COMESA WTO AND WORLD BANK TRAINING ON TRADE IN COMMUNICATIONS SERVICES APRIL 2007 GENEVA

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1 COMESA WTO AND WORLD BANK TRAINING ON TRADE IN COMMUNICATIONS SERVICES APRIL 2007 GENEVA TRADE IN COMMUNICATIONS SERVICES AND DEVELOPMENT IMPLICATIONS IN THE COMESA REGION

2 Introduction COMESA - a regional economic community comprising 19 countries in north, eastern and southern Africa; GDP - US$250bn; Pop - 400m; Established in 1994 as successor to PTA for E & S Africa; Goal: to create an internationally competitive economic community with high standards of living for its people.

3 Introduction cont d Strategy: - regional integration through trade and investment: creating a single market for goods and services and a common investment area. Approach: - open-regionalism i.e. integrating regionally without crowding-out the global economy (the multilateral framework).

4 ntroduction cont d Trade in goods is simple. Trade in services have been subject to government controls in many countries more than goods. The concept of trade in services recognises that services require proximity to consumers and that may be delivered or supplied in four different ways, cross-border, consumption abroad, commercial presence and presence of natural persons. Through regulatory reforms and rapid technical developments, trade in services has expanded in recent years Services are intangible and invisible. Services unlike goods can not be stored Services industries are protected mainly by national regulations while industries producing goods are protected by the imposition of tariffs.

5 Trade in Services in COMESA: Legal provisions in the Treaty COMESA recognises the need to trade freely in services and so provides in:- Article 4 paragraph 2 sub-paragraph (a) of the Treaty establishing COMESA to foster such co-operation among themselves as would facilitate the production of goods and facilitate trade in goods and services and the movement of persons ;

6 Trade in Services in COMESA: Legal provisions in the Treaty Article 4 paragraph 4 sub-paragraph (c) provides that Member States agree to remove obstacles to the free movement of services and capital within the Common Market". These provisions attest the importance of the Services sector in COMESA s intra- and extraregional trade. Though empirical data is not readily available, it is estimated that services trade can contribute as much, if not more, earnings as trade in goods.

7 Trade in Services in COMESA: Legal provisions in the Treaty Clearly, COMESA has adequate legal provisions relating to trade in services; and as all COMESA countries are either developing or LDCs, national treatment exceptions available to this category of countries under the WTO are available to any COMESA country to invoke; Provisions relating to developing countries with regard to fewer sectors to open up, fewer transactions to liberalise, and permitting the imposition of entry conditions can be invoked by

8 ICT HARMONISATION PROJECT Common Policy and Model Legislation Policy Guidelines and Model Regulations Regulators Association National Implementation Capacity Building Assessment of the ICT sector in Member States

9 COMESA ICT POLICY o fulfil the requirements of an information society, the information technology, broadcasting and telecommunications components have to form part of a single, integrated network. nstitutionally, there has to be close co-ordination if not integration at policy level and, preferably, full integration at the regulatory level. he main objectives are: ffordable, ubiquitous and High Quality Services uilding a Competitive Regional ICT Sector reating an Environment for Sustainable ICT diffusion, development and usage.

10 OMESA ICT POLICY riving factors needed A facilitative policy, legal and regulatory framework Encourage research and development in ICTs Investment capacity in network and services provision Technology challenges Management of competition Recognition and development of skills in ICTs Affordability of ICT services Universal service/access Awareness and literacy of population and potential users

11 STATE OF ICTs REGULATORY AUTHORITIES IN COMESA REGION ICT REGULATION AND POLICY IS WITHIN THE MINISTRY, NO PROVISION FOR A SEPARATE REGULATORY ATHUORITIES Comoros Eritrea Seychelles ADOPTED THE LAW FOR ESTABLISHING THE ICT REGULATOR SWAZILAND DJIBOUTI MEMBER STATES WITH SEPARATE ICT REGULATORY AUTHORITIES EGYPT, SUDAN, ETHIOPIA, KENYA, UGANDA, DR CONGO, RWANDA, BURUNDI, MALAWI, MAURITIUS, MADAGASCAR, ZAMBIA, ZIMBABWE

12 STATE OF ICTs LIBERLISATION OF ICT SERVICES ALL ICT SERVICES LIBERLISED EXCEPT FIXED NETWORKS RWANDA, SWAZILAND MALAWI, MADAGASC AR, ZAMBIA FULL MONOPOLY ERITREA, ETHIOPIA, COMOROS DJIBOUTI FULL LIBERLISATION EGYPT, SUDAN, KENYA, UGANDA**, BURUNDI, DR CONGO, MAURITIUS*, SEYCHELLES**,, ZIMBABWE**

13 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East West North IMPACT OF ICT SECTOR REFORM Fig. 6: Top ten COMESA countries by Fixed Tele-density. Zimbabwe Swaziland Sudan Seychelles Mauritius Kenya Eritrea Egypt Djibouti Comoros Telephones per 100 inhabitants

14 Regulatory Institutions in COMESA Member States, Year 2006 Rgulation done by the Ministry & Incumbent Operator 10% Regulatory Unit within The Ministry 15% Separate Regulatory Authrities 75%

15 Status of Mobile Competition in COMESA Region, Year 2005 No Competition 20% Duopoly 5% Full Competition 75%

16 Zambia Uganda Top ten COMESA countries by Internet Users per 100 inhabitants, Year 2005 Sw aziland 2.59 Sudan 0.9 countries Seychelles Mauritius Kenya Egypt 3.85 Djibouti 0.97 Comoros Internet Users per 100 inhabitnats

17 Women Employment in Telecom Sector Zambia 23.3 Sudan 17.9 Seychelles 33.2 Rwanda 23 Countries M auritius Malawi Madagascar Kenya Ethiopia 33.3 Eritrea 46.6 Egypt 21.7 Angola % From Total Staff

18 Country Local Call National Call International Call Kenya $ $0.20 $0.40 $0.90 Mauritius $ $0.103 $ $0.414 $0.569 Sudan $16.00/m unlimited $0.15 $0.20 $0.60 Swaziland $ $ $1.365 $ $2.354 Zambia $ $1,25 $$ $2.30 $ $2.80 Zimbabwe $ $0.072 $ $0.391 $ $0.595

19 Policy and regulatory Principles Universal Service/Access Price Regulation/Tariffs Interconnection Competition Licensing Wireless and Satellite technology Consumer protection Numbering Domain Names Standards and Type approval Frequency Spectrum NGN Quality of Services ICT strategy

20 POSTAL SECTOR REFORM PROGRAMME OMESA and UPU postal sector reform programme resulted up to now in the following: Model policy guidelines on postal services Model bill for postal services Regulatory guidelines on postal services Postal sector assessment in COMESA Member States Development of postal statistics and benchmarks policy guidelines

21 POSTAL SECTOR REFORM PROGRAMME he guidelines clearly lay down the following : Regulation and mechanism for financing the universal service, competition, interconnection between services providers and COMESA Member States, mandate and authority of regulator; Responsibilities and code of conduct of the Regulatory Authority, of Government and incumbent public postal operator; Reserved and mandatory services, fair competition, treatment of disputes, cross-subsidisation, tariff setting; Issuance of postage stamps and monopoly issues; Enforcement of license conditions; Provision of postal technology and electronic postal

22 ROADCASTING SECTOR EFORM PROGRAMME.

23 Regional Framework for Trade in Services Regional Assessment of Services Extent of liberalisation are showing how open sectors are; where there are restrictions; and, wherever possible, why the restrictions; Policy environment : competition and entry requirements; Regulatory environment : regulator, access to sector;

24 Regional Framework for Trade in Services Regional Assessment of Services cont d. Market Structure: number of firms, market share, ownership patterns - private or public; Performance indicators: price and quality measures; employment and investment data. Emphasis has been on policies affecting regional and international trade and investment.

25 Gains of Trade in Services Liberalisation ore commercially significant gains from services liberalization compared to goods liberalization Efficiency and Productivity gains Employment-creation Increases in capital to finance growth Increases in savings and investment Transfer of technology Building human capacities Dynamic gains from competitive infrastructural services Major welfare gains also from liberalizing movement of natural persons and outsourcing Contribute to implementation of Millennium Development Goals(MDGs)

26 Services and the EPA Process EPA Negotiations The 16 COMESA countries negotiating an EPA with the EC as a group have submitted a text for negotiations. The text did not include services. The EC has submitted a text on services that COMESA countries are studying and will react to soon.

27 Harmonisation of Programmes with other RECs COMESA-SADC-EAC Tripartite Task Force As in all areas of integration, COMESA is collaborating with SADC and the EAC in the development of a regional services framework with a view to minimising divergences. DFID, the EC and UNCTAD have been very helpful in the formulation of the regional framework and the collaborative between COMESA and SADC.

28 . The End Thank you for your attention

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