Sharp differences over agricultural safeguards and the rules of origin have slowed efforts to create a super continental trading bloc lumping up 26 African countries, integration officials have said.

A push by a number of countries to protect their sugar, maize and rice production have delayed the formation of a bloc bringing together the East African Community (EAC), the Common Market for East and Southern Africa (Comesa) and the South African Development Community (SADC).

Negotiators from the countries are asked for safeguards for “sensitive” agricultural segments and a strict rule of origin that will keep cheap goods from industrialised countries out of the shared market.

The 26 heads of States had ratified a tripartite free trade area of 640 million people bringing together the three trading blocs in June last year.

Positively impacted

“Our analysis shows that sugar, maize and rice production will initially be affected negatively while production of meat, dairy products and tea would be positively impacted in the initial stages of integration,” Dr Adama Ekberg, a senior economist at the United Nations Economic Commission for Africa (UNECA) told a regional stakeholder forum in Nairobi earlier in the week.

Integration experts are however pushing for an adaptation fund, financed by member states, to help break the deadlock.

The UNECA estimates that Africa already has $1.2trillion held in its stock markets and $400 billion in reserves held in foreign banks.

“The fund should be set up to compensate for negative impact including loss of revenue and drop in productivity, that are inevitable in the short term,” Dr Ekberg said.

Experts have said the formation of the super bloc would see the region’s economy expand by six per cent annually and end the perception of Africa as fragmented market.

“Were it to be a state, the envisaged bloc with a combined gross domestic product (GDP) of $1.3 trillion would be the 13th largest economy in the world,” EAC director-general of trade and customs Peter Kiguta said.

The UNECA is however pushing for inclusion of all the 54 states of Africa saying such a move would see the continental free trade area’s GDP expanding annually by 11 per cent.