The AfCFTA, to be discussed at length in the following chapters, is built on the foundation of Africa’s current RECs, and with the idea that the successes of those RECs can be scaled up to promote economic growth in Africa. At the same time, the AfCFTA looks to harmonise the complicated web of current, often overlapping, regulations. This chapter, therefore, will pause to look more closely at certain regional organisations currently existing in Africa, and what they can provide to the ongoing conversation regarding continental integration. The chapter will look not only at the RECs, but also at one of Africa’s most singular organisations, the Organization for the Harmonisation of Business Law in Africa (OHADA).

After first providing a detailed overview of OHADA and the RECs on the continent, this chapter then looks at the strengths of these regional entities, followed by the challenges facing these bodies. The chapter will conclude with suggestions on what AfCFTA should learn from these regional bodies.

1. LAYING THE FOUNDATION FOR SUSTAINABLE DEVELOPMENT: THE OHADA MODEL

Two of the biggest hurdles to improving investment in Africa, both foreign and intra-African, are: (i) a lack of respect for the rule of law; and (ii) weak legal protections provided to businesses. For decades, investors have expressed little confidence in the ability of African governments to adhere to well-defined and established laws, which is an absolute requirement for reducing investment risk. Investors want to be able to familiarise themselves with the legal framework within which they are working. When this framework continues to shift or is not respected by a host state government, the unpredictability increases investors’ risks. At the same time, investors are quick to express their distrust of African courts and legal systems. In the view of investors, these institutions do not have the necessary experience in dealing with complex business issues to have the capacity to protect their investments truly.

These blanket concerns are perhaps unfair to the continent as a whole, and hide the successes of politically strong countries such as Botswana or Mauritius, among others.