C MESA. Unlocking COMESA s US$80bn Trade Potential Pegged on. Infrastructure NEWS

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1 C MESA NEWS Unlocking COMESA s US$80bn Trade Potential Pegged on Infrastructure Vol

2 2 Editor s say Innovative Solution for Transport Challenges The role of technology as the springboard for economic take-off, more so for developing countries, has not been told enough. The dizzying speed with which individuals and organizations, driven by visions of tomorrow and survival instincts are breaking new ground with innovative ideas is mind boggling. Every new day, news about technology breakthrough in one area or the other are incessantly filtering through the arrays of global media channels. Communication in particular, is one area awash with innovative technologies. Happily, these breakthroughs are not confined to the developed world as would be expected. Rather, it is the developing countries that are springing surprises in savvy technologies, as happened with the Mpesa money transfer system that was developed in Kenya. In South Africa, a new technology that has the potential to address transport challenges common in most of the developed countries metropolis is quietly unfolding. The Futran, is an innovative transport system that focuses on public transportation. As reported elsewhere in this edition, Futran was designed to enable efficient but low-cost public transportation in African cities while making electricity and running broadband services along the system, available to the citizens. In November 2017, COMESA invited the system developer to make a presentation to the Ministers of infrastructure during their 37th Meeting in Lusaka. Impressed by the relatively cheap and environmental friendly transportation Technology, the ministers appreciated that it could also integrate energy, data, links and pipelines as well. Now, individual member States are thinking about the possibilities of applying this technology. Time will tell if Futran is just what the doctor ordered for our gridlocked cities Unlocking COMESA s US$80bn Trade Potential Pegged on Infrastructure 50million Women Project Kicks Off Coming Soon: Made in COMESA Label IOM Pledge Fresh Impetus Towards Free Movement Infrastructure Ministers Ponder Implementation of the Futran System Youth Internship Programme Developed Risks Management Manual for Central Banks Developed FEMCOM s Sudan s Chapter Launched Revised COMESA Court Rules Launched COVER IMAGE: Newly Constructed Bridge on the Zambezi River on Mongu-Kalabo Road in the western Zambia. EDITORIAL TEAM EDITOR: Mwangi Gakunga CONTRIBUTORS: Muzinge Nampito-Chibomba Daniel Banda ARTWORK/LAYOUT: Philip Sipho Kambafwile PHOTOGRAPHY Phillip Kambafwile Daniel Banda, Mwangi Gakunga Muzinge Nampito-Chibomba Printed by: New Horizon Mwangi Disclaimer The COMESA News is published by the Corporate Communications Unit of the Common Market for Eastern and Southern Africa COMESA. Articles and photos in this publication may be freely reproduced but with acknowledgement of the source. The views expressed in this publication do not necessarily reflect the policy of COMESA. 1

3 2 2 Steps to Abolish Roaming Charges in COMESA Citizens in the Common Market for Eastern and Southern Africa (COMESA) region may soon enjoy reduced calling charges, courtesy of a decision taken by Ministers in charge of infrastructure. In their 10th meeting that took place in Lusaka, Zambia, 3 4 October 2017, Ministers and government representatives from 15 member States resolved to initiate action towards abolishing roaming charges levied on mobile calls. The move is intended to bring down the price of information communication and technology services, which remains high in Africa compared to other regions of the world. In their final report, the Ministers observed: Although the pricing of voice services in many African countries were becoming competitive and comparable with the rest of the world, the cost of broadband continued to be out of reach for most people. Africans paid on average 25 per cent of monthly Gross National Income (GNI) per capita mobile cellular calls compared to 11 per cent in other developing nations. In the COMESA region, studies have shown that Malawians use more than $12 ( 7.70) a month on mobile phones. This is more than half of what an ordinary Malawian earns in a month which is very expensive, the Ministers noted. Although mobile phones had provided new sources of originating international traffic, it was also more expensive to terminate traffic on mobile networks, hence the concern on the high mobile termination and roaming charges. The ministers urged COMESA Member States to emulate other groupings in Africa and beyond in coming up with reduced roaming and The ICT regulators are encouraged to carry out studies to reduce the interconnection rates and reduce or eliminate the roaming charges. termination charges. They cited the East African Community which has eliminated roaming and termination charges and the European Union where mobile operators were no longer charging additional fees to their customers for using their phones anywhere else in the region. The ICT regulators are encouraged to carry out studies to reduce the interconnection rates and reduce or eliminate the roaming charges, said the Ministers. Member States are encouraged to invest into the Fibre Technology to The Home (FTTH) to increase capacity and provide excellent quality. The ministers observed that despite substantial investments in network infrastructure in the recent years, Africa lacked a robust network connectivity and high-quality, affordable Internet access. They noted: COMESA countries represent over 37% of the internet users in Africa and Africa represents 7% of the internet world s users. Hence, COMESA constitutes 2.5% of the world s population of the internet users. In their decision, which is binding to all the COMESA countries, the Ministers called for setting up of proper regulation to encourage investment in the Virtual Mobile Network Operator (MVNOs) to enhance competition and increase access. In Africa, MVNO permits have been issued in Morocco, Kenya and South Africa. Delegates at the energy financiers conference The final phase of the implementation of the 2,300km Zambia, Tanzania and Kenya (ZTK) power interconnector will soon be underway following a meeting between the countries and potential financiers for the remaining phase of the project. Dubbed, the Financiers Conference, the meeting took place in Livingstone, Zambia, November 2017 where the three project countries presented their status of implementation reports and financial requirements to complete the remaining sections. The ZTK is a $1.2 billion priority project of the tripartite group comprising COMESA, East Africa Community and Southern Africa Development Community as well as the New Economic Partnership for Africa s Development (NEPAD) under the Program for Infrastructure Development in Africa (PIDA) and the Africa Power Vision. It involves the construction of bidirectional high voltage power transmission lines and associated substations from Kabwe in Zambia through Tanzania and terminating at Isinya in Kenya. The European Union under the 10th European Development $1.2b Required to Complete the Regional Power Interconnector Fund provided the initial financing of 4.4 million Euros for the preparatory activities of the project. Currently, the Kenya section is fully financed and already under construction. Zambia requires $160m for the uncommitted parts, The World Bank and the European Investment Bank (EIB) have expressed interest to finance the remaining Zambia s section. Tanzania is also in discussion with the World Bank and the French Development Bank (AFD) Africa has immense green energy potential that could be economically exploited, Mr. Johnson who also represented the COMESA Secretary General Mr. Sindiso Ngwenya said. for $425m needed to complete its section of the project. Implementation of the project began in 2014, when Ministers in charge of energy from the three states signed an Intergovernmental Memorandum of Understanding which required each country to build infrastructure within its boundaries. Further, it required the countries to put in place a Project Management Unit, with Zambia responsible for the overall coordination. The countries were also required to establish trading mechanisms. The Ministers set December 2018 as the date of its commissioning. The ZTK seeks to interconnect the three countries and create a link between the Southern African Power Pool and the East African Power Pool thus making it possible to transmit power from the Cape to Cairo. Upon completion, it is to page 4 3

4 4 This project will stimulate and support new investment in power generation, transmission, distribution and rural electrification infrastructure, she said expected to enhance electricity trade, improve security of electricity supply and foster social-economic development and regional integration. At the opening of the financiers conference, the Vice President of Zambia Mrs. Inonge Wina said there could never be any meaningful development if African countries ignored investment in power generation. In a speech presented by the Minister in the office of the Vice President Sylvia Chalikosa, the Vice President said African countries should continue investing in power generation to promote development on the continent. This project will stimulate and support new investment in power generation, transmission, distribution and rural electrification infrastructure, she said. Zambia has constructed the first 400km 330 kv line from Pensulo to Kasama including the expansion of the substations which were commissioned in 2015, according to Zambia s Energy Minister David Mabumba. In his statement at the Conference, the Minister urged cooperating partners to provide financing for the remaining sections in Zambia. The NEPAD Head of Regional Integration, Infrastructure and Trade Programme Mr. Symerre Grey Johnson said lack of electricity in Africa remains one of the biggest barriers to the continent s economic development and prosperity. Africa has immense green energy potential that could be economically exploited, Mr. Johnson who also represented the COMESA Secretary General Mr. Sindiso Ngwenya said. Other speakers at the conference included the Deputy Secretary to the Cabinet of Zambia, Mr. Chistopher Mvunga and Mr. Henry Karanja representing the Ministry of Energy and Petroleum, Kenya. Development partners supporting the ZTK project included the European Union, the Africa Development Bank, the World Bank and EU. Others were the Japan International Cooperation Agency (JICA) and European Investment Bank (EIB), China s First Overseas Infrastructure Development (COIDIC) and Agence Française de Développement (AFD). Unlocking COMESA s US$80bn Trade Potential Pegged on Infrastructure The current intra-regional trade in the Common Market for Eastern and Southern Africa is US$20 billion with a potential of over US$82.3 billion. This potential can be unlocked by addressing transport and logistic challenges which are fundamental to the COMESA agenda of inclusive and sustainable industrialization. The sectors with the highest intraregional trade potential are: textiles; wooden furniture; horticulture; household items; confectioneries; hides and skins; footwear and leather products; sugar confectioneries; tobacco as well as precious metals. The main barrier to unlocking this potential is the absence of cross border production networks that would result in intra-industry trade between and among firms within the region. Since the launch of the COMESA Free Trade Area in 2000, intra-regional trade has risen from US$3.2 billion in 2000 to the current $20 billion but it could have been much higher. Aware of this dearth of support infrastructure to trade, countries in the region have in recent times committed huge chunks of the national budgets supplemented with external borrowing to implement major infrastructure projects. These cover roads, railways, ports, information, communication technologies among others. A report presented to the Ministers in charge of infrastructure during their 10th meeting in Zambia last November highlighted notable infrastructural projects that have been completed in the region. In Kenya, the first phase of the Standard Gauge Railway between Mombasa and Nairobi which will eventually connect Kenya to Ethiopia, Uganda and South Sudan is complete. Ethiopia has also completed constructing a 750-kilometer Standard Sauge Railway which will connect to Djibouti. The main barrier to unlocking COMESA s trade potential is the absence of cross border production networks that would result in intraindustry trade between and among firms within the region. Newly constructed bridge on the Zambezi River on Mongu-Kalabo Road in the western Zambia. In the energy sector, the region currently has a total installed power generation capacity estimated at 65,791 megawatts as at the end of This is a 36% increase from 2012 figures of 48,352 megawatts. On ICT, COMESA countries represent 37% of the internet users in Africa. There is, need to do more to enable majority of Africans have access to ICT services. At the ministerial forum, COMESA Secretary General Sindiso Ngwenya, observed that the region has the highest potential in producing and exporting the products whose total value is approximately 10 times that of existing trade. The paradox is that the products are produced and exported to the rest of the world and at the same time imported from the rest of the world into the region, he said. This means that while considerable progress has been made in establishing favourable trading arrangements among member States, there was need to ensure the productive side is properly structured. 5

5 6 COMESA Steps Up Fight Against Money Laundering In October 2017, the Maritime Security Programme (MASE) under the Governance, Peace and Security Unit at COMESA Secretariat conducted an intensive training on Financial Investigation and Asset Recovery for 25 participants from the region. The training was part of the larger European Union-funded MASE which is implemented by four Regional Organizations. These are COMESA,EAC, IGAD, SADC and IOC. COMESA has been implementing a component that is designed to build the region s capacity to disrupt the financial networks of pirate leaders and their financiers while also addressing the structural vulnerability factors and minimize the economic impact of piracy. Specifically, the programme addresses issues around money laundering and supports the strengthening of the analytical capacity of the Financial Intelligence Units of respective member States; the review and amendment of Anti- Money Laundering laws to ensure they are aligned to international standards as set by the Financial Action Task Force; enhance collaboration between and within jurisdictions and support to the law enforcement. The training took into consideration that money laundering is a transnational crime that transcends different jurisdictions. It was, therefore, intended to ensure that weak points in the fight against money laundering as well as safe havens for money launderers are identified and action taken to address them. In addition, the training took place at a time when criminals are ever devising new methods to hide the proceeds of their criminal activities and therefore law with need to keep abreast on the various techniques of financial investigation as well as asset recovery. The training, conducted by the Basil Institute of Governance, was held in Livingstone, Zambia on 9th to 13th October Representatives from Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Mauritius, Seychelles, Tanzania and Zambia participated in the training. Participants at the launch of the 50 million African Women Speak Project, Lusaka, Zambia 50million Women Project Kicks Off The new 50 Million African Women Speak Networking Platform Project (50MWSP) begun implementing its programme of activities towards the end of The project is a digital/virtual marketplace intended to connect businesswomen and encourage peer-to-peer learning, mentoring, and information and knowledge sharing. The platform covers 36 countries and will be accessible on mobile phones. It will enable women to access business training, mentorship, financial services and locally relevant business information, while building their own network of contacts. It is anchored in the Gender Division at the COMESA Secretariat. The project is aimed at creating a networking platform dedicated to sub-saharan women entrepreneurs. The project is an innovative social media platform to enable women to start, grow and scale their business through the dynamic exchange of ideas. It will be implemented within a period of three years starting from In October 2017, the project conducted its first technical training workshop for the Project Implementation Unit (PIU) from COMESA Secretariat and the sub PIUs from the East African Community (EAC) and the Economic Community of West African States (ECOWAS). The interaction helped the PIUs to develop better understanding and knowledge of the African Development Bank s procurement, disbursement, and financial management rules and procedures. The continent-wide project is supported by the African Development Bank (AfDB) under a USD 12.4 million grant. Prior to the launch of the project, COMESA Secretariat signed a Memorandum of Understanding (MoU) with the EAC and the ECOWAS to jointly implement the 50MWSP. The grant is spread between the three Regional Economic Communities. 7

6 8 Coming Soon: Made in COMESA Label Label is one of Key Outputs of the 2018 Business Council Work Programme The main highlights of the 2018 work programme for the COMESA Business Council (CBC) is the development of model policies and flagship advocacy programs that directly contribute to policy making within the region. Among them, is the Made in COMESA label on export products from the region. Others are the development of anti-illicit trade policy, development of anti-corruption Code of Business and evidence based policy briefs. To accomplish these objectives the CBC intends to escalate efforts in building the technical capacity of the Small and Medium Enterprises as businesses and as associations to enhance their effective participation in the regional and global markets. This involves extending the Local Sourcing Project to fifteen countries from the current six and also extending BIZNET, the e-platform which facilitates business partnerships through information on buyers on suppliers. BIZNET also enables more awareness creation on the use of the platform for increased business and market linkages. The work programme was approved during the CBC Board of Directors meeting in October On business facilitation tools and services, CBC is working on the development of sector led handbooks that provide market, business and trade information within the COMESA region. An initial step was made with the launch of the COMESA Tourism and Wildlife Heritage Handbook Single Market Countless destinations. This was launched in Kigali, Rwanda. 16 MS are Commodity Dependent, UNCTAD The United Nations Conference on Trade and Development (UNCTAD) launched and presented the Commodities and Development Report 2017 to COMESA Secretariat in December The Report revealed that 16 COMESA countries have continued to be commodity export dependent thus recording low levels of development and high poverty rates. The report based its findings on the commodity price boom of which showed that strong commodity prices do not alter the long-term pattern of their terms of trade. Economies that depend on primary commodities tend to deteriorate in the long run due to the decline of primary commodity prices relative to the prices of manufactured goods, according to the report. In view of this, UNCTAD made several observations on the disadvantages of being too dependent on export commodities for developing countries. It provided different policy recommendations that countries should introduce in-order to bring about holistic and inclusive development. The sixteen COMESA countries named in the report were: Burundi, DR Congo, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Rwanda, Seychelles, Sudan, Uganda, Zambia and Zimbabwe. Egypt, Swaziland and Mauritius have diversified their economies and are not categorized as commodityexport-dependent countries. COMESA Secretariat has since proposed a joint study with UNCTAD to come up with permanent solutions to the dependency of commodities for export. The 98-page document showcased results of 10 case studies conducted in 12 countries around the world namely: Costa Rica, Brazil, Argentina, Botswana, Sierra Leone, Ghana, Nigeria, Mali, Burkina Faso, Bangladesh, Indonesia and Zambia. Specifically, for Zambia, the report recommended the introduction of polices that will help build a resilient economy through diversification and promoting good governance. This is in addition to expanding linkages of commodity sectors with the local economy and promoting Economies that depend on primary commodities tend to deteriorate in the long run due to the decline of primary commodity prices relative to the prices of manufactured goods, according to the report. inclusive growth through social protection, investing in human capital and pursuing transparent policies. The report states: Commodity export dependent developing countries derive the bulk of their export earnings from primary commodities such as minerals, ores, metals, fuels, agricultural raw materials and food. Export commodity dependence may cause potentially harmful impacts and affect all dimensions of sustainable development. Most of the developing countries that depend on commodity exports and/or imports are characterized by low human development. The annual Commodities and Development Report series is produced jointly by UNCTAD and the Food and Agriculture Organization (FAO). It seeks to contribute to an understanding of the linkages between commodity markets and development outcomes by highlighting a number of transmission channels through which commodity prices impact an economy: First, there are impacts that emanate from the terms of trade. Secondly, commodity dependence presents fiscal and monetary policy challenges. Thirdly, developments on international commodity markets can affect consumers and producers at the micro level. 9

7 10 COMESA - Rockefeller Foundation Host Resilience Academy COMESA in collaboration with the Rockefeller Foundation hosted a Resilience Academy in Lusaka, Zambia, on November The objective of the Academy was to create awareness on the benefits of resilience thinking and investment, share knowledge and best practices on resilience building within Member States, as well as identify gaps and opportunities to mainstream resilience into national and regional development. The Academy was pioneered by the Rockefeller Foundation to improve knowledge and capacity to mainstream resilience in development, and enhance understanding of the linkages between policy and resilience when it comes to addressing climate change and other challenges. COMESA Member States were represented by senior officials from ministries responsible for planning, disaster management and mitigation units, agriculture, environment and health. This was in addition to other stakeholders who play a key role in mainstreaming resilience and domestication of the Sendai Framework on Disaster Risk Reduction Speaking in Lusaka, the COMESA Climate Change Advisor, Dr. Mclay Kanyangarara said: The choice of COMESA to host the academy was informed by its member states vulnerability to climate change and other natural and man-made shocks. COMESA is a grouping of mostly vulnerable States that face similar threats such as climate change droughts, flooding, industrial shocks, extreme rainfall and disease outbreaks and other man-made stresses. As COMESA seeks to attain its regional integration goals, he added, many systems in the region such as energy, transport, communications and financial infrastructure are interconnected, hence placing the organization in a better position to support resilience building in regional integration. The current fragmented and haphazard approach to managing risks, shocks and stresses has proved ineffective as the magnitude of loss and damage continues to escalate, he noted. Building resilience across the board, was the surest way to ensure development in the midst of the ever-present threats occasioned by climate change and other external factors which are projected to increase in intensity and frequency in the coming years. Resilience is a mind-set as well as a practice that can be taught, learned and perfected. Over the last decade, the Foundation has significant investment in tools and other resources globally, to help individuals, communities and systems to build their economic, social and climate resilience. We are pleased that this support can extend to COMESA member States, so they can be equipped to be better prepared for, and to better address critical challenges to the region s development, said Mamadou Biteye, Managing Director of the Rockefeller Foundation Africa Regional office. Delegates indentified gaps and opportunities of resilience mainstreaming at their respective national and regional levels, and subsequently develop a back-tooffice action plans. These included National Resilience Action Plans using the Sendai Framework for Disaster Risk Reduction ( ) and examining policy requirements at the national level to achieve resilience. Source: OpenIDEO COMESA Develops Peace and Prosperity Index The Governance, Peace and Security Unit at the Secretariat has developed the COMESA Peace and Prosperity Index (CPPI). It will be used to track structural factors to peace and prosperity in the 19 Member States. The Index offers a timely diagnosis of forecasted structural drivers associated with future peace and prosperity. Uganda was the first member State to conduct country-specific consultations on CPPI forecasted drivers for The aim was to review the key forecasted structural drivers for Uganda that were identified by the COMESA Early Warning System (COMWARN) Structural Vulnerability Assessment model. Hosted in Kampala from December 2017, the forum attracted policy makers and technical officials from the Office of the President, Office of the Prime Minister, Ministries of Foreign Affairs, Internal Affairs and Defense. Civil Society Organizations and the private sector also participated. The multi-stakeholders consultative forum was convened in response to a Decision of the 15th Meeting of the COMESA Ministers of Foreign Affairs, that was held in Antananarivo in October The COMWARN team developed the CPPI in collaboration with the African Union Continental Early Warning System (AU-CEWS). They both participated in the deliberation on the steps Uganda was taking to address the forecasted CPPI drivers and identify practical response options. A Steering and Technical Committee that will oversee the implementation of the response option for the CPPI drivers will also be established. The proposed committee will help in the dissemination of the CPPI forecasted drivers to a wider range of stakeholders at the lower levels. It will assist in the development of structured partnerships with other stakeholders to ensure that the CPPI outputs are implemented. In addition to the establishment of structures to accelerate the implementation of response options from COMWARN, Uganda stakeholders also committed to formally request the AU Commission to provide the necessary facilitation to conduct a Structural Vulnerability and Resilience Assessment (CSVMS) and the Structural Vulnerability Mitigation Strategy (CSVMS). This is a voluntary mechanism which has so far attracted the participation of Ghana. Once Uganda makes a formal request, AU and COMESA will assist the Ministry of Foreign Affairs to establish a Situation Room. One of the key challenges that faces early warning systems is the linkage between early warning and early response. Thus the outcomes of the Uganda multistakeholders consultative workshop was an important move towards bridging the gap between early warning and early response. The programme is implimented under the framework of the African Peace and Security Architecture with funding from the European Union. 11

8 12??? image Operations Manual for the Regional Customs Transit Guarantee Scheme Revised Bureau of the COMESA Committee of Central Bank Governors held in Bujumbura, Burundi, 29 November 2017 Studies to Improve Macroeconomic Management Completed Three studies aimed at improving macroeconomic management in COMESA member countries have been completed. The studies were conducted by Central Banks of member States and the COMESA Monetary Institute (CMI). They covered modelling and forecasting inflation dynamics; modelling the spill-over effects of volatility in international commodity prices on financial stability and assessing, using panel data analysis banks lending channel of monetary transmission mechanism. The studies were inspired by the need to share and compare experiences in modelling and forecasting inflation in member countries with the hope of moving towards convergence. This was in addition to understanding the feedback loops caused by the volatility in international commodity prices and financial stability. Further, the dominance of the banking sector in the financial intermediation process in member countries, which points to the key role played by the bank lending channel of monetary transmission mechanism also motivated the studies. COMESA Committee of Governors of Central Banks had in their 22nd meeting of March 2017 in Bujumbura, Burundi instructed the CMI to conduct the studies. In October 2017, the CMI organized a three days research forum in Kenya in which the studies were validated. Delegates from the Central Banks of Burundi, Djibouti, DR Congo, Egypt, Eritrea, Kenya, Malawi, Mauritius, Rwanda, Sudan, Swaziland, Zambia and Zimbabwe participated in the forum. While opening the workshop, Director of CMI, Mr. Ibrahim Zeidy said the studies were crucial for macroeconomic management improvement in member countries. The Council of the Regional Customs Transit Guarantee Scheme (RCTG) adopted the revised Operations Manual with amendments and decided that it should be circulated to all members before the end of The revised manual considered operational changes and developments in the sector, information communication technology enhancements and regional developments and authorities decisions made over the recent past. In its 11th meeting in Lusaka, in October 2017, RCTG Council approved the 2017/2018 Annual Work Programme and discussed trade facilitation along the major transport corridors. The Council also increased the budget allocation to the RCTG Secretariat from the current 15% to 20% from the reinsurance pool. Assistant Secretary General for Programmes Ambassador Kipyego Cheluget (inset), who officially opened the meeting, appreciated the progress made in the operations of the scheme in the Northern and Central Corridor countries and commended all the stakeholders involved in the operations for their commitment and the success achieved..as a result of the benefits realized on the use of the RCTG Carnet, an increasing number of Small and Medium Clearing and Forwarding Agents (SMEs) are participating in the scheme. This is good for the region, Ambassador Kipyego said. He urged the meeting to address challenges experienced in the operations including delays in the acquittal of the RCTG Carnet and the slow pace in fully digitalizing the system. The revised manual will enable Clearing and Freight Forwarding Agents, Sureties and Customs to carry out their duties faster, simpler and cheaper and resolve issues fairly. Stakeholders will become trusted partners in the implementation of the RCTG Carnet. An increasing number of COMESA Member States have resorted to using the RCTG to move goods across the various corridors. This has not only reduced premium payments, collateral requirements and documentation but also significantly contributed to the reduction of transit and transport costs. It has increased efficiency in the removal, movement and clearance of Transits goods in the Corridors. The COMESA Customs Bond Guarantee Scheme popularly known as the RCTG CARNET is a customs transit regime designed to facilitate the movement of goods under customs seals in the COMESA region and to provide the required customs security and guarantee to the transit 13

9 14 Towards the end of 2017, the International Organization on Migration (IOM) had a change of leadership at the regional level with Mr. Charles Kwenin taking over as the Regional Director for Southern Africa. With his entry, a fresh impetus on the implementation of programmes on the free movement of people across the region was expected. IOM Pledge Fresh Impetus Towards Free Movement At his accreditation as the IOM Special Representative to COMESA, on 2nd November 2017, Mr. Kwenin and his host Mr. Sindiso Ngwenya, the COMESA Secretary General agreed that facilitating the mobility of goods and services and promoting the One Stop Border Posts was imperative to the success of integration. The missing link in effective integration of the region is free movement, Mr Kwenin said. Given the special mandate of COMESA, Mr. Charles Kwenin which is the promotion of cross border trade, the movement of capital and goods cannot happen without the free movement of people, he said. The IOM Chief pledged to support capacity building to help balance the skills gap in the region by identifying countries that have excess and those that were deficient with a view of addressing them. African region, he noted did not have migration data which is critical in informing migration policies. Mr Kwenin thus emphasized the need to collect accurate data and use the information to demystify the issue of migration. Having accurate and updated migration data will help the region provide empirical evidence on the reality on the ground. Migration is highest within our region and we must stop thinking that people are migrating to the developed world. they are moving across these borders here, Mr Kwenin added. He cited the ECOWAS region as advanced in migration policies as citizens of the member States could move freely in that region. Mr. Ngwenya said his organization will work with IOM to explore possibilities of exchange programmes that will enable COMESA member States to learn best practices on migration from ECOWAS. COMESA and IOM have collaborated in the acquisition of signatures and ratification for the entry into force of the COMESA protocol on Free Movement of Persons, Labour, Services, Right of Establishment and Residence commonly known as the Free Movement Protocol, Mr. Ngwenya said. Accurate and updated migration data will help the region provide empirical evidence on the reality on the ground. Through the joint implementation of the Regional Consultative Process on Migration Issues (RCP), the two organizations have provided technical assistance to COMESA member States aimed at enhancing the implementation of the Visa protocol and the development of an awareness creation programme on COMESA legal instruments on Free Movement of Persons which is currently being piloted at the Chirundu One Stop Border Post at the Zambia/Zimbabwe border. As we move forward, the Secretary General said, we look forward to continue working with IOM on programmes such as the development of a regional data base and information sharing system on migration. He called for introduction of innovative, simple and practical ways of dealing with migration issues in the region. He described the free movement of people and removal of trade barriers as critical in underpinning most African economies. 15

10 16 Chishimba Hydro Power station in Zambia Submit Lists of your Potential Hydro Power Plants by November, Ministers tell MS When the Ministers of infrastructure responsible for transport, communications, information technology met in Lusaka, Zambia early November 2017, they issued a strong message to member States: to submit to the COMESA Secretariat, their lists of potential hydro power plants that need development. By then, only six countries had done so. The lists were required for onward transmission to potential developers and cooperating partners for financial consideration and eventual implementation. Those that had submitted were Ethiopia, Madagascar, Mauritius, Seychelles, Sudan and Zambia. The initial call to member States was made in early In the call, the Secretariat requested member States to compile and submit the list of projects that could contribute to existing power supply. In the meeting, the Ministers noted that the implementation of these projects would contribute to significant improvement in power generation through physical infrastructure connectivity in the region. Thus, they gave the remaining countries until the end of November 2017 to submit their lists. By end of 2017, there were several power generation projects under development in the member countries totaling an estimated 27,821 megawatts. While the COMESA region has abundant renewable energy sources, including small hydro power, which is yet to be harnessed, thermal power generation still dominates, accounting for more than 70%, the Minister said in their report. The total installed power generation capacity in the COMESA region is currently at 65, 791 megawatts representing a 36% increase from the estimates of 48, 352 in 2012, according to the Ministers report. The report stated that the development of energy infrastructure for power generation, transmission and distribution remained a challenge and one of the key priorities for the bloc. They urged member States to fast track the implementation of the generation projects to boost energy security that will enhance COMESA s competitiveness. Further, they urged member States to take up the annual training workshops organized by COMESA and the International Centre on Small Hydro Power Development (ICSHP) through the COMESA ICSHP cooffice. Mauritius takes No. 21 in Signing the Tripartite FTA Secretary General Sindiso Ngwenya (L)congratulates Minister Seetanah Lutchmeenaraidoo after signing the TFTA Mauritius signed the COMESA- EAC SADC Tripartite Free Trade Area agreement in 2017 bringing to 21 out of 27 countries that had signed the regional trade framework. Hon. Seetanah Lutchmeenaraidoo, the Minister of Foreign Affairs, Regional Integration and International Trade signed the Agreement in Ebene Cybercity in Mauritius on 9th October Secretary General of COMESA Sindiso Ngwenya witnessed the signing. The Minister said this was one of the three major free trade agreements that his country had lined up for signature before the end of 2017, in line with its vision of promoting trade and integration. The remaining two were between Mauritius and India and with China. The Tripartite Agreement, which was launched in June 2015, aims at bringing together, in one common market, countries in the three regional economic blocs. By end of 2017, only Egypt and Uganda had signed and ratified the Agreement. A minimum of 14 countries are required to ratify the Agreement for it to come into force. It was envisaged when the tripartite was mooted, that it would take three years to complete negotiations and come into force since the three regional economic communities all had Free Trade Area Agreements (FTAs). The Agreement has the potential to unlock sustainable development in Africa by bringing close to 700 million people in one market with a gross domestic product of $1.4 trillion. For this to happen, the approach to negotiations on tariffs and market access which lead to signing and ratification must change, according to COMESA Secretary General, Mr. Sindiso Ngwenya. Speaking at the event, Mr Ngwenya said governments should involve their respective private sectors in the consultations as they are the key drivers of regional trade which will give impetus to the tripartite process. These include the small and medium enterprises which are expected to drive the industrial pillar. This is one of the three pillars of the tripartite. The others are market integration and infrastructure development. In the next six months, negotiations at the national and regional level will ensure that the private sector plays its proper role, he said. Minister Lutchmeenaraidoo said his country s current strategy for Africa is for deeper integration hence, the signing of the Tripartite FTA was a demonstration of this commitment. He expressed optimism of benefitting from the tripartite given his country s vibrant and proactive private sector. Even the best of the free trade area agreement won t go anywhere, if not followed by the private sector, he said. After the signing, a two-day national workshop was conducted by the COMESA Secretariat to raise awareness about the tripartite FTA amongst key stakeholders in Mauritius. 17

11 18 Infrastructure Ministers Ponder Implementation of the Futran System Green Energy in Focus as AU EU Celebrates 10 Years of Partnership COMESA in the AU RECs Consultative Forum Chief Executive Officers of the Regional Economic Communities met with the Chair of the African Union Commission H.E Moussa Faki Mahamat, November 8, 2017 in Addis Ababa, Ethiopia for consultation on the proposed reforms on the continental body. The consultation followed a decision made by the AU Assembly in January 2017 on a report presented by the President of Rwanda H.E Paul Kagame. In the report, President Kagame proposed reforms covering five areas. Among them, the need for African Union to focus on key priorities with continental scope as well as the sustainable financing of the organization. Some of the key elements of the AU reform that are relevant to RECs are; the need for clear division of labour. This is intended to achieve effective collaboration between AU, RECs and member States and other continental institutions in line with the principle of subsidiarity. The joint engagement of the AU-REC with strategic partners is another key element in the proposed reforms given that the two mobilize resources from the same donors sometimes to finance the same programs. public transportation technology A that integrates energy, data links and pipelines was presented to the COMESA Ministers of infrastructure for consideration during their meeting in October Developed by Milotek Company of South Africa, the Futran System is designed for efficient but low-cost public transportation in African cities that is environmental friendly. Futran system seeks to address the need for a new class of cost effective large-scale transportation systems in Africa especially for densely populated cities. It can be applied to bulk freight, factories and warehouses, and public transport. Once implemented, the Futran System shall provide efficient and cost effective, transportation for the goods from points production to market places. Potential Financiers Chief Executive Officer of Futran Holdings, Mr. Andries Louw, made the presentation on the Futran system to the COMESA Ministers. He said potential financiers had expressed interest in funding the system if local government could be involved on a Build Operate Transfer (BOT) or Public Private Partnership (PPP) basis. While applauding the invention, the ministers asked the company to customize the presentation on the technology to individual member States taking into account the financial and geographical implications for developing the system in the various cities of the region. They noted that many port expansion initiatives were underway in COMESA and this presented an opportunity to consider incorporating the Futran system. Some of these projects include four new specialized ports in Djibouti at Doraleh, Tadjourah, Damejog and Ghoubetat at an estimated cost of over $800million. The other is the Lamu Port in Kenya where construction of a 32 berths deep sea port at an estimated cost of $5billion under the LAPSSET Project phased is underway. The infrastructure developments in Djibouti and Lamu will increase port capacity and support smooth flow of trade through the Djibouti, Moyale and Juba Corridors. The application of COMESA trade and transport transit facilitation instruments on these corridors will ensure smooth flow of trade by reducing delays and cost of doing business and hence improve corridor and regional competitiveness, the Ministers noted. Maritime transport handles over 80 per cent of the volume of global trade and therefore it is important to understand the reasons for differences in costs for international transportation with a view to initiate and adopt appropriate policy interventions. The application of COMESA trade and transport transit facilitation instruments.. will ensure smooth flow of trade by reducing delays and cost of doing business and hence improve corridor and regional competitiveness. Investing in off-grid solutions using renewable energies would save US$35,000 per kilometer for transmission lines, COMESA Secretary General Sindiso Ngwenya told delegates attending the 10th Anniversary of the Africa European Union Energy Partnership in Abidjan, Cote D Ivoire. He said that financing and business models for off-grid electrification, through green energy technologies such as solar, wind, geothermal, should include the community owned mini-grid management. He proposed for further exploration of the utility-based model, private sector-led mini-grids, and hybrid models which would try to combine different approaches. Energy linkages to other sectors, in particular, renewable energy such as solar, wind, geothermal small hydro power, etc., could be used to support public uses such as lighting and vocational teaching in schools, sterilization, refrigeration and other usages in health clinics, public water systems, and street lighting, Mr. Ngwenya said. The low population density in Africa would require massive investment to increase the access to energy, the Secretary General stated. The productive uses of electricity in agro-industries could be significant and these benefits could be related to the expansions in output and the existence of a market for the output, as well as employment expansion. Mr. Ngwenya stressed the need to ensure that Africa takes the advantage of the different financing windows available such as the one trillion dollars from climate change to increase access to electricity. Energy Partnerships On Africa-EU Energy Partnership Perspectives, the Secretary General indicated that over the 10 years of Africa-EU Energy Partnership, substantial progress between Africa and Europe has been realized. This range from political declarations and agreements to technical assistance and actual projects in the African countries. The AEEP s objective is to improve access to secure, affordable and sustainable energy for both continents, with a special focus on increasing investment in energy infrastructure in Africa. The AEEP Steering Group is comprised of the European Commission, the African Union Commission, the Common Market for Eastern and Southern Africa (COMESA), Egypt, Germany and Italy. The Secretary General assured of COMESA s willingness to continue supporting the Africa EU Energy Partnership in the development of legal and institutional frameworks for public private sector partnerships. This he noted, would increase the private sector participation in infrastructure development and especially in the energy sector. Way Forward The African perspective on the way forward in this partnership was to pursue the objectives of the Sustainable Development Goals, in particular Goal 7 to ensure access to affordable, reliable, sustainable and modern energy for all. Other speakers included Mr. Stefano Manservisi, Director General for International Cooperation and Development (DEVCO), European commission; Ambassador Sergio Mercuri, Minister Plenipotentiary, Ministry of Foreign Affairs and International Cooperation, Italy and Mr. Cheikh Bedda, Director of Infrastructure and Energy, African Union Commission. The AEEP event at the EU-Africa Business Forum was attended by representatives of the private sector who are engaged in the Partnership s work, as well as other stakeholder s central to the achievement of the AEEP 2020 Targets. The key messages and conclusions of the AEEP event, together with those of other sessions at the EU-Africa Business Forum, will feed into the AU-EU Summit. 19

12 20 CMI Develops Systemic Risk Assessment Tools Manual Youth Internship Programme Developed COMESA Secretariat has developed a regional Youth Internship and Volunteer Programme whose overall objective is to increase youth employment of decent and productive jobs for young graduates. The programme will particularly target young women graduates in the region who join the labour market every year. The programme has received technical and financial support from the United Nations Volunteer programme (UNV) and is expected to contribute to the full achievement of the COMESA Youth programme. This follows a COMESA Council of Ministers Decision of March 2015 that sought to address various challenges that young women and men in the region experience. This is intended to empower and enable them take up active roles in the development of their respective countries and the region. In addition to this new programme, COMESA has been implementing various other programmes for the promotion of gender equality, women economic empowerment and social development. These programmes include the 50 million African Women Speak Platform and the Great Lakes Trade Facilitation project that support women small scale cross border traders. The development of the programme was announced during the opening of the regional workshop on Empowerment of Youth through capacity building and entrepreneurship development in Lusaka, Monday 6 November COMESA collaborated with the UN Women, the African- Asian Rural Development organization (AARDO) and the Zambian government to host the workshop. Assistant Secretary General in Charge of programmes Ambassador Kipyego Cheluget addressed the participants. He urged the youths in the region to take keen interest in the programme as it is meant to empower them by creating decent and productive work opportunities. In his statement, AARDO Assistant Secretary General Dr. Manoj Nardeosingh said his organization is committed to empower youths as they are key to building and shaping the future. He called on African governments, policy makers and the private sector to take the initiative to build capacity of the young population by addressing skills gaps, credit needs and market access among other issues. Many African countries have strategies for the development of your young people but these do not necessarily translate into better lives for the young. Innovation and technology need to be the game changer for the young people, Dr Nardeosingh added. Permanent Secretary in Zambia s Ministry of Youth, Sport and Child Development Mrs. Agness Musunga urged the youths to actively participate in the deliberations and share ideas and practical experiences and interventions undertaken in the various countries to address challenges that youths face. The two-day meeting in Lusaka attracted participants from the COMESA Secretariat, UN Women and Egypt, Ethiopia, Malawi, Mauritius, Namibia, Sudan and Zambia. HAis Excellency Ahmad (L) and COMESA Secretary General Sindiso Ngwenya Iran, COMESA Explore Joint Business Ventures Ambassador of the Islamic Republic of Iran to Zambia and Zimbabwe His Excellency Ahmad Erfanian presented his Letter of Credence to Secretary-General Sindiso Ngwenya as his country s special representative to COMESA. The presentation ceremony was conducted at the COMESA Secretariat in Lusaka, Monday, November 6, Ambassador Erfanian said his country was keen on investment in the various sectors of the region s economies including mining, energy, agricultural, pharmaceuticals, financial as well as promotion of business linkages between the COMESA Business Council and the Iranian private sector. Iran has a promising perspective in energy, mining, health, agriculture and many more and so we can have more cooperation in these sectors and help boost economies of the countries in the region, he said. I hope, at the very beginning, we shall be able to establish the Iranian/COMESA Business council as well as banking cooperation between the two sides to facilitate trade. Opportunities for joint ventures between COMESA and the Iranian private sectors are in petroleum refineries, agro processing, water and waste water management, motor vehicles/ tractor assembly, farm machinery production, pharmaceutical production, veterinary drugs production, livestock/ livestock products, road and railway development, dam construction, mineral exploration and production, energy projects, cement manufacturing and housing development. Iran is already developing bilateral cooperation with some COMESA Member States including Sudan, Eritrea, Malawi and Zimbabwe. In February 2010, COMESA and Iran signed an Aide Memoir to formalize and promote cooperation in health, infrastructure, agriculture, maritime transport, manufacturing, energy, project preparation and financing. Secretary General, Mr. Sindiso Ngwenya said the cooperation with Iran shall assist the region in the transfer of skills through training and capacity building (road maintenance, power and electrical, irrigation and water management, vaccine and animal health management, agricultural/ natural resource research and other relevant areas). Mr. Ibrahim Zeidy The COMESA Monetary Institute has produced a manual on Systemic Risk Assessment Tools. The purpose of the manual is to equip the users with practical understanding of systemic risk analysis tools and will be used in Central Banks around the region as a knowledge product. The manual will provide member Central Banks a practical guide to development of composite financial stability indices to guide in policy formulation. Earlier, the CMI organized a validation workshop for representatives of Central Banks to review and provide feedback on the manual that will soon be published. CMI Director Mr. Ibrahim Zeidy said the manual specifically covers practical application and development of composite financial stability indices which involves four stages namely; defining the indices, Indicator selection, statistical methodology and verification and validation. 21

13 22 Leaders at the Africa 2017 Forum lobby for the Youth Leaders and business magnates that attended the Africa 2017 Investment forum in Egypt advocated for innovative technologies and enhancing the role of the youth in driving the African continent into the 4th industrial revolution. In a panel discussion titled The 4th Industrial Revolution; Creating future jobs held on the margins of the conference in Sharm el Sheikh, political and business leaders acknowledged the continents comparative advantage as its youthful population and the fast adoption of the innovative technologies. In his statement at the panel, Secretary General of COMESA Sindiso Ngwenya, It is the youth who shall remain to implement the same projects being initiated by the older generation, he said. For us to be part of the 4th Industrial revolution, policy makers and governments should not ignore this change because the people who shall pioneer this revolution are the youths who are born in the technology era. urged governments in Africa to involve the youths in all development activities and agendas in the various sectors. It is the youth who shall remain to implement the same projects being initiated by the older generation, he said. For us to be part of the 4th Industrial revolution, policy makers and governments should not ignore this change because the people who shall pioneer this revolution are the youths who are born in the technology era. Mr. Ngwenya observed the need for re-evaluating the education curriculum and concentrating more on skills rather than theories, as this affects the job requirements. The days when students depended on classrooms to get knowledge are gone because they are now able to go to the internet and learn various skills using online applications, he said. With technology and the associated software, he said, the youths can produce products using computer aided design software contrary to the assertions that this can only be done in a workshop. He urged governments to introduce industrial design studios in schools for students to learn and practice the production of various products using modern technologies. The Africa 2017 conference was organized by the Government of Egypt with collaboration of the COMESA Regional Investment Agency under the theme Business for Africa, Egypt and the world. It took place from 7 to 9 December Head of States, governments and ministers from various African countries as well as representatives of Egypt s development partners and high-level personalities in the business from Africa attended the conference. Regional Liaison Adviser for the UN Women Ethiopia Office, Ms. Marie Goretti addressing the Gender Pre-Forum. Seated: COMESA Head of Peace and Governance, Ms. Elizabeth Mutunga and African Union officials COMESA, AU hosts the 6th Gender Pre-forum The 2017 edition of the Sixth Annual Gender Pre-forum on Democracy, Human Rights and Governance took place in Zambia, November 2, Anchored under the theme: Building on Progress, Sustaining the Gains: Enhancing young Women s participation in Political Processes, the three-day forum was organized by the African Union s African Governance Architecture Secretariat in collaboration with Women and Gender Development Directorate for the Africa Union Commission and supported by COMESA. The forum attracted women political leaders, young women aspiring for political offices and seasoned experts in Africa as participants. Others were from civil society organizations, the academia and the media. The Gender Pre-Forum is part of the preparatory meetings leading to the High-Level Dialogue on Democracy, Human Rights and Governance in Africa. The AGA Platform places high premium on the meaningful participation of women; both young and old in the democratic governance processes. Head of Peace and Governance at the COMESA Secretariat, Elizabeth Mutunga, represented the Secretary General at the official opening of the forum. She said despite the gains and all the changes recorded in the rights of women in the 21 st -century, women still face key challenges that halt their ability to live a fulfilling life. The Pre-forum sought to provide a platform through which the challenges facing young women s political participation can be examined and concrete strategies designed to enhance their effectiveness and meaningful participation in political processes in Africa. COMESA is implementing the Gender Policy which has a dedicated section on women s participation in decision making, leadership and governance. The policy calls on Member States to ensure 50:50 representation of women in political decision making, creation of a conducive social environment to support women, creation of facilitative legal and policy environment for women s participation in politics and ensuring equal opportunities for women and men in politics. Other Speakers included, Madam Marie Goretti, Regional Liaison Adviser for the UN Women, Ethiopia Office, and Ambassador Salah Hammed, the acting Head of Africa Governance Architecture and Talumba Banda, Gender Expert at the COMESA Secretariat. 23

14 24 ASYCUDA Project Lifts Comoros Customs Management COMESA Secretariat has successfully implemented the Automated System for Customs Data (ASYCUDA) World Project in Comoros. This is expected to improve efficiency in the customs management systems in accordance with regional and international regulations. ASYCUDA is a computerized system designed by the United Nations Conference on Trade and Development that covers most foreign trade procedures. Using the ASYCUDA, the Comoros customs system administration has been modernized and strengthened the operational capacities of the customs administration, through enhanced monitoring in the linked offices of the islands. This will also introduce efficient management of customs procedures, clearance for import, export and transit. More than 30 agencies have been connected across the Islands of Comoros through phase 1 of the ASYCUDA World (AW) project. Following the migration to ASYCUDA World, in Phase 2, a fully operational system will be capable of handling more than 500,000 declarations annually for imports by the private sector and other economic operators, with a peak of over 3,000 declarations daily. The increased processing of manifests in ASYCUDA is estimated to reach over 5,000 manifests in 2018 and the number of users could grow from 150 in 2015 to more than 300 by end of Secure Network The ASYCUDA World is a 1,074,401 project supported by the COMESA Adjustment Facility (CAF) funded by the European Union (EU) through the Regional Integration Support Mechanism (RISM programme. To date, 638,449 has enabled, all four customs offices, including the three ports and airports in Comoros, representing almost 100% of the transaction volume, to be equipped with ASYCUDA ++ system with a secure network infrastructure. Following the successful installation of the project, COMESA through the Regional Integration Support Mechanism (RISM) held a workshop in the capital Moroni to close the ASYCUDA World project. Speaking at the workshop, a representative of the Minister of Finance and Budget Mr. Saïd Ali Chaihane told the delegates that the project was key for the development of the country s economy and is aligned with the government s strategy to reinforce Comoros public funds. Indeed, the new IT platform should provide declarants and transporters the opportunity to work from their premises and enable Comoros to cope with a more fluid business environment, he said adding that the migration to ASYCUDA World as well as the networking of all the customs agencies were significant in improving the efficiency and transparency of the whole customs process. The Regional Customs Transit Guarantee Scheme is Going Digital The Regional Customs Transit Guarantee Scheme (RCTG) will soon be fully digitalized to make it more accessible online and enable premiums to be paid out electronically. This follows the adoption of the road map for the digitalization of the scheme by the 11th Council of the RCTG which met in Lusaka in The RCTG popularly known as the Carnet is a trade facilitation instrument for movement of transit goods under customs seals in the COMESA region. It provides the required customs security and guarantee to the transit countries. Thus, it ensures that respective government in transit countries can recover duties and taxes from the guarantors should the goods be illegally diverted into their countries. The RCTG became operational in the Northern Corridor countries (Kenya, Uganda, Rwanda) in January 2012 and has been constantly reviewed over the years. During the first three years of its operation, it was manual but many improvements have since been made. Currently, the Carnet is computerized and is fully integrated with the Customs Authorities National Information Technology Systems of Burundi, Kenya, Rwanda, Tanzania and Uganda. Good Progress During its meeting, the Council noted that despite the good progress made in the computerization of the RCTG Carnet in the Northern and Central Corridors, there is need to make further enhancements in order to make the operations of the RCTG Carnet fully digitalized. Phase one of the road map for the digitalization of the RCTG CARNET operations involves complete automation of all the RCTG Bond and Carnet operations both on the integration framework (IDES) and RCTG- Management Information Systems for all countries. There are two goals for this phase which include ensuring that all member countries are at the same level in the implementation. The second phase will cover online access to RCTG CARNET operations. The Principal/Agent shall apply for the RCTG Bond online and the Primary Surety (Insurance or Bank) shall sign a completed RCTG Bond form and forward to Customs for online verification. Phase three will include seamless data exchange with the Primary Sureties to facilitate real-time and online validation of Principal details. Phase four will entail electronic payments to enable the principals to pay premiums electronically. 25

15 26 Joint Effort to Address Mycotoxins the initiative will improve food security and nutrition??? image COMESA and the Food and Agriculture Organization, (FAO) are implementing a joint initiative to improve food security and nutrition by addressing Mycotoxins, which affect staple foods in the region such as maize and sorghum. As part of the programme, sanitary and phytosanitary experts from COMESA member States and Tanzania and Mozambique were invited for a three-day training on Risk Assessment and Management of Mycotoxins. The training was conducted in Lusaka, Zambia in November 2017 with the objective of equipping the participants with the knowledge to understand the key principles of chemical risk assessment. Mr. George Okech, the FAO Representative informed the participants that dietary exposure to mycotoxins in many countries, particularly in Africa remained unacceptably high. There is mounting evidence of the possible linkage between aflatoxins and stunting further underlining the urgency of improved control of mycotoxin contamination to achieve targeted food and nutrition security outcomes, he said. Mr. Okech called for full cooperation and active engagement of representatives from COMESA Member States to play a crucial role in following up within their respective countries and in providing the necessary elements to arrive at sound and harmonized standards. Major Constraint Assistant Secretary Ambassador Kipyego Cheluget said the varied human and institutional capacity across member States was a major constraint contributing to SPS trade related barriers in the COMESA Free Trade area. Differences in standards, laws and regulations, are the leading causes of non-tariff barriers or the failure to find convergence in the SPS standards and regulations that MS enforce for trade, said Ambassador Cheluget. These are in soft infrastructure - such as national SPS surveillance and monitoring systems - and the hard infrastructure - the diagnosis and quarantine infrastructure. It is for this reason, he said, that the SPS Strategy ( ) was developed to narrow the variations in capacity and guide Member States on the harmonization process. Ambassador Cheluget pointed out that capacity development is not without challenges as COMESA trade flows are characterized by high levels of informality, estimated at over 70%. This further complicates the regulatory frameworks that we are trying to harmonize, he said. Through commitment and partnerships with the FAO, he said COMESA, will competently discharge the responsibility of leading the regional integration efforts. In this regard, the two organizations would, in December 2017, sign an agreement to implement some aspects of the SPS/Technical Barriers to Trade Programme under the 11th European Development Fund. Modern leather production equipment worth 60,777 euros were supplied to the Democratic Republic of Congo in November 2017 under the COMESA Technical Cooperation Facility, which is supported by the European Union. They included, digital design and cutting machines, computerized Zigzag machines and hydraulic pressing irons. The equipment was earmarked for the establishment of a modern leather cluster incubation center to be located in Limete area in the capital Kinshasa. They would be managed under the Office of the Promotion of Congolese Small and Medium Enterprises (OPEC). The equipment will enable the SME artisans to formalize their business leading to high quality leather products for local, regional and the international market. The objective of the project is to identify and access the means necessary for Director of Industry and Agriculture Mr. Thierry Kalonji (blue shirt) presenting leather production equipment to DR Congo D R Congo Receives Leather Production Equipment Worth 60,000 Euros the establishment of Small and Medium Enterprises (SMEs) leather incubation centers in DRC. The Minister in charge of SMEs, Bienvenu Liyoya Ndjoli received the equipment on behalf of the government. They were presented by the COMESA Director of Industry and Agriculture, Thierry Kalonji on behalf of the Secretary General Sindiso Ngwenya. The Minister said the delivery of the equipment was timely as it will help the government to realize the dream of creating jobs especially for the women and youths in the country. This timely gesture shall help our artisans to become professionals and compete at the international level, Minister Ndjoli said. In his speech, Secretary General Sindiso Ngwenya said the leather sector in DRC has potential to create the muchneeded jobs and create wealth for the people. COMESA shall always be there to ensure that all sectors begin to benefit the people of the region, he said. We are not only supporting the Leather sector, but also in Agro Business as well as the textile sectors. The project has been implemented in line with Pillar 2 of the DRC Growth and Poverty Reduction Strategy Paper which aims at increasing the supply of decent jobs and developing the private sector. The TCF was established under the Regional Integration Support Programme (RISP) within COMESA to support the setting up of incubation and business centers for developing SMEs. The main objective is to strengthen the regional economic integration process in the COMESA region, to improve its trade competitiveness on a global scale, and to promote trade with the EU. 27

16 28 collaboration. Zambia s Vice President commended the organizers for having the meeting in her land linked country for the first time in the history of PMAESA. This, she added shows that land linked countries like Zambia have been recognized for the key role they can play in maritime transport. Caucus to Integrate Land Linked Countries into Maritime Transport Experts in port management, policy makers and financiers from across Africa held a two-day meeting in November in Zambia to explore how to reshape policy and harness the benefits that accrue from maximizing the comparative advantages of land linked countries. Organized by the Port Management Association of Eastern and Southern Africa (PMAESA), the meeting targeted land linked countries as key facilitators of trade, investments and the development of the maritime sector in East and Southern Africa. Zambia s Vice President Mrs. Inonge Wina opened the meeting. PMAESA is an intergovernmental body comprising Port Authorities, Terminal Operators, government line ministries, logistics and maritime service providers drawn from 25 countries in Eastern and Southern Africa with 11 land-linked countries under its jurisdiction. Addressing the delegates, PMAESA Chairperson and Chief Executive Officer of the Namibian Ports Authority Mr. Gerson Bisey Uirab described land-linked countries as part of the architecture of the maritime sector which must be fully integrated. Opportunities The maritime sector offers several opportunities and a future that can support the transformation of African economies, Mr Uirab said. However, this demands that the region develops a comprehensive view of what the maritime sector could be and what it could offer. He said the conference, whose theme: Raising the profile of land linked countries in the logistics and maritime value chains, provides the opportunity to discuss in detail and reshape the policy. The PMAESA meeting has in recent years revised its approach to focus on the total value chain in response to global competition. According to Mr. Uirab, the aim is to address the needs of member countries, including the participation of the private sector to ensure greater She said: Hosting this important function is an endorsement of the need to be inclusive in world affairs and will help bridge the gap that landlocked countries face in accessing services of the blue economy. COMESA Assistant Secretary General, Ambassador Dr. Kipyego Cheluget said COMESA was proud to be associated with PMAESA and the 2017 Conference to address diverse issues under Maritime Transport and Logistics. Solutions And Strategies I am convinced that solutions and strategies to take the subsector forward will be generated during the conference, Amb. Cheluget said. These solutions should essentially contribute towards sustainable transport systems and reduction in the cost of doing business for our region. The Head of the Development Bank of Southern Africa Mr. Davies Pwele revealed that the institution will soon sign a Memorandum of Understanding (MoU) with PMAESA to become the preferred financier for the development of port infrastructure in Eastern and Southern Africa. PMAESA was founded in 1973 by the United Nations Economic Commission for Africa (UNECA) to promote and nurture best practices among sea ports and the logistical industry in general. It promotes the role and competitive advantage of dry ports and inland waterways within the region to drive intra-africa trade and regional integration with the aim of reducing the cost of doing business. The 2017 Least Development Countries Report Launched COMESA was one of the organizations that participated in a simultaneous global launching of the 2017 edition of the Least Developed Countries Report, prepared by the United Nations Conference on Trade and Development (UNCTAD). The Report, whose theme is Transformational Energy Access, focused specifically on the transformation of energy access. It brought out key issues ranging from the role of energy in sustainable development and as an essential ingredient of inclusive economic structural transformation. While launching the report at the COMESA Secretariat in Lusaka, Zambia, November 22, 2017, the COMESA Director of Infrastructure and Logistics, Mr. Jean-Baptiste Mutabazi, said it will provide valuable resource for the member States in their efforts to address the challenges faced by the energy sector. The main challenges with regard to the energy needs of the region include inadequate level of power generation, low coverage of transmission and distribution infrastructure due to insufficient investment in the energy sector and over reliance of the population on biomass energy, Mr. Mutabazi said. Currently, the entire installed generation capacity of COMESA, which has a population of over 500 million people, is estimated at 68,000 megawatts, he said. Access to Electricity It is estimated that the percentage of COMESA population with access to electricity is about 45% and projections indicate that it will reach 80% by 2040 if multi-billion-dollar investments are made in the next ten years. Energy infrastructure deficit in the COMESA region has constrained the growth of the sector. Mr Mutabazi said the region could have achieved average growth of more than 7% Mr. Jean-Baptiste Mutabazi over the past decade if there was no infrastructure deficit. Currently the average annual growth is 5% to 6% percent. Electricity consumption per capita for the COMESA region was estimated at 605 kilowatt-hours (kwh) per person in 2015 while it was 1,169 kwh in other developing countries. The energy poverty should be seen as an opportunity for investment in power generation and regional interconnectors. High priority should be accorded to the development of regional energy infrastructure to achieve economies of scale. COMESA region is on the way to achieve the Cape to Cairo electricity corridor by implementing Zambia- Tanzania-Kenya interconnector project, he concluded. The ZTK project will interconnect the Southern Africa Power Pool and East Africa Power Pool and pave the way to a competitive regional power market. 29

17 30 The Tripartite FTA was conceived to address conflicting policies and regulatory frameworks arising from multiple membership of the countries in COMESA Secretary General Mr. Sindiso Ngwenya is the new chair of the Tripartite Task Force that brings together three regional economic communities namely COMESA, the East African Community and the Southern Africa Development Community. He took over from Ambassador Liberat Mfumukeko, Secretary General of the EAC during a brief handing over ceremony conducted at the headquarters of the EAC in Arusha, Tanzania, Friday, 17 November The Tripartite Task Force (TTF) is a mechanism for coordinating the implementation of the Tripartite Free Trade Area (FTA) work programme and serves as the Secretariat of the tripartite policy organs. It is made up of the chief executives of the three RECs. The last time COMESA held the mantle was in when it successfully steered the tripartite team to the historical launching of COMESA Takes the Reins of the Tripartite Group the COMESA-EAC-SADC Free Trade Area before handing over to SADC. The position of the Task Force Chairperson is for a duration of one year after which it rotates to the next REC. At the launch of the TFTA, 15 out of the 26 countries that comprised the tripartite signed the Agreement on the spot. The rest of the States said they needed more time to complete their internal processes before signing the documents, which are binding international agreements. Since then, more countries have signed bringing the total number of signatories to over 20 as at December The Tripartite FTA was conceived to address conflicting policies and regulatory frameworks arising from multiple membership of the countries in COMESA, EAC, and SADC. Besides, small markets cannot support critical levels of investment and rationalize large infrastructure projects. By providing a single economic space with harmonized trade policies and regulatory framework, the Tripartite FTA solves the problem of multiple membership, reduces the cost of doing business, and supports industrialization and cross border infrastructure projects. Countries that signed are expected to proceed to the next level of the ratification process through their legislative assemblies. The Agreement will come into force once ratification is attained by three quarters of the member States. Only Egypt has signed and ratified the Agreement. A minimum of 14 countries are required to ratify the Agreement for it to come into force. Since the launching, the number of countries have increased to 27 with the entry of South Sudan as a partner State of the EAC. The combined Gross Domestic Product of the Tripartite is USD 1.47 trillion and a population of 674 million. Trade Information Desk Officials at the Great Lakes Borders Empowered Twenty Trade Information Desk Officers that were recruited recently to facilitate small cross border trade between Eastern D R Congo and the neighboring countries of Rwanda and Uganda participated in a two days capacity building workshop at the COMESA Secretariat in Lusaka, Zambia. The training took place on 23 November 2017 as part of the implementation of the Great Lakes Trade Facilitation Project (GLTFP) supported by the World Bank. It covers three border points between DR Congo and Uganda and two between DR Congo and Rwanda. It was intended to enhance the capacity of the TIDOs to effectively deliver on their duties and responsibilities of serving the small scale cross border traders, majority of whom are women. In addition, it was a platform for sharing experiences by various stakeholders in the implementation of the COMESA Simplified Trade Regime (STR) at the project border posts. The training also served as a forum for creating awareness on the Regulations on the Minimum Standards For The Treatment Of Small Scale Cross Border Traders and the role Trade Information Desk Officers in facilitating small scale cross border trade at the borders. As people on the ground, you are a very important link between the Secretariat and the communities that we are serving, said the Director of Trade and Customs, Dr. Francis Mangeni in a speech presented by Senior Trade Officer, Mr Tasara Muzorori during the official opening of the training. He added: I expect you to be constantly aware of developments in the region and issues affecting small scale traders so that together we can deal with them in our joint efforts to facilitate trade. He urged the TIDOs to focus on how to assist the small-scale cross-border traders conduct their businesses in dignity, free of the impediments they often experience as informal business people. The training was built on the induction programme held in Rwanda in June It provided an in-depth information on the STR, gender, reporting of project activities, negotiation skills and basic conflict resolution. I expect you to be constantly aware of developments in the region and issues affecting small scale traders so that together we can deal with them in our joint efforts to facilitate trade. 31

18 32 Congratulations to President Kenyatta on Reelection Zambia s Local Government Minister, Hon Vincent Mwale (centre) with delegates attending the Climate Change Resilience Academy in Lusaka Experts Lobby for a Regional Framework to Build Resilience on Climate Change regional approach towards A addressing the adverse effects of climate change is needed owing to the interconnectivity of national and regional systems. This was one of the resolutions of the first COMESA Resilience Academy that took place in Lusaka, Zambia, November The aim of the three- day forum was to build the capacity of COMESA Member States to adapt and thrive in the face of stresses and shocks that are increasingly becoming common owing to climatic changes. The Academy is an initiative of the Rockefeller Foundation and COMESA. It brought together senior officials from ministries responsible for planning, disaster management and mitigation units, agriculture, environment and health as well as stakeholders who play a key role in mainstreaming resilience and domestication of the Sendai Framework on Disaster Risk Reduction. At the opening of the Academy, the Vice President of Zambia Mrs. Inonge Wina welcomed the initiative as it provides an opportunity for developing a regional framework to guide all resilience building activities. I m confident that the forum shall come up with a blue print that integrates all our past achievements and future aspirations into one overall and coherent resilience building agenda, Mrs. Wina said in a speech delivered by Local Government Minister, Hon. Vincent Mwale. Lack or weak resilience found mostly in poor developing countries, she noted, robbed the region the capacity and resources for development as most funds are diverted to disaster recovery. Building adaptive capacities across the region was the surest way to achieve development despite the ever-present threats, she noted. Common Framework Currently, the COMESA region does not have a common framework for managing risks, shocks and stresses even as the frequency and intensity of loss and damage occasioned by climate change and other external factors continues to rise. In his statement, COMESA Climate Change Advisor Dr. Mclay Kanyangarara cautioned that, although the advancement of globalization and regional integration, trade and investments, positively contributed to interconnectivity of national and regional systems, instability in one part of the system would have a global ripple effect. Not only should the national systems be resilient in themselves, but the interconnected regional systems must also have inbuilt resilience of their own, Dr Kanyangarara said. The Associate Director at the Rockefeller Foundation Africa Regional Office, Ms. Betty Kibaara told the delegates that her organization had invested more than half a billion US Dollars globally in partnerships and initiatives to help individuals, communities and countries build their economic, social and climate resilience. At the end of the academy, the participants identified gaps and opportunities of resilience mainstreaming at national and regional levels and subsequently as well as develop back-to-office action plans. COMESA to Work with Consumer Protection Body in Research COMESA is working with the Consumer Unity and Trust Society (CUTS) International Zambia following the signing of a joint Memorandum of Understanding (MoU). The MoU binds the two organizations to cooperate and complement each other in the protection of consumers and customers. COMESA Secretary General Mr. Sindiso Ngwenya and CUTS Zambia Board Chairperson Mr. Yusuf Dodia signed the pact on 4th October 2017 on behalf of their respective organizations. The MoU is expected to foster closer links in promoting and strengthening trade and development, competition and regulation, agricultural research, climate change, food security and poverty reduction and general development in the eastern Africa region. The customer is king, said Mr. Ngwenya. All that we produce or trade are aimed at anticipating and meeting the needs of customers or consumers. So, in this respect, COMESA and CUTS can work together. Mr. Dodia commended COMESA for promoting a balanced and harmonious development of production and market structures adding that the two organizations have several areas of synergy. At CUTS, the ordinary consumer is not just a functional unit but a human being whose welfare and growth depends significantly on his/her association with economic production, he said. CUTS International is a civil society organization based in Zambia since The organization functions as a centre for research, advocacy and networking on issues of trade and development, competition policy, investment regulation and consumer protection. The customer is king, said Mr. Ngwenya. All that we produce or trade are aimed at anticipating and meeting the needs of customers or consumers. So, in this respect, COMESA and CUTS can work together. COMESA congratulated H.E President Uhuru Kenyatta for his victory in the October 26, 2017 repeat Presidential Elections. In a message signed by Secretary General Sindiso Ngwenya, the regional bloc described President Kenyatta s compliance to the rule of law and the Constitution of Kenya as admirable. The Republic of Kenya under your leadership, has set another example to the African continent and indeed the world by affirming that Kenya is a country governed by the rule of law rather than the rule of man, the Secretary General said. In September, the Supreme Court of Kenya nullified the August Presidential elections on account of electoral process that were not compliant with the rules. The Court ordered a repeat Presidential election which subsequently took place on 26 October The Secretary General assured of COMESA s support to President Kenyatta and his government as he embarks on the onerous task of uniting the nation and refocusing national attention to the priorities of nation building. 33

19 34 Cycling for SDGs: COMESA Lends a Hand Seventeen cyclists were flagged off from the COMESA Secretariat in Lusaka, Zambia on November 8, 2017 for a 500 KM road trip to Livingstone. The initiative was intended to raise awareness on the UN Sustainable Development Goals (SDGs). It was organized by Afrikaspeaks, a civil society organization. Assistant Secretary General Ambassador Kipyego Cheluget flagged off the cyclists that included one woman and 16 men. COMESA is a strong believer in the SDGs and their significant role in transforming the world hence our support to this initiative, Ambassador Cheluget said. It is an exciting moment to see young people energized to popularize the 17 SDGs. Mr Munyaradzi Muzenda, the AfricaSpeaks Director said the cyclists would ride for 54 km daily representing the 54 African countries. The main objective of the cycling is to sensitize Zambia, COMESA and Africa on the SDGs and the Africa we want and how no one should be left behind to achieve them, he said. Specifically, how Zambian Youths and COMESA young people can use their dreams and talents to empower themselves to live their dreams in achieving the SDGs. COMESA Director of Gender Mrs. Beatrice Hamusonde applauded the young people for taking the initiative to popularize the SDGs. In addition, she commended the only woman in the team of cyclists for her confidence to take part in the grueling trip noting that this was a strong statement on the place of gender equity in all aspects of social economic development. COMESA donated 100 T-Shirts to support the initiative. Lusaka Hosts COMESA Policy Organs Meetings Top ranking government officials led by Ministers from the 19 COMESA Member States converged in Lusaka, Zambia in October for the annual decision-making meetings. The meetings were the 37th COMESA Council of Ministers, the Intergovernmental Committee (IC) and the Committee on Administrative and Budgetary Matters. The Committee on Administrative and Budgetary Matters was the curtain raiser and took place from Thursday to Saturday October It was followed by the IC from Monday 30 October to Wednesday 1st November 2017 while the Council of Ministers meeting was on 2nd and 3rd November The theme of the meetings was COMESA: Towards Digital Economic Integration. It sought to refocus attention on the need to harness the potential of information communication technologies in addressing the existential challenges of regional integration. It came at a time when the COMESA Secretariat had embarked on a digitization drive that has so far transformed all its meetings to paperless. COMESA has further introduced software s to capture small scale trade data using smart phones to promote e-business; launched a Short Messaging Service (SMS) for reporting trade barriers and working on a digital Free Trade Area Application that will incorporate e-commerce, e-legislation and e-logistics. Financial Obligations Delegates at the Committee on Administrative and Budgetary Matters dealt with the budget of the Secretariat including Member States assessed contributions. It was expected to come up with innovative ways of financing regional integration programmes given the challenges that some member States have in meeting their financial obligations to the Secretariat and its institutions. The Intergovernmental Committee brought together Permanent/ Principal Secretaries designated by each of the 19 Member States. It is responsible for the development of programmes and action plans in all fields of co-operation except in the finance and monetary sector. The IC reviewed various status reports on the implementation of regional integration programmes. The recommendations of the IC meeting incorporated that of the administrative and budget matters and was presented to the Council of the Ministers for decision making. The decisions taken by the Council are binding to all the Member States and constitute the work programme for the COMESA Secretariat in the coming year and beyond. Development partners that support COMESA programmes attended some of the sessions. 35

20 36 Zambia s Minister of Commerce, Trade and Industry Mrs. Margaret Mwanakatwe presenting a trophy to Ms. Gwen Machiya Zambia Awards 2017 Woman Entrepreneur of the Year Zambian national, Ms. Gwen A Machiya 31, has been named as the 2017 Woman Entrepreneur of the year by the Zambia Federation Association of Women in Business (ZFAWIB). The ZFAWIB is an affiliate of the COMESA Federation of National Associations of Women in Business (FEMCOM). Ms. Machiya has been working in the textile sector for many years using fabric sourced from the international market to create quality designs which have steadily grown her clientele thus expanding her business. At the awards ceremony in Lusaka, Zambia s Vice President Mrs. Inonge Wina described Ms. Machiya as a young woman who can inspire other young people, particularly women, to be self-employed.. It is notable that her business will promote growth of an entire chain in an area of interest to my government, that is the cotton and textile industry, Mrs. Wina said in a statement presented by the then Zambia s Minister of Commerce, Trade and Industry Mrs. Margaret Mwanakatwe. The theme for the women entrepreneur of the year award was Grow Zambia Buy Local. This was in line with the Zambian government s policy on industrialization which priorities the promotion of value addition and locally produced goods. The Vice President commended FEMCOM for their role of championing the creation of wealth by women entrepreneurs in Zambia and the COMESA region. In her statement, FEMCOM Director Mrs. Katherine Ichoya encouraged women to change their mindset and aim high to play a much bigger role in the regional and national economic development. As women, I feel we are thinking small. Our governments cannot move very far without women. Let us change our mindset. Women are good at multitasking so we can manage homes as well as businesses and careers, Mrs. Ichoya pointed out. ZFAWIB Chairperson, Mrs. Nancy Kawandami revealed that her association will start compiling sector specific data bases which will capture all women entrepreneurs across the country. Prof Calestous Juma Left Indelible Footprints in COMESA Once in a while, humankind gets blessed with prodigious talents to light the world and dispel darkness. Civilizations and breakthroughs in human history have arisen from such gifted people. Such was Professor Calestous Juma, who passed away on 15 December 2017, after a battle with cancer, and interred on 6 January 2018 in his home country, Kenya. His death sent shock waves throughout the world, among political leaders, his peers in the academia, his large community of students as well as followers on social media, and his global family of friends. Professor Juma was successively named among the 100 most influential Africans and most reputable people in the world. While some will remember Calestous as an academic, a scientist, the founding Executive Secretary of the UN Convention on Biological Diversity, or the founder of the African Centre for Technology Studies; in COMESA, many will remember him as a development engineer, who fervently sought solutions to actual social economic problems afflicting humankind. When in 2010 His Majesty King Mswati III of the Kingdom of Swaziland, chose science and technology as the theme and organising logic for COMESA, Calestous Juma was the man who provided its intellectual underpinning. This bright son of Africa, as the COMESA Ministers affectionately called him, has over the years been a transformative and inspirational force for COMESA. The COMESA Virtual University made up of a network of 22 universities, and the COMESA Innovation Awards (17 have been given so far), were concrete proposals he made, which COMESA has operationalised; as well as the COMESA Committee of Ministers responsible for Science and Technology, and the COMESA Innovation Council. On a regular basis, Calestous was at hand to make comments on working papers and numerous documents, and write policy briefs on key issues, when requested. He supported, through inspiration, advice and video-link presentations, the evidence-based approach to decision-making in COMESA. He was always prepared to try new models in this regard. Calestous was obviously in love with COMESA, seeing it as a trail-blazer and a source of lessons for Africawide economic integration. He closely followed the negotiations for the COMESA-EAC-SADC Tripartite Free Trade Area, covering 27 countries, and likewise the negotiations for the African Continental Free Trade Area, covering 55 countries. These have been the biggest and most ambitious FTA negotiations in the history of humankind. At his death, he was on the verge of publishing a book he has written on these negotiations with Dr Francis Mangeni, the COMESA Director of Trade and Customs. (Extract from a tribute to Prof. Calestous Juma from the COMESA Secretary General, Sindiso Ngwenya) 37