newsletter Issue #: 655_1st March, 2021 COMESA Sub-Delegates Upgrading of Chirundu Border Post to Zimbabwe Worth €4.1million 1

OMESA and Zimbabwe have signed Trade Zimbabwe, Ambassador James “He added: “The support is a testimony of the Can agreement that sub-delegates the Manzou, separately signed the sub- continued and strengthened collaboration implementation of coordinated border delegation agreement mid-February 2021 in between Zimbabwe and the European Union.” management activities, trade and transport Lusaka and Harare respectively. facilitation programme at the Chirundu Ambassador Manzou explained that the border post. Ambassador Manzou stated that the signing modalities of implementation of the sub- of the sub-delegation agreement came delegated activities envisage the beneficiary The sub-delegated activities are worth 4.1 after an assessment of existing challenges, member state, taking ownership and lead in million Euros. The funds will be sued to conducted at the targeted border post, the implementation of the activities, in line support upgrading of priority cross-border in early 2020. He thanked the EU for the with the EDF procurement procedures. infrastructure and equipment at Chirundu support rendered under the programme border between Zimbabwe and . through COMESA Secretariat to improve the “The benefits for sub-delegation are that the This is part of the 48 million Euros Trade facilitation of trade at Chirundu border post. Zimbabwe Ministry of Foreign Affairs and Facilitation Programme (TFP), financed under International Trade and beneficiary border the 11th European Development Fund (11 EDF) agencies in Zimbabwe will improve their own from the European Union (EU) to COMESA. The European Union systems. It is also an opportunity to upgrade the border infrastructures on the basis that The TFP has five key result areas, among applauds the signing of the Ministry is best placed to understand the them deepening regional integration, the agreement between challenges and provide the best decisions of improving inclusive regional economic Zambia and Zimbabwe as mitigating these challenges,” the COMESA growth and enhancing the competitiveness it showcases a regional Secretary General said. of the COMESA region. partnership which will strengthen trade facilitation She added that COMESA will facilitate COMESA Secretary General, Ms Chileshe in the region.” Mr. Jacek financial, logistical and administrative Kapwepwe, and the Permanent Secretary, processes. The funds will also support ILO Director Mr. George Okutho and Secretary General Chileshe Kapwepwe Ministry of Foreign Affairs and International Jankowski page 3

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Contact Address : COMESA SECRETARIAT, COMESA Center , Ben Bella Road P.O. Box 30051, +260 211 229 725, +260 211 225 107 www.comesa.int; email: [email protected] WEEKLY NEWSLETTER Digital Finance has Thrived in COMESA Region During COVID-19 Pandemic WEEKLY NEWSLETTER WEEKLY 2

he growth of digital finance in the factor for economic development since it distancing which is very important for TCOMESA region has deepened financial enhances equitable access to finance and containing the spread of COVID-19,” states inclusion of millions of people, households consequently economic opportunities. Dr Njoroge. and firms thus cushioning them against the negative effects of the COVID-19 pandemic. Based on the most recent data from the On the flipside, he noted there is still According to a report prepared by Senior World Bank (2018), COMESA region has much to be done on deepening financial Economist at the COMESA Monetary experienced a faster pace of financial inclusion. Among these are low levels Institute, Dr Lucas Njoroge, digital finance, inclusion, surpassing Sub-Saharan of financial literacy that exist in most driven by mobile money and agent banking, average. The number of financially COMESA countries and tradition. has proven critical during the pandemic included in COMESA has more than in reaching the poor in different social doubled in the last decade, from 23% in 2011 “There is also a huge challenge to convince economic conditions. to 32% in 2014 and further to 48% in 2017. customers to change from their traditional ways of accessing and using financial “These has enabled millions of previously Some of the measures that have enhanced services,” Dr Njoroge says. “Perceptions unbanked individuals, households and financial inclusion during the COVID-19 of risk, lack of consumer protection small and medium scale enterprises, pandemic in the COMESA States includes or technology failure have tended to offering affordable, instant, reliable services the introduction of cash transfers to the reinforce mistrust which can only be on payments, savings, credit, and insurance poor through mobile money cash transfers, addressed through financial education and services, among other services,” he noted. encouraging cashless payment and awareness.” scrapping transaction fees between banks In his paper titled ‘Financial Inclusion and and Telcos for values of less than or equal Among policy recommendations in the COVID-19 in the COMESA Region’ Dr Njoroge to $10 dollars. paper is to encourage digital financial noted that individuals and firms have been services is through public awareness and empowered to maximize their potential Dr Njoroge noted that these measures financial literacy among end-users and by increasing access to adequate financial have ensured the survival of the affected to demystify adopting digital financial services, thereby allowing them to make financial inclusion stakeholders. technology. This is in addition to reducing optimal decisions to enhance lives and tariffs on digital services to increase the livelihoods in the midst of disruption. “The use of online banking, prepaid cards number of users and addressing concerns and mobile wallets have offered benefits of of trust, regulation, financial capabilities, According to the World Bank, financial convenience, speed, security and affordable compliance and interoperability. inclusion is the access to and use of pricing that did not exist with traditional formal financial services and an important banking….at the same time allowing social COMESA Sub- Delegates Upgrading... continued from page 1 capacity building for stakeholders on innovative and state of the art border operations. In addition, will implement an awareness campaign on 3 border information targeting customs cooperation and trade facilitation instruments. File/: TIDOs training at COMESA Secretariat

“The desire of the Zimbabwean Government is to build on current trade facilitation efforts Capacity Building Programme for through programmes, such as the COMESA EDF 11 Trade Facilitation Project,” the Border Trade Officials Underway Permanent Secretary said. “The interventions at the border post are expected to enhance training programme to build the The aim of the SSCBTI is to increase formal efficiency and ultimately reduce the cost of capacity of trade information desk small scale cross border trade flows in the doing business. The support is, therefore, A officers stationed at selected border posts COMESA/Tripartite region leading to higher timely as Zimbabwe grapples with the is underway. The objective is to integrate revenue collection by governments as well negative effects of the COVID-19 Pandemic.” them in border operations and enhance their as increased security and higher incomes for Mr. Jacek Jankowski, Ambassador of the working relationship with State agencies small scale cross border traders. European Union to Zambia and Special manning border posts. Representative to COMESA affirmed thus: During the training, the TIDOs were taken “The European Union applauds the signing The Trade Information Desk Officers through trade procedures for clearing goods of the agreement between Zambia and (TIDOs) are stationed in selected borders under the STR threshold and the Regulations Zimbabwe as it showcases a regional in the COMESA region primarily to provide on the Minimum Standards for the Treatment partnership which will strengthen trade trade facilitation services and smooth of Small-Scale Cross Border Traders. The facilitation in the region.” implementation of small scale cross border training also provided insights on the cross- trade. border data collection activities. He added: “The EU and its member States are keen to share their experiences from On Tuesday 23 February 2021, TIDOs from the Addressing the TIDOs during the opening our own common market integration to following border posts; Chirundu (Zambia/ of the training, the Secretary General of steadily improve connectivity and regional Zimbabwe), Kasumbalesa (DR Congo/Zambia, COMESA, Chileshe Kapwepwe said it will integration in Africa.” Mwami/Mchinji (Malawi/Zambia) and ensure they are equipped with skills to Nakonde (Zambia/Tanzania) went through interact better with border officials, cross Mr. Timo Olkkonen, the Ambassador of the a virtual training on the provisions and border trade associations and coordinating European Union to Zimbabwe observed that: implementation of the COMESA Simplified ministries’ staff. “All countries in the region have a lot to Trade Regime (STR). The STR provides for benefit from deepened regional integration small-scale traders to qualify for duty-free “TIDOs are the face of the programme at and increased trade. Economies of scale entry for certain goods and for a more the borders and it is essential that the matter. Zimbabwe will benefit directly from simple and reduced set of documentary they display good demeanor, integrity trade facilitation and easier access across requirements to cross the border. and courtesy in their interaction with borders”, he noted. both traders and border officials as well The training is part of the implementation as researchers that frequent the borders All countries in the region of a €15 Million European Union funded gathering primary data,” she said. “It is also have a lot to benefit programme known as the Small Scale important for the TIDOs to keep abreast with from deepened regional Cross Border Trade Initiative (SSCBTI) in policy and administrative changes that affect integration and increased the selected borders. COMESA, together small scale traders in order to provide value trade. Economies of scale with the International Organisation for added information.” matter. Zimbabwe will Migration and the International Trade Centre benefit directly from trade is implementing the Cross-Border Trade The trainers were customs and immigration facilitation and easier Initiative. officers. access across borders”, Mr. Timo Olkkonen

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AfCFTA will Stimulate Intra- COMESA Trade

he implementation of the African “This combined with enhanced trade promotion and market TContinental Free Trade Area whose trading information sharing will increase intra-COMESA and commenced on 1st January 2021 is expected African trade,” Mr. Musengele notes. “The leading imports to provide the missing ingredient to intra- from EU such as food and live animals are readily available COMESA trade, according to a research expert in COMESA and the region has huge potential to produce at the COMESA Secretariat. manufactured goods and pharmaceuticals.”

In a paper titled: AfCTA - A Stimulant to Intra making it easier for African businesses to COMESA Member States producers will COMESA Trade, Senior Research Fellow, Mr. trade within the continent and benefit from therefore easily join the regional value chains Benedict Musengele highlighted the benefits the growing African market. This will make it such as the leather and leather products, that the regional bloc stands to reap from the more affordable for informal traders to operate textile, wood and paper, agro-foods, sugar, continental platform. through formal channels, which offer more beverages, vegetables, fruit, nuts and rice. This protection. will enhance their production efficiencies, Among them is the elimination and resolution increase their profit margins and consequently of some of the challenges associated with Mr Musengele says this can be further integrate into the global value chains. multiple and overlapping membership in enhanced by introducing a Continental COMESA. This will be achieved through the Simplified Trade Regime (CSTR), since cross- The report notes that AfCFTA has the potential harmonization of integration policies for the border traders operating under such a regime to reduce external imports from external existing regional economic Communities would no longer be trading informally. sources and increase intra-REC and African (RECs) Free Trade Areas. trade by opening more regional markets “The COMESA Simplified Trade Regime (STR) through improved infrastructure connectivity, A total of 36 African countries have ratified could be used as a model for establishing and a larger market which will enhance the AfCTA agreement and deposited their the continental STR. The STR is currently competitiveness, increase value addition and instruments of ratification, 12 of which are operational only in COMESA and EAC,” the productivity. COMESA Member States namely: Kenya, report states. Rwanda, , Eswatini, Uganda, Egypt, “This combined with enhanced trade promotion Ethiopia, Zimbabwe, Tunisia, Mauritius, Malawi, The AfCFTA through the duty-free access to the and market information sharing will increase and Zambia. COMESA non-FTA Member States, huge market will also encourage manufacturers intra-COMESA and African trade,” Mr. Eswatini and Ethiopia have ratified the AfCFTA and service providers to increase production Musengele notes. “The leading imports from agreement and are extending preferential to serve the enlarged market. Given that EU such as food and live animals are readily tariff treatment to other State Parties including most of the trade in Africa takes place available in COMESA and the region has huge COMESA Member States. among neighbouring countries, this will lead potential to produce manufactured goods and to enhanced production and trade among pharmaceuticals.” “This implies a wider and larger market for neighbouring COMESA Member States COMESA Member States,” Mr Musengele states. The AfCFTA brings together 55 AU Member The report notes that AfCFTA will progressively Further, the AfCFTA will stimulate the States with a total population of about 1.3 Billion eliminate tariffs on intra-African trade, formation of regional value chains to ease and a combined GDP of about US$ 3.4 Trillion. production and supply to the enlarged market. Regional Seed Trade in Staple Food set to Improve As procedure manual and checklist for maize trade are developed

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he Alliance for a Green Revolution in Africa controls,” Dr Mukuka said. samplers and analysts). T(AGRA) working with COMESA’s specialised Seed Agency ACTESA, have developed Regional This is in line with the COMSHIP which aims Others are requirements and process of Seed Standard Operating Procedures (SOPs) at enhancing seed production, reliability, seed seed crop field inspection, seed crop intake to improve regional seed trade in staple food trade including increasing the competitiveness verification, inspection and sampling, pest crops. This is in addition to audit checklist of the seed industry in the Southern and control testing of seed lots, handling quarantine mechanism for maize trade. Eastern African (ESA) region. pests, moisture determination and germination Dr Mukuka says the seed system audit analysis. These are provided for under the COMESA mechanism is not intended to be a policing Seed Harmonisation Implementation Plan tool, but will focus on identifying gaps and Both the draft SOPs and audit checklist were (COMSHIP). The initiative is part of the corrective actions towards achievement and developed based on provisions of the COMESA implementation of the AGRA-COMESA consistent application of regionally agreed (at a Seed Trade Harmonization Regulations in line cooperation framework titled “Improved minimum) standards is therefore critical. with the International Union for the Protection Regional Seed Trade in COMESA region”. It of New Varieties of Plants Test Guidelines, is aimed at improving regional seed trade He added: “The audit mechanism shall be International Seed Testing Association (ISTA), in maize, rice, soyabeans and rice as a way one that is mutually recognized, technically and the Organization of Economic Cooperation of catalysing and sustaining an inclusive competent and independent in its operations. and Development (OECD) Field Seed Schemes agricultural transformation. Through the new mechanism, reports shall for Maize. be prepared (e.g. country level dashboard) According to the COMESA/ACTESA Seed which will be shared in regional seed forum Ultimately, the provision of adequate Development Expert Dr John Mukuka, AGRA convenings to form the basis of evidence-based information and higher levels of transparency financed the development of the draft COMSHIP deliberations and decisions.” to all seed stakeholders is critical in ensuring maize SOPs and audit checklist mechanism that the time and cost of trade is reduced and which was done by the Emerge Centre for Such experience-sharing in a forum format thus, increasing efficiency in cross border Innovation-Africa (ECI-Africa). and collaborative spirit, he noted, will engender regional movement of seed. In this process, consultations were conducted positive challenge and inspire action rather with National Seed Authorities and seed than defensiveness and lead to changes With the SOPs in companies who are now ready to market their without compromising trust. place, assessment of seed on the COMESA Harmonised Seed Trading implementation of the Platform. The draft SOPs formed the basis for developing harmonized regulation the COMSHIP Regional Audit Checklist framework will be achieved “With the SOPs in place, assessment of by independently and covering among others, conduct of distinctness, regularly auditing country implementation of the harmonized regulation uniformity and stability (DUS) tests, conduct of framework will be achieved by independently systems and processes variety maintenance/ check plot observations, which underpin quality seed and regularly auditing country systems variety release and catalogue and authorization and processes which underpin quality seed production and certification of private seed inspectors and entities including border controls,” production and certification including border (licensing and registration of seed inspectors, Dr John Mukuka

WEEKLY NEWSLETTER €3.2 million Euros National Sanitary and Phytosanitary System for Comoros WEEKLY NEWSLETTER WEEKLY 6

n collaboration with the European Union, currently awaiting Parliamentary approval. The In addition, over 35 phytosanitary inspectors ICOMESA is supporting the development of an regulations are further expected to improve have been trained on the islands of Anjouan efficient national Sanitary and Phytosanitary the sanitary control of plants or plant products, and Moheli in anticipation of the application of System (SPS) in Comoros. The support has been on imports and exports and guarantee the the proposed legislation on foodstuffs and other provided to the National Research Institute for control of the processing, packaging, storage priority texts related to phytosanitary law. Agriculture, Fisheries and the Environment or distribution of animal food going to the (INRAPE), through the COMESA Adjustment local market. These are expected to constitute The support has been provided with the aim Fund (CAF) under the Regional Integration the main references in Agri-food and plant of addressing the regulatory deficit within the Support Mechanism (RISM) programme. protection in Comoros. national sanitary and phytosanitary system. It Activities under this initiative includes includes the rehabilitation and equipping of the facilitating consultations to improve the local According to the project’s progress report, premises of INRAPE and the SPS Information SPS regulations and introduction of new legal the application of the laws will require the Exchange with IT equipment. texts in the sector in aligned with international organization and coordination of national protocols. institutions responsible for certification and COMESAs’ support is expected to contribute to official controls which will protect the Comoros a strengthened SPS system that is effective in The regulations have been developed through national market. ensuring food safety and quality control within Ministerial and Presidential decrees and are the region.

COMESA DIARY Dates NAME OF MEETING VENUE ORGANIZER

02-04 Mar 21 11th Meeting of the COMESA Chiefs of Immigration Virtual Secretariat and the COMESA Migration Dialogue

18 Mar 2021 Launch of the 50MAWSP in Ethiopia Virtual Secretariat

June 2021 21st COMESA Heads of State and Governments Virtual Secretariat Summit Sample of the harmonized driver’s license

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COMESA SECRETARIAT COMESA Center Dates NAME OF MEETING VENUE ORGANIZER Ben Bella Road P.O. Box 30051 02-04 Mar 21 11th Meeting of the COMESA Chiefs of Immigration Virtual Secretariat and the COMESA Migration Dialogue +260 211 229 725

18 Mar 2021 Launch of the 50MAWSP in Ethiopia Virtual Secretariat www.comesa.int

[email protected]

June 2021 21st COMESA Heads of State and Governments Virtual Secretariat facebook.com/COMESA/ Summit @twitter.com/comesa_lusaka

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