newsletter Issue #: 629 July 7, 2020

COMESA Bank in an Unprecedented Funds Mobilization 1 as World Bank Approves $425 Million Towards Infrastructure Financing

he World Bank Board of Directors has Tapproved a total of US$425 million in International Development Association (IDA) financing to support infrastructure development in the Eastern and Southern Africa through the Trade and Development Bank (TDB) and COMESA Secretariat.

This funding falls under the Regional Infrastructure Financing Facility Project (RIFF), which aims at expanding long- term finance to private firms in selected infrastructure in the power sector, as well as in the transport, logistics, and social sectors. This is the first regional facility of this kind protection to the lenders against the risk of infrastructure, health, education, transports in Africa. The new transactions will support Non-Honoring of Financial Obligations by a and logistics. regional integration and private sector Regional Development Bank (‘NHFO-RDB’) development, and in turn, the sustainable and supports TDB’s access to commercial The other is similarly a 10-year USD socio-economic development of the region bank financing at longer tenors and lower 25 million term loan facility signed TDB serves. interest rates than would otherwise have with the development bank of Austria,

been available. Oesterreichische Entwicklungsbank AG TDB provides trade and project finance to its (OeEB). The funds will finance projects 22 member states, which includes countries in various development areas such as from the wider COMESA-EAC-SADC Tripartite This is the first time IDA and the renewable energy including hydro, windmills, Free Trade Area, and will use the facility Multilateral Investment Guarantee solar, cogeneration and geothermal projects, to diversify its long-term funding sources, energy efficiency in industry, housing, sharpen focus on critical food and fuel Agency (MIGA) - the political risk electricity transmission and distribution, as imports, and facilitate imports of COVID-19 insurance and credit enhancement well as infrastructure, in TDB Member States. equipment and construction materials for arm of the World Bank Group - healthcare facilities through its structured are jointly supporting a regional President and Chief Executive Officer of trade finance business development bank. the TDB Mr. Admassu Tadesse described the past quarter of this year as a season of This is the first time IDA and the Multilateral TDB has also attracted two new European new and expanded multilateral and bilateral Investment Guarantee Agency (MIGA) funding partners with initial long-term partnerships on an unprecedented level. - the political risk insurance and credit funding of USD 80 million. They include a “As depressing as COVID-19 has been, we as enhancement arm of the World Bank 10-year EUR 50 million term loan facility the unique COMESA family have in this crisis Group - are jointly supporting a regional signed with Cassa Depositi e Prestiti (CDP), not locked-down – but rather gone into over- development bank. MIGA is providing TDB Italy’s Development Finance Institution, for drive to do the needful,” he said. “My warm a credit enhancement of EUR 334.4 million on-lending to the private sector – particularly appreciations to the leadership and teams on a ten-year loan from private commercial SMEs – located in some TDB Member of COMESA who rallied brilliantly with TDB in banks, that will help TDB expand trade States, and operating in agribusiness, social these mutual groundbreaking facilities.” finance activities. This guarantee provides

This bulletin is published by the COMESA Secretariat Corporate Communications Unit but does not necessarily represent views of the Secretariat. For Feedback: [email protected]

Contact Address : COMESA SECRETARIAT, COMESA Center , Ben Bella Road WEEKLY NEWSLETTER P.O. Box 30051, +260 211 229 725, +260 211 225 107 www.comesa.int; email: [email protected] He added: “Our TDB and COMESA flags are USD 2.3 Million Project To Support DR Congo flying high and new Member States from beyond COMESA are continuing to knock FEMCOM Chapter on our doors. And as we are embracing ..as President Tshisekedi pays a visit to the FEMCOM Pavilion the newcomers, in the spirit of the AfCFTA, we are dutifully preserving TDB’s character as a COMESA-based specialist regional bank, with membership and operations well beyond COMESA.”

WEEKLY NEWSLETTER WEEKLY Reacting to the positive developments, 2 Secretary General of COMESA Chileshe Kapwepwe, congratulated the TDB for the new partnerships.

“As COMESA, we take immense pride in achievements of TDB as a COMESA institution which is actualizing the vision and foresight of our founding members of building strong institutions which can deliver our mandate for the benefit of the region,” she said.

President Félix Tshisekedi, flanked by Chair of FEMCOM DR Congo, Mrs. Eliane Kiekie (L) and First Lady visits the FEMCOM Saturday Market Pavilion in Kinshasa, June 20, 2020.

he COMESA National Federation of National to good use which will benefit the families and the Masters in Regional TAssociations of Women in Business national economy,” the President said adding that (FEMCOM) Chapter in DR Congo has embarked empowered women benefits the country starting Integration- University of on a $2,300,000 project to support women in from the family level. Mauritius business. Among the businesses earmarked include production and marketing of local fresh The President called on the women in business to he University of Mauritius has launched foods and smoked foods, fruits and vegetables. upgrade the quality of the products especially in the Masters in Regional Integration T Others are value-added agricultural products and packaging for the market as this will add value to Programme. All those interested can apply those involved in the textiles and handicrafts the cost of purchasing the commodities. for this two-year programme using the link industry. below. The deadline for application has He also emphasized on the need to strengthen been extended to 31st July 2020. This is This was contained in a project document capacity in specific management tools and part of the COMESA Virtual programme presented to DR Congo President H.E. Félix techniques of production. Value addition, he

Tshisekedi by the Chairperson of the FEMCOM DR stressed, will not only put the product on the https://www.uom.ac.mu/ Congo Chapter Mrs. Eliane Munkeni Kiekie. The international market but will also create the index.php?option=com_ president was visiting the Saturday Market at the much-needed jobs for the youth and women in the content&view=article&id=133&Itemid=3322 FEMCOM Pavilion in Kinshasa on 20 June 2020. country adding that this will give the Congolese woman autonomy. President Tshisekedi promised to get stakeholders COMESA Business to partner with the FEMCOM Chapter to On behalf of the FEMCOM DR Congo Chapter, specifically develop three categories in the agri- Chairperson, Mrs. Kiekie appreciated the high- Council Webinar businesses. These are: fresh fruits and vegetables; level visitation by the President describing it as aking Stock of Implementation of the fresh food, meat, fish and poultry and processed a milestone in the development of women-run TCOMESA Regional Guidelines for the agricultural products. Additionally, the Pavilion will businesses in the country. Movement of Essential Goods and Supplies accommodate a location for sanitation products, across the Region During the COVID-19 Pandemic. textiles and handicrafts. The President emphasized that his country is President Tshisekedi The Webinar will focus on the implementation ready to support the women entrepreneurs to promised to get stakeholders and effectiveness of the Regional Guidelines on facilitating speedier movement of goods across grow into multinationals given that they account to partner with the FEMCOM borders. It will review the current state and for the larger part of the population in the country. Chapter to specifically experiences of business, and the way forward. “My government shall always put women develop three categories in https://us02web.zoom.us/webinar/register/ businesses first because when you run the agri-businesses WN_CORRYxotTiSfwra82mSfgw businesses, we know that the money will be put 14 July 2020 “We are so happy to see that you have come to visit our Pavilion as a symbol of support towards COMESA Toasts the New President of our ideals and goals to uplift, promote and serve women in business in DR Congo under the FEMCOM umbrella” she said.

She added that once implemented, the project will benefit many as there is at least one woman in each household who will be able to take advantage of the Pavilion as an owner or as an employee in the market within the community. 3 Further, she said that FEMCOM members will ensure the women operate their businesses in a safe, profitable, professional and sustainable manner once the funding is mobilized.

Source: ttworld.com “The DRC FEMCOM Pavilion will be an example to replicate for the other FEMCOM chapters and H.E Dr being sworn in as the new President of Malawi African women entrepreneurs,” Mrs. Kiekie said. he Chair of the COMESA Authority of Heads the President and the people of Malawi for the of State and Governments and the Secretary peaceful elections leading to a smooth political Accompanying the President were the first lady and T General have, on behalf of the regional economic transition. the Ministers responsible for Gender and Foreign block, congratulated the new President of Affairs. Malawi, Dr Lazarus Chakwera for his victory in “We applaud the people of Malawi for exercising the recent presidential elections. their civic duty in a peaceful and calm manner, thereby enabling the conduct of a presidential In his message, the Chairperson, President election which upheld the tenets of democracy,” Feasibility Study Andry Rajoelina of Madagascar, described the the SG noted. “I have no doubt that during for FEMCOM Malawi Presidential elections as reflective of the President Chakwera’s presidency, the collaboration collective will of the people. between Malawi and COMESA will not only be Headquarters Business maintained but will receive a fresh impetus for the “This ushers in the beginning of the journey mutual benefit of your country and the region.” Complex towards a peaceful and stable environment, forming a foundation for social and economic She commended the former President H.E Prof. he Federation of National Associations national development,” he said. “Through a for his service to the country over of Women in Business in Eastern and T democratic electoral process, modern States the last five years. Southern Africa (FEMCOM) is seeking are integrated in the comity of nations, and technical and financial proposals from this provides opportunities and benefits from Malawi is a founder Member of COMESA and qualified individuals, organizations and/or the unity of purpose availed through regional hosts two of its institutions: The COMESA firms to develop a Feasibility Study for a Pre- cooperation.” Competition Commission and the Federation Construction work for FEMCOM Headquarters of National Association of Women in Business Business Complex. Secretary General Chileshe Kapwepwe applauded (FEMCOM).

FEMCOM seeks an individual, organization or firm to provide consultancy services in development the all required Pre-Construction Democracy and Governance in Africa – Youth Innovation Challenge work for FEMCOM Headquarters Business he African Union (AU), through the African Complex. Consultants from all COMESA TGovernance Architecture (AGA) Secretariat, member states are encouraged to bid for in a joint project with COMESA have launched this consultancy service. Receiving of bids the “Democracy and Governance in Africa – will close on 20 July 2020. Further details Youth Innovation Challenge”. Youth innovators, are available on: https://www.comesa.int/ innovation hubs and incubation centres across rfp-feasibility-study-for-femcom-headquarters- the continent, are invited to participate in the business-complex/ innovation challenge. The challenge calls for existing innovations that are making impact Further details are available on: https://au.int/ in the structural prevention of conflict through en/newsevents/20200625/democracy- addressing issues of democracy deficit, lack and-governance-africa-youth-innovation- of good governance and contribute to the challenge promotion and protection of human rights. “The call for submission will close on the 28th of July 2020” WEEKLY NEWSLETTER systems with connectivity among the government Adopting ICT is Critical in Post Covid-19 Trade agencies coupled with the application of the principles of risk management and reducing Facilitation Programmes in COMESA Region physical inspections.

t’s close to two months since COMESA “There are opportunities to utilize track and trace Ideveloped and issued guidelines for movement Source: tralac.com systems offered by Electronic Cargo Tracking of goods and services across the region during Systems and Global Positioning Systems in the COVID-19 Pandemic. During this period, freight vehicles units and to institute performance there has been a notable adherence to the management systems that will ensure that guidelines and the advisories provided by World operations at border crossings reduce the costs Customs Organisation (WCO) and United Nations of transporting goods and contribute to the WEEKLY NEWSLETTER WEEKLY Conference on Trade and Develoment (UNCTAD) competitiveness of the products from COMESA

4 at the points of entry and exit by border authorities File/border operations Member States,” the report says. in most Member States in the supply chain and to facilitate movement of Currently, several key interventions are already According to a report by the Team Leader of the goods and services across the region during the being implemented through the COMESA Trade COMESA Trade Facilitation Programme funded pandemic. Facilitation Programme at targeted border posts under the 11th European Development Fund, Mr. in the region. Under the programme, technical Charles Chaitevzi, this is a departure from the Mr. Chaitevzi notes, it has increasingly become and financial support has been provided to past, where agencies were working in silos without apparent that embracing technology in various automate government agencies systems to a designated lead agency to ensure a “whole of trade facilitation instruments can unlock the support full implementation of Coordinated Border government” response. COVID-19 induced restrictions and help accelerate Management principles. the much need cross-border trade and investment “Government agencies are now working in a more even during such difficulties. According to the report, the lessons that COVID-19 coherent manner and have also embraced the has and specifically the need to ensure more use of ICT tools,” he notes. “There has always According to his report, emerging changes in sustainable systems are put in place to facilitate been conflict between facilitating trade and the perceptions of border agencies regarding trade efficient and effective border operations. overriding need for border agencies to maximize facilitation and enhanced use of ICT have created revenue collections and compliance with opportunities for redesigning border processes “Ultimately, an expedited implementation of enforcement measures and hence, the benefits of and operations. These will build and sustain interventions under the COMESA Trade Facilitation using ICT tools were not fully realized.” the emergency measures that were adopted Programme, in partnership between COMESA to maintain supply chains under the COVID- 19 Secretariat and Member States, will create an The COMESA guidelines provide procedures and pandemic environment. enhanced trading environment underpinned by standards to reduce the spread of the Coronavirus upgraded border crossings and efficient cross- disease and at same time minimizing disruptions The report recommends for upgrading of the ICT border goods clearance processes.”

and introducing new ones if necessary, for performance information to an integrated COMESA Kicks-off accomplishing COMESA mandate. and holistic data-driven view. Business Process ACBF has worked with COMESA in past on The exercise will cover all divisions and capacity building and in 2019 conducted an units including the offices of the Executive Re-engineering organisational capacity assessment from Management. ACBF will support the which a recommendation was made to carry Secretariat to identify both internal and out a BPR exercise for the Secretariat. ACBF external customers together with the OMESA has begun the process has also conducted a restructuring exercise services delivered to its customers. of re-engineering its business C for COMESA and is currently engaged in processes. Its objective is to redesign and carrying a number of HR strengthening The exercise will be conducted in five modernize all the business processes at activities for the Secretariat. phases staring with the presentation of the Secretariat. The aim is to raise the the inception report which was done on business efficiency and effectiveness at The BPR exercise is expected to result in Thursday last week. The other phases all levels across the organization to enable effective governance, efficient performance, will comprise of analysis of the current optimal service delivery. and targeted development outcomes for business process, identify process public sector and transparent accountability improvements, identify gaps and gaps- The exercise begun last week led by the mechanisms. Among them is to shift from closing initiatives, and ultimately an African Capacity Building Foundation a function-oriented work performance to a implementation plan that includes Change (ACBF) and will help to establish cost- service-oriented performance; transit from Management. effective and measurably more efficient output-based assessment to well defined set of business processes in COMESA. outcome-based assessments; and move This will be through redesigning, and away from an ad-hoc piecemeal view of re-engineering of all business processes, 5

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