THE CONTEMPORARY WORLD

COMESA
Common M arket for Eastern and Southern Africa

BY: ELIGINO, LOPEZ AND MACARAIG

COMESA History / Background
The Common Market for Eastern and Southern Africa (COMESA) comprises 21 African Member States that have joined with the goal of regional
integration through trade and the development of natural and human resources for the mutual benefit of people region of. Support financially.
COMESA was originally established in 1981 as the Preferred Trade Area for Eastern and Southern Africa (PTA) under the Organization for African Unity
(OAU) Lagos Action Plan and the Lagos Final Act. PTA became COMESA in 1994. The PTA was created to benefit from a larger market, to share the
common heritage and destiny of the region, and to enable greater social and economic cooperation. COMESA is one of the Regional Economic
Communities (REC) recognized by the African Union.

Overview of COMESA: Customs union

·The FTA was achieved on 31st October, 2000 when nine of the member ·A Customs Union maybe defined as a merger of two or more customs
States namely Djibouti, Kenya, Madagascar, Malawi, Mauritius, Sudan, territories into a single customs territory, in which customs duties and
Zambia and Zimbabwe eliminated their tariffs on COMESA originating other measures that restrict trade are eliminated for substantially all
products, in accordance with the tariff reduction schedule adopted in trade between the merged territories. The territories, in turn apply the
1992.This followed a trade liberalization programmed that commenced in same duties and measures in their trade with third parties. In
1984 on reduction and eventual elimination of tariff and non-tariff barriers preparation for a Customs Union the Eleventh Meeting of the Council of
to intra- regional trade. Burundi and Rwanda joined the FTA on 1st January Ministers held in Cairo, Egypt adopted a Road Map that outlined
2004. These eleven FTA members have not only eliminated customs tariffs programmed and activities whose implementation was necessary
but are working on the eventual elimination of quantitative restrictions and before the launching of the Union. It is expected that the launch will be
other non-tariff barriers. achieved by the year 2008.

Trade promotion What COMESA offers?

Trade liberalization and Customs co-operation, including the A wider, harmonized and more competitive market
introduction of a unified computerized Customs network across the Greater industrial productivity and competitiveness
region. Increased agricultural production and food security
Improving the administration of transport and communications to ease A more rational exploitation of natural resources
the movement of goods services and people between the countries. More harmonized monetary, banking and financial policies
Creating an enabling environment and legal framework which will More reliable transport and communications infrastructure
encourage the growth of the private sector, the establishment of a
secure investment environment, and the adoption of common sets of
standards.
COMESA
Part of Activities:
What are the COMESA activities?
The main function of the division is to implement programmed to enhance cooperation in Trade, Customs and
Monetary Affairs in order to achieve a fully integrated, internationally competitive and unified single economic
space within which goods, services, capital and labor are able to move freely across national frontiers. The
cooperation programmed aim to achieve the removal of all physical, technical, fiscal and monetary barriers to
intra-regional trade and commercial exchanges through the following stages of integration.

Corporate Communications:
Corporate Communications Unit backstops all communication activities that COMESA undertakes, both within
and outside the organization. It works to maintain consistent flow of information between COMESA and its
diverse publics across the region and beyond by raising public awareness on regional integration initiatives
and galvanizing broad support for the realization of the vision of the Common Market. The Unit uses a wide
range of communication channels, tools and techniques to achieve the COMESA corporate communication
imperatives as follows:

Audio / Visual Production:

COMESA Corporate Communications Unit covers all key events through video, print and photography. This
includes production of video documentaries and news clips for news in online platforms and for sharing with
media houses.

Production of Publication:
The Unit identifies and packages technical information into editorial content on various COMESA activities in
the form of newsletters, brochures, fliers, booklets and digital publications. This includes graphic design works
for publications and other promotional and assorted publicity merchandize.

Online Media Optimization:

The Unit generates and disseminates regular news updates through COMESA website and social media
platforms. This includes updating the online photo and video galleries.

COMESA
Infrastracture & Logistics:
COMESA has recognized infrastructure development as a priority and strategic focus area that requires special
attention. The Strategic Objective to be pursued is, therefore, to effectively address constraints related to the
improvement of infrastructure and services in the region in order to reduce the cost of doing business and also
and to enhance competitiveness, through fostering physical regional connectivity and deepening infrastructure
integration. A holistic and corridor-based approach to infrastructure development has been adopted s based on
three key pillars (i.e.) policy and regulatory harmonization, development of priority regional physical
infrastructure covering transport, information communications technologies (ICT) and energy. The transport
sector covers civil aviation, surface transport (covering road and rail) and water transport covering maritime and
inland water transport subsectors The ICT comprises telecommunications, broadcasting and postal services
subsectors, whilst energy covers electricity, fossil fuels and renewable energy subsectors.

Internal Audit:
The role of Internal Audit is to provide independent, objective assurance and advisory services designed to add
value and improve the Secretariat’s operations at strategic, tactical and operational levels. This involves
assessing whether the Secretariat’s network of risk management, control, and governance processes, as
designed and represented by management, is adequate and functioning in a manner to ensure that:

- Risks are appropriately identified and managed.

- Interaction with the various governance groups occurs as needed.
- Significant financial, managerial, and operating information is accurate, reliable, and timely.
- Staff actions follow the Secretariat’s policies, procedures and regulations.
- Resources are acquired economically, used efficiently, and are adequately protected.
- Programs, plans and objectives are achieved.
- Quality and continuous improvement are fostered in the Secretariat’s control process.
- Internal Audit achieves these through assurance services, consultancy and championing risk management.

COMESA
 COMESA Statistics:
-The COMESA Treaty provides the policy context for the development of statistics in the COMESA region. The treaty
envisages a four-pronged strategy for the development of statistics namely:
A Common Market Cooperation in Statistical
Information System: Development:
This was to be established for purposes of reviewing the This recognizes the importance of harmonized
functioning and development of the Common Market. statistics at the regional and international level,
Issues to be handled included data flows to the exchange of skills among Member States,
Secretariat, improvement of data collection by Member cooperation in methodological issues, data
States, analysis of statistical information and timely dissemination policies and the adoption of the Addis
dissemination. Ababa Plan of Action for Statistical Development in
Africa.
Comprehensive Information Depository Library:
System:
This was to look at the development of a trade information In addition to documents and printed material,
network that reduces information asymmetries on trade databases are envisaged as important for the
opportunities in the region. development of the Comprehensive Information
System.

Information & Networking:

The Information and Networking Division is responsible for implementation and maintenance of Common Market’s
Information systems, IT infrastructure and IT system support services. (Chapter 20, Article 139 of the treaty).

-The Division of Information and Networking of the COMESA Secretariat acts as service support for the Secretariat. It
is responsible for the entire end-user computing infrastructure comprising desktops, notebooks, printers, scanners
and UPS’s.
-It is also responsible for the network which allows the staff of the Secretariat to use the end-user computing
infrastructure with other centralized organization resources such as email, printing, Internet and various information
systems, using IT Supported hardware and software.

-Together, these elements allow the staff to accomplish the critical business tasks of the organization.

-The Division is also responsible for assisting COMESA to attain its main pillars by using ICT as a tool to enhance
regional and continental integration and trade within the context of establishing the African economic community.
COMESA
 Industry & Agriculture:
-The Mandate of the Industry and Agriculture Division is to promote development of competitive, sustainable and
profitable agriculture and industries that contribute to economic and social prosperity of the COMESA citizens.
-The overall objective of the Industry and Agriculture Division is to contribute to deepening regional integration through
promoting and supporting efforts to drive inclusive industrialization, private sector development and agricultural growth
and transformation in the COMESA region:

Agriculture Development: Services:

are coordinate and support the development, They formulate regional agricultural policy and regulatory
harmonization and implementation of agricultural frameworks in line with the continental and global
policies, strategies and programmed and regulations to frameworks for harmonized development and
promote complementarity and sustainability of the implementation of national agriculture policies, strategies,
national agricultural programmed in order to ensure plans, and regulations; They assist Member States in
inclusive agricultural growth and transformation for developing, implementing, monitoring and reporting on their
COMESA regional food and nutrition security, economic National Agriculture and Food Security Investment Plans
development and integration. (NAIPs) aligned to the continental and regional frameworks
and international agreement.

Livestock support efforts aimed at driving sustainable livestock production and

productivity, value addition and access to markets in the COMESA region.
Services: They support Member States to attract public and private investments along the different livestock values chains;
also support member states to enhance Livestock Production and Animal Health to increase productivity and resilience of
livestock production systems; support Member States to enhance innovation, generation and utilization of technologies,
capacities and entrepreneurship skills of livestock value chain actors.

Blue Economy Support investment in sustainable use of ocean resources for

economic growth, improved livelihoods, and jobs while preserving the health of
ocean ecosystem.
Services: They promote and support increased investment in diversification of existing ocean-based economic sectors
(particularly fisheries, tourism and ports) to realize greater value and efficiency from the existing resource base.

COMESA
Governance, Peace & Security:
-The COMESA Governance Peace and Security (GPS) Programmed derives its mandate from Article 3(d) of the COMESA Treaty.
The programmed was established by the Fourth Summit of the COMESA Authority, which was held in Nairobi, Kenya in May
1999. The COMESA Authority of Heads of State and Government endorsed a decision for the establishment of a formal structure
for engagement on matters of peace and security and mandated COMESA Ministers of Foreign Affairs to meet at least once a
year to discuss modalities for addressing issues of peace and security. The programmed has a short three tier decision making
structure comprising the Committee on Peace and Security, the Ministers of Foreign Affairs and the Authority.

-In order to foster sustainable peace and security in the Common Market, the Programmed seeks to enhance COMESA’s capacity
for governance, conflict prevention, conflict management, security and peace building interventions. The overall objectives of GPS
are to foster Peace for economic development in the COMESA region. The programmed therefore is intended to initiate activities
which create an enabling environment that enhances governance and democratic practices for peace.

Strategic Planning, Research & Policy Harmonization:

-The Strategic Planning, Research and Policy Harmonization Unit of COMESA Secretariat takes the lead in developing and
formulating strategic plans and work programmed. The Unit collaborates with Divisions, Units and COMESA Institutions to ensure
alignment and to create a strategic culture which calls for individual and collective actions to work towards attainment of set
objectives.

-Formulation of COMESA’s current Medium-Term Strategic Plan (MTSP) for the period 2016-2020 which was adopted in
Antananarivo, Madagascar in October 2016 and tracking its implementation on an annual and quarterly basis. Support offered to
sectoral programmed and COMESA Institutions in enhancing strategy alignment in the areas of statistics, energy, COMESA trade
facilitation instruments such as the Yellow Card Scheme and competition regulation in the region among others. Development
and update of Country Briefs on the status of COMESA Integration and programmed implementation.

COMESA
Human Resources & Administration:
-The Division of Administration offers a key support service to the COMESA Secretariat. The mandate of the
division is to provide Member States, Executive Management, Secretariat and other stakeholders with the
Administrative services and advice they need. The Division is there to provide a high level of service and
support on issues related to Human Resources, Conferencing, Procurement and General Services which will
allow other Divisions and Units to efficiently and effectively execute their programmed and deliver on their
mandates. The Division also ensures that all the resources, i.e. both budgetary and extra budgetary funds and Resource Mobilization & International
Cooperation:
human and physical assets, are properly accounted for in an efficient, secure and appropriately controlled
Administrative environment. The objective of the unit is to contribute to the impact, efficiency
and effectiveness of COMESA Member States trade reforms and
Conference Services: regional integration initiatives so that they can fully benefit from
The Conference Services Unit provides support services to the Secretariat regional and international trade opportunities, reduce poverty
and Member States in terms of organization and management of meetings, and achieve their (MDG) development
including logistics and procurement of all the necessary services. It ensures
that all meetings conducted by the Secretariat are organized in a Role Purpose:
standardized manner, which focuses on the achievement of the planned
-To provide Member States, Management, Secretariat and other
outputs.
stakeholders with financial services and advice they need and
ensure that all the resources both budgetary and extra
budgetary are properly accounted for in an efficient, secure and
Budget & Finance: appropriately controlled financial environment.
-The Budget and Finance Division’s role is to provide Member States, Management, Secretariat and
other stakeholders with financial services and advice they need and ensure that all the resources both -To develop, review and implement finance policies and
budgetary and extra budgetary are properly accounted for in an efficient, secure and appropriately procedures which meet COMESA’s operational needs and which
controlled financial environment. are in line with its values, in order to support the achievement of
its operational and strategic goals and objectives.

COMESA
 COMESA Membership
U.S.-COMESA Trade Facts Trade Balance
In 2017, the US had a total (two-way) goods trade deficit with The U.S. goods trade surplus with COMESA countries was $878 million
COMESA countries of $11.6 billion. Exports of goods reached $6.3 in 2017, down 53.6% ($1.0 billion) over 2016.
billion, while imports of goods totaled $5.4 billion. In 2017, the United
States' goods trade surplus with COMESA countries was $878 million. Investment
In 2016, the United States reported $31.2 billion in foreign direct
Exports investment (FDI) in COMESA countries (stock), down 5.9% from 2015.
In 2017, US goods exports to COMESA countries totaled $6.3 billion, up Reported FDI (stock) from COMESA countries in the United States was
10.7% ($607 million) from 2016, but down 12.7% from 2007. $213 million in 2016 (latest data available), down 30.4 percent from
Egypt ($4.0 billion), Ethiopia ($877 million), Kenya ($454 million), 2015.
Djibouti ($157 million), and Libya ($135 million) were the top five
COMESA export markets in 2017. Trade Agreement
Aircraft ($1.6 billion), equipment ($710 million), mineral fuels ($572 The US and COMESA signed a Trade and Investment Framework
million), miscellaneous grain, seeds, fruit (soybeans) ($393 million), Agreement (TIFA) in 2001, and the TIFA Council has met six times
and electrical machinery ($340 million) were the top two-digit HS since then, the most recent in November 2009 in Lusaka, Zambia.
export categories in 2017. COMESA has benefited from US trade capacity-building assistance,
which has been delivered primarily through USAID's East Africa
Imports regional mission and its East and Central Africa Global
Imports of goods from the United States to COMESA countries totaled Competitiveness Hub in Kenya, to advance its internal free trade area,
$5.4 billion in 2017, up 43.2 percent ($1.6 billion) from 2016 but down harmonize member policies in telecommunications, services, and
26.3 percent from 2007. investment, and expand trade links with the US under AGOA. AGOA
Egypt ($1.6 billion), Libya ($1.4 billion), Madagascar ($743 million), eligibility exists for 14 COMESA members, and nine of them are
Kenya ($572 million), and Ethiopia ($292 million) were the top five qualified for textile and garment advantages.
COMESA import suppliers in 2017. Burundi, Comoros, Congo, Democratic Republic of the Congo, Djibouti,
Mineral fuels ($1.6 billion), woven clothes ($789 million), coffee, tea & Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius,
spice (mainly coffee) ($744 million), knit apparel ($641 million), and Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, and
precious metal and stone (diamonds) ($142 million) were the top Zimbabwe are among the COMESA (19) countries.
import categories (2-digit HS) in 2017.

COMESA
LEADERSHIP
The Authority of
Heads of State and
Government
This is the supreme authority or Organ of the Common Market. It
consists of the heads of the State and the Government of all the
21 Members State. It is also known as the COMESA Authority. It
is the supreme Policy Organ and is responsible for the general
policy, direction and control of the performance of COMESA’s
executive functions.

The Council of Ministers

The Council of Ministers is the COMESA’s 2nd highest policy
organ. It comprises ministers designated by the Member States.
The Council is responsible for ensuring the proper functioning of
COMESA in accordance with the provisions of the Treaty.

The Committee of Governors

of Central Banks
It comprises the Governors of Central Banks of all the Member
States and they are in charge of the regional finance and
monetary affairs.

The Intergovernmental Committee

This Committee comprises principal and permanent secretaries
from Member States and is responsible for developing the
programmes and action plans in all sectors of cooperation,
except in the finance and monetary sectors. It monitors the
functioning and development of the Common Market and
oversees the implementation of the programmes in accordance
with the provisions of the Treaty.
The Technical Committees
These are comprised of sector specific technical officials from the Member States. These committees are responsible for the
preparation of comprehensive implementation programmes and timetables, which serve to prioritize the programmes with
respect to each sector. In addition, they monitor and review the implementation of the programmes on co-operation and may
request the Secretary-General to undertake specific investigations. Articles 15 and 16 of the Treaty stipulate that the Technical
Committees of the Common Market shall be the following:

-The Committee on Administrative and Budgetary Matters

-The Committee on Agriculture
-The Committee on Comprehensive Information Systems
-The Committee on Energy
-The Committee on Finance and Monetary Affairs
-The Committee on Industry
-The Committee on Labour, Human Resources and Social and Cultural Affairs
-The Committee on Legal Affairs
-The Committee on Natural Resources and Environment
-The Committee on Tourism and Wildlife
-The Committee on Statistical Matters
-The Committee on Trade and Customs
-The Committee on Transport

Court of Justice
The Court of Justice of the Common Market for Eastern and Southern Africa herein known as “COMESA Court of Justice” or
simply as “the Court” was established in 1994 is one of the organs of the Common Market for Eastern and Southern Africa
(COMESA).

The COMESA Court of Justice is the judicial Organ of the Common Market for Eastern and Southern Africa (COMESA). It is in-
charged with settling disputes arising within the COMESA Treaty between COMESA’s Member States, Secretary General,
individuals, and the corporations. (The COMESA Court of Justice does not have general capability to hear individual
complaints of alleged human rights violations.)

COMESA
 The Secretariat
The Secretariat is the executive Organ of COMESA. It ensures that the regulations and directives adopted by the Council of
Ministers are properly implemented, and provides the Council of Ministers with strategic recommendations.
It is comprised of the Executive Management- Office of the Secretary General, Assistant Secretaries General for Programs,
Finance and Administration, and the Management Team.
It is based at Lusaka Zambia, COMESA Center.

The Secretariat - Executive Management

Office of the Assistant
Office of the Office of the Assistant Secretary General
Secretary General Secretary General (Programmes) (Administration & Finance)
The Secretary General (SG) is the Chief The office is in charge of five technical Divisions. This office is responsible for
Executive Officer of the Common These are Trade and Customs, Agriculture and Administrative, Finance and
Market. The SG represents the Industry, Gender and Social Affairs, Infrastructure Budgetary matters. It is
Common Market in the exercise of its and Logistics and Information Technology. responsible for two divisions;
legal personality and acts as the Administration and Finance.
secretary to the Authority and the
Council.

COMESA
 Highlights:
Free Trade Area The Yellow Card
In the year 2000, COMESA formed a Free Trade Area, paving the way COMESA Yellow Card Insurance Scheme is a Third-Party Motor
for member-state tariff reductions. As a result, intra-COMESA Vehicle Insurance Scheme for COMESA members. It covers third-
commerce has increased by an average of 7%, with bigger increases party legal liability and medical expenditures incurred as a result of
between intra-Free Trade Area states. road traffic incidents caused by motorists visiting Scheme countries.

Removal of Non-Tariff Barriers COMESA Virtual Trade Facilitation

Since 2008, 98 percent of NTBs reported had been addressed by System (CVTFS)
2018. These included, among other things, the liberalization of import CVTFS is an online platform that brings together existing COMESA
licensing, the removal of foreign exchange restrictions, foreign trade facilitation tools (Yellow Card, RCTG, Carrier License
exchange taxes, import and export quotas, roadblocks, the easing of Harmonized axle load, and so on). It also aids in the monitoring of
Customs formalities, the extension of border post opening hours, and cargo along various transportation corridors around the region.
the creation of One-Stop-Border-Posts.
COMESA Monetary Harmonisation
COMESA Carrier’s License Programme
The license permits commercial goods vehicles to operate in all The program's goal is to create a shared monetary area that will
Member States with a single license. This means that vehicles can pick assist economic integration and long-term growth. The ultimate goal
up loads on their way back from other nations, maximizing the is to establish a monetary union.
efficiency of the transportation fleet and lowering trade costs.

The Regional Customs Transit Guarantee

Scheme – RCTG
The RCTG Scheme is a customs transit scheme designed to make it
easier for products to pass through customs in the COMESA area. It
offers transit countries with the necessary customs security and
assurance. The cost of Bonds/Guarantees and collaterals levied by
Sureties and Agents is reduced, which is one of its main advantages.

COMESA
 Lowlights:
The lowlights of Common Market for Eastern and Southern Africa
(COMESA) comes with the disadvantages of Regional Economic
Integration.

Trade Diversion Loss of National Sovereignty

The downside to trade creation is trade diversion. Member States may With each new round of discussions and agreements within a regional
trade more with each other than with nonmember nations. This may bloc, nations may find that they have to give up more of their political
mean increased trade with a less efficient or more expensive producer and economic rights. In the opening case study, you learned how the
because it is in a member country. economic crisis in Greece is threatening not only the EU in general but
also the rights of Greece and other member nations to determine their
Employment Shifts and Reductions own domestic economic policies.
Countries or nations may move production to cheaper labor markets in
the Member States. Similarly, workers may move to gain access to
better jobs and wages. Sudden shifts in employment can tax the
resources of member countries.

Although services trade has been increasing in COMESA, key challenges to future expansion include poor infrastructure, unfavourable business
environment, limited technology, lack of skilled professionals, and low domestic demand in some countries (UNCTAD, 2015).

COMESA
THE CONTEMPORARY WORLD

COMESA
Common M arket for Eastern and Southern Africa

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