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NEWS Vol 4 Oct - Dec 2020 Study on the Socio- Economic Impacts of Covid-19 Pandemic in COMESA Released 1 COMESA Newsletter Vol. 4/20
Editorial 2 CONTENTS Goodbye to Annus horribilis 2020 1 Opportunities Abound for Turning Around the Low Intra-Regional Trade T 3 he expression ‘Annus horribilis’ is derived from Latin Yellow Card Scheme has Settled Over language meaning ‘horrible year’. Many people $1m Insurance Claims have used this phrase to describe the year bygone, 7 Export Similarities Contributes to Low which visited the worst calamities on them. Renown Intra-COMESA Trade personalities that have used this phrase include the former Secretary General of the United Nations, Dr 8 Region Targets $5B Worth of Seed Trade by 2025 Kofi Annan, in December 2004 and Queen Elizabeth II’s in 1992. Both used the phrase in reference to happenings within their 11 Notable Rise in Trade Barriers as Countries Respond to Covid-19 families that embarrassed them. Kofi Annan said: There’s no doubt that this has been a particularly difficult year, and I am relieved that this annus 12 50 Million African Women Speak horribilis is coming to an end. The Queen said: 1992 is not a year I shall Platform Launched in Nine Countries look back on with undiluted pleasure. In the words of one of my more 14 Border Efficiency Tops Agenda for DR sympathetic correspondents, it has turned out to be an ‘annus horribilis”. Congo and Zambia However, it is the year 2020 that rightfully claims the ignoble tag of ‘Annus horribilis’ given what it has brought forth; the Coronavirus pandemic. The 16 Impacts of COVID-19 in Focus at the 2020 COMESA Policy Organs’ Meetings pandemic has left the world fighting for its life and livelihoods like never before. Energy and resources that would otherwise have gone to spin 17 COVID-19 Food and Nutrition Security the wheels of development were diverted to deal with the devastating Response Plan Endorsed socio-economic impacts of the pandemic. As you read through this last 24 COMESA to Construct Border Export quarter edition of 2020, much of the news you will find is about the efforts Zones for Small Scale Traders and actions of COMESA and its Member States in responding to the pandemic. Among these was conducting studies that provided detailed 27 Promoting an Integrated Digital Common Payment Scheme for MSMEs accounts of the impacts of the pandemic across all sectors in Member States, while taking cognizance of the opportunities available to safeguard 28 COVID-19 Triggered Growth in Zambia’s Leather Industry the gains of economic integration and trade liberalization. The aim was to generate debate and inform policy decisions on how economic integration 30 Tripartite Transport Corridor Trip can provide a platform to build resilience in COMESA and the continent in Monitoring System Set for Piloting the context of COVID-19 and possible shocks in the future. We also have inspiring accounts of the initiatives in place to boost regional trade, food and nutrition security, innovation among others. Likewise, there are stories of setbacks including dipped economic growth, high inflation and rise in non-tariff barriers. Notwithstanding, the region’s resilience has been tested and hopefully the worst is behind us as we usher the dawn of 2021 and bid goodbye to Annus horribilis. EDITORIAL TEAM EDITOR: Mwangi Gakunga CONTRIBUTORS: Muzinge Nampito-Chibomba Daniel Banda ARTWORK/LAYOUT: Philip Sipho Kambafwile Disclaimer PHOTOGRAPHY The COMESA News is published by the Corporate Communications Unit of the Common Market Daniel Banda, for Eastern and Southern Africa – COMESA. Articles and photos in this publication may be Mwangi Gakunga freely reproduced but with acknowledgement of the source. The views expressed in this Muzinge Nampito-Chibomba publication do not necessarily reflect the policy of COMESA.
Study on the Socio-Economic Impacts of Covid-19 Pandemic in COMESA Released A study on socio-economic impacts of the COVID-19 pandemic in the region was conducted and published in the have been the most affected. “Available data pointed to a double-digit regional movement. Specifically, they cited the movement of professionals like medical personnel, engineers, last quarter of 2020. The study will help reduction of 22% in the travel and tourism technicians, essential goods and services Member States in developing policies to sector during the first quarter of 2020, across borders and the development address the impacts of the pandemic on with arrivals in March down by 57%,” the of a regional strategy to encourage and their economies. report stated. “This translates into a loss promote domestic and regional tourism. of 67 million international arrivals and According to the study conducted by the about USD80 billion in receipts. Current The study found that financial services COMESA Secretariat, only six Member scenarios point to declines of 58% to 78% were more resilient due to digitization States: Egypt, Ethiopia, Kenya, Malawi, in international tourist arrivals for 2020.” including the use of the internet and Rwanda and Uganda are projected to A brief on the study was presented to the mobile banking. It recommended have positive growth rates post COVID-19 41st meeting of the Council of Ministers greater liberalization of financial and pandemic. The resultant contraction in November 2020. In their decision, the telecommunication services to help in economic growth is likely to hit hard ministers urged Member States to fast- reduce costs of services provision which countries that are resource intensive, track implementation of the protocol on are currently high. oil exporters, and tourism dependent. free movement of persons and easing Non-resource intensive countries are On inflation, the study found that the expected to be more resilient. Inflation was regional rate increased from 31.6% to largely driven by 60.4% in the first of 2020, with some Specifically, the fall in commodity prices drastic changes countries registering double digit month affected COMESA oil and mineral in consumption on month inflation. products exporters thereby leading of housing, water, to sharp declines in export earnings electricity, gas and “Inflation was largely driven by and balance of payment challenges, drastic changes in consumption of other fuels (89%), according to the study. Further, it housing, water, electricity, gas and identified the services sector as the health (78.3%) and other fuels (89%), health (78.3%) and most affected due to travel restrictions communication communication (69.6%) due to supply and lockdowns. These include business (69.6%) due to shortages and confinement measures,” services, air transport, road transport and supply shortages the report stated. tourism. Comoros, Seychelles, Mauritius, and confinement Kenya, Ethiopia, Egypt, and Madagascar, measures,” the report Many economies experienced increase which heavily rely on services’ sectors stated. in nonperforming loans (NPLs) especially to page 3 1 COMESA Newsletter Vol. 4/20
2 Dr Kipyego Cheluget Opportunities Abound for Turning Around the Low Intra-Regional Trade I ntra-regional trade among the 21 Member countries of COMESA is estimated at 7%. This low performance is as business is the beneficiary of opportunities that are created by regional economic integration. platforms for trade promotion and e-commerce. attributed to inadequate participation of “As we address issues related to the all Member States in the COMESA Free Among the issues deliberated upon trading environment, work in other areas Trade Area and the challenges they face during the three days meeting of trade of cooperation such as increasing supply in implementing regional commitments. and customs experts, was a report on of goods for trade, establishment of The situation is further aggravated by Trade in Services containing modalities regional value chains and addressing poor physical connectivity leading to of resuming trade negotiations using other supply side constraints should high transportation costs, prevalence of virtual platforms. Before COVID-19, trade progress at an equally urgent pace,” he non-tariff barriers, lack of information negotiations between countries took said. exchange about existing trading place in physical meetings. opportunities and prevalence of He urged the Committee to establish a restrictive regulatory requirements in The meeting also considered the roadmap for effective implementation of various markets. development of customs training the COMESA FTA that can be managed manuals on advance rulings, risk through a transparent monitoring and Speaking during the opening of the management and post clearance evaluation framework. 36th Meeting of the Trade and Customs auditing, customs automation, Committee virtual meeting on Tuesday, amendments to the administrative The recommendations of the trade and October 27, 2020, Assistant Secretary provisions of the COMESA rules of origin customs experts meeting were tabled General in Charge of Programmes in and priorities identified for the Customs before the Intergovernmental Committee COMESA, Dr Kipyego Cheluget said and Trade Facilitation Work Programme and the Council of Ministers’ Meeting in despite these challenges, there still exist 2021-2023. November 2020. opportunities to leverage on. To ensure that the COMESA trading “We need full application of the rules- arrangements and innovative trade and “We need full application based regime provided for under the transportation instruments are used of the rules-based regime COMESA Non-Tariff Barriers regulations as benchmarks to African economic provided for under the and collective implementation of integration, Dr Cheluget spelt out the COMESA Non-Tariff Barriers the commitments under the World following priority issues: getting all regulations and collective Trade Organization Trade Facilitation COMESA Member States to participate implementation of the Agreement,” Dr Kipyego Cheluget. in the COMESA FTA; identifying and commitments under the eliminating NTB’s; implementing trade World Trade Organization He added that the region needs to facilitation measures including the Trade Facilitation Agreement,” leverage more participation of the COMESA digital FTA; advancing services private sector in the integration process liberalization and building effective Dr Kipyego Cheluget
Yellow Card Scheme has Settled Study on the Over $1m Insurance Claims Socio-Economic... in the following sectors: tourism, restaurant and hotels, transport and communication, trade, real estate, personal/household, building and construction and manufacturing sectors. In addition, there was a cut down in remittance inflows in the region, attributed to shut down in economic activities in key source countries including France, Italy, Spain, United T he COMESA Motor Vehicle Insurance those required by the laws in force in the States, United Kingdom, Middle East and Scheme paid out over $1.1 million in territories of the visited Member States. China. These account for a quarter of compensation claims to road accident total remittances to Sub Saharan Africa. victims caused by visiting and foreign Currently, the Yellow Card is being motorists to the region for the period July issued in South Africa and Mozambique Steep declines in foreign direct 2019 to June 2020. to motorists traveling to the COMESA investment (FDI) were noted with delays region under the B2B (Business to in approved development projects linked According to a status report presented Business) arrangement with insurance to external financing mechanisms, and to the COMESA Council of Ministers companies in third countries. The an increasingly high risk of financial meeting in November 2020, 967 claims expansion of the Yellow Card Scheme sector contagion due to the decreased were reported to the Scheme with beyond the COMESA region is expected ability of businesses and individuals to 298 paid. A total of 613 claims were to continue. meet their financial obligations. outstanding which is a significant Expansionary policies undertaken in decrease in claims compared to 874 The Council of Ministers appreciated combating the COVID-19 pandemic claims reported during the previous that the Yellow Card Scheme is now worsened the fiscal deficits and external period and 393 paid. being implemented by Mozambique and debt situations in most countries. South Africa, which are non-COMESA Increased spending was notable in At the same time, over 208,000 Yellow Members. It urged the Kingdom of health and support to businesses and Cards were issued and a Gross Premium Eswatini to commence operations of the vulnerable populations. Income of $12.3m recorded, showing Yellow Card scheme. a decrease of 1.12% and a growth of Despite the challenges, the pandemic 10.16% respectively. This compares to Meanwhile, over 975 Regional Customs created opportunities for firms to over 210,000 Yellow Cards issued in Transit Bonds (RCTG) amounting to $318 innovate, develop new strategy 2019 and a premium income of $11.1 million were executed for the period July and products, for example, through million. 2019 to June 2020. During the same repurposing production lines to produce period over 316, 000 Carnets were issued COVID-19 essential products. The COMESA Yellow Card is a Third- for transfer of goods in the Northern and Party Motor Vehicle Insurance Scheme Central Corridors which is an increase Following the study, the Council on launched in 1987 and is currently compared to US$317.3m worth of Ministers directed speedy digitalization operational in 13 countries including Carnets issued the previous year. of trade instruments which include Tanzania, a non-COMESA country. electronic trade (e-trade), e-logistics Over 200 insurance companies in the About 1, 037 Clearing and Forwarding and e-legislation under the COMESA region are participating as subsidiary Agents and 50 insurance companies Digital Free Trade Area initiative. The participants to the Scheme. participates in the operations of the Council urged Member States to enhance RCTG Carnet recording claims of over investments in internet infrastructure The main objective of the Scheme is $514, 000 the highest ever for a single and penetration to promote online to facilitate the movement of vehicles, RCTG Bond claim. COVID-19 however, supply of services and reduce costs of goods and persons by providing, at least had a negative impact on the Yellow communication – mobile, internet and minimum guarantees of a compulsory Card and RCTG with slight reductions financial services to increase/expand the third-party motor vehicle insurance as recorded. benefits of digital technology. 3 COMESA Newsletter Vol. 4/20
4 PHOTO MISSING IN 648 LINKS Deputy Director, Africa CDC, Dr Ahmed Ouma (front 2nd left), Dr Kipyego Cheluget (front 2nd right) and staff of their respective institutions during the joint meeting at the COMESA Secretariat in Lusaka Africa CDC, COMESA to Collaborate in Promoting Safe Trade D iscussions between the Africa Center for Diseases Control and Prevention (CDC) and COMESA are on other. We need to harness them for effective response,” Dr Ouma noted. As a result, he said, CDC had developed Among the interventions proposed is COMESA’s support to Member States in manufacturing good quality products for course to establish useful collaborations guiding principles on how to open health responses. These are focused on on healthy trade during and post up borders safely for people to move internal trading to avoid overreliance on Covid-19. The envisaged partnership will freely and conduct trade across various foreign supply chains. include provision of technical support regions of the continent. CDC has also on public health to trade facilitation initiated a campaign to open up Africa for CDC expressed interest to participate initiatives. The objective is to protect lives trade with three objectives: minimizing in COMESA policy organs meetings and livelihoods. the number of infections, opening up to advise on public health matters in economies to continue to grow and policy making. CDC will also identify a The initiative is in line with Africa CDC’s ensuring that learning institutions in the focal point to coordinate activities with Mission to support Member States’ continent are opened. COMESA, including capacity building, public health initiatives and strengthen given that the latter does not have health the capacity of institutions to detect, The collaboration with COMESA will experts. prevent, control and respond quickly and be on trade related issues to ensure effectively to threats of disease, man- harmonized messaging across the Assistant Secretary General Dr Kipyego made conflicts and natural disasters. region and capacity building on health. Cheluget, who led the COMESA team Africa CDC Deputy Director, Dr Ahmed “As trade guidelines are developed and said the regional bloc will invite the Ogwel Ouma, who was on a visit to implemented across the region, Africa participation of the CDC in the next COMESA Secretariat, on 7 December CDC would like to be involved to ensure policy organs meetings. He added that 2020, said regional organizations in public health measures are incorporated a joint meeting of technical staff will be Africa have institutions capable of to prevent likelihood of possible diseases organized to work out the modalities of responding to the current and emerging transmission through trade,” Dr Ouma collaboration. challenges such as those associated said. with Covid-19 pandemic. What was Africa CDC is a public health agency of lacking, he said, was harnessing their The meeting agreed on the need to the African Union established to support synergy based on their comparative work in partnerships that cut across the public health initiatives of Member strengths. Member States noting that joint States and strengthen the capacity of initiatives are easily facilitated with their health institutions to deal with “Our capacities are not talking to each resources than solitary approaches. disease threats.
Need to Reboot the CADDP Commitments for Food Security M ajority of COMESA Member States are not on track towards achieving the goals and aspirations of the Comprehensive African Agricultural Development Programme tO BE INSERTED, FOLDER (CAADP). This has prompted the MISPLACED COMESA Council of Ministers to urge Member States to further integrate the Malabo Commitments into their National Agriculture and Food Security Investment Plans (NAAIPs) and allocate more resources to support the implementation. Further, countries should prioritize more initiatives to end hunger and reduce poverty through agriculture and allocate File/ (L-R) Zambia’s Justice Minister Hon. Given Lubinda, Secretary General Chileshe Kapwepwe and Judge President of the more resources to accelerate progress COMESA Court, Lady Justice Lombe Chibesakunda at the opening of the meeting of Ministers of Justice and Attorneys General in November 2019. towards building climate resilience of the region’s agri-food systems. Governments` Audit Staff to Serve Sitting in their 41st Meeting on 26 as External Auditors for COMESA November 2020, the Council noted that the Secretariat has continued working with a multiplicity of regional, ...as justice ministers, AGs adopt legal instruments for auditors continental and global institutions to T he COMESA Ministers of Justice money for the funds that COMESA guide public and private investments and Attorneys General adopted Member States contribute to the in agriculture, natural resources, trade the COMESA Board of External organization. and food security in the COMESA Auditors (COBEA) instruments on 18th region. The aim is to contribute to the November 2020. These will now govern During the meeting, they also considered realization of the goals and aspirations its operations as external auditors for four draft subsidiary legal instruments of the CAADP Malabo Commitments COMESA. The COBEA legal instruments to the COBEA Charter. These provide on achieving accelerated agricultural include: the Rules of Procedure, the step by step guidelines for the conduct growth and transformation for shared Standard Operating Procedures, the of audits to ensure transparency and prosperity and improved livelihood. Quality Assurance Manual and the compliance with international standards Financial Auditing manual. and also assure quality control. The Council also noted that while most of the Member States made progress COBEA is made up of Auditors General The Ministers also approved an between the first CAADP (2017) and the from COMESA Member States and the amendment to Article 28 of the COMESA second (2019) biennial cycles, majority new instruments enable them to serve Treaty to expand the jurisdiction of the of them are not on track towards as external auditors for the COMESA COMESA Court of Justice to include achieving the commitments by 2025. Secretariat and its agencies. handling of Investor/ State disputes. During the same meeting, the The Ministers and AGs adopted the This decision was informed by the cost Secretariat was directed to strengthen instruments during their 23rd meeting involved in engaging in arbitration outside engagement with development and conducted virtually. the African continent. This is in addition strategic partners including the to exclusion of African Arbitrators in private sector to leverage financial The legal instruments seek to enhance Arbitration Panels in some commercial and technical resources to fast-track among others, internal controls for centers of the world such as New York the implementation of CAADP Malabo the management of resources of the and London. commitments Common Market to ensure value for 5 COMESA Newsletter Vol. 4/20
6 Countries Urged to Adopt Climate Change Resil- ience Framework M ember States of COMESA have been urged to adopt the Regional Climate Change Resilience Framework and use it as a guide to develop their own national resilience frameworks. In addition, they need to endorse the regional body, COMESA, as their delivery partner to have a harmonised regional approach. Kenya Gets Sugar Safeguard This was one of the decisions of the for Two More Years Council of Ministers meeting conducted in November 2020. According to the T he COMESA Council of Ministers granted Kenya a two year extension of the sugar safeguard beginning March safeguard period; ensure the import permit issuance process is transparent, fast and efficient; and provide the Ministers, Member States should also allocate more resources to Climate Smart Agriculture (CSA) development 2021 to February 2023. Meeting virtually projected deficit in January of each year and for management of soils and land on 26 November 2020, the Council based on production and consumption degradation. urged Kenya to share the modalities data from ISO. used in calculating the projected sugar The Ministers directed the Secretariat to deficit with other Member States by 30 Council also urged Kenya to disaggregate develop an implementation plan for CSA November 2020. the World Customs Organization and mobilise resources for the Resilience Harmonized System (HS Codes) for Framework and to support up-scaling Kenya had made a presentation of refined white sugar and mill white/brown of CSA best practices in more Member the sugar safeguard implementation sugar. The safeguard should only be States. progress through the COMESA technical applicable to mill white/brown sugar. committees and requested for a two The effects of climate change in the years extension after the current one The Council also directed that any region are observed in terms of erratic lapses in February 2021. unavoidable full or partial suspension of weather, droughts, floods, cyclones, rising COMESA quotas or of the East African sea levels with their greatest impact is on In its decision, the Council urged Kenya Community import tariff for sugar, or water, food and energy security; damaged to give priority to COMESA originating interruption of preferential access estab- infrastructure, forced migration among sugar, noting that the region produces lished under this agreement, be preceded others. enough to meet the deficit. The by prior consultation with affected country will be allowed flexibility on parties. This should be done through the Hence, the Council noted that the scarce the sugar safeguard allocated quota Kenya Safeguard Sub-Committee and resources tend to be diverted to deal with implementation during importation from include a reasonable notice period of at its consequences/disasters and less on COMESA Member States. least three months. the adverse effects of climate change particularly on women, children and the Kenya informed the meeting that all its Kenya thanked the Member States poor who are more vulnerable. factories are currently on production for the extension and re-assured that hence it expects an increase in available it will honour all the al-located quota Most Member States have weak sugar for domestic consumption. allocations. Principal Secretary, Ministry technical and institutional capacities that of Industry, Trade and Cooperatives, Am- continue to hamper the effective climate Other conditions given to Kenya bassador Johnson Weru led the Kenyan actions at the national and regional levels. were: to provide a detailed roadmap delegation. on how to enhance the sugar sector competitiveness during the extended
Export Similarities Contributes to Low Intra-COMESA Trade Research depicts a region that produces more or less similar products File: Researcher Mr. Manaseh Oiro speaking during the 3rd COMESA Annual Research Forum in Kigali, Rwanda, 2017. E xport similarities in COMESA Member States is a major contributor to the low intra-COMESA trade as well as with away from exporting raw materials and minerals to developed countries,” Mr. Oiro stated when he presented his paper at trading partners as proxied by GDP, tariffs and export diversity were important in explaining COMESA countries’ exports to the rest of Africa. According to findings the Forum conducted on 19 - 21 October the rest of Africa. presented at the 7th COMESA Annual 2020. Research Forum, the current export The Researcher recommended the structure depicts a region that produces The study set out to establish the drivers establishment of a strong monitoring an more or less similar products in terms of of COMESA’s trade with the rest of evaluation framework at the COMESA their export sophistication. Africa, to provide solutions to boosting Secretariat for implementation of the the region’s share of exports within regional industrialization strategy. The top five exports to Africa include the continent. The five top exporting tobacco and tobacco substitutes, ores, countries in COMESA were selected for “A holistic approach needs to be taken to slag and ash, essential oils and resinoids, the study and a further five non-COMESA address this, right from the curriculum in sugars and sugar confectionary. Mineral countries used to estimate the trade institutions of learning to on-job training fuels and related products are among potential within the African continent. and the overall economic development COMESA’s top exports to the rest of the policy,” he said. world (TradeMap, 2020). The study found that intra-COMESA exports were 112 per cent below its He added that there is need for In a research paper titled “Estimating average exports to the rest of African harmonization of policies across COMESA’s Trade Potential in Africa: countries. Based on the analysis, Member States, especially the macro- Optimizing Export Opportunities in the COMESA’s exports to other African economic and legal and regulatory AfCFTA”, the Researcher Mr. Manaseh countries were worth USD 146.9 million environment to ensure that economic Oiro, observed that similar products are while average exports were worth USD growth catalyzes trade within the region. being exported to the rest of the world in 69.3 million. The region’s efficiency in Tariff liberalization also needs to be larger quantities because they are used exports was found to be low at 47.1 per accompanied by elimination of restrictive as inputs for industrialized countries. cent. or discriminative non-tariff measures to To address this, Mr. Oiro recommended have an impact. that COMESA Member States should Trade between the following bilateral embark on implementation of the region’s partners was used to estimate trade “This can be achieved through industrialization strategy, which is aimed potential in this study: Kenya and Nigeria; structural transformation, at improving trade complementarity Ethiopia and South Africa; Egypt and particularly enhancing value among the countries. Morocco; Zambia and Namibia; and addition such that Member Democratic Republic of Congo and States trade in value added “This can be achieved through structural Senegal. products and move away transformation, particularly enhancing from exporting raw materials value addition such that Member States It was established that the exporting and minerals to developed trade in value added products and move country’s population, market size of the countries,” Mr. Oiro 7 COMESA Newsletter Vol. 4/20
8 File: Representatives of National Seed Authorities and Seed Companies attending the COMESA Regional Seed Certificates and Labels Training in Zambia, July 2019. Region Targets $5B Worth of Seed Trade by 2025 R egional seed trade in COMESA countries stands at USD 2 billion but this is set to rise to USD 5 billion by General Chileshe Kapwepwe said the potential of the total seed market in the region remains high at two million The regulations are implemented through COMSHIP. So far, eight COMESA 2025 with the implementation of new metric tonnes of quality improved seed. countries have completely aligned their initiatives. One of them is the rolling The region is currently producing and national seed laws to the COMESA out of the COMESA seed labels and accessing less than 500,000 metric seed system. This means that 13 seed certificates. tonnes of the seeds. companies with varieties on the COMESA Variety Catalogue can now trade using The development of the labels and “This scenario has contributed to the the regulations in Burundi, Egypt, Malawi, certificates is part of the implementation high levels of food insecurity and hunger Rwanda, Kenya, Uganda, Zambia and of the COMESA Seed Harmonisation as production is affected by farmers who Zimbabwe. Implementation Plan (COMSHIP) aimed do not use high quality and improved at facilitating regional seed trade. seeds in their fields,” Ms Kapwepwe said In line with COMSHIP, the COMESA in a speech presented by the Director of seed labels and certificates will be COMESA Agriculture Ministers endorsed Agriculture and Industry Mrs. Providence utilized by seed companies for large the COMESA Seed Trade Harmonisation Mavubi. seed consignments crossing the border Regulations in 2015 leading to the launch and in-country seed trade in smaller of the COMSHIP programme to expedite Limited use of quality seeds in the region packages. implementation both at national and is attributed to fragmented and small regional level. regional and national seed markets with In most COMESA countries, pre- each country operating its own seed inspection of seed consignment shall In the last quarter of 2020, the Alliance policies and regulations different from not be necessary as long as the variety for Commodity Trade in Eastern and other Member States. is registered on the COMESA Variety Southern Africa (ACTESA) a COMESA Catalogue. Once registered, the variety Specialized Agency conducted Seed companies enter each of the does not have to be tested again and can a training for chief executives and national seed markets separately and be imported, marketed and, if necessary, technical managers of nine private seed individually, a situation which leads to produced in any country in the COMESA companies on ordering, activation and high costs of operations, prolonged region. purchasing of the COMESA seed labels. delays before good quality seed can find This was intended to trigger the use of its way to the small-scale farmers. The following seed companies the labels and regional certificates and In view of this, the COMESA Seed participated in the training: Advanta encourage participation in trading on Trade Harmonisation Regulations were Seeds, Pannar seeds, Corteva Seeds, the COMESA Harmonized Seed Trading developed to enhance seed production, Solynta Seeds, mPedigree, Syngenta, Platform. seed trade, reliability, and increasing Seedco, Kenya Seeds, SeedAssure, competitiveness of the seed industry in Seed Science Technology and Systems Addressing the participants, Secretary the region. Malawi, and African Seed Trade
Continental and Regional Trade Regimes Need Proper Management to Succeed T here is need for proper management of the interface between the continental and the regional free trade regimes to generate a range of win-win outcomes for various stakeholders in Africa’s integration agenda. According to Dr. Stephen Karingi, the Director, Capacity Building Development at the United Nations Economic Commission for Africa (UNECA), the successful implementation of the African Continental Free Trade Area (AfCFTA) will depend on how smoothly or otherwise, it is interfaced with pre-existing regional economic communities’ FTAs and related instruments. File/ UNECA’s Dr Stephen Karingi addressing the 5th COMESA Research Forum in Kenya, August 2018 He was speaking at the opening of the points to the need to leverage their best 7th COMESA Annual Research Forum practices. By safeguarding the achievements of anchored under the theme: “Harnessing RECs, he observed, the AfCFTA has in Intra-COMESA Trade through the Further, Dr Karingi noted that some the short run, allowed for some level of Interface with African Continental Free RECs, individually or collectively, have flexibility on the co-existence of a web Trade Area (AfCFTA)”. The forum took made great strides in some dimensions of connected, yet distinct, trade regimes, place on 19 - 21 October 2020 of integration, way ahead of what is which would be consolidated at some currently envisioned in the AfCFTA with later stage. He said this requires careful He noted: “One of the main objectives four African Union-recognized RECs and thoughtful management – backed of the AfCFTA is to accelerate regional having Free Trade regimes that have by evidence-based research which the and continental integration through achieved higher levels of integration than COMESA Forum provides. the consolidation of the multiple and the AfCFTA at the time of its entry into overlapping trading regimes, embodied force. In her statement, the Secretary General in pre-existing RECs FTAs, such as the (SG) of COMESA Chileshe Kapwepwe COMESA.” He therefore observed that the AfCFTA, noted that since 1950s, there has been could lean on the progress that RECs a proliferation of regional integration “However, as law scholars have already such as COMESA have made in agreements (RIAs), making them the argued, some wordings in the AfCFTA important areas of integration including centerpiece of many questions of global Agreement suggest that this relationship the COMESA Investment Area, COMESA governance. is likely to be more complex. And although Competition Policy, COMESA’s progress this is not what was originally imagined, on the issue of Intellectual Property “For instance, do RIAs deliver the it now needs to be properly analysed and Rights, and the COMESA Digital FTA. intended benefits for members? Why do understood.” governments sign these agreements, He added: “The AfCFTA can also benefit and do they work towards attainment He cited Articles 5 and 19 of the AfCFTA from COMESA’s experience in building of anticipated long-term consequences which are intended to help navigate the trade supporting institutions, such of doing so? Within the context of the complexity of the relationship with pre- as in the areas of trade finance, trade Africa Continental Free Trade Area, what existing intra-African trade instruments. insurance, regional payment systems, for instance are the optimal options for Article 5 for example, does not only and in the context of simplified trade allocation of duties between regional recognize ‘RECs’ Free Trade Areas as regimes.” economic communities, ACFTA, building blocs for the AfCFTA, it also to page 29 9 COMESA Newsletter Vol. 4/20
10 Regional Research Forum Unveiled the Interface Between Intra-COMESA Trade and the Continental FTA File/ Delegates attending a previous COMESA Research Forum T he 7th COMESA Annual Research Forum took place from 19 – 21 October 2020 with focus on how intra- The African regional integration roadmap considers the Regional Economic Communities (RECs) as the Implementation of the AfCFTA; COMESA trade in services liberalization and the AfCFTA; and AfCFTA and COMESA trade COMESA Trade could be harnessed building blocks of the African Economic regimes. through interface with the African Community as stipulated in the Abuja Continental Free Trade Area (AFCFTA). Treaty of 1991 and the AUs Agenda Launched in 2014, the COMESA 2063. COMESA is among the eight RECs research forums provide a platform The virtual event was funded by in Africa recognized by the AU. for exchange of expert ideas and COMESA, the Organization of African, evidenced-based recommendations Caribbean and Pacific States (OACPS) Since the launch of the COMESA Free on policy interventions, which have and the European Union (EU). It brought Trade Area in 2000, intra-COMESA influenced key decisions making in together the academia, think tanks, export of goods had risen from $1.5 COMESA’s integration agenda. government officers and the private Billion to about $10.8 Billion (2019), sector from across the region and excluding small scale (informal) trade The forums are made possible through Africa, to discuss emerging topical estimated by UNCTAD and Economic call for papers under a contemporary issues in regional integration. Its theme Commission for Africa at about 40% of themes which is informed by the was: “Harnessing Intra-COMESA Trade total trade. COMESA Council of Ministers Decisions, through the Interface with African the Tripartite Free Trade Area or the Continental Free Trade Area (AFCFTA)”. “These figures are still not impressive continental free trade area negotiations in absolute terms, but the growth and aspirations as well the global The theme was motivated by renewed is remarkable. What is even more economic and trade dynamics. impetus towards consolidation of a remarkable is the potential as well as single continental market and the role of the possibility of introducing wholly The research papers are presented for COMESA in the realization of this goal, new products and industries through peer review at the forum by prominent according to COMESA Director of Trade, innovation given the extensive market scholars and the selected best papers Dr Christopher Onyango. created by the AfCFTA,” Dr Onyango said are published in the COMESA flagship ahead of the commencement of the publication “Key Issues in Regional COMESA is the largest economic bloc forum. Integration”. To date, seven editions have with a membership of 21 member been published. States, a combined GDP of US$ 769 Key topics in the 7th forum included: billion, a combined population of over COMESA industrialization programmes 583 million and therefore a critical and the AfCFTA; AfCFTA opportunities pillar in the realization of the African and challenges to boosting Intra- Economic Community. COMESA Trade; COMESA Role in
Notable Rise in Trade Barriers as Countries Respond to Covid-19 T here has been a notable increase in the number of Non-Tariff Barriers (NTBs) during the COVID-19 pandemic advancements. Though largely legitimate, the behind- The mandate of the Committee covers trade promotion, Rules of Origin, NTBs, period as countries increasingly take the-border measures have increasingly trade remedies, trade negotiations, and discretionary measures to contain the become more prohibitive to free flow other contemporary trade policy issues spread of the virus. of goods across borders. Hence the which are cardinal to the smooth flow of Director called for effective regulations regional trade. COMESA Director of trade Dr Chris given that open borders are vital in Onyango told delegates attending the ensuring safe and cost-efficient supply of The three-day meeting covered key fifth Meeting of the COMESA Trade medicines and medical supplies. issues in regional integration including and Trade Facilitation Sub-Committee updates on economic and trade conduced on 6 - 8 October 2020, that “Member States should simply avoid performances, developments in internal measures put in place by Member States introducing NTBs to allow trade to thrive markets, including NTBs, implementation to deal with COVID-19 had disrupted for in the end, no single party benefits of trade facilitation projects under the global value chains. He said they had from restraining trade,” he stressed. “I European Development Fund (EDF-II) radically reduced dependency on imports can attest to you delegates that even in programme and updates on negotiations and rallied States towards the path of the imposing countries on aggregate, under the Tripartite and the ACFTA. protectionism. competitiveness in production and market prices are c compromised, “Despite the significant milestones in and consumer welfare undermined “Despite the significant dealing with NTB issues including rules, by constrained choices, tastes and milestones in dealing regulations, working procedures and preferences.” with NTB issues online NTB monitoring systems, they including rules, have remained a major hindrance to The meeting brought together experts growth and expansion of intra-COMESA from various sectors to discuss trade regulations, working trade,” he said. and trade-related matters which are procedures and online termed as salient pillars of regional NTB monitoring systems, He urged countries to continue reviewing economic integration. Delegates from they have remained and improving existing regulations Burundi, Democratic Republic of Congo, a major hindrance to and mechanisms taking into account Djibouti, Egypt, Ethiopia, Eswatini, growth and expansion of changing eco-systems, understanding Kenya, Madagascar, Malawi, Mauritius, key causes, analyzing regulatory regimes, Seychelles, Somalia, Rwanda, Zambia intra-COMESA trade,” Dr production techniques and technological and Zimbabwe attended. Chris Onyango 11 COMESA Newsletter Vol. 4/20
12 50 Million African Women Speak Platform Launched in Nine Countries File/ A tourism enterprise in Antananarivo, Madagascar B y the end of 2020, nine countries had launched the 50 Million African Women Speak Platform, which aims rollout the project before it folds in 2021. The national launches were conducted under a hybrid arrangement where a time given the social and economic disruptions by COVID-19. at facilitating a dynamic and engaging limited number of local participants “I urge all women to embrace the exchange of ideas among women gathered physically at the launch venue platform so that their businesses entrepreneurs. These were Zambia, and were joined virtually by several survive after the pandemic,” he said. Zimbabwe, Seychelles, Madagascar, invited guests. Eswatini, DR Congo, Egypt, Djibouti and In the DR Congo, the platform was Tunisia. In Madagascar, it was conducted on 9 launched on 22 October by the October in Antananarivo, presided over country’s Deputy Prime Minister The platform which uses in-built social by the Minister for Population, Social Hon. Elysee Munembwe who is also media functionality connect women Protection and Advancement of Women, Minister of Planning. He described the with one another in 36 countries in the Hon. Michelle Bavy Angelica. She platform as an initiative which would COMESA, East African Community described the platform as an avenue contribute significantly to the economic (EAC), and the Economic Commission through which women will speak to empowerment of women in the country. for Western African States (ECOWAS). each other. In Egypt, the launch was conducted on Funded by the African Development “The platform takes on its full meaning 18 November 2020 presided over by Bank, the platform is intended to link thanks to the interaction of millions of the Deputy Executive Director of the women entrepreneurs in ways that will African women beyond geographical Micro, Small and Medium Enterprise foster peer-to-peer learning, mentoring borders and language barriers, which Development Agency, Eng. Tarek Shash. and the sharing of information and allows them to exchange and learn, to Dr Shash who represented Hon. knowledge within communities, and build relationships, to flourish and to be Nevine Gamea, the country’s Minister access to financial services and market inspired by the opportunities offered,” of Trade and Industry gave a ringing opportunities between urban and rural she remarked. endorsement of the platform, describing areas, and across borders and between it as “key” because the Egypt’s national countries. Eswatini followed on 15 October with strategy for SMEs is focused on the Deputy Prime Minister Hon. Senator digitalisation. Six out of the nine countries launched Themba Masuku presiding. He said 50 the platform within the last quarter Million African Women Speak platform “This is only the beginning. We need to of the year in an accelerated move to could not have come at a better do more after the launch. The success
I urge all women to embrace the platform so that their businesses survive after the pandemic,” Hon. Senator Themba Masuku of the platform cannot be achieved singlehandedly,” he added. Djibouti launched the platform on 9 December graced by the Minister of Trade, Hon. Hassan Houmed Ibrahim and the Minister of Women and Family Hon. Mrs Moumina Houmed Hassan. They observed that the platform will address the need of many women in Djibouti who have long aspired to venture into business but have consistently been held back by the lack of access to the right information to get started. Deputy Prime Minister Hon. Senator Themba Masuku “We are indeed pleased that Djibouti has joined other progressive Member States to launch this very important tool which will assist our women shake off poverty, trade more among each other locally and beyond our borders and become economically empowered,” Minister Ibrahim said. Tunisia wrapped-up the series of launches for 2020 on 14 December 2020 in an event attended by the Eng. Tarek Shash speaks during the launch event in Cairo Minister of Women, Family and Seniors Hon. Mrs Imen Zahouani Houimel and the Minister of Trade Hon. Mohamed Bousaied. They commended the Secretariat for developing the platform describing it as “ideal in these times of COVID-19 because connections and transactions can continue smoothly online instead of physical interactions as has been in the past.” 13 COMESA Newsletter Vol. 4/20
14 Kasumbalesa One Stop Border Post between Zambia /D R Congo Border Efficiency Tops Agenda for DR Congo and Zambia O ver the years, Kasumbalesa border point between D R Congo and Zambia has experienced efficiency affirmed his country’s commitment to work with the Government of Zambia through COMESA to address the trade facilitation tools at the national level, as they are the end users and beneficiaries of such systems. challenges related to movement of facilitation challenges at the border post. cargo and now the two governments Among the key industry are actively engaged to finding a lasting The other challenges discussed related recommendations submitted to the solution under a Joint Permanent to the offloading of transit cargo at the bilateral meetings was strengthening Commission (JPC) framework. border, transshipment of goods and other border patrol and enforcement to ensure customs management issues, the status adherence to legal frameworks regarding Towards this end, COMESA Secretariat is of implementation of the electronic the transshipment of goods and to curb supporting border improvement initiative cargo tracking systems at the national customs fraud and the illegal breaking of and in October 2020, hosted a Congolese and regional level, and the upcoming transit goods at the border. delegation led by the Vice-President of support from COMESA, towards the the Congo Business Federation (FEC) One Stop Border Post operations at the The meeting also recommended that Mr. Dieudonne Kasembo, and officials Kasumbalesa border. there be amplified Customs interface from the Congo Revenue Authority. The to enable sharing of information and officials were in Lusaka for a bilateral On the sidelines of intergovernmental uniform processing across the region intergovernmental meeting with Zambia meetings, the private sector came as well as strengthening the One Stop that focused on trade facilitation issues together to prepare their advocacy Border Post at Kasumbalesa. at the Kasumbalesa border. position report on the above business costs and recommended industry-based On the sidelines of this meeting, the DR solutions. The COMESA Business Council Congo team met with COMESA officials (CBC) chaired the Private Dialogue led by the Assistant Secretary General in between the business and logistics Charge of Administration and Finance, associations of DRC and Zambia. The Dr Dev Haman who assured them of dialogue identified specific border COMESA support to further dialogue business costs and recommended towards sustainable solutions and improvement on border relations on trade seamless trade between the between the facilitation between the two countries. two countries, and the rest of the region. Mr. Kasembo highlighted the negative During the meeting, CBC Chief Executive impact that the challenges at the border officer, Ms. Sandra Uwera expressed the presented to business sustainability, fair need for involvement of the private sector competition and the effective functioning in the implementation of electronic cargo of the two countries’ markets. He tracking systems and other digital trade Ms Sandra Uwera
AU Programme on Silencing the Guns Extended for 10 Years T he implementation of the African Union (AU) programme on ‘Silencing the Guns in Africa’ has been extended for ten years from 2021 to 2030, with periodic reviews every two years. The extension of the flagship project provides further opportunity for COMESA to consolidate and strengthen its contribution in the areas of peace and security. Source: UN This was decided during the 14th Extraordinary Session on Silencing the Guns in Africa Summit held virtually on evaluation of the implementation of the also attended by 41 Heads of State and 10 December 2020. The Summit agreed Master Roadmap. Governments from the continent. The to extend the AU Master Roadmap of one-day Summit provided an opportunity Practical Steps to Silence the Guns in COMESA team led by Secretary-General for the Heads of State and delegations Africa. Member States requested that the Chileshe Kapwepwe and staff from the to take stock of the achievements and Commission Chairperson puts in place Governance, Peace and Security (GPS) challenges in the silencing the Guns an institutional mechanism to coordinate Unit participated in the session. . It was programme. the effective planning, monitoring and Key Policies for Livestock and Fisheries Developed C OMESA Secretariat has developed three key policies to help the growth of the livestock and fisheries sector once Member States adopt them. These are COMESA Livestock Policy Framework, Manual for the Harmonized Grading and Classification of Cattle, Goats and Sheep for Meat and the Ecosystem-Based Fisheries Management. The policies were developed with the full involvement of the Member States, international institutions, other regional organisations and cooperating partners. Subsequently, in November 2020, the Council of Ministers urged Member States to adopt the policies and allocate more resources to livestock and fisheries development and utilization of veterinary development in the regional bloc.. Frameworks. laboratories for diagnosis of COVID 19. In its meeting on 26 November 2020, The Secretariat has been supporting The Council further directed the the Council appreciated the successful Member States to formulate their Secretariat to support Member collaboration between COMESA and livestock development policy, strategy States and mobilise resources for Member States veterinary and animal and regulations, rolling out of the Animal implementation of the livestock production authorities, regional economic Resource Information System (ARIS) and policy framework. This is in addition communities, African Union and global developing of harmonized grading and to financing implementation of the organizations and the key achievements. classification of cattle, sheep and goats Reinforcing Veterinary Services in These include the development and for meat; and mapping of enterprises in COMESA and enhancing participation of validation of Regional Livestock and exporting and importing countries. small-scale fisheries in the blue economy Fisheries and Aquaculture Policy 15 COMESA Newsletter Vol. 4/20
16 Zambian Civil Societies to Play Greater Role in Peace and Security O ver ten civil society and private sector organizations in Zambia participated in a two-day national consultation workshop on 16-17 November to enhance their role in the COMESA Peace and Security programme as the country prepares to hold general elections in 2021. COMESA in collaboration with the Economic, Social and Cultural Council Zambia`s Minister of Commerce, Trade and Industry Hon. Christopher Yaluma (ECOSOCC) organized the workshop as Impacts of COVID-19 in Focus at the part of efforts to strengthen collaboration with Civil Society Organizations (CSOs) 2020 COMESA Policy Organs’ Meetings and the African Union. This is in addition to establishing a Civil Society National Chapter for ECOSOCC in Zambia. T he COVID-19 pandemic constituted a key discussion point in the 2020 COMESA policy organs meetings, owing Member States could move forward amidst the pandemic and plan for the future, by making informed decisions that Under this initiative, the capacity of Zambia’s CSOs will be enhanced for to its predominant negative impacts on respond to challenges in solidarity and better engagement in matters of peace regional integration and more so on the harmony. and security in line with the African Union movement of goods and services. 2020 theme of Silencing the Guns. It On trade facilitation, the meeting noted will also improve the CSOs engagement As he opened the 41st Meeting of the the significant progress made especially with the Zambian Bureau on the Intergovernmental Committee, Monday on automation of customs operations implementation of the COMESA Early 23rd November, Zambia’s Minister of and digitalization of processes and Warning System (COMWARN). Commerce, Trade and Industry Hon. procedures, simplification of cross-border Christopher Yaluma said the region trade to support women and small-scale During the same workshop, the had witnessed a dramatic decline and traders and monitoring and addressing participants reviewed the accreditation of destabilization in domestic, regional non-tariff barriers to trade. local CSOs to the COMESA Programme and international trade, requiring the on Peace and Security (GPS). employment of comprehensive economic On infrastructure, the meeting noted The GPS programme was tasked to recovery strategies. that COMESA was collaborating at ensure the involvement of private sector the tripartite level – with East African and civil society organisations on matters “COVID-19 has hit hard countries that Community and the Southern Africa of peace and security on a consultative are sources of major imports and export Development Community - to facilitate basis. Thereafter, the Rules of Procedure destinations for the COMESA region,” trade and transport of goods and were developed for accreditation Hon. Yaluma noted. “This has negatively services. This is by adopting the to the COMESA Peace and Security impacted not only on availability of harmonised tripartite guidelines on trade Programme. supplies, but also on prices that have and transport facilitation guidelines risen sharply in some instances.” for safe, efficient and cost-effective Head of the Unit, Ms. Elizabeth Mutunga movement goods and services. told the participants that once CSOs are He cited a recent study conducted accredited to the COMESA programme, among businesses and tourism The two days virtual meeting brought the Secretariat provides numerous enterprises in Zambia, which indicated together Permanent/Principal Secretaries opportunities to meet and share that 71% partially closed while 14% were from the Ministries that coordinate experiences and to review the impact of totally closed. COMESA programmes at the national the accreditation. level. The meeting also discussed how Over the years, the Secretariat has to page 18
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