Expected Free Flow of Traffic - Tripartite Ministers Approve New Harmonized Guidelines - Common Market for Eastern and Southern Africa ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
NEWS Vol 3 July-Sept 2020 Free Flow of Traffic Across COMESA, EAC, SADC Expected Tripartite Ministers Approve New Harmonized Guidelines 1 COMESA Newsletter Vol. 3/20
Editorial 2 CONTENTS COVID -19 Should not Justify Reintroducing NTBs in COMESA 1 COMESA Ministers Adopt COVID-19 Food Security and Nutrition Plan F 2 or several years, COMESA region has maintained a 82% of NTBs in COMESA are Operational success rate of resolving non-tariff barriers by over and Easy to Monitor 95%. Indeed the goal has been to attain 100% rate to ensure unfettered flow of goods and services across 4 Tripartite Transport Facilitation Laws set to be Harmonized from Cape to Cairo the region. A 100% success rate is achievable, because it is a win-win situation where the aggregate of good is 10 Region has Increased Staple Crop higher than the aggregate bad. In any case, belonging Production to an economic bloc such as COMESA, entails making 11 COMESA-EAC-SADC Develop Electronic some sacrifices for the greater good of the participating members. Corridor Trip Monitoring System With the Covid-19 pandemic rampaging across our region and the globe, the commitment towards honoring the free trade protocols 13 Regional-Wide Post-Covid-19 Recovery Plan is a Top Priority seems to be facing an acid test. Gradually, there has been a notable upsurge of NTBs as countries strive to contain continued spread 16 COMESA’s New Plan for the Next Five of the virus. The most common are restrictions on movement of Years goods and services across borders. Whereas the measures could be understandable given the battering that Covid has visited on the 19 50 Million African Women Speak Platform Launched in Zimbabwe economies, these are not enough reasons to justify the re-introduction of NTBs. By and large, such restrictions run counter to the spirit of 22 Great Lakes Trade Facilitation Project establishing the COMESA Free Trade Area, which was based on the Extended to end of 2021 need for establishing an economic community of nations. As reported 25 FEMCOM Supporting Eritrean Women in this edition, at least 82% of the reported NTBs in the region are Farmers Tackle COVID-19 Challenges mainly operational, those imposed on imports and exports of goods through Agriculture and services and are easy to identify and monitor. But there are the complex ones, the behind-the-border measures imposed internally 29 Zambia Toasts SG Kapwepwe for Being and include domestic legislations. Nevertheless, there is optimism Named Among that the emergence of NTBs will not last long based on two factors: 100 Influential African Women one, that Covid-19 will be stopped, very soon now that a number of 32 Taking Stock of the Implementation curative and preventive measures are succeeding. The development of Regional Guidelines, two Months After of several vaccines, which have achieved high levels of efficacy is a major breakthrough. The second point is that regional frameworks that enable smooth trade and transport facilitation are in place and countries are implementing them. Also notable is the online platform for monitoring NTBs not just in COMESA but at the Tripartite and AFCFTA levels. In addition, the Council of Ministers is expected to adopt the revised COMESA Regulations on the Elimination of NTBs EDITORIAL TEAM and its working procedures. This willl enforce the application of the EDITOR: provisions of the COMESA Treaty on dealing with a Member State Mwangi Gakunga that fail to fulfill an obligation under the Treaty or has infringed such provision. CONTRIBUTORS: Muzinge Nampito-Chibomba Daniel Banda Mwangi G 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. Matthews Lungu
File Photo: Meeting of the COMESA Ministers of Agriculture, 2015. COMESA Ministers Adopt COVID-19 Food Security and Nutrition Plan M inisters responsible for agriculture, environment and natural resources have adopted the COMESA COVID-19 to supporting smallholder farmers to increase production and productivity, through access to inputs, services and has supported Member States to adopt Climate Smart Agricultural policies and strategies and implementation of the Food Security Response Plan to help the improved technologies including seeds, Comprehensive African Agriculture region deal with the impacts of Covid-19 planting materials, fertilizer, veterinary Development Programme (CAADP) on regional food security. products and animal feeds. through technical and advisory support. In their 7th joint meeting conducted Speaking at the official opening, The Secretariat has also supported the virtually, the Ministers expressed concern Secretary General (SG) Chileshe Mpundu development of livestock and fisheries about the unfolding effects of Covid-19 Kapwepwe said a lot more still needed development through provision of on food and nutrition and called on to be done for the region to effectively financial, technical and organizational Member States to immediately mobilise address the challenges of climate support in the development and resources to support the implementation change, transboundary plant pest and implementation of policies and of the regional plan to ensure food animal diseases, and degradation of strategies. security. natural resources. Through its Agency, the Alliance for The Ministers have also committed She called for the need to build the Commodity Trade in Eastern and themselves to ensure that food and resilience of agriculture and agri-food Southern Africa (ACTESA), COMESA agricultural input markets and supply systems as well as ecosystems for Secretariat has been working with chains, along with associated logistics greater functionality and efficiency. Member States and partners in and services remained open and This will also call for adoption of harmonizing and domestication of the functional in line with the COMESA-EAC- comprehensive approach to early seed trade regulations to promote cross- SADC Tripartite COVID-19 guidelines warning, disaster preparedness and border seed trade for increased access to adopted last week. response including social protection & quality seeds by the farmers. safety net systems. In a Declaration issued at the end of Representatives of partners organization the one-day meeting, the Ministers The SG urged Member States to including the Alliance for a Green pledged to support agricultural research collectively deal with food safety issues Revolution in Africa (AGRA), the United to develop, transfer and disseminate to further open-up markets and enhance Nations Industrial Development technologies, innovations and trade in safe agricultural and food Organization (UNIDO), Forum for management practices that are climate- commodities in the region and in the Agricultural Research in Africa (FARA) resilient, market-responsive, suited to context of African Continental Free Trade and the African Union Inter-African assorted agro-ecological contexts and Area. Bureau for Animal Resources (AU-IBAR) end-user preferences in the region. among others attended the meeting. As part of efforts to boost sustainable The Ministers committed themselves agricultural productivity, the Secretariat 1 COMESA Newsletter Vol. 3/20
2 82% of NTBs in COMESA are Operational and Easy to Monitor But Behind-the-border type of NTBS are more complex A police roadblock A t least 82% of the reported Non- institutional structures to resolving all Tariff Barriers in the COMESA types of NTBs require sustained review. region are those imposed on imports and exports of goods and Regulations should take into account services and are largely operational by the nature, forms and categories of design. According to trade experts, these various non-tariff measures, domestic type of NTBs are easy to identify and policies, laws and regulations and the monitor. diversity of economic sectors. But even more importantly, the regulations Thus, from an analytical perspective, and procedures should be inclusive, the relatively high rate of resolution of considering small scale enterprises, NTB cases in COMESA, which is over youth and women as important players in 95%, does not necessarily imply that the the integration process. mechanisms established to eliminate NTBs are effective. Rather it shows that Although all Member States have mechanisms in place capture more of outstanding Intra-COMESA NTBs. established NTBs Focal Points, several the operational as opposed to the behind- countries are yet to formalize and the-border types of NTBs. Dr Onyango said several strategies and operationalize their National Monitoring mechanisms have so far been put in Committees. These are considered The behind-the-border measures are place to reduce the occurrences and critical to the implementation of the mainly imposed internally and include eliminate NTBs since the establishment regulations and elimination of NTBs, even domestic legislations covering health, of COMESA, particularly following the most important is sharing experiences technical, product, labor, environmental advent of the FTA regime. However, and developing capacities to identify, standards, internal taxes or charges, and the NTBs have remained prevalent and categorize and report them as they domestic subsidies. continue to constrain the growth and occur. expansion of intra-COMESA trade and According to the COMESA Director investments. Dr Onyango underscored the importance of Trade, Dr Christopher Onyango, (in of sustained capacity building and picture) the latter category is much more He called for continuous reviewing information sharing to strengthen the complex and difficult to identify and have and improving of existing regulations ability to capture emerging issues and in recent times become major sources and mechanisms taking into account finding lasting solutions to NTBs. Going of NTBs. changing eco-systems, understanding forward, he said COMESA Secretariat will key causes, analyzing regulatory regimes, endeavor to elevate capacity building and He was speaking at the opening of the production techniques and technological research in the efforts to strengthen NTB virtual 8th Meeting of the COMESA NTBs advancements. In the COMESA region, mechanisms and effectively support their Focal Points which took place from some NTBs have remained unresolved elimination from the region. 8 - 10 July 2020. The objective of the for long, some dating back to 2000. meeting was to deliberate on the revised The meeting was attended by delegates COMESA Non-Tariff Barriers regulations, He added that in as much as willingness from Burundi, Djibouti, D.R. Congo, the 2nd draft of the Working Procedures and commitment of parties involved Comoros, Egypt, Eswatini, Kenya, on implementation of COMESA may be critical, the effectiveness and Madagascar, Malawi, Mauritius, Rwanda, NTBs regulations and to consider the capability of the mechanisms and Seychelles, Somalia, Sudan, Tunisia,
COMESA Launches Mobile App to Facilitate Operations of the Consumer Regional Customs Transit Scheme Alert on Pyramid Schemes C OMESA Competition Commission (CCC) issued an alert in September advising consumers in the region to be on the lookout for pyramid schemes, whereby people are encouraged to join and recruit others at a fee to make money. Members of a pyramid scheme File Photo/ Crew prepare a transit goods truck operating under RCTG, departing to Uganda from the Port of make money through the recruitment of Mombasa, Kenya others. T he COMESA Regional Customs Transit Guarantee Scheme (RCTG- Carnet) launched a Mobile Application Sureties and Agents, delays at border points and revenue leakage. A statement from CCC Headquarters in Malawi announced that the on 11 September 2020 to provide access The COMESA RCTG Carnet is the second Commission’s attention had been drawn to real-time information to clearing and of its kind in the world after the European forwarding agents in the region. The Transports Internationaux Routiers (TIR) to the activities of a scheme known Application is accessible on Google Play Carnet and the only one in the region and as Crowd1, which marketed itself as a Store and Apple Store and provides a the African continent. It is recognized by digital multi-level company and whose one-stop shop for the agents in member the World Customs Organization (WCO). operations were being investigated in countries to view current Bond balance some jurisdictions. and active Carnets, get notifications on The RCTG Scheme has 13 members Carnet acquittals and expiry of RCTG namely Burundi, Djibouti, DR Congo, Specifically, the Commission noted Bonds. Ethiopia, Madagascar, Malawi, Kenya, that authorities in the Philippines and Rwanda, South Sudan, Sudan, Tanzania, Namibia found that Crowd1 members The scheme popularly known as the Uganda and Zimbabwe. Currently, the made money by recruiting others. The RCTG CARNET is a guarantee used for Scheme is operational in five countries; organization has since been banned in goods in transit as an undertaking to namely: Burundi, Kenya, Rwanda, Namibia. In Philippines, authorities are comply with Customs obligations within Tanzania and Uganda. The RCTG Carnet each transit country. Its objective is is fully digitalized and integrated with the said to have issued a cease and desist to ensure that governments of transit National Customs IT Systems. order to Crowd1 for operating without a countries can recover duties and taxes license. from the guarantors should the goods During the year 2018, nearly $2 billion be illegally disposed-off in the local COMESA RCTG Carnets for customs Further, authorities in Mauritius and market. The CARNET offers Customs duty and taxes for goods in transit in the New Zealand had issued investor alerts, Administrations a secure regional Northern and Central Corridor countries advising the public to exercise caution in system of control replacing the nationally were issued. their dealings with Crowd1. executed practices and procedures. Find the App on google and apple store Consumers were advised to exercise COMESA Member States introduced the on:- caution when dealing with Crowd1 and Scheme in 2012 to address difficulties https://play.google.com/store/apps/ also conduct research about companies experienced by transport operators, details?id=com.comesa.rctgmobile freight forwarders and clearing agents. https://apps.apple.com/us/app/ they wish to invest in to avoid losing These included high cost of Bond / id1530035067#?platform=iphone their hard-earned money. Guarantee and collaterals charged by 3 COMESA Newsletter Vol. 3/20
4 Tripartite Transport Facilitation Laws set to be Harmonized from Cape to Cairo C ross border road transport laws, regulations, standards and systems are set to be harmonized from Cape to agreements for signature by the Heads of State and Government. The meeting of the Tripartite Council of Ministers will be Multilateral Cross Border Road Transport Agreement provides for a framework for enabling a comprehensive cross Cairo following the endorsement of two conducted before the end of this year. border road transportation management anchor Multilateral Agreements and five system, which is based on quality Model Laws. The COMESA-EAC-SADC vehicle load regulation as opposed to economic The two anchor multilateral agreements management agreement sets out the regulation. are the COMESA-EAC-SADC Vehicle harmonized regulations and standards Load Management Agreement (VLMA) and the methodology for calculating The transport management system is and the COMESA-EAC-SADC Multilateral overload fees. The purpose is to retrieve supported by an electronic Tripartite Cross Border Road Transport Agreement the additional cost to the infrastructure Transport Registers and Information (MCBRTA). The two had been adopted caused by overloading, as well as the Platform System (TRIPS), which enables by the Tripartite Sectoral Ministerial permissible load limits with the view the exchange of data between the Committee on Infrastructure (TSMCI) at to protect the road pavement as well Member/Partner States, from their its 2nd meeting held in October 2019 in as to ensure road safety. This Draft own National Transport Information Lusaka, Zambia. Agreement also provides the basis for Systems (NTIS) that consist of a number cooperation between the Member/ of modules, amongst others a vehicle The accompanying model laws endorsed Partner States of the Tripartite Free Trade system, a driver system, an operator were COMESA-EAC-SADC Vehicle Load Area regarding vehicle load management, system and a transgression system. Management Model Law, COMESA- law enforcement, information sharing, EAC-SADC Cross Border Road Transport as well as mechanisms for dispute The draft instruments were developed Model Law, COMESA-EAC-SADC Road resolution. through the Tripartite Transport and Traffic Model Law, Draft COMESA- Transit Facilitation Programme (TTTFP) EAC-SADC Road Traffic and Transport The COMESA-EAC-SADC Multilateral of COMESA, EAC and SADC. The joint Transgressions Model Law, and Draft Cross Border Road Transport Agreement, programme is funded by the European COMESA-EAC-SADC Transport of provides for a Tripartite legal framework Union under the 11th European Dangerous Goods by Road Model Law. for harmonization of road traffic and Development Fund. transport related aspects, including The COMESA-EAC-SADC Tripartite vehicle registration documents, transport The meeting was opened by the Minister Sectoral Ministerial Committee on Legal operator registration, vehicle fitness of Justice of Madagascar, Hon Jonny Affairs (TSMCLA) endorsed the tripartite testing, driver training and testing, as Richard Andriamahefarivo and also draft legal instruments on transport and well as driving license categories based addressed by the Executive Secretary transit facilitation during a virtual meeting on appropriate international standards, for the Southern Africa Development held on 18 September 2020. Thereafter, including United Nations Standards. Community Dr. Stergomena Lawrence the Tripartite Ministerial Council will Tax who is also the Chair of the Tripartite consider them and then recommend the Further, the Draft COMESA-EAC-SADC Task Force.
COMESA Welcomes the new Continental One-Stop-Shop for Medicines T he launch of the African Medical Supplies Platform (AMSP) in June this year, was an invaluable One Stop strained health systems. “By reducing costs through pooled the region - during and post Covid-19. “Evidence from analytical data indicate that there are various products in the Shop that would ensure access to safe procurement, this initiative goes a long medical industry that COMESA countries and affordable quality medicines in way in easing the financial burden and can produce and export to each other Africa. The platform was developed strengthening national responses to the if the capacities of pharmaceuticals to serve as a consolidated online pandemic,” she told the guests. manufacturing enterprises related to marketplace to facilitate the provision of Good Manufacturing Practice (GMP) COVID-19-related medical products by She added: “COVID-19 has shown the Quality Management Systems (QMS) addressing supply chain issues such as limitations of globalization and global and Regional Standards are improved,” shortages, delays in distributing supplies, supply chains, which have been easily Secretary General said. accessibility and affordability. disrupted due to the various lockdowns and the unprecedented shortages of She added that it is against this In September 2020, COMESA and tradable commodities and services in our background that the COMESA and ECA, the Economic Commission for Africa countries.” in partnership with Africa Centre for (UNECA) joined hands to showcase the Diseases Control, Afreximbank, and the platform to key stakeholders, among Of greatest concern in the region has AU Special Envoy, Mr. Strive Masiyiwa them, ministers in charge of finance and been shortages or constrained supplies convened the high level virtual meeting, health from the African continent. The of essential pharmaceutical products, to showcase the opportunities offered by aim was to demonstrate how it would including medicines, personal protective the African Medical Supplies Platform. help address health challenges posed equipment and potential increases in by the COVID-19 and how governments could scale up interventions to stop further spread of the pandemic. substandard and counterfeit products. Consequently, the costs of these essential medicines and other health “ By reducing costs through pooled procurement, this products have escalated thereby further initiative goes a long At the event conducted online, COMESA limiting their access by health workers way in easing the Secretary General Chileshe Mpundu and the sick. financial burden and Kapwepwe cited financial constraints as one of the biggest stumbling blocks COMESA had in the immediate past strengthening national to effectively manage the pandemic started working on a programme to responses to the considering that majority, if not all strengthen production capacity of pandemic,” she told the economies in Africa have financially- pharmaceutical and medical supplies in guests. 5 COMESA Newsletter Vol. 3/20
6 File Photo: Participants at a past symposium of Central Bank Governors Experts Discuss Trade Negotiation Modalities in Time of COVID-19 T rade experts from the 21 COMESA Member States met on 16 September 2020 to review progress on competitive and trade with third parties outside the region and globally,” she said. session. “Online negotiations may be very trade negotiations between countries and COMESA considers Trade in Services challenging and may be impossible but to review progress towards concluding as a fundamental economic activity through online and virtual platforms Trade in Services negotiations. The globally given its contribution to job exchange of requests and offers, it is still virtual meeting, which was the 8th creation, building competitiveness and possible with other technical work on for the COMESA Technical Working significantly contributing to economic improving the drafting and presentation Group on Trade in Services, considered growth. It creates the need for Member of the initial offers,” said the Senior Trade the complexities prevailing during the States to streamline their policies and Officer. COVID-19 period and provided technical promote it among themselves. and policy guidance from the Member At the meeting, the Secretariat shared States regarding the negotiations. Mrs. Twizeye added: “This makes the information and updated Member States Trade in Services agenda important on the submission of draft offers for Speaking at the meeting, Senior Trade for COMESA hence the need for this sectors that the countries were willing Officer at the COMESA Secretariat Mrs. meeting so that despite COVID-19 impact to open for the others. It also shared Alice Twizeye stressed the importance across the world, our Member States preliminary technical analysis of the of concluding negotiations on Trade can take necessary actions and explore initial offers submitted and information in Services in all the seven identified new opportunities to the prevailing on capacity building initiatives planned priority sectors. These were: business, challenges.” for the coming months. communication, financial, transport, construction, energy-related and tourism Previously, most of the trade negotiations The delegates provided suggestions on services. were conducted in physical meetings. how to move forward on some of the However, in view of pressing need for issues to advance the negotiations on “These have potential to enhance the negotiations to progress, the Secretariat the schedules that have already been development and diversification of decided to convene the virtual meeting submitted during this COVID period to regional services as well as facilitate to provide Member States with relevant enable work to continue. At least 60 an increase in Trade in Services updates in light of the current logistical delegates participated in the meeting. and proactively find solutions to be challenges of convening a physical
COMESA Bank in an Unprecedented Funds Mobilization as World Bank Approves $425 Million Towards Infrastructure Financing T he World Bank Board of Directors approved a total of US$425 million in International Development Association and distribution, as well as infrastructure, in TDB Member States. (IDA) financing to support infrastructure President and Chief Executive Officer development in the Eastern and of the TDB Mr. Admassu Tadesse Southern Africa through the Trade and described the past quarter of this year Development Bank (TDB) and COMESA as a season of new and expanded Secretariat. multilateral and bilateral partnerships on an unprecedented level. This funding falls under the Regional Infrastructure Financing Facility Project Mr Tadesse noted that the TDB and (RIFF), which aims at expanding long- COMESA flags were flying high and new term finance to private firms in selected Member States from beyond COMESA infrastructure in the power sector, as well were continuing to knock on the doors. as in the transport, logistics, and social This guarantee provides protection to the And as the region was embracing the sectors. This is the first regional facility of lenders against the risk of Non-Honoring newcomers, in the spirit of the AfCFTA, this kind in Africa. The new transactions of Financial Obligations by a Regional the bank was dutifully preserving TDB’s will support regional integration and Development Bank (‘NHFO-RDB’) and character as a COMESA-based specialist private sector development, and in supports TDB’s access to commercial regional bank, with membership and turn, the sustainable socio-economic bank financing at longer tenors and lower operations well beyond COMESA development of the region TDB serves. interest rates than would otherwise have Reacting to the positive developments, been available. Secretary General of COMESA Chileshe TDB provides trade and project finance Mpundu Kapwepwe, congratulated the to its 22 member states, which includes TDB has also attracted two new TDB for the new partnerships. countries from the wider COMESA-EAC- European funding partners with SADC Tripartite Free Trade Area, and initial long-term funding of USD 80 “We take immense pride in achievements will use the facility to diversify its long- million. They include a 10-year EUR 50 of the Bank as a COMESA institution, term funding sources, sharpen focus million term loan facility signed with which is actualizing the vision and on critical food and fuel imports, and Cassa Depositi e Prestiti (CDP), Italy’s foresight of the founding members of facilitate imports of COVID-19 equipment Development Finance Institution, for on- building strong institutions which can and construction materials for healthcare lending to the private sector – particularly deliver the mandate for the benefit of the facilities through its structured trade SMEs – located in some TDB Member region,” she said. finance business States, and operating in agribusiness, social infrastructure, health, education, This is the first time IDA and the transports and logistics. “We take immense Multilateral Investment Guarantee pride in achievements of Agency (MIGA) - the political risk The other is similarly a 10-year USD the Bank as a COMESA insurance and credit enhancement arm 25 million term loan facility signed institution, which is of the World Bank Group - are jointly with the development bank of Austria, actualizing the vision and supporting a regional development Oesterreichische Entwicklungsbank AG foresight of the founding bank. MIGA is providing TDB a credit (OeEB). The funds will finance projects members of building enhancement of EUR 334.4 million on a in various development areas such strong institutions which ten-year loan from private commercial as renewable energy including hydro, can deliver the mandate banks, that will help TDB expand trade windmills, solar, cogeneration and for the benefit of the finance activities. geothermal projects, energy efficiency in region,” she said. industry, housing, electricity transmission 7 COMESA Newsletter Vol. 3/20
8 FILE PHOTO/ Traffic in motion on a highway Free Flow of Traffic Across COMESA, EAC, SADC Expected as Tripartite Ministers Approve New Harmonized Guidelines T he Tripartite Council of Ministers of the three regional economic communities in the eastern and southern Africa have approved new harmonized trade and transport facilitation The Ministers also agreed on the development and integration of electronic surveillance systems to monitor drivers’ health and movement of trucks, which will be undertaken by guidelines for the movement of persons, goods and services Member/Partner States. They noted that COVID-19 cross- across the region. border restrictions have mainly targeted truck drivers leading to their stigmatization. This has not only affected the drivers Dubbed the Tripartite Guidelines for the Movement of and local communities, but also negatively impacted the Persons, Goods and Services across the Tripartite Region ongoing efforts to contain the spread of COVID-19. during COVID-19 Pandemic, the guidelines consolidate those developed earlier by COMESA, the East African Community “Those mobility restrictions to contain COVID-19 have affected and the Southern Africa Development Community into one, regional trade and transport, and resulted in shortage of and will henceforth be applied across the 28 Member States. goods, and long queues at ports of entry and exit, translating These are: into increased cost of doing business and consumer prices, but this will be a thing of the past,” said the Chairperson of the • the COMESA-Guidelines for Movement of Goods Tripartite Task Force Dr Stergomena Tax, who is the Executive and Services across the COMESA Region during the Secretary of SADC. COVID-19 Pandemic, • the EAC-Administrative Guidelines to Facilitate With the Tripartite guidelines in place, she noted, the smooth Movement of Goods and Services during COVID-19 flow of traffic for goods and services will ensure economic Pandemic; development of Member and partner States who have been • and the SADC-Guidelines on Harmonization and affected by the pandemic and help them build their economies Facilitation of Cross-Border Transport Operations once again. across the Region during the COVID-19 Pandemic The Tripartite Council Chairperson who was represented The harmonization of these guidelines was necessitated by by Assistant Minister for Foreign Trade, Agreements and the overlapping membership of countries among the three International Relations of Egypt, Hon.Tarek Shalaby, said the economic blocs and the shared traffic on their transport harmonization of guidelines presents an opportunity towards corridors, which have been negatively impacted by the current the realization of the Tripartite Free Trade Area (TFTA). COVID-19 response measures. “The attainment of tripartite and continental integration can In a meeting conducted in July 2020 via teleconference, only be realized with the harmonization of regional initiatives the Ministers directed the Tripartite Task Force to establish and overcoming the challenges of overlaps and multiple the required institutional arrangements for monitoring the membership of COMESA, EAC and SADC,” he said. implementation of the Guidelines. Ministers in charge of trade and transport and other government officials attended the Secretary General of COMESA, Chileshe Kapwepwe and Mr meeting. Kenneth Bagamuhunda, the representative of the Secretary General of EAC, H.E. Ambassador Liberat Mfumukeko
Packed seeds in preparations for sowing, organization and storage for safety. Improved Seed Trade, will Unlock Regional Food Security S ustainable agriculture is an essential factor in advancing trade within COMESA and the rest of Africa. Over the investment and increased seed production and trade among others. different actors in the seed sector for the sustainability of the industry. last two decades, Africa has remained Among the key recommendations of Further, CBC was called upon to come a net food importer, with agricultural the Webinar was the need to develop up with a Seed Statistics Information accounting for about 60% of Africa’s harmonized legislation across the System. This would address the total trade in agricultural products. region and one stop shop to provide challenge posed by lack of real-time trade Furthermore, agricultural product imports relevant permits for the seed industry. data on seeds, which delays and affects account for around 13% of total imports. Participants noted that some of the decision making process. authorities are not based at one place The COVID-19 pandemic has which in turn increase costs and time for Currently, COMESA is working with brought agriculture and food security getting the necessary documentations. Member States to benchmark issues to the fore and it presents They agreed that strong inter-agency seed standards and regulations to a formidable threat to trade in regulatory processes and information International accepted levels. The agricultural commodities. This has flows need to be put in place to map out involvement of both private and public necessitated bringing together experts simpler clearance processes at domestic sector is needed mostly through private- to discuss and come up with practical and transboundary trade facilitation level. public dialogue so that policies are well recommendations to cushion the sector informed and also practical solutions can from pandemic related disruptions. The meeting also recommended that a be identified. peer review be conducted to monitor the This is what informed the COMESA authenticity of seed in the region to avoid Panelists included the Regional Director Business Council (CBC) webinar on 27 cases of counterfeit and those found for Syngenta Foundation East Africa, Mr. July 2020 themed: “Unlocking Food wanting to be penalized. This will be done Osure George, Regional Head Africa & Security Through Improved Seed Trade through strengthening the supply of the Middle East at Advanta Seeds, Mr. Ndavi in COMESA”. This was a public-private volumes of truly certified seeds marketed Muia and the Corporate Engagement consultative platform on agricultural in the region, as well as information Lead – Africa for Bayer Crop Science transformation and improved trade within sharing campaigns, which is key in Mr. Jimmy Kiberu. Others were, Dr. COMESA and brought together regional sensitizing farmers on quality seeds. John MacRobert, the Acting Chairman seed producers and traders. for Zimbabwe Seed Trade Association The CBC was urged to engage local and Mrs. Providence Mavubi, Director, Discussions hinged on, access to quality seed companies and governments Industry and Agriculture at COMESA. and affordable seed, trade facilitation to strengthen the existing business CBC Chief Executive Officer Ms. Sandra in the movement of seed across the environment, as this will motivate Uwera moderated the Webinar. borders during COVID-19, measures companies to make investments in to curb illicit trade in seed and policy countries that they are operating in. It and regulatory frameworks to facilitate will also strengthen dialogue between 9 COMESA Newsletter Vol. 3/20
with a positive impact on yields. 10 Region has Increased Staple Crop Production In Madagascar, paddy yields are forecast to be below average in 2020 in the paddy producing districts in Anosy and Ihorombe, as a result of erratic rainfall and seasonal totals that have been below average, hindering crop development. In Malawi, production of other cereal crops, mainly rice and sorghum, was also estimated at above average levels as favourable weather conditions boosted the area planted and yields. Overall, cereal production in 2019 is estimated at 3.7 million tonnes, 12 percent above the five year average. In Rwanda, the cereal production was File Photo: Vegetable farm in Mphatini, Eswatini at about 733 000 tonnes, about 3% up from 2018 and 12 percent above the M ost countries in the COMESA region have recorded an above average yield in the production of Zambia produced 3.4 million Metric Tonnes (MT) of maize, representing 69% more than the 2018/19 season average of the previous five years. In Mauritius, the production of paddy, staple foods for the 2019/2020 farming which was slightly above 2 million the principal cereal produced in the season, and this is expected to reduce MT. In addition, the country recorded country, increased on a yearly basis, hunger among the 560 million people. 20,000MT of sorghum, 35,000MT of mostly on account of favourable rice, 45,000MT of millet, 50,000MT weather conditions that boosted yields. COMESA Seed Expert Dr John Mukuka of sunflower and 300,000MT of Soya In addition, the yield of vegetables and attributes the increase to the fact that beans among others. fruits are estimated to be 35% above 90% of the 80 million smallholder the level of the corresponding period in farmers involved in the production of In Burundi, the 2019 aggregate cereal 2018. staple foods in the Member States, now production was about 326 000 MT, have access to affordable, quality and similar to the 2018 output and about In Tunisia, the preliminary forecasts improved seed. However, the production 10% above the average of the previous for the 2019 cereal production point of the same staple food crops for the five years. to a bumper cereal crop of almost 2.2 coming season of 2020/21 is likely to million MT, over 55 percent above the drop due to the impact of COVID-19. The 2019 cereal production in Egypt 2018 weather-stricken harvest and is forecast at 22 million MT, about the over 40 percent above the average. Dr Mukuka estimates that agricultural same quantity as in 2018, but about For the 2019 harvest, about 700,000 production is likely to contract between 6% below average due to decline in rice hectares were planted with wheat and 2.6% and up to 7% in the region due to production. 620,000 hectares with barley, compared COVID-19. This might result in increased to 620,000 and 525, 000 hectares, prices of food (especially staples such According to the data, Eswatini respectively, planted in 2018. as wheat, maize and rice) due to mainly harvested an estimated 95 000 tonnes disruptions to the agriculture and input of maize in May 2019 which was 16% In Zimbabwe production of cereals supply chain. below the previous year’s high level, but in 2019 was below average level of still 10% above the five year average. 944,000 MT due to unfavorable weather This data on staple food production has conditions. To increase imports, the been collected from selected member In Ethiopia, harvesting of the 2019 main government lifted the ban on imports countries under the COMESA Seed “Meher” season crops is well underway of Genetically Modified (GM) grains Harmonisation Implementation Plan and production prospects are generally in December 2019, introducing a rule (COMSHIP) in collaboration with the favourable. In western key producing that provides for grains to be put into Indaba Agricultural Policy Research areas of Benishangul Gumuz, western quarantine before being milled into flour. Institute (IAPRI) in Zambia and FAO’s Amhara and western Oromiya regions, (this report was published in July 2020) Global Information and Early Warning the June - September 2019 “Kiremt” System (GIEWS). rains were up to 30% above average,
File Photo: Cargo freighters at the Kazungula border between Zambia/Botswana COMESA-EAC-SADC Develop Electronic Corridor Trip Monitoring System A regional electronic Corridor Trip Monitoring System (CTMS) which will allow cross border road transport Secretariat Mr Baptiste Mutabazi revealed in Lusaka that the CTMS will enable operator, vehicle and driver Thereafter, the CTMS will be rolled out to other corridors in the Tripartite region based on Member States preparedness. operators, drivers, regulators and law information to be readily available According to transport experts at enforcement agencies to record and along regional transport corridors at COMESA Secretariat, a number of monitor driver wellness data such as the roadside and at border posts to activities have been undertaken in COVID-19 test results has been approved all regulatory and law enforcement preparation for piloting and roll out of by the Tripartite group. The CTMS will agencies. the CTMS which include presenting it also enable operators to track the driver, to COMESA Member States in June, to crew and truck movements against pre- The CTMS is an immediate remedial EAC Partner States in July and to SADC approved route plans. response to the COVID-19 pandemic and Member States also in June this year. its use will in future be further enhanced The CTMS is supported by the current through the Tripartite Transport The CTMS will in future be integrated legal and regulatory framework existing Registers and Information Platform with the EAC Regional Electronic Cargo both at regional and national level, which System (TRIPS) which is now under Tracking System (RECTS) which has include inter-alia: REC Treaties, Protocols development, as a corridor performance been enhanced to include Driver Tracking and Agreements, Corridor Agreements, management tool for smart corridors, Mr too and is currently being piloted in the Bilateral Road Transport Agreements as Mutabazi noted. East African region. well as National COVID19 regulations being implemented by Tripartite He added that the CTMS was being Member/Partner States. developed and deployed in a phased manner and was first released in June The system will eventually be reinforced this year. It will be piloted on a section by the legal provisions in the Tripartite of the Trans Kalahari Corridor that is Multilateral Cross Border Road Transport Botswana, Namibia and South Africa, Agreement adopted by the Tripartite a sections of the Walvis Bay Namibia- Sectoral Ministerial Committee on Ndola Zambia-Kasumbalesa DRC Infrastructure held in Lusaka in October Corridor and a section of the North-South 2019. Corridor that is South Africa, Botswana, Zambia up to Kasumbalesa Border post. Director of Infrastructure at COMESA Mr Baptiste Mutabazi 11 COMESA Newsletter Vol. 3/20
12 Unconventional Monetary Policies Necessary to Address the Impact of COVID-19 Dollar and Euro Bills C entral Banks in the COMESA region implemented new policy instruments and made changes to Central Banks provide collateralized long- term funding to banks to aid monetary transmission through the banking transfers abroad etc. He however cautioned that such their monetary policy frameworks to system and to support provision of measures should be implemented with address the low growth and increased new credit to bridge financing needs of due regard to countries international unemployment that resulted from the specific sectors,” Mr. Zeidy stated. obligation, in a transparent manner, negative impact of COVID-19. be temporary and lifted once crisis However, before implementing such conditions decreases. According to the report published tools, he noted, careful consideration in September by the Director of the should be given to the potential financial Other proposals made include the need COMESA Monetary Institute (CMI), Mr risks to Central Bank balance sheets, for countries to initiate fiscal stimulus Ibrahim Zeidy, most of the banks in the the operational readiness of such tools, packages to minimize the impact region and beyond applied different potential distortions and spill overs of the Coronavirus pandemic on the combinations of what have been labelled and the importance of transparency national economies; fiscal stimulus to as Unconventional Monetary Policy Tools and accountability in the use of such taxpayers impacted by COVID-19 and (UMPTs) and adapted their operations to instruments. tax suspension, waiver of tax payments the circumstances in their jurisdictions. in critical sectors and encouraging local “Central Banks should consider lowering sourcing by the public sector to support In view of this, the CMI came up with key the interest rate to increase loans to Small and Medium Enterprises (SMEs) recommendations of possible tools for businesses (and decrease their cost) and and other businesses. the Central Banks to consider in addition provide commercial banks with more to the UMPTs during the pandemic. They liquidity to support business activities,” he Mr. Zeidy proposed that governments include the need to provide funding to said. He added that a temporary use of through Central Bank can also market segments where liquidity has capital flow management measures can renegotiate external debt payment dried up. help prevent a free fall of the exchange plans, and conditions to ensure rate such as restrictions on resident smooth servicing of the debt, including “The possible tool to consider is providing investments and transfers abroad, caps suspension of interest rates payments funding for Lending Schemes whereby and other limitations on non-resident during the time of the crisis.
Regional-Wide Post-Covid-19 Recovery Plan is a Top Priority Secretary General Chileshe Kapwepwe flanked by Assistant Secretary General- Administration and Finance Dr Dev Haman (R) and staff during the virtual meeting with the Mauritius Minister of Foreign Affairs, Regional Integration and International Trade Hon Nandcoomar BODHA (not in picture) A s COVID-19 pandemic raged across the globe, COMESA Secretariat continued engaging multilaterally and Union and the World Bank among others, to support Member States during the pandemic and after. With regard to the ratification of the COMESA, EAC and SADC Free Trade Area, the Minister said Mauritius was bilaterally with Member States to share looking forward to the conclusion of experiences and updates on virtual She said, various support facilities had the negotiations on Rules of Origin and platforms. been secured including a $850,000 Market Access to ratify the Agreement. commitment from the AfDB to support The Tripartite was launched in 2015 and Towards the end of September, Secretary the development of pharmaceutical had by then been signed and ratified by General, Chileshe Mpundu Kapwepwe products and creation of value chains eight countries, six short of the required conducted a virtual mission to Mauritius for COMESA Member States. Further threshold of 14. where she met the Minister of Foreign discussions were underway to upscale Affairs, Regional Integration and this project with additional resources and “Negotiations have been lengthy as some International Trade Hon. Nandcoomar expand its scope. of the products involved are sensitive,” Bodha. the Minister noted. “It would be important COMESA was also conducting socio to share the outcomes of bilateral In the ensuing discussions covering a economic studies on the impact of the negotiators with all parties regarding wide range of issues, the two agreed pandemic to Member States to support market access.” on the need to prioritize a regional-wide their recovery efforts. Further, it had set post-Covid-19 recovery plan to assist up a portal for exchange of information The SG said lack of funding had also Member States get their economies on essential goods that are available slowed down the tripartite negotiations back on their feet and focusing resource in the region. Ms. Kapwepwe said the and this situation also been exacerbated mobilization efforts towards supporting platform will enable Member States to by COVID-19 pandemic. the plan. share information and connect buyers to suppliers thereby promoting and The two also discussed preparation Minister BODHA, whose Ministry is in fostering regional intra-COMESA trade. of the 2021 -2025 COMESA Medium charge of coordination of COMESA Term Strategic Plan (MTSP) which was programmes in Mauritius lauded Other matters discussed included being developed. Minister Bodha said COMESA Secretariat for cutting the implementation of the COMESA the development of the ocean economy, its budget by 10% and passing the Free Trade Area Agreement and the maritime security and climate change benefit to the Member States. Hence, importance to Member States to avoid were the main priorities of the island Member States will reduce their annual introducing any new trade barriers and States and should be placed top on the subscriptions to the regional economic resolution of the pending ones to boost agenda of the next COMESA strategic bloc by the same percentage next year. regional trade and support post-Covid-19 plan. He urged the organization to adopt economic recovery. a No-budget increase policy to help Secretary General Kapwepwe hailed the Member States in their economic “What we need is regional approach for Mauritius for setting the best example recovery efforts. economic recovery, with a harmonized in the region in the management and plan for all Member States as this will containment of the Covid-19 pandemic. Secretary General Kapwepwe said enable us forge partnerships with the The country had by then flattened the COMESA had actively engaged development partners as opposed to curve and had no active cases. development partners including the going alone,” the SG noted. African Development Bank, the European 13 COMESA Newsletter Vol. 3/20
Phase II of Tripartite Capac- 14 ity Building Programme Be- gins as AfDB Provides $1.1m for Implementation C OMESA Secretariat received $1.1 million funding from the African Development Fund (AfDB) for the implementation of the Tripartite Capacity Building Programme Phase II. The funds will support COMESA, East African Community (EAC) and the Southern Africa Development Community (SADC) and their Member States to operationalize the Tripartite Free Trade Area (TFTA), a major milestone for Africa integration. File photo: Kinshasa, DR Congo The programme has two key areas, which includes improving the capacity to implement the TFTA agreement and RISM Programme Sensitizes over improving transparency in trade to tackle 600 Congolese Stakeholders on the non-tariff barriers. Key outputs from the second phase will be the development COMESA Rules of Origin of guidelines, procedures, regulations and manuals required to operationalize I n September this year, over 600 as preferential trade regimes that make the Agreement in areas such as rules of origin and dispute settlement. stakeholders comprising of border them more competitive on the local and officials and local economic operators regional markets. The programme will support the from the Democratic Republic of establishment of online databases for Congo (DRC) completed trade related Despite its enormous potential, especially non-tariff measures in Tripartite Regional skills training designed to enhance in agriculture and labour, D.R. Congo’s Member countries, building on the better understanding of the potential local industries have been negatively pilots under Phase 1. This is expected opportunities that the COMESA market impacted by lack of integration into to improve transparency in trade, speed offers. regional and global value chains. Further, up the resolution of non-tariff barriers the lack of information, which is essential (NTBs), deter arbitrary application of The training was provided under the for decision-making limits export regulatory measures that hinder trade, COMESA Regional Integration Support possibilities. and improve awareness of traders about Mechanism (RISM) with funding from legitimate regulatory requirements, the European Union. This was part of a Over the past few months, the RISM which provides a foundation for them to Grant Agreement signed in August 2019 Programme, has also funded training improve their capacity for compliance. of 489,600 Euros between COMESA and seminars and workshops to build the D.R. Congo. capacity of economic operators and The programme will also enhance awareness of traders and the business state actors operating at border posts. community on the market access The training covered the COMESA Rules opportunities available under the of Origin, regional economic integration, Participants from Bukavu, Uvira, Agreement. Launched in 2015, the TFTA national regulation of COMESA Rules Kinshasa, Kolwezi, Lubumbashi, consolidates the markets of the three of Origin, COMESA Preferential Tariffs, Kasumbalesa, Goma and Bunia Regional Economic Communities (RECs) COMESA Simplified Trade regime (STR), benefitted from the training. Similar to address the challenge of fragmented the functioning of the COMESA Free trainings at D.R. Congo’s borders which markets and proliferation of non-tariff Trade Area (FTA) and mechanisms and had been temporarily suspended due to barriers, which inhibit cross border trade. procedures to request and benefit from COVID-19 are set to resume as soon as preferential tariff treatment within that the travel bans are lifted. An additional Together, COMESA-EAC-SADC covers a framework. 200 participants from Kisangani, Matadi, USD1.3 trillion market representing 56% Kananga, Mbuji Mayi are targeted in the of Africa’s Gross Domestic Product and Under RISM, the regional business next round. approximately 740 million consumers in community get the opportunity to benefit 27 countries. from the COMESA Free Trade Area such
Energy Infrastructure Development will Unlock the Region’s Vast Potential ENEGRY The Zambia -Tanzania - Kenya (ZTK) Power Inter-connector project substation in Kazama, Zambia T he power outages being experienced in the Eastern Africa-Southern Africa- Indian Ocean have continued to affect “As economies grow, so does the demand for energy as chronic shortages harnessed. The situation is exacerbated by inadequate regional infrastructure in energy leading to low levels of productivity leading to Africa loosing hold back potential for economic growth,” competitiveness of the countries in the 12.5% of production time compared he said. “This, underscores the need local, regional and global markets and to 7% for South Asia. This has been for new approach as we seek to craft power shortfalls. attributed to lack of adequate regional infrastructure in energy. Dr. Cheluget stressed the need for more generation capacity and optimization of Recent studies have shown that many the general system losses of electricity African countries, some of which are which is currently higher than average of in the Eastern and Southern Africa and 12 per cent. the Indian Ocean (ESA-IO) suffer power shortages and regular interruptions to Participants to the meeting represented services. Regional Economic Communities (RECs), Association of Energy Regulators, Power Dr Kipyego Cheluget, the Assistant Pools, Regional Centres for Renewable Secretary General in charge of Energy and Energy Efficiency, the Programmes in COMESA, says that European Delegation to Zambia and bridging the energy gap is one of COMESA. the main priorities of the region’s infrastructure development as it will One of the proposals made to the reduce the cost of doing business and meeting was the need for countries to enhance the competitiveness. secure their energy sources by tapping into indigenous resources to ensure the He was speaking during the 6th region is not dependent on imports of Technical Steering Committee (PTSC) fuel to light cities and power economic of the project on Enhancement of strategies to increase the implementation growth. Currently, there are several oil Sustainable Regional Energy Market for of power projects in both generation and and gas exploration activities in some of Eastern Africa, Southern Africa and the transmission.” the regional States, which governments Indian Ocean (ESREM-EA-SA-IO) meeting and private sector can invest in on 15th September 2020. The ESREM He noted that COMESA region was infrastructure such as transmission project is supported by the European richly endowed with power generating interconnectors and pipelines. Union. natural resources of which only a few are 15 COMESA Newsletter Vol. 3/20
16 COMESA’s New Plan for the Next Five Years T he COMESA Secretariat has developed a draft Medium-Term Strategic Plan (MTSP) covering 2021- for the Secretariat as the facilitating and coordinating office. for regional integration programmes,” the SG said. 2025 which is geared to support “It is important that we, as a Member The plan is designed to create an structural transformation of the region State’s driven organization develop a enabling economic environment and boost overall economic development strategic plan that will enable the region focusing on trade facilitation, market through trade facilitation and investment to build on its successes and override its integration, infrastructure development, promotion. challenges.” industrialization including small and medium enterprise development and To formulate this new MTSP, the She asked Member States to regional industrial clusters, institutional Secretariat used a wide consultative domesticate the Strategic Plan once and regulatory policies, capacity approach with key stakeholders both finalized, by aligning it with their National development as well as resource internally and externally. Consultations Development Plans (NDPs) and take mobilization. were undertaken at different levels on ownership of the implementation including the African Union Commission process. This would be central towards The Plan will also be used to engage under Agenda 2063, SDG Centre for attainment of the long-term goals of COMESA’s strategic partners and the Sustainable Development Goals COMESA. mobilize financial and non-financial (SDGs) as well as with partner Regional resources and also provide a framework Economic Communities (RECs) to gather She also emphasized the need for a for developing the organization’s annual information for the upcoming strategy. As regional buy-in while acknowledging work programmes and budgets. It will a result, alignment was established at the that the speed towards attaining the be presented to the COMESA Council global, continental, regional and subject regional integration agenda would of Ministers in November this year for specific levels. come about when Member States and approval and subsequent implementation non-state actors fulfill their roles and from January 2021. As part of the strategy formulation responsibilities. process, the draft MTSP 2021 -2025 “It is important that was presented to the Member States The SG also urged Member States to we, as a Member State’s for validation on 17 September 2020, entrench ownership through funding during a virtual meeting attended by 60 of regional integration programmes. driven organization participants from the 21 Member States. Currently, over 70% of the programmes develop a strategic plan are funded by cooperating partners. that will enable the COMESA Secretary General (SG) Chileshe region to build on its Kapwepwe addressed the delegates “Sustainability of programmes under and told them that the process to such funding arrangements is not easy successes and override develop an inclusive and sustainable to foresee. We need to think about its challenges,” successor strategy was a key priority reversing the reliance of external funding Secretary General
You can also read