Developed Country 
MARAC Central African early warning mechanism 
MDG Millennium Development Goal MS Member State 
MSG Melanesian Spearhead Group 
NEPAD New Partnership for Africa's Development NSA Non-state actors 
OAPI Organisation de la propriété intellectuelle 
OCTs Overseas Countries and Territories 
 
EN 42   EN ODA Overseas Development Assistance 
OECS Organisation of East Caribbean States 
OR Outmost Region PACER Pacific Closer Economic Relations 
PATVET Pacific Association of Techni cal and Vocational Education Training 
PDCT-AC Master plan for tr ansport in Central Africa 
PER Regional economic programme 
PICTA Pacific Island Co untries Trade Agreement 
PIF Pacific Island Forum PIFACC Pacific Islands Framework for Action on Climate Change 
PIFS Pacific Island Forum Secretariat 
PNA Parties to the Nauru Agreement 
PNG Papua New Guinea 
PRAN Pacific Regional Assistance to Nauru 
PTRP Programme de Transp ort Routier Prioritaire 
RAMSI Regional Assistance Missi on to the Solomon Islands 
RAO Regional Authorising Officer REP Regional Economic Programme 
RIP Regional Indicative Programme 
RISDP Regional Indicative Strategic Development Plan RO Regional Organisation 
RPTF Regional Preparatory Task Force 
RSP Regional Strategy Paper SACU Southern African Customs Union 
SADC Southern Africa Development Community 
SADCC Southern African Development Co-ordination Conference SIDS Small Island Developing States 
SIPO Strategic Indicative Plan fo r the Organ on P eace and Security 
SIS Smaller Island States SME Small or medium sized enterprise 
SPS Sanitary and Phytosanitary Measures 
SSR Security Sector Reform 
TBT  Technical Barriers to Trade  
TDF Trade Development Facility TEC Tarif Extérieur Commun 
TRIE Transit Routier Inter-états 
UDEAC Douanière et Économique de l’Afrique Centrale UN United Nations 
UNDP United Nations Development Programme 
UNIDO United Nations Industri al Development Organisation 
USD US Dollar 
WAEMU West African Economic and Monetary Union 
WCO World Customs Organisation WCPFC Western and Central Pacific Fisheries Commission 
WTO World Trade Organisation