NEWS Vol 1 Jan - Mar 2021 COMESA Offers 18 Scholarships to Students Undertaking Master’s Degree in Regional Integration Inside COMESA, AFREXIMBANK Sign Deal to Implement US$1billion Continental Transit Scheme COMESA Offers 18 Scholarships to Students Undertaking Master’s Degree in Regional Integration Regional Seed Trade in Staple Food set to Improve New Deadline set for Ratification of Tripartite Free Trade Area 1 COMESA Newsletter Vol. 1/21 2 Editorial CONTENTS The Successful Rollout of 2 Comesa, Afreximbank Sign Deal To Implement the COMESA Virtual Degree US$1billion Continental Transit Scheme Programme is Timely 3 Ease of Cross Border Movement of Persons Expected inally, the COMESA Masters Degree in Regional FIntegration is off the ground. By the end of March this 4 COMESA Offers 18 Scholarships to Students in year, two universities, out of the 22 that are participating in Regional Integration the programme, had admitted their first cohort of students. Uganda Takes Lead in Adopting Tripartite These are Kenyatta University of Kenya and the University 6 of Mauritius. The virtual programme represents the first Standards on Drivers’ Licensing steps towards a future, full- fledged entity complete in brick 8 Region Needs to Focus more on Border and mortar. Seven universities have signed MoUs with Facilitation and less on Controls COMESA on the implementation of the programme. Besides, COMESA Secretariat and partners have secured funds to offer scholarship to eligible 9 The 50 Million African Women Speak Platform applicants. It has taken tenacity of the lead team at the Secretariat and the Rolled-out in 13 States lead institution; Kenyatta University to get here. The conceptualization of the Rwanda Prioritizes Horticulture, Livestock and university was motivated by the need to strengthen COMESA and Member 11 States’ ability to implement the numerous protocols, decisions and Acts Cereals for Investment in Health Standards by strengthening the institutional and human capital and related support COMESA Develops Climate Change Strategy mechanisms. While Member States have been amenable to decisions that 10 their ministers and leaders make from time to time, to a great extent, the CMI is Helping Member States to Allay Financial domestication of the same has remained a challenge. Within the region, a 13 small number of institutions of higher learning provide appropriate, flexible Shocks and affordable range of regional integration programmes. This partially, COMESA Launches 30 Days of Women in explains why the rate of progress of regional integration in the COMESA 14 Business Campaign region, and indeed in the rest of the continent has been slow Therefore, the commencement of this programme is opportune given that Member States 16 6.8m Euros Border Post Upgrading Project Kicks will constantly be engaged in multiple trade negotiations and agreements, Off all of which require high technical skills and evidence-based analysis. 19 Digital Finance has Thrived in COMESA Region During COVID-19 Pandemic 20 Regional Seed Trade in Staple Food set to Improve COMESA INSTITUTIONS 23 New Deadline for Ratification of Tripartite Free Trade Area COMESA Clearing House COMESA Monetary Institute 24 COMESA is Resetting Relationship with its Trade and Development Bank Institutions African Trade Insurance Agency COMESA Competition Commission EDITORIAL TEAM PTA Reinsurance Company EDITOR: Mwangi Gakunga COMESA Regional Investment Agency Africa Leather and Leather Products Institute CONTRIBUTORS: Mwangi Gakunga COMESA Federation of Women in Business Muzinge Nampito-Chibomba Daniel Banda Specialized Agencies ARTWORK/LAYOUT: Philip Sipho Kambafwile Alliance for Commodity Trade in Eastern and Southern Africa COMESA Business Council PHOTOGRAPHY Regional Association of Energy Regulators in Eastern and Southern Philip Sipho Kambafwile Daniel Banda, Africa Mwangi Gakunga East African Power Pool Muzinge Nampito-Chibomba Judicial Arm Disclaimer The COMESA News is published by the Corporate Communications Unit of the Common Market COMESA Court of Justice 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. “Some NTBs have remained unresolved for periods ranging from one year to more than a decade,” Dr Christopher Onyango New Regional Forum Established to Deal with Escalation of NTBs Small Scale traders crossing the Uganda/DRC border COMESA has established the Non-Tariff have justified most of these as measures 2009, only 20% of all implemented Barriers Regional Forum comprising of necessary to regulate trade. protectionist interventions could be National Monitoring Committees and attributed to an increase in tariffs. NTBs Focal Points. This new structure is “To date, intra-COMESA NTBs constitute aimed at further strengthening the Trade 21.9% of total NTBs reported in the “This explains why the Secretariat, and Customs Committee and Trade and Tripartite online reporting, monitoring has continued to foster engagement Trade Facilitation Sub- Committee as and eliminating mechanism, out of which with Member States to address part of the institutional structures for the 82% emanate from operational issues the shortcomings that had stalled elimination of NTBs at the regional level. while the remaining 18% are policies/ implementation of the NTB Regulations measures that have resulted in NTBs,” the and prepared working procedures/ The first meeting of the Forum took place Director said. modalities to facilitate their effective on March 16, 2021, attended by over 60 implementation,” he added. NTB National Monitoring Committees He expressed concern that although and NTB focal points from the COMESA all Member States have appointed The three days meeting was a critical Member States. The objective was to effective NTBs Focal Points, only step towards ensuring Member States do learn about the provisions of the Revised five had formalized and notified the not fall back to uncoordinated restrictive COMESA NTB’s Regulations and Working composition of their National Monitoring trade policies whenever there is a crisis. Procedures focusing on the institutional Committees (NMCs) to the Secretariat. For such strategies do not only fuel help arrangements and provisions for A well functioning NMC is critical to the anti-trade free trade rhetoric but result identification and elimination of NTB’s. implementation of the Regulations and in an even stronger slow-down in the elimination of NTBs. economic growth of our economies. The establishment of the Forum follows the decision of the 41st Council of Noting that the use of NTBs has The meeting marked the beginning Ministers, meeting in November last year, escalated following the outbreak of of a process where the elimination of which adopted the Revised COMESA the COVID-19 pandemic, the Director NTB’s will now be controlled through Regulations on the Elimination of NTBs observed that worldwide, they have strict adherence to the provisions of and Working Procedures. become the major trade policy tool to the COMESA NTB’s Regulations. It is protect domestic economies, accounting expected that effective implementation Addressing the delegates, COMESA for on average 55% of the implemented of a rules-based approach to addressing Director of Trade, Dr Christopher protectionist interventions. NTB’s will result in a considerable Onyango attributed the prevalence of increase in intra-COMESA trade. reported and unreported Non-Tariff “Some NTBs have remained unresolved Barriers to the constrained intra-regional for periods ranging from one year to trade noting that the Member States more than a decade. In contrast, since 1 COMESA Newsletter Vol. 1/21 COMESA-AFREXIMBANK Collaboration 2 on RCTG Carnet as a milestone in Africa’s journey towards deepening regional integration and a key tool for delivering on the vision of the African Continental Free Trade Area. It will accelerate trade, reduce the cost of trading, release capital for businesses investment, improve the bankability of intra-African trade, and in the end, reduce prices for consumers. “With this COMESA RCTG scheme, the Cape to Cairo road project will become a File: Cargo truck under the RCTG Carnet preparing to leave the port of Mombasa, Kenya financially viable cross-continental trade route,” Prof. Oramah stated. COMESA, AFREXIMBANK Sign Studies show that the average costs of Deal to Implement US$1billion freight as a percentage of the total value of imports is 11.4% compared to 6.8% in Continental Transit Scheme developed nations. Transit costs in the region are estimated at around US$450 OMESA and the African Export- Regional Economic Communities. per truck per day. By implementing an CImport Bank (Afreximbank) have Through the scheme, Afreximbank effective transit guarantee scheme the signed an agreement to implement the will ensure that, when goods do not continent will save more than US$300 COMESA Regional Customs Transit complete their transit, sums are paid in million per year. Guarantee Scheme, commonly known as line with the duties and taxes that would RCTG-CARNET. have been required, thereby enhancing Dr Doriye, in his remarks, said by tax collection for African nations. joining the continental scheme, the This marks the beginning of the Besides, the transit guarantees provided implementation of the COMESA RCTG implementation of the Bank’s US$1billion by the Bank will enable businesses to will be