COMESA News Volume 2 2014

Transcription

1
COMESA NEWS
Six COMESA projects picked for
financing, at Dakar Summit
VOLUME 2. 2014
COMESA News_Vol.2. 2014
Judges undergo training in arbitration
10
Science based initiatives to unlock agro-based potential
Sudan hands over COMESA Court/2
‘Focus more on foreign policy’ /5
A publication of the Common Market for
Eastern and Southern Africa (COMESA)
Secretariat
Ben Bella Road
P.O. Box 30051, Lusaka, Zambia
Tel: + 260 211 229 725/32
Fax: +260 211 225 107
Email: [email protected]/
Web: www.comesa.int
CHIEF EDITOR: Ann Mugunga
CONTRIBUTORS: Mwangi Gakunga,
Muzinge Nampito, Daniel Banda, Mweusi
Karake and Cephas Moonga.
CVTFS picks pace in the Northern Corridor /6
Seychelles to increase shares in PTA Bank /7
Poor seed contributing to food insecurity /9
Seychelles - Zambia in twin tourism drive /12
A Roadmap drawn up to ease doing business /17
Zambia initiates agriculture productivity and market
enhancement project /21
PHOTOGRAPHY/GRAPHIC DESIGN:
Philip Sipho Kambafwile
COMESA News_Vol.1 2014
AND MANY MORE
/1
1
Science based
initiatives to unlock
agro-based potential
C
OMESA is advocating for
the application of science,
innovation and technology to
help unlock the multi-billion agro-based
potential in the region and the African
continent at large.
Pursuant to this, the regional bloc has
come up with an Industrial Policy and
a Seed Harmonization Implementation
Plan (COMSHIP) which are both at
advanced levels of development to
help Member States enhance their
manufacturing sector and add value to
their primary produce.
“The industrial policy is intended to
improve the competitiveness of the
“
The region needs
research, reverse
engineering and
the development of
technology to fabricate
machinery in order to
tackle the low value
addition economic
activities and trade in
raw materials.”
industrial sector, thereby enhancing
the expansion of intra-regional trade
in manufactured goods and achieve
structural transformation of the
economies of its 19 Member States,”
Secretary General, Sindiso Ngwenya said.
In his statement delivered to the Fourth
Biennial Conference of stakeholders in
agriculture and network of universities
– called RUFORUM in Maputo,
Mozambique Friday, 25 July 2014, Mr
Ngwenya said that Africa is plagued by
low value adding economic activities and
trade in raw materials with minimum
profit yields.
Citing the livestock industry Ngwenya
added: “Africa contributes 21 percent
of the total livestock production in the
world yet it earns only 2.67 percent
(approximately US $4 billion) of the total
global earnings of over US $150 billion
industry, which is greater than the sales
of cotton, sugar, tea and meat combined.”
He observed that even though
COMESA has over the last decade
recorded an annual real GDP growth
of approximately 6.5 percent, this has
not led to the economic transformation.
He attributed the poor earnings to low
level of adoption and use of science,
technology and innovation.
to page 2
2
Sudan hands over COMESA Court
T
he Government of Sudan
officially handed over the
newly built and furnished state
of the art COMESA Court of Justice
headquarters building in Khartoum, on
26 June 2014.
The handover was officiated over by the
Sudan Justice Minister, Hon. Mohamed
Dosa, and the COMESA Assistant
Secretary General, Amb. Nagla El
Hussainy.
Hon. Mohamed Dosa said that the
construction of the Court was done to
meet the highest international standards,
and that the handing over of the Court
facilities was in fulfillment of the promise
made by President Omar El-Bashir of
Sudan at the Seventeenth COMESA
Heads of State and Government Summit
in Kinshasa in February this year.
“This will enable COMESA to achieve its
goal of enforcing good governance in its
regional integration efforts. Economic
co-operation can only succeed in an
environment of good governance and
the rule of law and in this regard my
to page 3
Science based initiatives..
continued from page 1
In order to advance Africa’s potential to
become competitive in the leather and
leather products sector, the Secretary
General advocated for the involvement
of the local universities in enhancing
research and technology.
“Improvements in the leather tanning
processes and designing of leather
products will require research”, he said.
“Development of small and medium
enterprise tools will require research.
Reverse engineering will require research.
This is in addition to the development of
technology to fabricate machinery for the
leather industry.”
Mr Ngwenya concluded that this was
easily attainable through the specialized
institutions that already have the
mandate to spearhead initiatives by
working closely with the universities in
the region and at the global level.
The COMESA Leather and Leather
Products Institute (LLPI) based in
Ethiopia has already developed strong
linkages with universities, governments
and the private sector under the triple
helix approach. This approach links the
three institutions in the advancement of
science, technology and innovation for
industrial development.
Similarly, COMESA has developed the
Seed Harmonization Implementation
Plan (COMSHIP) under the Alliance
for Commodity Trade in Eastern and
Southern Africa (ACTESA) with a
view to developing the seed sector.
This is aimed at advancing agricultural
development along the value chain.
In order to deal with issues of
biotechnology, COMESA is
implementing a bio-technology
programme alongside other initiatives
that all require inputs from regional and
international researchers, academics and
professionals.
“
The COMESA Court of Justice
is instrumental in resolving
the inevitable conflicts in any
functioning trade regime.
It is therefore imperative
that the COMESA trade
regime should have a strong
and independent dispute
resolution mechanism.
3
Below: Sudan Minister for Justice Hon. Mohamed Dosa (R) hands over the Court Keys to Amb. Nagla El-Hussainy.
Insert: New COMESA Court of Justice building
more confidence among the investors in
the region.”
The Sudan Minister for Trade, Hon.
Osman Alsharief, pledged support to
the Court as the co-ordinating Minister
for COMESA programmes in Sudan;
and further promised to ensure that
his country effectively participates and
benefits from all COMESA programmes.
“Conflicts are inevitable in any
functioning trade regime and it is
therefore imperative that the COMESA
trade regime should have a strong
and independent dispute resolution
mechanism,” Hon. Osman Alsharief said.
The Court was built at a total cost of
US $4.2 million out of which US $3.5
million went into construction of the
court building while US $695,000 was
spent on furnishings and communication
equipment. All the costs were met by the
Government of Sudan.
continued from page 2
Ministry will provide full support to the
court in the discharge of its mandate,” the
Justice Minister said.
said has raised the bar in the standard of
COMESA institutions and organs based
in Member States.
He re-affirmed the Government of
Sudan’s commitment to fulfilling its
obligations under the host agreement
of the Court and to work with them in
publicizing its mandate, role and ways
to access it by all stakeholders in the
country and the region.
“It has been a long and not easy journey
but the labour of the government which
has invested a lot of money in such a
magnificent building has not been in
vain,” she said. “This historic occasion
marks the realization of a permanent
seat for the Court of Justice, which will
enable it contribute more effectively
to the regional integration agenda
through provision of dispute resolution
mechanisms, which will in turn instill
While receiving the keys, Amb. Nagla
E-Hussainy thanked the Government of
Sudan for the generous gesture which she
The three storied Court premises consist
of two Court Chambers; Appellate
and First Instance Court Chambers
with modern furniture, information
technology and interpretation equipment
to cater for up to twelve languages. There
are four chambers for the five appellate
judges and six chambers for the seven
judges of the Court of First Instance. All
have their own consultation rooms and
offices for Secretaries.
Other facilities include fully furnished
offices for the Registrar, administrative
staff and library; three fully equipped
kitchens with canteens; the chambers and
office are fitted with wall mounted Plasma
TV screens including public spaces
such as the reception, dining areas and
boardrooms. There are two consultation
rooms for counsel, four robbing rooms
and a CCTV system among other.
4
COMESA Island States to benefit
from infrastructure projects
T
“We are trying
he African Union and COMESA
are working on a framework
for specific infrastructure
development in the Island states. Owing
to their geographical location, the island
nations have missed out on regional
infrastructure projects especially those
aimed at connecting states either through
transport corridors, telecommunications
and energy.
our best to gain
democracy in Africa
Four COMESA island nations: Comoros,
Madagascar, Mauritius and Seychelles
will be among those to benefit from
regional infrastructure projects once this
initiative is put in place.
The 7th meeting of Ministers in Charge
of Integration (COMAI VII), held
in Swaziland in July requested the
African Union Commission (AUC), in
collaboration with relevant stakeholders,
to develop specific infrastructure projects
for Insular and Islands countries.
In June this year, during the Dakar
Summit for Financing Africa’s
Infrastructure Development, 16 priority
projects drawn from the Programme
for Infrastructure Development in
Africa (PIDA) portfolio were identified
for implementation by 2020. Six of the
projects are in COMESA Member States
but there was none for the Island nations.
In line with the proposal adopted by
COMAI VII, COMESA will work with
its four island nations to identify and
prioritize infrastructure projects that
would be presented for inclusion in
the PIDA portfolio in which US $300
billion is required for the projects to be
implemented through to 2040.
The team leader for COMESA
Delegation to the ministerial meeting,
Dr Kipyego Cheluget who is also the
Assistant Secretary General in charge of
Programmes said that integration was
one of the key goals under the African
Union’s vision and remains at the core of
the pan-African vision.
He added that COMESA would
participate in PIDA implementation
activities such as monitoring and
evaluation and reporting to ensure that
Member States own the infrastructure
development programmes that were
selected. This includes putting in place
the enabling environment for private
sector investment in the infrastructure
sector.
“This is consistent with Article 4 of the
COMESA Treaty which provides for
specific undertakings related to areas
where Member States should co-operate,”
Dr Cheluget said. “COMESA has,
therefore, articulated these areas of cooperation into different programmes and
projects addressing integration agendas.”
The ministers recommended that an
African integration fund be created to
allow Public Private Partnership units at
national, regional and continental levels
to conceptualize, elaborate and mobilize
resources for the implementation of
infrastructure integration projects be
established.
5
“Egypt has been paying less attention to
issues of foreign policy because of the
great challenges that the country has
been faced with in the past few years,”
Dr Boutros Boutros Ghali, the former
UN Secretary General and Honorary
President of the National Council for
Human Rights of Egypt has said.
‘Focus more on
foreign policy’
- Dr Boutros Boutros Ghali
“The problems that we are facing as a
country have to be solved at the global
level. This is a reality that has to be faced
by all countries worldwide, not just in
Africa, as this is the only way that we
can have a comprehensive solution to
the global peace and security challenges
today.”
Dr Ghali was addressing the COMESA
election observer mission to Egypt, on
Sunday, 25 May 2014, during a meeting
held at Egypt’s National Council for
Human Rights offices in Cairo.
Dr Ghali added that Egypt in particular
and COMESA in general need to engage
more with other countries in the region
and beyond in order to solve foreign
policy issues that hinder trade, growth,
development and endanger the lives of
many people worldwide.
The former UN Secretary General
emphasised the importance of African
Unity and co-operation, noting the bias
and unfair treatment that is often given to
Africa especially in regard to governance.
“We are trying our best to gain
democracy in Africa, and Egypt needs
your presence and support to help
us achieve this and overcome the
discrimination that we are faced with at
the international level,” he concluded.
Speaking at the same meeting, Mr Abdel
Ghaffar Shukr, the Vice President of
Egypt’s National Council for Human
Dr Boutros Boutros Ghali and Hon. Felix Mutati
Rights said that the COMESA election
observer mission’s presence represented
the confidence that the region had in
Egypt’s future.
“The international observers were invited
to Egypt because we want the world to
see that we are choosing our leader and
are creating a new legitimacy. We also
want to bring an end to conflict.”
He added that the Council is confident
in the impartiality and independence
of the Judge President of the Elections
Committee. Further, he informed Hon.
Mutati that there are observers from
many human rights organisations and the
Council has trained over 4,000 observers
to ensure that there is freedom and
secrecy during the voting.
“The representatives of all the candidates
monitored the voting process, alongside
over 40,000 registered observers
from COMESA, the African Union,
and International Organisation for
Francophonie states, and the European
Union.”
Hon. Felix Mutati, the Mission leader of
the COMESA observer mission said that
it was evident that the National Council
for Human Rights was supporting
the electoral process to ensure that
the mistakes of the past elections are
not repeated in Egypt. He noted the
opening up of Egypt to international
observers as a sign of a new beginning
in the consolidation of democracy in the
country.
The presidential elections in Egypt were
held on 26 and 27 May 2014.
6
CVTFS picks pace
in the Northern Corridor
T
he use of the Information
Communication Technology
(ICT) in trade facilitation along
the Northern Transit Corridor picked
pace in the first half of this year leading to
the procurement of additional equipment
to enable freight forwarders and customs
authorities manage and monitor cargo
movement thus reducing the cost of doing
business.
Rwanda in particular requested for an
additional 400 tracking devices developed
under the COMESA Virtual Trade
Facilitation System (CVTFS). The devices
are being used by the Rwanda Revenue
Authority with 300 going to containerized
traffic and 100 for petroleum tankers.
Council Decision
CVTFS was developed following a
Council Decision in 2012 to provide
an answer to the high cost of doing
business through the use of information
technology. Among the key challenges the
system sought to address were diversion
of goods in transit, delayed clearance at
the borders, long transit and release times,
goods pilferage and high operating costs
in trucking.
Piloting of the devices on the Northern
corridor was done in the last half of 2013.
This provided enough experience to roll
out the system in Member States. The
system is used by Customs authorities,
freight forwarders, insurance companies,
banks, port authorities, container freight
stations and traders. So far Rwanda is
A CVTFS technician (L) prepares to install the tracking device in a containerized truck in Nairobi, Kenya.
among the leading countries that have
embraced the CVTFS.
The implementation of the CVTFS
was initially be based on the GPRS
communications system providing realtime movement of cargo trucks along
the corridor that connects the Ports of
Mombasa with Uganda, Rwanda, DR
Congo as well as South Sudan.
In a meeting between the Secretary
General Sindiso Ngwenya and the
Rwanda Minister for Trade and Industry,
Hon. Kanimba Francois in July, it was
agreed that a technical team would
explore the feasibility of using the
satellite communication systems for the
CVTFS taking into account that the cost
of satellite communication was more
expensive.
With CVTFS, revenue authorities and
freight forwarders are now able to access
the location of each consignment on a
digital map and to record events during a
whole journey from the departure point
to destination within a country or border
point of exit. They have been able to stem
cargo diversion as most gazetted transit
goods routes have been geo-fenced.
Among the benefits to companies is
the ability to guarantee their customers
quality of product delivered to them by
securing the product when in transit. Any
illegal opening, tamper or even attempt to
detach the trailer will prompt the system
to send an alert message to the control
room and to the contracted transport
company.
In the event of vehicle breakdown the
company shall receive real time alerts
from vehicle drivers under duress by
activating a panic button that comes
standard with the devices.
7
Regional growth up to 6.6% in 2013
T
he COMESA region achieved
an average growth rate of 6.6
percent in 2013, up from 5.5
percent in 2012, according to the latest
COMESA Monetary Institute macroeconomic developments report on the
region’s states.
The growth was attributed to relatively
high commodity prices, increased trade
and investment ties with emerging
economies and greater domestic demand
underpinned by new, urbanizing
consumers with rising incomes.
Further, public spending on
infrastructure continued to rise while
improved economic governance and
management supported macro-economic
stability and improved investment
environment in many countries in the
region.
On the supply side, agriculture and
services were the main engines of growth
in 2013. In a number of Member States,
the agricultural sector accounts for about
25-30 percent of the GDP and employs
about 80-90 percent of the workforce.
In others, agricultural production
was boosted by favourable weather
conditions in 2013. The CMI noted that
the services sector continued to be a
principal engine of growth in the region.
“Traditional services, such as transport,
trade, real estate, public and financial
services, and new services, such as
information and telecommunication
technologies are boosting growth in
many countries,” the report said.
The CMI report further noted that
the growth performance was varied
across countries; but it underscores the
“
The services sector
continues to be a principal
engine of growth in the
COMESA region.”
Seychelles to
increase shares
in PTA Bank
region’s resilience to global and regional
headwinds. It identified the region’s
major challenge as the need to sustain
high economic growth and making this
growth more inclusive.
“The region needs to pursue appropriate
macroeconomic policies and at the
same time increase access to key public
services, notably education, health
and security and further improving
institutions and regulations for private
sector activity”, the report said. “This
helps improve human development,
better attainment of the Millennium
Development Goals and diversification
of the economy.”
The enhanced efforts to facilitate intraCOMESA trade and access to global
markets to help the region promote
growth and diversification and benefit
more from expected increases in
global economic activity are lauded.
Meanwhile, growth in developed
economies is expected to pick up in the
medium term, and CMI observes that
growth in emerging economies is likely
to moderate with potential significant
adverse effects on global commodity
prices as well as trade and investment
flows between Africa and the rest of the
world.
“In the face of these risks, African
countries need to continue to implement
measures to boost domestic demand,
diversify production and trade and
promote rapid expansion in intraAfrican trade,” the report says.
S
eychelles signed an agreement with the
Preferential Trade Area (PTA) Bank
with the intention of increasing its
shares in the bank. The signing took place at
Beau Vallon between the Principal Secretary
for Finance Patrick Payet, the President of the
PTA Bank Admassu Tadesse (in picture), and
the Corporate Secretary and Director of Legal
Services of the PTA Bank, Premchand Mungar.
The Seychelles Government owns 0.5% shares
in the PTA Bank and with the agreement it will
have until 2018 to pay the US $4 million worth
of shares (equivalent to 1.8 % shares) which
will make a total of 2.3% shares for Seychelles.
“With the gradual increase of shares that we
are having it will help us have a bigger voice or
a bigger recommendation when our projects
that we propose go before the PTA board.
And we will also benefit in terms of dividend
payouts,” Mr Payet said.
During the same event the Development Bank
of Seychelles (DBS) signed a memorandum
of understanding (MoU) with the PTA Bank
to promote mutual understanding, expand
cooperation by enhancing opportunities for
business development. The signing was done
by the chief executive of DBS Annie Vidot and
Mr Tadesse
8
Comoros receives €435, 000
to improve customs systems
Programme Officer at the EU office in Lusaka Mr Nicolas Gerard, Mr Ngwenya and the Minister of Economy, External Trade and privatization of Comoros Honourable
Said Ben Ousseni hold hands after the signing ceremony. In the back is an officer from the COMESA Aid for Trade Unit Mr Caesar Cheelo.
T
he COMESA Secretariat, through
(RIIP) based on general budget support
the Regional Integration Support
financing. This financing relationship, which
Mechanism (RISM) provided
10th EDF and will be used during 2014 to 2015.
began in December 2012 when the Ministerial
The EU is the sole development partner that
Euro 435, 000 to the Union of Comoros for
Committee of the COMESA Fund approved
provides financing to RISM, having already
implementing projects under the country’s
Comoros’ application of Euro 618, 000 marked
provided Euro 78 million under the 9th EDF,
Regional Integration Implementation
the official start of the island state’s realization
in addition to the forthcoming Euro 33 million.
Programme to enhance the efficiency of
of RISM benefits. The financial resource from
These resources will make a big difference in
customs operations.
2012 supported various trade facilitation
supporting COMESA Member States to achieve
interventions on the island.
regional integration commitments over the
The Minister of Economy, External Trade and
period 2008 to 2015. It is from these funds that
Privatization of Comoros His Excellency Said
The recently signed project agreement
COMESA has been channeling funds to Comoros
Ben Ousseni signed the Project Agreement
therefore means that the current funding
and other Member States like Burundi, Djibouti,
with COMESA Secretary General Mr Sindiso
is the second tranche of funds being given
DR Congo, Kenya, Malawi, Mauritius, Rwanda,
Ngwenya in Lusaka. The funds will be used
to Comoros under RISM. Both tranches of
Seychelles, Swaziland, Uganda, Zambia and
to enhance customs efficiencies through
funding were made possible by the European
Zimbabwe. It is envisaged that, with time, other
promoting greater interconnection of trading
Union through 9th European Development
countries like Eritrea, Ethiopia, Madagascar and
agencies and through the securing of the
Fund (EDF) financing.
Sudan will also join RISM and realize its benefits.
country’s Customs Information Systems.
Mr Ngwenya used the occasion to announce
“I trust I speak for the region when I say the
Prior to this agreement, Comoros, with the
that COMESA and the EU have extended
EU deserves the profound thanks and high
technical support from COMESA Secretariat
their RISM financing relationship with a
commendations of the COMESA region, as a
prepared and implemented a Regional
new Contribution Agreement worth Euro 33
dependable partner in our regional integration,”
Integration Implementation Programme
million. This funding is committed under the
Mr Ngwenya concluded.
9
Poor seed contributing
to food insecurity
“Lack of quality and improved seeds
in the COMESA region contributes
to food insecurity and poverty,”
COMESA Assistant Secretary General,
Administration and Finance Ambassador
Nagla El- Hussainy has observed.
Speaking at the official opening of
the COMESA Seed Harmonization
Implementation Plan (COMSHIP)
Development Partners Meeting held on
the 17 July 2014 at Intercontinental Hotel
in Lusaka, Ambassador Nagla called for
access to quality seed for small-scale
farmers to increase productivity.
“Among the small-holder farmers, the
availability of quality seed in terms of
variety accessibility and volumes in
the COMESA region is low at only 23
percent. This indication confirms that
only one in every four small-holder
farmers has access to quality seed or in
some cases improved seed,” she said.
Ambassador Nagla said in order to meet
CAADP commitments and to solve the
challenge of food insecurity, COMESA
Ministers of Agriculture directed the
Secretariat to expedite the harmonization
of seed trade regulations and standards in
the region.
For that reason she said the Alliance
of Commodity Trade for Eastern
and Southern Africa (ACTESA) as
a specialized agency COMESA was
mandated to harmonize seed trade
regulations and standards in the region
through an extensive consultative
process.
The meeting was opened by Zambia’s
Agriculture Ministry’s Permanent
Secretary, Mr Julius Shawa.
Speaking at the closing of the meeting,
Alliance for Commodity Trade for
Eastern and Southern Africa ACTESA
Acting Chief Executive Mrs Gizila
Takavarasha said that giving farmers
quality seed and fertilizer without market
support will be a wasted effort.
Speaking on behalf of co-operating
partners, Alliance for Green Revolution
in Africa (AGRA), Chief of Party
for Scaling Seeds and Technologies
Partnership in Africa (SSTP) Richard
Jones said the seed sector was critical for
increased productivity.
“The seed sector is highly regulated due
to outbreaks of diseases and pests, which
is affecting free movement of seed in the
region,” Mr Jones said.
COMESA Investment Promotions and
Private Sector Development (IPPSD)
Director, Thierry Kalonji said COMESA’s
partnership with COMSHIP is providing
the policy reforms and a regulatory
framework for guiding action among the
farming world stakeholders.
Among the co-operating partners
that attended were the United States
Agency for International Development
(USAID), Department for International
Development (DfID), European
Union (EU), Food and Agriculture
Organization, World Food Programme
(WFP) and the Alliance for Green
Revolution in Africa (AGRA).
10
Judges of the Court of Justice including Justice Nzamba Kitonga, Judge President (centre) Justice Samuel Rugege,
Principal Judge (2nd left seated) and Registrar Madam Nyambula Mbatia (2nd Right standing)
Judges undergo training
in arbitration
The COMESA Court of Justice has
this year conducted a series of training
programmes on international arbitration
to prepare the Judges apply the system
as a way of quickly resolving disputes.
The latest was in July-August this year
when nine of the eleven judges attended
a one-week long training in Lusaka.
Judge President of the Court, Hon.
Nzamba Kitonga presided over the
sessions.
“The principal objective of these follow
up discussion sessions is to continue
the introduction of the basic legal
frameworks and challenges associated
with the resolution of international
economic disputes by focusing on
the three major types of economic
interactions namely trade, investment
and private commercial transactions,”
Judge Kitonga said.
The discussions covered dispute
resolution mechanism especially
arbitration in all three areas with great
emphasis on the African experience
through the prism of China-Africa
economic relations.
Eight consecutive sessions were held
over a period of four days. Article 28 of
the COMESA Treaty confers jurisdiction
on the Court to hear arbitration matters.
The training was attended by Hon.
Justice Nzamba Kitonga from Kenya,
Hon. Professor Justice Samuel Rugege
the Principal Judge from Rwanda, Hon.
Justice Adrien Nyankiye from Burundi,
Hon. Justice Duncan Tambala from
Malawi, Hon. Justice Ernest Sakala from
Zambia, Hon. Justice James Ogoola
from Uganda, Hon. Justice Luke Malaba,
Hon. Justice Tadesse from Ethiopia and
Hon. Justice Stanley Maphalala from
Swaziland.
“
The judges of the COMESA
Court of Justice require
knowledge of handling the
challenges associated with the
resolution of international
economic disputes.
11
I
nnovative trade facilitation
technologies developed by the
regional economic communities
in eastern and southern Africa have
contributed to a success rate of 80
percent in the removal of reported nontariff barriers.
Breaking trade barriers through
innovation technologies
“
This achievement has mainly been
attributed to the setting up of an online
system for reporting identified non-tariff
barriers (NTBs). These include health
issues, conformity to the rules of origin,
customs procedures and documentation,
and roads blocks among others.
The online NTB reporting system is
a tripartite initiative of the Common
Market for Eastern Africa (COMESA)
East Africa Community (EAC) and
the Southern Africa Development
Community (SADC). It operates on the
basis of transparency and clarifications
of issues to assist the parties resolve the
matters that have been raised.
COMESA Director of Trade, Customs
and Monetary Affairs, Dr Francis
Mangeni says these measures have
complemented the annual and bilateral
meetings of Member States which
provide a standing agenda item on nontariff barriers. Member States use this
forum to raise any matters related to
NTBs for consideration.
“COMESA Secretariat then organizes
on the on-the-spot verification missions
for experts from Member States to
ascertain the disputed facts and written
advisory technical opinions with
recommendations,” Dr Mangeni said.
“All these mechanisms on addressing
NTBs together have a success rate of
over 99%.”
To date, he adds, a total of about 220 of
Stakeholder
are moving on
introducing
SMS to
repor t NTBs
using mobile
phones”
Dr Francis Mangeni
all reported NTBs in COMESA, have
been removed, except for five. These
relate to trade in milk from Kenya
into Zambia (health standards), palm
oil from Kenya into Zambia (rules of
origin), soap from Madagascar into
Mauritius (rules of origin), fridges and
freezers from Swaziland into Zimbabwe
(rules of origin), and electronic products
from Egypt into Kenya (rules of origin).
“The rules of origin disputes are about
whether these products undergo
sufficient value addition to meet the
minimum threshold for qualifying as
products produced in those countries;
whereas the standards disputes are about
whether the bacterial load in the milk
exceeds the maximum requirements
under the domestic standards of
Zambia”, Dr Mangeni explained.
In the case of health issues also referred
to as Sanitary and Phyto-sanitary (SPS)
the private and public sectors in the
Member States have varied capacities
to implement these measures in line
with best practices and international
standards. Thus NTBs of SPS nature
remain a key obstacle to trade.
“Often, the implementation of SPS
measures, particularly in border controls
is viewed with a public health protection
lens, with less focus on trade facilitation.”
Dr Mangeni noted.
The World Trade Organization SPS
Agreement requires that where there
is more than one option, member
states should choose the SPS measure
that is least restrictive to trade. The
stakeholders are now working on
introducing the Short Messaging Service
(SMS) to enable economic operators
report NTBs instantly using their mobile
phones.
12
Seychelles - Zambia in twin tourism drive
S
eychelles and Zambia signed a
memorandum of understanding
to advance trans-boundary tourism
between the two COMESA Member
States. At the Seychelles- Zambia twin
tourism package breakfast held on
12 June 2014, the Seychelles Deputy
Minister of Tourism and Arts, Hon.
Lawrence Evans said that his country
was a leading tourism destination in
Sub-Saharan Africa.
“Zambia should therefore learn from
our best practices model on how to
develop its key tourism sub-sectors,
from aqua-sporting to hospitality and
tour operations,” Mr Evans said.
The signing ceremony also marked the
initiation of dialogue between tourism
industries of Seychelles and Zambia
on the various ways to promote twin
packages in both countries.
Mr Felix Chaila, the CEO of the Zambia
Tourism Board, said that Zambia’s
wildlife, landscape and vegetation
in combination with Seychelles’
13
numerous flora and fauna, and exotic
island destinations, would provide a
winning competitive package for the
international tourists.
The Director of Seychelles Tourism
Office, Mr David Germain said that it is
important to preserve the environment
and that his country is well known for
best practices in sustainable tourism.
“The tourism office works very closely
with the tour operators and destination
management companies to ensure that
ideal tourism packages are available
according to the budgets of their
clientele. Seychelles works closely with
over eight regional and international
airlines that fly into the country, and I
encourage tour operators, international
and domestic airlines present to work
with the local Seychelles industry so
as to promote the respective tourism
industries as one package,” Mr Germain
said.
Victoria Falls, one of the leading tourist attraction
sites in Zambia.
“
In creating innovative
twin packages for
Zambia and Seychelles,
we aspire to see
a boost of trade in
tourism across the two
countries
The CBC Coordinator, Ms Sandra
Uwera, gave the background of the
first COMESA sustainable tourism
development forum in 2012 and how
that brought together the tourism
stakeholders in the region.
“It is worth noting that Seychelles and
Zambia and have been cited as two
COMESA countries that have followed
up on the recommendations of the
meeting and used the sustainable
tourism strategic framework to guide
key areas of mutual interest and
partnership.” she said.
The meeting brought together the
tourism boards of the two Member
States, as well as tour operators, airline
companies and a delegation from
COMESA Secretariat and the COMESA
Business Council.
Working Group
to implement
COMESA W.
Australia MoU
C
OMESA and the Government
of Western Australia have
established a joint working group
to spearhead the implementation of a
Memorandum of Understanding (MoU)
on mineral and petroleum resources. The
MoU was signed in January this year in
Lusaka by Western Australia Premier Mr
Colin Barnnet and COMESA Secretary
General, Sindiso Ngwenya.
The Joint Working Group (JWG) was
established in May 2014 to provide a
framework for co-operation covering
mineral and petroleum resources,
agriculture, vocational training and
capacity building that are provided for
in the MoU. COMESA representatives
are Thierry Mutombo, McClay
Kanyangarara, Stanley Mbagathi and
Oliver Maponga (UNECA). Dr Tim
Griffin, John Shute, Filippo Raggi, Diana
Phang, Elliot Samson, and Virginia
Simms represent WA.
In the JWG first meeting, COMESA team
expressed a preference for training in
mining and mineral policy development,
and taxation and fiscal frameworks to be
held by the end of 2014. In this regard
COMESA would share with WA, the
project documents on four proposed
capacity building activities (policy,
taxation and fiscal framework, linkages
and mineral management) for possible
collaborative delivery under the MoU
and/or possible assistance with resource
to page 15
14
US $110 million for
regional integration
conservation, sustainable fisheries,
implementation of interim Economic
Partnership Agreements (EPAs) and ICT
Development.
“Priority will be on activities with
the greatest potential to deliver
tangible results and which modes of
implementation would be most effective.
Member States should, therefore, identity
areas where the regional funds are most
needed to make a difference to the people
in the region,” Mr Hervio said.
Secretary General Sindiso Ngwenya and Head of EU Delegation Mr. Gilles Hervio
C
OMESA is to receive US $110
million from the European
Union (EU) to support regional
economic integration programmes.
This is part of the US $1.8 billion that
EU has earmarked to finance regional
cooperation in Eastern and Southern
Africa and the Indian Ocean Island
States.
“Half of the US $1.8 billion would
be used to finance infrastructure in
the Eastern, Southern Africa and the
Indian Ocean. The rest will be shared
between the five regional organizations:
COMESA, EAC, SADC, IGAD and
the IOC,” Mr Gilles Hervio, Head of
the European Delegation to Zambia,
said when addressing delegates from
COMESA Member States in Lusaka.
This was during the opening of a twoday workshop to validate the project
proposals for funding prepared by
COMESA and the EU Delegation in
Lusaka.
The projects to be considered under
the funding would include crossregional initiatives on migration,
regional stability in the Great Lakes
Region, maritime security, transboundary water management, wildlife
Among the infrastructure projects
to be considered in COMESA are
power interconnectors, One Stop
Border Posts (OSBP) and roads and
bridges construction on the key transit
corridors. Other key projects will be
on regional economic integration
programmes focusing on reducing the
cost of cross-border trade through the
removal of internal barriers, increasing
the participation of small and medium
enterprises in global values chains and
enhancing the capacity of the COMESA
Secretariat to engage with its Member
States, including the private sector.
Secretary General, Mr Sindiso Ngwenya
said the 11th EDF financing will be
based on each Regional Economic
Community’s strategic paper unlike in
the past where the RECs came together
with one regional strategic paper and one
indicative programme.
to page 15
15
“Each REC will have its own specific
envelope managed in consultation with
the Head of the EU delegation based in
that particular REC,” Mr Ngwenya said.
He observed that whereas at the
COMESA-EAC-SADC tripartite level
there was agreement on “who will do
what”, there were risks of duplication
and lack of coherence in programme
implementation at the national level.
He urged Member States to take
ownership of the proposed projects
as the focus of the 11th EDF funds
will be on implementation of regional
commitments at the national level.
Chirundu one stop border post
Workshop group..
mobilization.
The COMESA industrialization policy
places the minerals sector at the
centre of strengthening linkages and
value addition. Pursuant to this, it is
developing a project to build the capacity
of key players in the minerals sector in its
Member States to be named: COMESA
Human and Institutional Capacity
Development in the Mineral Sector.
The proposed project will be
implemented in all Member States of
COMESA and will include COMESAwide interventions as well as harmonized
national level activities.
During the MoU signing, it was
acknowledged that institutions that
support mineral development in Africa
are generally weak due to human skills
deficiency and financial constraints and
therefore inappropriate to effectively
facilitate the role of minerals in
COMESA Secretary General Sindiso Ngwenya (L) witnessing the exchange of joint work plan between the Joint Working Group
members Mr. John Shute (WA) and Mr Thierry Kalonji (COMESA). The ceremony took place in Perth in September 2014
development.
COMESA will establish national focal
points for the implementation of the
MoU on behalf of the JWG. Member
States will be co-opted on a need
basis, such as when activities are to be
organised in their country.
Ministers from the Mining Ministries
in many COMESA Member States
later attended the Africa Down Under
mining conference in Perth from 03 to
05 September 2014; which was hosted
by Prime Minister Colin Barnet. The
conference, held under the theme: “Africa
Down Under” offered an opportunity
for COMESA to showcase the region’s
mineral potential. Western Australia
also offered to link COMESA with other
potential sources of support for the
proposed activities.
Western Australia is the largest State in
Australia with one of the highest living
standards in the world and a robust
economy largely driven by extraction
and processing of mineral and petroleum
commodities.
16
The Programme for Infrastructure
Development in Africa (PIDA) identified
six COMESA infrastructure projects
to be implemented by the year 2020.
The six were selected during the Dakar
Financing Summit (DFS) for Africa’s
Infrastructure that took place in Dakar,
on 14 -15 June 2014.
Three of the projects are in the energy
sector, two in road transportation and
one in information communication
technology. They include the ZambiaTanzania-Kenya power transmission
project, Ruzizi 111 and Batoka Gorge
hydropower generation projects. Others
are the Serenje-Nakonde Road Project,
the Kampala-Jinja road and the LusakaLilongwe ICT Terrestrial Fibre Optic.
The objective of the Dakar Summit was
to mobilize key stakeholders around the
on-going efforts by the African Union
including the NEPAD Programme, to
accelerate the implementation of priority
regional economic infrastructure
projects. COMESA has sixteen
infrastructure priority projects.
These were presented to potential
sponsors, developers, and financiers to
work through project risks, regulatory
constraints, and other obstacles to
bankability. About US $68 billion would
be required for the implementation of
the 16 priority projects identified by the
PIDA Priority Action Programme (PAP)
until 2020.
The six COMESA projects would require
about US $8 billion, which is 12.5
percent of the whole amount required
for the priority projects.
In the energy sector, the selected projects
are all estimated to cost US $7.722
million with a financing gap of US
$7.316 million.
The proposed 2,206 km ZambiaCOMESA News_Vol.2. 2014
Six COMESA projects picked for
financing, at Dakar Summit
pole lines
Tanzania-Kenya Transmission Line has a
capacity of 400 megawatts. It is expected
to connect the East African Power Pool
to the Southern Africa Power Pool at an
estimated cost of US $1.122 million. The
project has a financing gap of US $1.116
million.
Ruzizi 111 consists of the construction
of a 147 MW Hydropower Plant on
the Ruzizi River bordering DR Congo
and Rwanda to be developed through
a concession by a private investor. The
project is estimated to cost US $600
million. The Batoka Gorge is expected
to generate 1,600 megawatts of power
and requires US $6,000 million. The
614km Serenje-Nakonde project is the
last major section of the North-South
Corridor and requires upgrading at a
cost of US $674 million while the 75km
Kampala-Jinja Road is estimated to cost
US $74 million.
The Lusaka-Lilongwe ICT Terrestrial
Fibre Optic is a 10 Gigabits single
“
US $68 billion would
be required for the
implementation of the
16 priority projects
identified by the PIDA
channel fibre line that is expected to get
financing for implementation at a cost of
US $1.5 million.
PIDA is the African Union blueprint for
regional and continental infrastructure
development for the period, 2012-2040.
It is jointly coordinated by the African
Union Commission (AUC) and the
NEPAD Agency.
COMESA was represented by Assistant
Secretary General (Programmes) Dr
Kipyego Cheluget and Dr Mohamedain
Seif Elnasr, Energy Economist in the
Infrastructure Division.
17
Three countries
supported to
upscale climate
smart agriculture
C
OMESA awarded a grant of US $1.3
million to Uganda, Seychelles and
Swaziland to upscale Climate Smart
Agriculture (CSA). Out of the amount,
Uganda received US $740,000 to promote
climate smart agriculture practices in five
districts, namely Budaka, Bukedia, Bugiri,
Buyembe and Namutamba. The support
would benefit more than 15,000 small holder
farmers, and 30 schools. Piloting CSA in
schools was essential for future sustainability
since school going children were more
amenable to new ideas.
Swaziland is to receive US $385,519 which
would among others promote vegetable
production and marketing in Nhletsheni,
Nnkungwini and Mpatheni Schemes. The
project will benefit more than 200 rural
farmers.
US $165,929.58 is to go to Seychelles to
support piloting integrated water resource
management to increase resilience of farming
communities on Baie St Anne district and
the Praslin plateau. The focus would be on
addressing fresh water supply as part of
an integrated approach to climate smart
agriculture. The project would also help in
reducing the level of soil salinity within the
farming region thus making it more suitable
for food plants.
To support and facilitate the implementation
of the projects, COMESA entered into
an agreement with UNDP offices in the
respective countries. In addition, COMESA
was jointly implementing a five year
tripartite programme with the East African
Community (EAC), and the Southern African
Development Community (SADC). Funding
for the programme was contributed by the
European Union Commission, the Norwegian
Ministry of Foreign Affairs and the United
Kingdom Department for international
Development (DFID).
A Roadmap drawn up to
ease doing business
C
OMESA in collaboration with
the International Finance
Corporation and World Bank
is implementing a roadmap to ease
doing business in the region. The key
component of the roadmap is to identify
specific constraints and obstacles facing
the business actors.
The Director of Investment Promotion
and Private Sector Development at
COMESA, Mr Thierry Kalonji said
that the initiative will involve sending
regional experts from reforming
countries to share best practices on the
reform processes.
“The experts will assist the countries in
developing a roadmap which defines
priority actions to overcome the obstacles
that the private sector faces in doing
business,” Mr Kalonji said.
“Further, there will be discussions on the
implementation of the roadmap through
setting up a related national steering
committee in charge of monitoring and
evaluation to check on the progress
made. These will be equipped to make
necessary adjustment required by the
expected results.”
The national steering committee will
have links with COMESA Secretariat for
monitoring and evaluation purposes. Mr
Kalonji added that many countries from
the region had already embarked on the
policy reform agenda but they needed
support in their efforts to sustain the
progress made so far.
At the annual conference on the ease
of doing business in southern and
eastern Africa was hosted in Maputo
Mozambique, Mr Kalonji told the
over 130 delegates in attendance that
COMESA’s programme on the ease of
doing business has a broad coverage
compared to the World Bank “Ease of
Doing Business Index.”
Mr Thierry Kalonji
“There is need to look beyond the
policy reform agenda and address
other indicators like the twelve ones
used by the Global Competitiveness
index which address the quality of basic
infrastructures, strength of financial
services, macroeconomic conditions,
level of corruption among others,” he
noted.
He noted that although some countries
seemed not to make any progress
in the overall ranking of the World
Bank, they nevertheless demonstrated
significant reforms in World Bank
selected indicators and in the Global
Competitiveness Index.
The Director told the delegates that
COMESA has programmes that are
aimed at supporting the private sector
through trade, investment facilitation,
and the various institutions.
These include the Eastern and Southern
Trade and Development Bank (PTABank), African Trade Insurance Agency
(ATI) and the COMESA Regional
Investment Agency (RIA).
The next conference on the ease of doing
business will take in Uganda and Kenya
in 2015 and 2016 respectively.
18
Dr Abu Dafalla
Steps towards a seamless airspace
C
OMESA Secretariat secured
approximately US $10 million
from the African Development
Bank (AfDB) to establish a single,
seamless airspace in the sub-region.
This will reduce air transport costs and
increase tourism, trade and regional
social economic integration.
A steering committee of the “COMESA
Airspace Integration Project” that was
earlier constituted has developed the
terms of reference for consultancy
services to undertake studies for project
implementation.
The studies will include development
of suitable legal and institutional
requirements to establish a co-operative
regional framework for the seamless
airspace and air transport management
by all categories of air space users.
“The study includes a detailed analysis
of strategic technical, financial and
operational options for provision of
upper airspace and air navigation services
using Communication, Navigation,
Surveillance/Air Traffic Management
(CNS/ATM) systems, and has
recommendations for implementation
modalities,” COMESA Director of
Infrastructure, Dr Abu Dafalla said.
The first meeting of the project steering
committee took place in Kigali, Rwanda
July 2014 and was attended by delegates
from Burundi, Egypt, Madagascar,
Rwanda and Sudan and representatives
of East Africa Community and Southern
African Development Community
Secretariats.
The move towards a single, seamless,
airspace was mooted by COMESA Heads
of States Summit in Djibouti in 2006.
Subsequently a steering committee was
named comprising five Member States
under the chairmanship of Rwanda to
supervise the implementation of the
project.
The project will be managed a team
of technical experts under the Project
Implementation Unit located in Kigali.
This was established after the signing of
a host agreement between the Secretariat
and the Government of Rwanda in
February 2011.
During the implementation of the project
Member States, through their agencies
responsible for civil aviation and security,
will participate and support the project.
This is by providing the data required
for designing the technical and physical
infrastructure as well as management,
operational regulatory and financing
structure for the regional project.
19
M
alawi is one of the countries
that have lately embraced
the COMESA online trade
facilitation tool that is being used by
stakeholders in the transport chain to
effectively manage transit goods and
reduce the cost of doing business.
The roll out of the COMESA Virtual
Trade Facilitation System (CVTFS) in
Malawi was done from 21 to 26 July
2014 by a technical team from COMESA
who set up the system’s control center at
the Malawi Revenue Authority (MRA).
CVTFS provides full visibility, in real
time, of all tagged consignments from
source to destination. It provides an
effective solution for cargo tracking
management; and the system is
accessible to customs authorities, freight
forwarders, insurance companies,
banks, port authorities, container freight
stations and traders to mention but a
few.
A draft Memorandum of Understanding
on the implementation of the CVTFS in
Malawi and an operation manual were
submitted to MRA, which is expected
to review and submit to COMESA
Secretariat by 10 August 2014 in
preparation for commercialization of
CVTFS.
Discussions regarding the
commercialization of CVTFS and
preparation for its usage on fuel tankers,
open bulk cargo and vehicle locks were
initiated in preparation of the CVTFS
roll out.
COMESA Secretariat would make
available for sale of at least 500 new
Malawi joins the
electronic trade
initiative
devices to handle fuel tankers, open
bulk cargo and vehicles once the key
stakeholders, including the MRA
and the clearing agents, provide the
estimated number of required devices.
Prior to the roll out, a selection of
border points and transit routes was
done in addition to training of assigned
MRA experts on the system. Testing
of export of high valued cargo such as
tea and imports has been successfully
carried out for three key routes: Mwanza
to Blantyre, Blantyre to Muloza and
Dedza to Lilongwe.
The MRA was expected to start setting
up inspection zones where the arming,
inspection and disarming by assigned
officers will be carried out.
Meanwhile, Ethiopia and Djibouti
resumed activities towards the
implementation of the CVTFS along
their main transit corridor. This
was after a joint meeting between
representatives of the two states
convened to iron out the challenges
that have led to delays in rolling out the
system.
The CVTFS has been successfully
implemented in the Northern Corridors
comprising Kenya, Uganda, Rwanda and
the D R Congo.
20
CVTFS introduced
in Mozambique
Once in place, Beira will become the
third key port after Mombasa and Dares-Salaam to have adopted the COMESA
Virtual Trade Facilitation System
(CVTFS). Mombasa and Dar-es-Salam
ports serve the Northern and the Central
corridors respectively.
Secretary General Sindiso Ngwenya
informed the Mozambique High
Commissioner to Zambia, His
Excellency Jeronimo Chivavi that
COMESA would provide the CVTFS
devices once the country is ready to
apply the system. This was when the
High Commissioner was paying a
courtesy call on the Secretary General in
his office on 21 July 2014.
An ICT team from COMESA visited and
made a presentation of the system to the
Mozambique Revenue Authority, which
is the administrator of the system.
The CVTFS is an online platform that
- among other functions - provides
real-time tracking of deliveries thus
enabling national revenue authorities
to monitor transit cargo until it exits
their jurisdiction. This eliminates any
possibilities of cargo diversion as most
gazetted transit goods routes have been
geo-fenced.
SG and the Mozambique High Commissioner to Zambia
In July this year, COMESA and the
Government of Mozambique initiated
work towards the introduction of an
online trade facilitation system at the
Port of Beira, which handles transit
cargo to Zimbabwe, Zambia, Malawi and
DR Congo in the North-South transport
corridor.
COMESA has targeted ports that serve
its Member States and later on extend
the trade facilitation system to other
regional economic blocs.
21
Zambia initiates agriculture
productivity and market
enhancement project
Zambia’s Minister of Agriculture and
Livestock, Mr Wilbur Simuusa disclosed
this during an interview with COMESA
Secretariat’s CAADP Unit in Lusaka.
Simuusa said his government is
committed to meeting the 10 percent
minimum annual budget allocation to
the agricultural sector.
Mr Simuusa said that the Zambian
Government received US $31.12 million
from GAFSP after an application to
bridge the funding gap of the National
Agriculture Investment Plan (NAIP)
amounting to US $650 million.
“We are almost there. Currently we
are at 7.2 percent for 2014, last year we
were at 5.8 percent and in 2012 we were
at 6 percent. We are very committed
to attaining the Maputo targets as we
position agriculture as the lead sector of
our traditionally mining economy,” he
said.
“We used the funds accessed from
GAFSP to start the APMEP project
which is aimed at increasing productivity
of farmers and to promote value addition
through irrigation. This is because we
only have one rainy season in Zambia”,
Hon. Simuusa said.
T
He added that the project, which
targets the six districts of Sinazongwe,
Gwembe, Chongwe, Rufunsa, Serenje
and Chitambo, will benefit small holder
farmers in terms of irrigation schemes,
crop diversification and sustainable water
management.
And speaking in a separate interview,
Zambia’s Minister of Finance, Mr
Alexander Chikwanda, said that
previously the minerals used to account
for 90 percent of Zambia’s exports but
that is no longer the case.
“The non-mineral sector, principally
agriculture, currently accounts for 30
percent of our exports. This gain will be
improved upon as we put agriculture
as the main stay of our economy,” Mr
Chikwanda said.
Mr Alexander Chikwanda
he Zambian Government
has initiated the Agriculture
Productivity and Market
Enhancement Project (APMEP)
using funds accessed from the Global
Agriculture and Food Security
Programme (GAFSP).
“The funds will also be channelled to
livestock and aquaculture development
in order to enhance income generation of
small holder farmers,” he said.
On Zambia’s progress in meeting the
Maputo Declaration targets, Minister
He added that for agriculture to upgrade
the agronomy of small scale farmers,
through increased productivity and
poverty reduction, there was need for
investment in research and improved
extension services.
22
ESA ministers
confer on Economic
Partnership
Agreements
M
inisters responsible
for commerce, trade
and industry from the
Eastern and Southern Africa (ESA)
group of countries met in Lusaka
on 21 July to discuss the findings
of the assessment studies which
were undertaken by the COMESA
Secretariat and UNECA. The studies
focused on the proposed Economic
Partnership Agreements (EPA) with
the European Union.
Eleven national studies were
undertaken following a decision by
the 18th ESA Council of Ministers
meeting held in Kinshasa in the
Democratic Republic Congo in
February 2014. They were intended
to revive ESA-EU EPA negotiations
that have stalled for three years and
in light of the outcome of the joint
Africa –EU Business conference that
preceded the Africa-EU Summit held
in Brussels in April 2014.
The objective of these studies was
to provide each ESA country with
empirical evidence on likely costs
and benefits of signing or not signing
an EPA with the EU. Trade experts
from both COMESA Secretariat
and UNECA presented the findings
and discussed in detail about the
implications of the EPAs on the
region.
The ESA Council was called ahead
of the October deadline for the
countries to decide whether to sign
the EPAs or not. Negotiations have
been going on since 2007. Minister
Bob Shichinga of Zambia chaired the
Ministers meeting.
Secretary General Sindiso Ngwenya
told the delegates that following
the signing of the interim EPA by
four ESA countries (Madagascar,
Mauritius, Seychelles and
Zimbabwe), the negotiations were
on two tracks. One is focused on
concluding a full and inclusive EPA
and the other on the implementation
of the interim EPA.
Under the full EPA, he said
the ESA region had agreed to
negotiate various subjects including
liberalization of trade in goods and
services, development co-operation,
agriculture, marine and inland
fisheries, trade related issues and
dispute settlement.
However, over the course of
these negotiations, a number of
contentious issues emerged including
policy space regarding scope and
timeframes for phasing in trade
liberalization, use of export taxes
and Most Favoured Nation (MFN)
treatment, mobilizing resources for
development and capacity building
to address numerous supply side
constraints.
Mr Ngwenya noted that while the
EU remains an important trade and
development partner for the ESA
region, there is however need for a
paradigm shift in EPA negotiations.
“We need to take into account the
new geo-political context namely
shift towards global value chain,
global crisis in industrialized
countries, financial crisis, the
emergence of Brazil, Russia, India,
China and South Africa (BRICS), raw
material driven global growth, race
for Africa raw materials, changes
in EU trade policy, tripartite and
continental free trade area initiatives
among others,” Ngwenya said.
The studies were conducted in
the eleven countries of Comoros,
Djibouti, Eritrea, Ethiopia,
Madagascar, Malawi, Mauritius,
Seychelles, Sudan, Zambia and
Zimbabwe.
23
C
OMESA signed a
Memorandum of
Understanding with the
Government of the United Kingdom
in July 2014 to support climate
change adaptation and mitigation in
DFID £3 million for
tripartite agriculture
the COMESA-EAC-SADC region.
Under the MoU the UK through
the Department for International
Development (DFID), will provide
a sum not exceeding three million
pounds to support improvement of
policy on climate smart agriculture.
COMESA Secretary General, Mr
Sindiso Ngwenya, who is the current
chair of the Tripartite signed on behalf
of the partners, the EAC and SADC
while the Head of DFID Southern
Africa, Mr Mike Hammond signed
on behalf of the UK Government. The
occasion was witnessed by the visiting
UK Secretary of State for International
Development, Hon. Justine Greening
and the British High Commissioner to
Zambia and COMESA, His Excellency
James Thornton.
The funds are being used to promote
climate smart agriculture interventions,
strengthen negotiating capacity of
Member States in the international
arena, and support national climate
change response strategies and research.
As part of the promotion of climate
smart agriculture, some of the funds
shall be used to put up pilot projects in
selected tripartite countries.
Speaking ahead of the event, hon.
Greening restated her government’s
“
Secretary of State Justine Greening, (centre) witnesses exchange of MOU Secretary General Sindiso Ngwenya
and Mike Hammond
COMESA is a region in transition to economic
development and the UK is determined to play a role
in support of this development.”
commitment to support the COMESA-
significance of the MoU being signed
EAC-SADC Tripartite activities
this morning on climate change.”
geared towards poverty reduction and
employment creation through regional
She praised the work that COMESA-
integration.
EAC-SADC Tripartite is doing towards
the achievement of the integration
“This is a region in a transition to
agenda.
economic development and we are
determined to play our role in support
The grant will complement the support
of this development,” the Secretary
provided by the Norwegian Ministry of
of State said. “We look forward to
Foreign Affairs and the European Union
continue working with COMESA
to the Tripartite Programme that has
and its Tripartite partners, hence the
been ongoing since 2010.
24
Regional integration capacity
building project launched
Competition
Commission
helps Seychelles
harmonise laws
A
COMESA Competition Commission
delegation conducted a threeday workshop to assist Seychelles
complete a national competition policy. The
workshop, held at the Coco d’Or hotel in
Beau Vallon, in Victoria, in May 2014, was
aimed at helping the Seychelles Fair Trading
Commission in identifying the areas of the Fair
Competition Act, Fair Trading Commission
Act and Consumer Protection Act that need to
be harmonised with the COMESA competition
Delegates attending the launch of the Regional Integration Capacity Building and Research project
T
he Africa Capacity Building
Foundation (ACBF) and
COMESA launched a joint
project to support regional integration
through capacity building and research.
The launch took place Monday, 11
August 2014 in Nairobi during an
awareness creation workshop for
COMESA Member States, who are
the key beneficiaries of the project.
The event was also meant to build
partnerships with existing policy think
tanks within the region, in order to
develop a strategic research agenda for
COMESA.
The capacity building intervention will
provide institutional strengthening and
to enhance the capacity of Member
States to carry out trade negotiations.
The project falls within ACBF’s
mandate, which is to enhance the
capacity of Africa’s regional economic
communities and institutions. This is
in respect to the implementation of
regional co-operation and integration
programmes and the management of
regional public goods and services.
Further, it will contribute to the
effective implementation of COMESA’s
medium term strategic plan for 20112015.
In December 2010 the ACBF Executive
board approved a grant of US
$3,000,000 to support COMESA in
the areas of enhancing the Secretariat’s
capacity to carry out economic and
trade policy research and analysis.
Following the approval, the grant
agreement was signed in February 2013.
The capacity enhancing project
was a successor to the one entitled:
“Strengthening Capacity for Trade
Policy Development within COMESA”
which was implemented from June 2003
to March 2009.
regulations; and creating a timetable for the
completion of a national competition policy.
The Commission’s delegation comprised
Executive Director, George Lipimile; Mary
Gurure, the Manager of Legal Services and
Compliance; and Vincent Nhkoma, Manager
of Enforcement and Exemptions.
“The countries that do not domesticate the
international agreements that they are party
to are faced with various implications. For
instance, cases can be brought against Member
States for failure to domesticate regulations
and to give full legal effect to regulations
constituting a breach of the international
agreement concerned,” Mr Lipimile said.
“A competition policy would enable Seychelles
to attain the objectives of ensuring greater
consumer benefits from the domestic market
such as improvement in the quality of goods
and services at competitive prices as well as
creating an environment which is conducive
to foreign direct investment in the country,” he
added.
25
Kenya gets
ACTESA gets devices from WFP
over €2 million for monitoring cross border trade
under RISM
Kenya has accessed over €2 million under
COMESA’s support to regional integration
programmes. This was after the signing of a
grant agreement in Nairobi on 15 July 2014
between Cabinet Secretary to the National
Treasury, Mr Henry Rotich and COMESA
Secretary General, Mr Sindiso Ngwenya.
The agreement, which was an addendum
to a previous one signed in 2013, was to
make available €2,469,963 in support of
domestication and implementation of regional
commitments at the national level to enhance
the regional integration agenda. The 2013
agreement provided €1,764,345 bringing the
total funding to €4,234,309.
The latest funding is part of the support
under the COMESA Adjustment Facility
(CAF) provided under the 9th European
Development Fund Regional Integration
Support Mechanism (RISM) programme.
Kenya’s submission was approved by the
COMESA Fund Ministerial Committee in
September 2013.
The support provided to Kenya has already
contributed to the elimination of non-tariff
barriers that hinder trade and to setting up of
a coordinating committee and secretariat that
deals with regional integration matters at the
national level.
In an effort to enhance regional integration,
Kenya restructured the government
institutional structure, pooling together
departments implementing regional
integration programmes and institutionalized
wide stakeholder participation in policy and
implementation of regional commitments.
Going forward, the country expects to improve
its business environment by ensuring that the
transit transport facilitation instruments such
as vehicle dimensions and axle load limits are
configured in line with COMESA and the East
African Community.
An additional indicative amount of €4,730,805
is available for Kenya under the Adjustment
Facility for the next two years and will be
disbursed based on progress under the
regional integration framework of the
COMESA and EAC region.
World Food Programme Country Director Simon Cammelbeeck (R)handing over devices to ACTESA Trade and Marketing Director George Magai
The World Food Programme (WFP) has
handed over 30 digital communication
devices (Tablets) to the Alliance for
Commodity Trade in Eastern and Southern
Africa, (ACTESA) to enhance the real-time
data collection and transmission of informal
cross border trade information.
WFP and COMESA have a Memorandum
of Understanding which aims to develop,
promote and strengthen the co-operation
between the two organizations through the
development of technical cooperation to make
significant contribution to poverty alleviation
and improve food security. ACTESA being
the specialized agency of COMESA serves to
integrate smallholder farmers into national,
regional and international markets and is
a key partner through WFPs Purchase for
Progress programme (P4P) that aims at
connecting farmers to structured markets.
The communication gadgets will enable
ACTESA, a specialized agency of the
Common Market for Eastern and Southern
Africa (COMESA) obtain accurate and
real-time data information to monitor cross
border trade activities.
Speaking during the hand-over ceremony
WFP Zambia Country Director Mr. Simon
Cammelbeeck said the tablets valued at US
$12,600 will enable ACTESA to monitor the
activities at 30 border points and provide
the region’s policy makers and food agencies
with the food security status in the region.
In addition, the WFP will provide $83,652 as
part of the operational costs to bridge phase 1
and US $35,000 for technical support to cover
the cross border monitoring project.
Speaking on behalf of the ACTESA Chief
Executive Officer, Mr George Magai Director
Trade and Markets expressed hope that
the devices will be put to good use for data
capturing along the borders, namely, Zambia,
Malawi, Mozambique, Tanzania, Zimbabwe
and Democratic Republic of Congo.
The cross border monitoring system will
track current cross border prices, volumes
of informal trade in maize meal, maize, rice,
sorghum, millet, wheat and beans across the
30 borders.
The information gathered from monitoring
of cross border data will complement the
national and regional food balance sheets
in the region. It will also be used by agrobusiness planners, research institutions
and international trade monitors and
humanitarian agencies.
26
Easing movement of business
persons in the tripartite region
based mechanism.
Helen Kenani
The Common Market for Eastern and
Southern Africa (COMESA), the East
African Community (EAC) and the
Southern Africa Development Community
(SADC) are working towards facilitating
free movement of business people in the
east and southern African region.
Technical Working Group (TWG)
constituting experts from the tripartite
regional blocs are involved in this
endeavour. COMESA’s Trade Expert,
Mrs Helen Kenani informed delegates
attending the International Freight
Forwards Association (FIATA) annual
conference in Victoria Falls, Zimbabwe in
June 2014 that the movement of business
persons has remained a major hindrance
to free flow of inter/intra-regional trade. It
is also a key provision in the negotiations
for a Tripartite Free Trade Area (TFTA).
The conference was hosted by the Shipping
and Forwarding Agents of Zimbabwe,
(SFAAZ) and the Region African and
the Middle East (RAME) who invited
COMESA to brief the delegates on the
RECs initiatives to address Non-Tariff
Barriers (NTBs) and the Tripartite Free
Trade Area negotiations. It was officially
opened by Senior Minister in the Office of
the President of Zimbabwe, Ambassador
Simon Khaya Moyo.
In her presentation to the delegates, Mrs
Kenani observed that RECs formed an
important stakeholder and presented
big business opportunities for freight
forwarders given the imminent increase in
intra and extra-tripartite trade.
“As the TFTA deepens it is expected
that it would spur both Foreign Direct
Investment as well as regional cross-border
investments as currently being witnessed
in the COMESA integration process,” Mrs
Kenani said.
The delegates noted that important
stakeholders in the region were not aware
of the efforts being made to fast track the
reporting and subsequent resolution of
NTBs specifically the tripartite on-line
An incident that underscored the critical
need to address the NTBs was cited
whereby a past president of the RAME,
Africa Chapter, was prevented from
proceeding to the same conference. He was
detained in one of the regional airports
and then finally sent back to his country
for not having a transit visa.
“The participants were therefore keen as
details of the mechanisms for reporting
NTBs were provided that ranged from
accessing the internet, reporting as well
as easy access to national focal points of
a given tripartite country as well as REC
Focal Points for assistance”, Mrs Kenani
said.
The delegates recommended that
COMESA and other RECs that impact
on their sector should always be invited
to their conferences to appraise the
membership on the on-goings in the
region as was done at the Zimbabwe
Conference.
The Trade Expert informed the conference
that COMESA would be glad to assist
in terms of capacity building on trade
facilitation instruments that have been put
in place for their use such as the COMESA
Yellow Card Scheme and the Regional
Customs Trade Guarantee scheme.
The FIATA is a non-governmental
organization based in Zurich, Switzerland
representing an industry covering
approximately 40,000 forwarding and
logistics firms and employing around 8-10
million people in 164 countries worldwide.
27
Madagascar is
AGOA eligible
Seychelles and
Madagascar bilateral air
services agreement
Yellow Card management
information system rolled
out in Zimbabwe
In order to combat the challenges facing
The Republic of Madagascar was
declared eligible to participate in the
African Growth and Opportunity Act
(AGOA), again. US President, Barack
Obama, made the proclamation in
Washington on 26 June 2014. This means
that Madagascar can now have duty-free
access to the US $3 trillion market for its
products.
Two COMESA Member States, Seychelles
and Madagascar concluded a bilateral air
services management agreement in April this
year. The agreement provided a renewed and
forward-looking framework to govern air
access between the island states, which has
been complex for decades. It also heralded
an era of enhanced connectivity, supporting
cultural and trade development. The
development was a crucial stage in a bilateral
“Based on actions that the Government
of Madagascar has taken, I have
determined that Madagascar meets
the eligibility requirements set forth in
section 104 of the AGOA and section
502 of the 1974 Act, and I have decided
to designate Madagascar as a beneficiary
sub-Saharan African country,” the
Presidential Proclamation read in part.
The Act offers incentives for African
countries to continue their efforts to
open their economies and build free
markets. Other COMESA Member States
that are AGOA eligible are Ethiopia,
Kenya, Malawi, Mauritius, Rwanda,
Uganda and Zambia.
effort to restore direct air links between
the region, COMESA has started rolling out
the Yellow Card Management Information
System in Zimbabwe. The system will
allow for the easy access and management
of information related to the day to day
administration and management of the
Yellow Card Scheme.
The Yellow Card Scheme is regional third
party motor vehicle insurance protection
Seychelles and Madagascar.
meant to enhance the free movement
Delegates from Seychelles headed by Gilbert
the COMESA region. It is already being
Faure, chief executive of the Seychelles
Civil Aviation Authority (SCAA), and from
Madagascar headed by James Andrianalisoa,
the Director General of that country’s
Civil Aviation Authority, met for the final
negotiations and signing of the agreement at
the SCAA head office from 24-25 April 2014.
“The new air services agreement between
Seychelles and Madagascar is consistent with
our regional integration agenda to improve
connectivity in the region and promote the
two centre-destinations also known as the
Vanilla Islands initiative,” said Mr Faure.
AGOA was signed in law on 18 May
in 2000 as Title 1 of The Trade and
Development Act of 2000 by the
United States government. It is a US
preferential trade programme aimed
at supporting sub-Saharan African
economic development through trade
and investment. The programme offers
incentives to sub-Saharan African
countries for undertaking difficult
political and economic reforms that
promote long-term growth and
development.
transporters in securing transit goods in
“The new framework encompasses all the
requirements of commercial operations in
today’s modern aviation era to include cooperative arrangements, aircraft leasing and
enhanced capacity arrangements to benefit
both countries,” Mr Faure added.
The signing of the new air services
agreement is in line with Seychelles’
President James Michel’s efforts to help
Madagascar return to stability after the
political crisis experienced by the country in
the last few years.
of persons, goods and services within
implemented in Kenya, Uganda, Rwanda,
Burundi, Tanzania, Malawi and Zambia.
The rollout was conducted by a COMESA
team during a workshop in Harare on 01 July
2014. The team explained to the participants
how the system will reduce the delays that
have been experienced through the use of
the old manual system. The launch attracted
major insurance companies and the National
Bureau of Zimbabwe which co-ordinates
insurance companies in the country.
“Once you start using this system, unlike the
old manual system, it will be easy for you to
get information on your documentation and
will in turn reduce the corruption associated
with the old system on claims and Yellow
Card forgery,” Kelvin Chisongo, an insurance
expert at COMESA said.
Mr Chisongo said the system will ensure
strict monitoring of Yellow Card stock
movements from the point of ordering by the
National Bureaux through issuance of Yellow
Cards, claims processing leading to the final
settlement of claims.
28
Cluster programme
rolled out in Kenya
In Picture: COMESA-FEMCOM team
led by Mrs Katherine Ichoya (4th Right)
with Minister of Agriculture in Machakos
County, Hon. Larry Wambua. Others
are representatives from Farm Concern
International and FEWA (FEMCOM
Kenya Chapter).
said.
In the Machakos initiative, FEMCOM will
partner with Farm Concern International
(FCI) on a joint resource mobilization drive
for cassava cluster development. The strategic
action plan will serve as a model for other
counties such as Laikipia, Busia, Kiambu and
Kilifi, with each county focusing not only on
cassava but also on crops that are suitable
in their area for purposes of comparative
advantage. This process will also be extended
to all other COMESA Member States.
T
To increase awareness of the cluster
he Federation of Women in Business
Katherine Ichoya, said the strategy being
(FEMCOM) is on a drive to promote
applied in Kenya and elsewhere was to
the cluster programmes in Kenya.
identify one region to pilot the cluster
The programmes are centered on leather
programme for possible replication
and leather products; garments and textiles
elsewhere.
and cassava processing; and have been
implemented successfully in the southern
FEMCOM, in partnership with the
African States of Zambia and Malawi.
Federation of Women Entrepreneur
Associations of Kenya, jointly held workshops
The objective of the programme is to enhance
and meetings to sensitive stakeholders on the
economic growth in the region, and promote
cluster programme. This was in addition to
value addition. In Kenya, the clusters
identifying the region to implement the pilot
programme focuses on garments, textiles
programme for future replication.
and cassava processing at a small scale but
“We identified Machakos County for this
this will be scaled up through the county
initiative and have held consultative meetings
structures to deepen ownership, resource
led by the Minister of Agriculture of the
mobilization and sustainability.
County Government and even began a
process to develop a strategic action plan to
The Chief Executive of FEMCOM, Mrs
implement cassava production,” Mrs Ichoya
programme in the region, FEMCOM plans
to produce a regional documentary film on
the cassava cluster value chain showcasing
projects on a regional level.
To further COMESA’s current theme of
“Consolidating Intra-COMESA Trade
through Micro, Small and Medium
Enterprises Development”, the textiles and
garments cluster project is being piloted
in ten Member States. In Kenya, COMESA
in partnership with the World Vision are
supporting the Riruta clothing and textiles
project, an initiative that is thriving enough
to bid for national tenders. It started with
18 textile machines and has grown to 150
members. World Vision Kenya has supported
the project by donating a container that
will enable the project eliminate the cost of
renting a building.
29
holds elections,
gets new President
The outgoing leader congratulated President
al-Sisi and expressed confidence in his
abilities to achieve the aspirations of the
people. The occasion was witnessed by among
other guests King Abdullah of Jordan, the
Emir of Kuwait, the King of Bahrain, Saudi
Crown Prince Salman and the Crown Prince
of Abu Dhabi.
Egypt is among the leading countries that
trade in the COMESA market and 10 percent
of its global trade is with COMESA. Whilst
globally Egypt has endured a trade deficit
with its resultant consequences on the
exchange rate, jobs and living standards, the
balance of trade with COMESA has remained
superior. Egypt mainly imports raw materials
from COMESA such as copper, black tea,
petroleum products and tobacco. Raw
material imports represent over 60 percent of
the total imports from COMESA.
C
OMESA Secretary General, Sindiso
With respect to exports to the COMESA
scheduled for later in the year.
Market, Egypt was the second largest
The elections were observed by a team
COMESA over a two-decade period. Egypt’s
Ngwenya was among Heads of State,
Governments and organizations that
exporter, with 20 percent of all exports into
exports into COMESA have been a mixture of
attended the inauguration of His Excellency
from COMESA among other international
Abdel Fattah al-Sisi (in picture)as the eighth
observers. During the inauguration,
President of the Arab Republic of Egypt. The
Mr Ngwenya took the opportunity to
inauguration ceremony took place on 08 June
congratulate His Excellency President al-
2014 at Cairo’s Supreme Constitutional Court
Sisi on his election and expressed his and
following successful presidential election from
COMESA’s unwavering support to Egypt.
million in 2003 to US $2.5 billion in 2012.
“The inauguration of His Excellency
In his maiden speech after taking his oath of
25 to 27 May 2014.
President Fattah al-Sisi won over 95 percent
witnessed for the first time in the history
of the votes cast, making a very significant
of Egypt the transfer of power from one
step towards implementing the road map that
President to another in this case from the
was developed after the removal of former
outgoing Interim leader, His Excellency Adly
President Muhammad Morsi. The final step of
Mahmud Mansor,” Mr Ngwenya said.
the road map will be parliamentary elections,
finished and semi-processed goods including
ceramic tiles, cement, and worked building
stones, sugar and medicaments. The volume
of exports has increased from US $230
office, President al-Sisi vowed to lead Egypt
to stability and prosperity. He committed to
support investment in Egypt’s agricultural
and manufacturing sector and also vowed to
defend the rights of the poor and low-income
Egyptians.
30
Makerere offers leadership tips
to senior Secretariat staff
COMESA senior staff went through a
two day leadership training programme
facilitated by the Makerere University
Business School (MUBS) at Chaminkua
Wildlife Park in the outskirts of Lusaka,
earlier this year. Prof Waswa Balunywa,
the Principal of MUBS and the Ms Regis
Namuddu, Director of MUBS Leadership
Centre, conducted the training.
The programme covered core skills
that enhance leadership competencies
including emotional intelligence,
motivation, effective communication,
listening skills, mentoring and coaching,
conflict management, effective delegation
among others.
Eritrea trade with COMESA set to rise
The stage has been set for a significant rise
in COMESA trade with Eritrea following a
successful capacity building programme that
presented to stakeholders the opportunities
prevalent in the region for Eritrean firms.
The training, which served as an eye opener
for business stakeholders in the country was
conducted in Asmara last month by a team
from the Secretariat. The COMESA team
that included Tasara Muzorori, Senior Trade
Officer; Zerezghi Kidane, Senior Customs
Affairs Officer; Helen Kenani, Trade Policy
Expert; and Anthony J Walakira, ADP
Eurotrace Expert .
The training focused on enhancing the
knowledge of Eritrean stakeholders
on COMESA Rules of Origin and the
elimination mechanisms for non-tariff
barriers. It also covered customs cooperation and trade facilitation, identifying
sensitive products, as well as liberalization of
trade in services, and developments on the
tripartite negotiation process.
Participants, drawn from the Eritrean
private and public sector acknowledged that
their trade with COMESA Member States
was not optimal partly due to insufficient
understanding of the regional market
“Most of our exports are destined to
European countries, but now we shall
consider the regional market especially for
salt which Eritrea used to export to Uganda
and other COMESA Member States,” they
said.
Eritrea was among the first countries to
reduce tariffs for intra-COMESA trade by
80 percent in 1998 and this percentage still
holds to date. According to the Director
of Foreign Trade in the Ministry of Trade
and Industry Mrs Zeferwork Desta, the
training programme contributed to better
understanding among the stakeholders of
COMESA programmes including facilitation
to join the Free Trade Area (FTA).
The Eritrean private sector representatives
recommended that a similar capacity
training workshop should be organised for
the larger private sector which do not even
know what COMESA has to offer for the
country.
31
Burundi Ambassador H.E Louis Ciza
Call for adoption of new
technologies of cargo freighting
Time has come for the region to trash
the old technologies and embrace new
and innovative means of ferrying goods
within the region such as the use of
ferries rather than ships to reduce delays
in delivery of goods.
from the Burundi Ambassador to Zambia
who is also the Permanent Representative
to COMESA Louis Ciza, Mr Ngwenya
said the current system was not only
cumbersome but also perpetuated delays
and high costs of insurance and handling
charges.
“When you want to move goods from
Lusaka to Bujumbura for example you
first go to Mpulungu Port, you put the
goods in a ware house, and after some
days you put them on the ship and once
they reach the destination you again put
them in a ware house and then later on
the trucks,” COMESA Secretary General
Sindiso Ngwenya laments.
All that needs to be done, he said was to
have a roll-on and roll- off ferry where
a truck or rail wagon embarks on the
ferry and disembarks on the other end
in seamless flow to the destination.
He reiterated the need to modernize
transport infrastructure especially on
water bodies like the Lake Tanganyika.
Speaking while receiving credentials
Ngwenya said this is the vision of the
region and it shall be fulfilled, as it is the
only way that people, good and services
shall move across the borders of the
region without delay and a lesser cost.
In his remarks, Ambassador Ciza said
there is need for landlocked countries to
create a link through the water bodies
such as the Lake Tanganyika, which he
said is the only gateway to other parts of
the region including Zambia.
The Ambassador further said his country
was passionate on the integration agenda
as it helped developing countries to
emulate those that were successful in the
areas of industrialization, farming among
others.
32
Rwanda to develop downstream
petroleum strategy
products
“There are strong links between the subsector and other areas of the domestic
economy; and as a major player in the
domestic economy, the presence of a
vibrant local sub-sector adds value to
the backbone of economic growth by
ensuring reliable supply of petroleum
products, including in the event of global
supply disruption,” Energy Economist in
COMESA, Dr Mohamedain Seif Elnasr,
said in a study he conducted.
The results of the study were disseminated
in a national workshop held in Kigali,
Rwanda on 15 May 2104. It was officially
opened by Mr Emmanuel Hategeka,
Permanent Secretary, Ministry of Trade
and Industry, Republic of Rwanda.
C
OMESA has commissioned
a consultancy to develop a
downstream petroleum strategy
for the development and competitiveness
of the petroleum downstream sub-sector
in Rwanda. The main objective of the
strategy is to establish a petroleum supply,
management and re-distribution system.
The strategy is necessitated by the need
to have practical approaches to create an
enabling environment that encourages the
investment in the sector. This will bridge
gaps in the downstream petroleum subsector in Rwanda and ensure petroleum
supply availability through a bulk
purchase system.
Downstream petroleum products subsector is a major source of investment
in the Rwandan economy and a major
employer. However, the sub-sector
currently faces many challenges,
including high import price differentials,
regional competitiveness and hence the
need for significant restructuring. It,
therefore, needs to compete regionally
and attract further investment. Besides
all petroleum importers must be able to
ensure that Rwandan consumers continue
to enjoy access to high quality, affordable
transport fuels and other petroleum
Participants included key stakeholders in
the petroleum industry in Rwanda such
as ministries (policy bodies) regulators
and service providers participated in the
validation workshop.
As a way forward, the study
recommended the establishment of
Competent Authority (NICA) should
be a top priority to set the stage for
petroleum strategy implementation. It
was also agreed that another workshop
would be required to further improve the
final version which would be expected to
impact on the oil industry of Rwanda for
the next decade.
33
ZEP-RE growths to US $100 million
T
he COMESA Reinsurance agency,
ZEP-RE recorded an all-time
high growth rate in business,
asset base and profits since it was
established 20 years ago. According to the
latest statistics, the company underwrote
business worth US$100 million last year
compared to US $5 million at inception
in 1994. It assets base has also risen from
US$4 million to US $201 million.
“It is satisfying to observe that in 20
years, ZEP-RE has risen from a young
uncertain entity to a strong and confident
reinsurer of choice,” says COMESA
Secretary General Sindiso Ngwenya. “We
are most proud of the various milestones
ZEP-RE has so far achieved during this
period.”
Mr Ngwenya who was addressing the
23rd Annual General Assembly of ZEPRE in Nairobi observed that 2013 was
the most profitable year for the company
with growth in profits reaching a high of
US $15 million.
The growth has mainly been attributed to
diversification of service provision and
products access by setting up regional
hubs and country offices through-out the
region. This is in addition to continuous
facilitation of capacity building through
sound training programme that has
serviced over 150 training workshops in
the region since its inception.
ZEP-RE was established with the
objectives of developing the region’s
insurance industry, promoting of regional
retention and underwriting capacity;
and supporting regional economic
development.
Ngwenya noted that the realization of
these goals is significant given that the
region still lags behind in insurance
penetration by global standards despite
the great progress the industry has made
in the last decade. The region, he notes,
needs to grow its local insurance industry
to effectively compete with major players
in the global market in servicing all
security needs within the region. He
called on countries and citizens of the
region to support indigenous institutions
such as ZEP-RE as a means of ensuring
they can better weather any storms such
as the recent euro crisis.
“The small size of the regional markets
means that when a global financial
tragedy such as the euro crisis comes
around, regional markets that rely on
international markets security suffer a lot
even though we are not directly attached
to the happenings in some of these
markets,” Ngwenya observed.
He said that regional integration and cooperation offered the best opportunity of
creating a Pan African economic power
house capable of tilting the commercial
bargaining power in the region’s favour.
The Secretary General congratulated the
management of ZEP-RE for maintaining
its original focus on growth, profitability
and the development of the insurance
industry in spite of the challenges that
beset indigenous reinsurers of the region.
34
African Legal Institute
to support COMESA
COMESA supports the
Karisimbi climate
observatory
In May this year COMESA provided US
$50,000 to support the Rwanda Karisimbi
The two parties will
develop joint programmes
and activities such
as capacity building
initiatives aiming
at promoting and
strengthening legal
expertise within African
states
climate observatory project. The grant
C
The initial work programme was funded
followed a proposal submitted by Rwanda’s
Ministry of Education related to carbon
measurement capacity building.
This followed consultations between Rwanda’s
Minister of Education Dr Vincent Biruta
and COMESA Secretary General, Sindiso
Ngwenya. The grant was also intended to
purchase of an Aethalometer AE 33 carbon
measurement instrument, and training of
technicians to carry out the day-to-day work.
OMESA and the African Legal
Support Facility (ALSF) signed
a Memorandum of Understating
(MoU) aimed at providing legal advice
and technical assistance to the Secretariat
and Member States.
ALSF will be the implementing agency
with regard to natural resources
management and contract negotiation
covered by another MoU signed between
COMESA and Western Australia, signed
on 31 January 2014.
This was in regard to matters pertaining
to natural resources and extractive
industries management and contracting,
investment agreements and related
commercial and business transactions.
The agreement was signed in Kigali,
Rwanda between Secretary General
Sindiso Ngwenya and Director/Chief
Executive Officer of ALSF Mr Stephen
Karangizi in May 2014.
The two parties will develop joint
programmes and activities such as
capacity building initiatives aiming
at promoting and strengthening
legal expertise within African states
particularly with respect to debt
management, natural resources and
extractive industries management,
infrastructure and contracting and
investment agreements.
In accordance with their respective
mandates, COMESA and ALSAF will
pursue development of synergies as
well of systems and mechanisms of
information sharing and knowledge
exchange on matters of mutual interest.,
The ALSF, an institution of the African
Development Bank is an international
organization established by a treaty and
created with the objective of providing
legal support to African countries in
commercial creditor litigation advisory
by COMESA through its Climate Change
supported programme financed by the
European Union, Norway, and DFID. The
equipment was delivered in April 2014.
The Karisimbi project comprises several
pillars including: climate observatory,
integration of COMESA air space
communication, navigation surveillance
air traffic management; broadcasting and
cable-car systems. A number of government
ministries in Rwanda are involved in the
project; and Rwanda was mandated by
COMESA Council of Ministers to spearhead
the implementation of the project.
The upcoming carbon measurement
installation and training is one phase towards
the setting up of a world class climate
observatory in East and Southern Africa to
be based at the summit of the 4,507 metres
Mount Karisimbi. Once fully operational,
the Mt Karisimbi Climate observatory will
provide a region-wide center for climate
data gathering and analysis that will feed
into national, regional and global planning
activities.
35
Development of a COMESA
industrial policy underway
“
The focus should be on creation
of decent jobs on a differentiated
approach for low and middle
income countries.
Nchanga Open pit mine
The development of a draft common
industrial policy for COMESA that will
lead to an economic transformation of
COMESA through industrialization
began in June 2014. The initial steps
involved putting together a working
team to work on the draft policy
based on two pillars namely: national
industrial policies and the regional
element.
The decision to develop the policy
was made at the 32nd Meeting of the
COMESA Council of Ministers in
Kinshasa in February this year. The
draft common industrial policy was
expected to be in place by 30 June 2014,
a decision that was also reaffirmed by
the Seventeenth COMESA Summit of
the Heads of State and Governments.
Pursuant to this decision and the strict
deadline given to the Secretariat, the
COMESA Secretary General initiated
a draft frame work on how the process
was to be accomplished. The process
entailed putting together a task team
that would work directly under the
Secretary General’s supervision.
“The clear conceptualization of the
two pillars and their delineation was
essential for a pragmatic and resultsoriented policy, which not only requires
robust institutional support by both
governments and the private sector,
but most importantly, a strong political
support at the highest levels,” Mr
Ngwenya said.
The task team comprises Mr Tasara
Muzorori, Senior Trade Officer; Mr
Fred Kongongo, Coordinator, Science,
Technology and Innovation Programme,
Mr Ibrahim Zeidy, Director CMI, Mr
Stanley Mbagathi, Regional Process
Facilitator, Mr Anthony Walakira, ADP
Expert Eurotrace and Dr Jian Zhang,
Advisor to the Secretary General, on
Economic Transformation.
The team’s task was to review
the performance of existing
industrialization policies at national
and regional level; the existing policy
reforms pursued at national level which
are related with industrialization; the
economic and social conditions which
are related with sustaining economic
growth through the productive sector;
the experiences of other countries
and regions. It also assessed country
industrialization performance as
compared with their peers within and
outside of COMESA.
At the national level the team is to
consider, among others, the factors
which determine industrialization
including policies required for
economic transformation through
industrialization.
“The focus should be on creation of
decent jobs on a differentiated approach
for low and middle income countries;
creating the foundation for robust and
inclusive growth; improving the wellbeing of the population,” Mr Ngwenya
said.
At the regional Level, the policy cooperation for regional macro-economic
and structural policies was to be
pertinent. These include investment
incentives; labour standards and
structural reforms. The regional value
chains for economic diversification and
transformation and the role of COMESA
and its Institutions would be addressed.
36
T
Source:: Google photo
RAERESA encouraging States to
Invest in Renewable Energy
he Regional Association of
Energy Regulators for Easter and
Southern Africa (RAERESA)
recommended the adoption of four
instruments to encourage investment in
renewable energy in COMESA Member
States.
level of regulatory harmonization within
the COMESA region while taking into
account their specificities. The Secretariat
was expected to facilitate training
programme for Member States on the
four guidelines to fully understand them
and further internalize them.
In its fourth meeting that took place
in Lusaka, the RAERESA Portfolio
Committee on Renewable Energy
identified the four as: the Feed-In-Tariffs
(FIT) Guidelines; Power Purchase
Agreement (PPA) Guidelines; Public
Private Partnership (PPP) Guidelines;
and Joint Development of Projects
Guidelines.
Assistant Secretary General Dr Kipyego
Cheluget observed that since the
establishment of RAERESA in 2009
and its operationalization in 2010, the
Portfolio Committee had undertaken
activities to facilitate the harmonization
of regulatory frameworks for renewable
energy technologies through support
from USAID.
The meeting recommended that the
instruments be presented to the Annual
General Meeting of RAERESA, expected
to be held during second half of 2014 for
adoption.
Pursuant to the recommendation,
Member States were urged to use the
guidelines when developing their national
guidelines. This was to ensure a minimum
“The activities are meant to facilitate
the harmonization of regulatory
frameworks for renewable energy
technologies in an effort to make the
environment conducive to renewable
energy sub-sector’s investments, in
particular, encouragement of private
sector investment and participation,”
Dr Cheluget said while addressed the
meeting.
Mr Getahun Moges, Director General,
Ethiopian Energy Authority of the
Federal Democratic of Ethiopia, the
current Chair of the Portfolio Committee
on Renewable Energy of RAERESA said
the Portfolio Committee had conducted
various studies concerning renewable
energy resources in the COMESA region.
“The studies focus on enhancing the
further development of the renewable
energy sources by facilitating conducive
regulatory services, framework and by
harmonizing such services and incentives
across countries as enshrined in the
RAERESA constitution,” Mr Moges said.
Fourteen COMESA countries, namely:
Burundi, Comoros, Democratic Republic
of Congo, Djibouti, Egypt, Ethiopia,
Eritrea, Kenya, Madagascar, Malawi,
Rwanda, Sudan Swaziland and Zambia
participated in the meeting. It was
also attended by the African Union
Commission and Renewable Energy
Cooperation Programme of the AfricaEU Energy Partnership.
37
COMESA 24/7 Online system rolled out to staff
S
COMESA Staff
eventy staff members were
with the COMESA Medium term
guidelines on M&E were also
trained on the use and
Strategic Plan M&E system for key
endorsed by Member States. This
application a COMESA
regional priorities and outcomes.
paved the way for the integration
Monitoring and Evaluation
of M&E as a core function
(M&E) online system developed
The system was developed through
of COMESA in programme
with support of the World Bank
a World Bank grant of US $869,000.
implementation. The regional
to build institutional capacity in
Through this grant COMESA was
economic bloc has not had an
implementation of programmes.
developed the current Medium
institutionalized M&E framework
Term strategy (2011-2015) which
and this has been partly blamed
The system, dubbed COMESA 24/7
was approved by the Council of
for the slow implementation of
Online combines management
Ministers in Swaziland in 2010.
the decisions made by Council of
Ministers and the Authority of the
information systems and
monitoring and evaluation. It
Other activities carried out include
would be used by the COMESA
the hosting a Regional Validation
Secretariat, its institutions and
Workshop for the online system,
The development of the policy
Members States in monitoring and
rolling out the system to Member
and guidelines and adaption of the
evaluating Regional Integration
States and training the COMESA
M&E online systems was expected
programmes. The system was
staff.
to significantly raise the level
also intended to strengthen the
alignment of national M&E Systems
Heads of States over the years.
of implementation of COMESA
In April 2014, a new policy and
programmes.
38
COMESA staff take KK birthday to UTH
S
taff at COMESA Secretariat
in Lusaka commemorated
the 90th birthday of Zambia’s
founding President Dr Kenneth
Kaunda by adopting and launching
lifetime support to the children’s
cancer ward at the country’s
biggest referral medical facility, the
University Teaching Hospital (UTH).
Assistant Secretary General,
Ambassador Nagla El Hussainy led a
team of staff members to the hospital
on 02 May 2014 where they presented
various items, including foodstuff for
the patients who range from two to
12 years.
“Today marks the beginning of a
long journey together and I believe
that we shall all support each other
in this quest of trying to make the
lives of the patients as comfortable as
possible, and the work of the medical
experts easier,” Ambassador Hussainy
said
The Director of Administration,
Mrs Victoria Mwewa revealed that
staff at the Secretariat have formed
the “Making a Difference Fund”
which will go towards helping the
vulnerable in society.
“COMESA has a wider mandate
but we believe that we must make a
difference in the community in which
we live and operate. This gesture
is the beginning of many more to
come. Apart from reaching out to
this health unit, we have also adopted
a community school, which we will
soon visit,” Mrs Mwewa added.
Management at UTH expressed
joy at the support from COMESA
Secretariat and they have encouraged
the organization to continue lending
a helping hand.
Managing Director Dr Lackson
Kasonka, who was visibly delighted
to receive the donation, said running
the UTH is an enormous task and all
kinds of donations are welcome to
help cater for the people of Zambia.
The support from COMESA included
painting the entire A06 Children’s
ward, painting murals on the walls,
fixing tiles in the ward and putting
new curtains. Food items such as
milk, sugar, cooking oil, and nonfood items such as Dettol, washing
powder and bedsheets, among others,
were donated. The total contribution
amounted to US $10,000.
Dr Kenneth Kaunda ruled Zambia
for 27 years and he turned 90 years
on 28 April 2014.
39
COMESA
observers
Malawi
elections
C
Seychelles and
Madagascar bilateral air
services agreement
OMESA deployed a team
of election observers to
the tripartite, May 2014
elections in Malawi. The team was
led by a member of the COMESA
Committee of Elders, Ambassador
Berhane Ghebray from Ethiopia.
COMESA has in the past one
year deployed similar observer
missions to other Member States
such as Rwanda, Burundi, Kenya,
the Democratic Republic of
Congo, Malawi itself, Zambia and
Zimbabwe among others.
This is in line with COMESA’s
main objective which is the
attainment of regional economic
integration for sustainable growth
and development. This is done to
promote democratic governance
and observance of the rule of law in
each Member State.
The observation of these elections
is not meant to pass judgment, but
to contribute to the transparency of
the electoral process.
Two COMESA Member States,
Seychelles and Madagascar concluded
a bilateral air services management
agreement in April this year. The
agreement provided a renewed
and forward-looking framework to
govern air access between the island
states, which has been complex for
decades. It also heralded an era of
enhanced connectivity, supporting
cultural and trade development. The
development was a crucial stage in
a bilateral effort to restore direct
air links between Seychelles and
Madagascar.
Delegates from Seychelles headed by
Gilbert Faure, chief executive of the
Seychelles Civil Aviation Authority
(SCAA), and from Madagascar
headed by James Andrianalisoa, the
Director General of that country’s
Civil Aviation Authority, met for the
final negotiations and signing of the
agreement at the SCAA head office
from 24-25 April 2014.
“The new air services agreement
between Seychelles and Madagascar
is consistent with our regional
integration agenda to improve
connectivity in the region and
promote the two centre-destinations
also known as the Vanilla Islands
initiative,” said Mr Faure.
“The new framework encompasses
all the requirements of commercial
operations in today’s modern
aviation era to include co-operative
arrangements, aircraft leasing and
enhanced capacity arrangements to
benefit both countries,” Mr Faure
added.
Through the lens
40
Through the lens
41
42
Call for Media Award Entries 2014
H.E President Joseph Kabila presents a COMESA Certificate of Merit to Francisco Ahabyona
The Common Market for Eastern
and Southern Africa (COMESA) has
announced the launch of its annual
media awards for 2014. The Awards
are open for published and broadcast
works in the fields of Print, Radio,
Television, and online media that
focus on programmes and activities
relating to regional economic
integration in Eastern and Southern
Africa.
The objective of the Awards is to
promote reporting of COMESA
regional integration activities
and recognize journalists whose
works contribute to this agenda.
They are open to journalists from
the 19 COMESA Member States,
and eligible entries are for works
published/broadcast between
January and December 2014
Selection of the best works will be
decided upon by an adjudication
panel identified by COMESA
Secretariat from Member States.
Winners shall be announced and
prizes awarded during the COMESA
Heads of State and Government
Summit in Addis Ababa expected
to take place in March 2015. The
first prize in each category carries
a monetary award, a trophy and a
certificate.
of the EastAfrican Newspaper and
Francisco Ahabyona of the Uganda
Broadcasting Corporation. The duo
was presented with cash award and
certificates of merit by President
Joseph Kabila of the D R Congo
during the COMESA Heads of State
Summit in Kinshasa in February this
year.
Winners for COMESA Media
Awards 2013 were Julius Barigaba
Details for entry are published in the
COMESA website www.comesa.int
Since 2009, COMESA invites media
practitioners from the region to
submit published articles and audio/
visual productions relevant to the
regional integration agenda for
consideration for awards.
43
44
Printed with the support from the EU/RISP

COMESA News Volume 2 2014

Transcription

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