DIGITISATION CREATES E135BN TRADE FOR COMESA

MBABANE - Digitisation of trade facilitation instruments as the high priority with technical work on launching a digital certificate of origin and a regional trade portal now completed is anticipated to bring about immense benefits for COMESA states including Eswatini.

The Common Market for Eastern and Southern Africa (COMESA) Secretary General Chileshe Kapwepwe disclosed that research indicated that once the digital free trade area was fully implemented by all member States, the region could annually gain E192.5 billion (US$17.5 billion) in intra-COMESA exports. “We estimate that digitisation of our trade facilitation instruments will create new trade worth E135.3 billion (US$12.3 billion) annually,” she said. “This will facilitate trade, connectivity, reduce our transaction time and costs, and certainly increase efficiency in our various interventions,” said Kapwepwe. COMESA marked its 24th anniversary since its transformation from the Preferential Trade Area for Eastern and Southern Africa (PTA).

A high-level COMESA delegation led by Secretary General Kapwepwe marked the anniversary in Egypt while attending the Africa 2018 Forum organised by the COMESA Regional Investment Agency (RIA) in partnership with the government of Egypt.
The two-day event kicked off yesterday and brings together more than 3 000 delegates including heads of State to advance intra-Africa investments. The COMESA delegation is using the Africa 2018 Forum in Sharm el Sheikh and the forthcoming Intra-Africa Trade Fair in Cairo, December 11 – 17, 2018 to showcase its contribution to economic growth and development of its Member States while directly engaging with stakeholders in side meetings and expos.

Among the notable developments of COMESA in the last 24 years is the expansion of the regional economic bloc from 19 to 21 member States following the admission of Tunisia and Somalia in July 2018. The bloc is now the largest in the continent with a combined gross domestic product of US$769 billion and a population of 560 million people. It is also the REC that integrates most of the countries of the Great Lakes region, covering Central, Eastern and Southern Africa, with significant need for enhanced cross-border economic activities. Among notable achievements that COMESA is celebrating at 24 years is the resolution of 98 per cent of all reported non-tariff barriers (NTBs) that inhibited regional trade. These relate to liberalisation of import licensing, removal of foreign exchange restrictions, taxes on foreign exchange, import and export quotas, roadblocks, easing of Customs formalities, extending times border posts are open and creation of One-Stop-Border-Posts.

Operating

So far 15 of the 21 member States are now operating under the COMESA Free Trade Area on a duty-free-quota-free basis. Many of COMESA’s flagship programmes are now in use regionally and beyond. These include the COMESA Yellow Card Insurance Scheme, a regional Third-Party Motor Vehicle Insurance Scheme that provides legal liability cover and compensation for medical expenses resulting from road traffic accidents caused by motorists visiting countries in the scheme.

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