Secretary-general Sindiso Ngwenya said this while addressing the 26 th meeting of the Council of Ministers underway in Victoria Falls ahead of the Comesa Customs Union launch this Sunday.
He said though the increase was commendable, a lot more still needed to be done as the figure was still less than 10 percent of global trade.
“Since the launch of the Comesa Free Trade Area (FTA) on 31 October 2000, intra-Comesa trade has grown from US$3.2 billion to US$15.2 billion in 2008,” he said.
He said the region had also recorded an increase in cross border investment, resulting in spin off benefits such as employment creation.
Ngwenya, however, urged member states to create conducive environments that attracted investment, adding the establishment of the Comesa Customs Union this Sunday will present the region with an opportunity to boost trade and lure investment.
“By launching the Customs Union Comesa countries are sending out a strong political message that there will be no policy reversal on trade liberalization and the creation of a single market for goods, labour and capital,” he said.
Ngwenya said establishment of the customs union would also sent a bold message that the region, with about 400 million people and a gross domestic product of US$350 billion, was now an emerging market for trade and investment.
“We can now speak with a single voice and negotiate as one,” he said, adding that this would help the region to pool its resources together to fund some of its projects even though a similar fund was already in existence.
The union would also facilitate the speedy realization of Comesa macro-economic convergence programmes, exchange rate convertibility and ultimately the establishment of a single currency, he said.
The secretary-general, however, urged member states to work together in implementing agreed policies to ensure the Customs Union was a huge success.
Ngwenya said the globalization process required Comesa countries to operate like a pride of lion that work as a collective group.
And Ngwenya urged African countries to craft their own economic policies and not depend too much on foreign policies, noting that this had a negative impact on growth.
He said the global economic recession was a clear example of how dangerous it could be to naivley accept policies without critically interrogating them.
It was sad, he said, to note that what a central bank in developed countries decided over lunch or dinner became universal law.
“The lesson to be learnt from this and related factors that have thrown the world economy in a worst recession is that it is absolutely necessary for Comesa to understand the cause rather than the symptoms in order for the region to craft strategies and policies than can lead to a vicious cycle of growth and equitable development,” he said.
Meanwhile , Zimbabwe assumed the chairmanship of the Common Market for Eastern and Southern Africa (Comesa) Council of Ministers at the regional meeting which opened here on Tuesday in the resort town of Victoria Falls.
The council, which brings together ministers responsible for Trade, Industry and Commerce, makes key decisions that commit member states to various programmes in Comesa. It also makes recommendations to Heads of States for approval.
Zimbabwean Industry and Commerce Minister Welshman Ncube assumed the chair on behalf of the country.
Ncube takes over from Kenyan Trade Minister Amos Kimunya, whose country hosted the previous Comesa Summit while Swaziland retained the vice-chairmanship post.
As Comesa vice-chair, Swaziland would host next yera’s Comesa Summit.
Speaking soon afterwards, Ncube said Zimbabwe took seriously issues of regional integration and would strive to promote full cooperation among member states.
“I want to assure you that Zimbabwe takes more seriously the responsibilities entrusted on her as she assumes the chairmanship of the council,” he said.
He pledged to continue championing the good work of those that served in the previous council to ensure Comesa implemented its developmental programmes.
In his address, the out-going council chairman Kimunya said Comesa had done a lot to promote regional integration. Zimbabwe, he said, was now entrusted with the task of spearheading the programmes.
“I am satisfied with my tenure,” he said, adding that Zimbabwe also had the capacity to do more for the regional economic bloc.
New Ziana
This is very encouraging news. At least we have one African idea to be proud of. Well done and keep it up Mr. Ngwenya & co.
The expression trade rose to $15.2 billion is just too ambigous about the benefiaries. Who exactly benefitted from this amount for all we know we zambians were the consumers while other nations were the sellers. Whose pockets is the this money going into. We cant be celebrating at an amount thats not even in our pockets.
90% of the trade has to do with South Africa, so even though its a good statistic, the interpretation should be cautious. Its just an expression of south africas might.
#2 slumdog, you have raised a very valid point. After reading the article, I was curious to know what % of this increase could be counted toward Zambia’s GDP. Regional integration is all about comparative advantage, i.e countries producing goods and services in which they have a comparative advantage and leaving other goods to those countries that are better at producing them. COMESA keeps very good data on country-wise statistics of volumes of trade (including trade by sector) and in this instance, Ministry of Commerce and Trade should be using that information to help formulate policies that support those sectors identified to be contributing significantly to GDP. Unfortunately, I do not even see any mention of our own Trade Minister or representative at this gathering.
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Having gone through the article a number of times , I wish to express ignorance on the gist of the subject pertaining to the benefits. Thoughts ,however arose; Where do we stand as Zambia between COMESA and SADC, what is the common man /woman`s understanding of the two instituitions ?As a nation if we avoided both what shall be the loss ? Are we bound by something that we can not extricate ourselves?Regional groupings yes? Freedom liberation yes? Common market yes? what are the gains for Zambia nothing but poverty yes.
Single currency for COMESA, single currency for SADC , single currency for AU , which is feasible? which is attainable? more questions than answers
We cease to exist when all we do is camouflage . Being landlocked does not entail exploitation and manipulation. I still ask between COMESA and SADC whereto Zambia?
What interesting article, but where took information?
COMESA has about 19 member states stretching from Zimbabwe to Libya. South Africa is not a member of COMESA.
Economic integration is something Africa has been lacking in the past years. FDI hardly flows in because on the problems is the size of the market. It is not seen as a viable investment to put in place a car manufacturing plant for a market of 10 million people. COMESA has a combined market of at least 400 million people. COMESA has provided many companies with the opportunity to expand their businesses at less the cost. Ndola Lime company is expanding its services to Malawi, Beef producers in Southern province are putting measures in preparation for exporting their products. Trade Kings raised at least $2 million US dollars by exporting Maheu to Zimbabwe in one of the years.
Free trade is a driver of growth in countries with similar economic conditions. In short, Africans know what other Africans will buy therefore they know what to produce for Africans. It is no use exporting “boom detergent paste” to Europe when no one will buy it since majority of the population uses washing machines. Clearly our goods are not wanted in such a market. It does make sense to export “boom” to Malawi or Tanzania seeing that majority of the population use their hands when doing their laundry. Therefore Africans know what other Africans will buy.
My only worry is on the single regional currency. Zambia is a member of SADC and COMESA. They both have signed free trade deals. Zambia therefore has a combined market of close to 600 million people and SADC also
plans to have a single regional currency. If Zambia had to pick a side, which side would it pick??
What are Zambians job with the COMESA and SADC FTA’s
Zambians must start thinking of creating wealth for the economy. Zambia now has a combined market of at least 600 million people. We must start thinking of expanding our businesses and creating an export oriented economy. South Africans seem to be thriving at this as there seems to be a Shoprite, Spar, Game, Steers outlet almost everywhere in Southern Africa and some parts of East Africa. This means South Africa gets to sell its manufactured goods to Southern and East African countries. We must also start expanding our businesses. Start investing on the LUSE so as to give Zambian companies capital so they could expand
their operations. Start retail outlets and turn them into companies by making the retail outlets a chain of outlets. If you start a retail outlet (e.g Chanda cellphones), open at least 4 outlets in Lusaka, 2 in Ndola, 2 in Kitwe, 1 in Livingstone, 4 in Blantyre (Malawi), 1 in Harare (Zimbabwe), 4 in Dar es Salaam (Tanzania), 2 in Lumumbashi (DRC).
Using this company, you can give our local Zambian mobile phone manufacturer (M Mobile) a market as they will have capacity to export through your retail outlets.
There is also profit transfer as the profits that will be achieved from the outlets outside the country will come back to Zambia.
For manufacturers, expand your business. Open a plant in Lusaka and export to other countries. Use distributors in foreign COMESA countries to
It will be of noble interest if , the COMESA member countries are mentioned for records please. SADC has 14 countries ,how about COMESA?
expand your operations.
For those in the service industry, expand to other nations. Muvi TV (e.g) should consider opening a studio in Blantyre. This could also give movie TV to earn extra capital by adding advertising rates that cater for the two countries. In short, pay one price for advertising in both nations. This could also give Muvi TV an opportunity to showcase Zambian talent by features Zambian programs in their Blantyre studios. They could also promote Zambian music which will then have an export and bigger market.
This is not a bad thing. All it takes is innovation and hard work and you shall build this nation. Govt has set the conditions, the rest is up to you. Lets get busy and working.
Congratulations to COMESA for the increase in trade.
14 SADC ,19 COMESA?intersection set not considered ,thus largely SADC leaving 5 for COMESA. where do we belong then as a Nation ,SADC, Perhaps AU is better.
THere is talk of MUVI TV going to Malawi , how very hypocritical . Let it go to all the provinces of ZAMBIA . Cover Zambia and export thereafter. COMESA exploits and that is a fact.
So people in Chipata do not need the services of Muvi TV but Malawians? strange COMESA way of thinking
Cecil Rhodes wanted and dreamed of a rail line from cape town to Cairo, not for the interest of the Africans but for selfish reasons and serving the masters . Anything nearer to COMESA reasoning ?
Prepare for hard times ahead.
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