Comesa Presentation- Opportunities in Comesa Region

8/12/2019 Comesa Presentation- Opportunities in Comesa Region

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Presented by; Tasara Muzorori, Senior Trade Officer;

Sandra Uwera, CBC Coordinator;US- AFRICA TRADE AND INVESTMENT FORUM

May 16-18, 2012



Membership : 19 countries- Burundi, Comoros, Congo, Djibouti, Egypt, Eritrea, Ethiopia,Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland,Uganda, Zambia, Zimbabwe.

Launched FTA in 2000, which allows for duty free and quota free trade for goods that complywith COMESA RoO to take place.

Info on COMESA- www.comesa.int

Total Area : 12.2 mill ion sq. KmGDP : US $ 450 bill ion (2011)Increase in Average Annual GDP growth : 5.08% from 3.51%(2010)Global trade for COMESA countr ies : Over US$ 244 BN (2010)Intr a-COMESA Trade: US 17.4 BN(2010)Investment flows : US $ 21,6 BN (2010)Total Imports Volumes : US $ 137 BN(2010) at 16%Total Exports Volumes : US $ 107 BN(2010) at 26%

http://www.comesa.int/








Of the recorded 26% Export growth in theregion, countries that have greatly contributed toExport growth in the region; Ethiopia(132%);

DRC(88%); Zambia(67%); Zimbabwe(56%).Of the recorded 16% Imports, all countriesregistered positive growth.



REGION VOLUMES 2010)

EU 40% (43 BN)

CHINA 16% (17BN)

COMESA 8%USA 5%

SOUTH AFRICA 4%

JAPAN 1%

INDIA 2%

Rest of World 24%



REGION IMPORT VOLUMESEU 27%(37BN $)

CHINA 12%

SOUTH AFRICA 7%

COMESA 6%USA 6%

INDIA 4%

JAPAN 3%

RoW 35%



Has grown by 37% in 2010, from US$ 12.7BN in 2009, to US$17.4BN in 2010.

Attributed to registered growth between major players for intra-tradein the region- Kenya, Egypt, Zambia, Malawi and Sudan.

For more data on COMESA Trade and investment flows visi t;http://comstat.comesa.int

http://comstat.comesa.int/










Exports of Commercial services have registered an 11% increase in2010, of which Commercial imports register an increase of 6% in2010.◦ Travel services accounts for 44% of all commercial service

exports;◦ Transportation services accounts from 30% of all commercial

service exports;



Registered at an 18% in 2010;Major Investing companies in Africa (2010)are;

◦ Elsewedy Electric , Arab Swiss Engineering Company,Diamond Trust Bank, Cooperative Bank, Gulf AfricanBank, Kennol Kobil(Energy sector),

◦ Key players in the Financial Services Sector; UnitedBank of Africa, Standard Bank Group, Sanlam, EximBank;

◦ Telecommunications; MTN Group, Dimension DataHoldings, Altech Group.

◦ Food sector; Pick n Pay- in Zambia and Mauritius.



COMESA region remains the largest recipient sub-region of FDIs- source- WorldInvestment Repor t-2010. Share of Africa’s FDI flows in 2008, was 25% of total FDI-Egypt, Libya and Sudan having a bulk of the shares economies.

Why?Open economies: COMESA countries have already adopted the market liberalization at

different levels, opening their markets to free movement of goods across the bordersof 19 COMESA countries.

Size of the market: With its 19 Member States and 430 million inhabitants (potentialconsumers), COMESA is the biggest regional trade bloc in Africa.

COMESA Free Trade Area : increasing of the intra-regional trade within the regionthrough trade liberalization and facilitation:

Rules of Origin, transit traffic facilitation, Single Customs Document, One-Stop-BorderPosts.

Wider Free Trade Area with the implementation of the First Tripartite SummitDecisions towards the merger of 3 RECs into a single REC (COMESA-EAC-SADC)



Comprised of EAC, SADC and COMESA; Covers 26 countries of the 54 memberstates of Africa; Agreement signed in 2011.Negotiations begin in 2012

Benefits;Movements of goods across the three regions; market access;Harmonization and simplification of Rules of Origin,

Simplification of Customs Procedures,Coordination of Competition Policies and Institutional frameworks,Elaboration of mechanisms addressing non-tarrif barriers.Harmonization and coordination of trade standards,Relaxations of restrictions of business persons, taking into account sensitivities,Promotion of value addition and transformation of the region into a knowledgebased economy

The Result? A more competitive Bus iness Environment- Gateway to the rest of Africa!



COMESA BUSINESS ENVIRONMENT;



According to the WB Doing Business Survey,2011;◦ Rwanda ranks among the top 10 fastest countries in

terms of registration of businesses(30 days);◦ Mauritius- top 10 in terms of least procedures required to

obtain electicity connection(2 formalities)◦ Top 10 most improved economies; Rwanda, Mauritius,

and Zambia. 16 countries out of 10 have made at least

One(1)policy reform .◦ In COMESA Ranking, Top 6 – Mauritius, Rwanda,

Zambia, Egypt, Seychelles, Kenya.



Advocacy and strengthening political support on harmonisation oflegal and regulatory frameworks for company start ups;registration—etc;Establishment/ Strengthening of appropriate institutional structuresto support business start ups- One Stop Shops, IPAs and COMESAspecialised agency for Investment Promotion- Regional Investment

Authority- RIA;Relevant information on legislation procedures are made accessibleonline at a regional and national level;Private sector engagement on policy agendas and Businessdevelopment agendas that are pertaining to reducing businesscosts, and creating a more competitive business environment in theregion- through COMESA Business Council.



A policy that encourages and promotes a more liberal andtransparent investment environment;

Increase free flows of investments into COMESA from both

COMESA and Non-COMESA sources-Facilitate reforms for creating an enabling businessenvironment Promote COMESA as an attractive, competitive and bestinvestment destination areaGradually eliminate investment restrictions which mayimpede investment flows.



Principles.

Extend national treatment to COMESA investors andpromote cross border investment

Ensure all economic activities are opened for investment toCOMESA investors

Protection of investors and investment

Co-operation on investment



Each COMESA country has national policies on the Agriculturalsector.The Regional Strategy is being enforced through the TheComprehensive African Agriculture Development Programme-CAADP- an approach that obliges member states to sign nationalcompact committing 10% of their national budgets to Agriculturaldevelopment. So far, 10 of the COMESA member states havesigned.Zambia is among the countries that have now developed theirNational Investment Plans in accordance to CAADP.

Under CAADP, various programmes are underway;Guiding Investments in Agricultural markets in Africa;Improving Access to Agricultural Inputs- etc.



The Alliance for Commodity Trade in Eastern and Southern Africa, aspecialised agency on agricultural trade and value addition.

The goal; Increase farmers productivity and incomes in theCOMESA region, hence responding to existing challenges like traderelated constraints, low productivity, technological and policy relatedcontraints.

Also addresses improvement of trade relaed capacities to improverural infrastructure and increase market access;

Increases the commercial integration of staple food producers intonational and regional markets;



African Trade Insurance Agency; Provides investmentand credit risk insurance to the financial institutions/lenders, investors, manufacturers, importers andexporters, to enable accessibility of affordable financial

resources for their economic activities.PTA Bank; provides trade finance to SMEs and CrossBorder Traders in the region; contributes significantly toPSD.



Infrastructure; a planned strategy on development of all the energy resources is inplace –utilisation of renewable and non renewable energy, nuclear and solar.

Physical infrastructure- development of multi-model systems of transport(roads,rail, inland waterways, ports). PPP incentives

Agricul ture and agro-processing ; existing strategies on value addition and

production of agricultural inputs for exports,as well as, key sectoral industrialclusters;-hides and skins.

Real Estate Development ; the lack of low level of affordable/low cost housingdevelopment in the region- a huge demand for domestic and commercialinfrastructure within the region.

New Technology that promotes Climate Change mit igation ; innovative ways ofdoing business in the manufacturing sector using solar energy.

Tourism; Countries that boost the tourism sector with a vast potential , such as ,Kenya, Rwanda, Southern Africa-Malawi, Zambia. Potential areas of establishingtourism marketing in the region.



Industrial Cluster program;◦ Three clusters formed- Leather and Leather

Products, Cotton and Textiles, Agro-processing-Cassava;

◦ Objective; creating value added products that meetregional and global market demands; and identifykey markets for the products at a regional andlarger global market;

◦ Stakeholders- Producers, Processors,Manufacturers, Wholesalers, Retailers- the entirevalue chain.



HOW DO YOU ENGAGE WITH THE COMESA REGION?



A COMESA Specialized agency which is a principal interlocutor onpromoting investments in the region;◦ RIA is an information hub on investment news and investment

opportunities. ;◦ The Regional Investment Agency (RIA) is at the core of the

implementation of the COMESA Common Investment Area withits role in building capacity of National Investment Promotion

Agencies (NIPAs);◦ Establishment of investment database, and◦ Investment promotion through dissemination of information

related to investment opportunities- the Annual COMESAInvestment Forum.

www.comesaria.org

http://www.comesaria.org/

http://www.comesaria.org/



CBC is a member based private sector institution of theCommon Market of Eastern and Southern Africa (COMESA) .

It was established in 2005, to play the key role of a platform

for business development and policy, while supporting privatesector development in their respective economies.

Today, the CBC positions itself as the singular regional apexbody of the private sector in the COMESA region- TheVOICE of the private sector.

www.comesabusinesscouncil.org

http://www.comesabusinesscouncil.org/








The mandate of Chapter Twenty three and Twenty fourof the COMESA Treaty;

The treaty recognizes that the private sector is thebackbone of a vibrant economy, the engine of steadyand consistent growth. It is the driver of RegionalWealth.



BUSINESS DEVELOPMENT;Regional Capacity building programmes(PACT II);

Market Linkages, Business linkages- Annual COMESA Business Forum andCOMESA Smart parnerships Conferences.

Trade Information and Business Intelligence(in the pipeline),

Business to Business meetings-Buyer-Seller meetings,

Private –Private Dialogues and Public-Private DialogueCurrently kick-starting a programme on the drafting of Regional SME Strategy,

Capacity building on sectoral clusters, to the level of export readiness,

Key collaborating partner with the Regional Investment Agency key activities ofmutual interests.



Business and Policy Advocacy;

Active and strategic policy advocacy on pertinent issues affectingprivate sector businesses. One should note that as an Institution ofCOMESA, we have the unique advantage of having a strong voicewithin the inter-governmental Commitees on various issues affectingprivate sector; To date we have had deliberations on key policyissues from ;



Research and Information – CBC provides first handinformation on the very progress of regional integrationin COMESA.The CBC is an medium platform for information between

COMESA and member states on businessrequirements, and other information relative to theprivate sector.Online- Biz-Info Directory; A regional database of all

business sectors in the region, and key operators withinthe sector.



Membership Development; CBC is a memberbased organization. All services rendered by theinstitution is primarily targeted towards itsmembers- the private sector. Become a member?

COMESA Business Forum; Our Annual Public-Private Dialogue. The recommendations met in

this meeting are presented by the CBC Chairmanto the Highest Authorities of the COMESA Region,the Summit of the Heads of State.



Regional and International Business Linkages;Objective; Improving multilateral and bilateral trade as well asnurturing relationships with the business community that sharescommon interests with the COMESA countries, and within theTripartite- EAC, COMESA and ECOWAS.

We have signed MOUs with;

Riyadh Chamber of Com merce, Bahrain and CBC ;Jeddah Cham ber of Com merce and CBC;Confederation of Indian Industries and CBC,

COM ESA and Econom ic Comm ission of West African States,China Chamb er for the Prom otion of International Trade- CCPIT)and CBCCorporate Council for Africa



The historic ties of friendship and solidarity betweenthe American Business Community and Africa; -

Exploiting the potential of opening both our marketsto joint partnerships, technology transfer, trade andinvestment flows, SME development,Our shared commitment to promote partnershipbased on areas of common interest; AGOA;Cooperative partnerships with CorporateCouncil of Africa;



Establishing Business Linkages between existing markets inCOMESA and COMESA region,

Creating joint partnerships in projects of mutual benefits to bothCOMESA and American Business

Using this platform as a skills and technology transfer betweenrespective business communities, linking like sectors for businesspartnerships;

Encouraging innovation within the region.Creating a win-win situation- for COMESA and US- increasedtrade and investments.



Thank you for your Kind Attentionwww.comesa.int

www.comesabusinesscouncil.org

COMESA Senior Trade Advisor- Mr. Tasara [email protected]

COMESA Business Counci l Coordinator- Ms. Sandra [email protected]



mailto:[email protected]






Comesa Presentation- Opportunities in Comesa Region

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