CS/CM/XXXIV/8
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CS/CM/XXXIV/8
March 2015
Original: ENGLISH
COMMON MARKET FOR EASTERN AND
SOUTHERN AFRICA
Thirty Fourth Meeting of the
Council of Ministers
Addis Ababa, Federal Democratic Republic of Ethiopia
26-27 March 2015
REPORT OF THE THIRTY-FOURTH MEETING OF THE COUNCIL OF MINISTERS
Theme: “Inclusive and sustainable industrialisation”
2015 (AM/BM//YA/rm)
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ACRONYMS
AAMP
AAPF
ACTESA
AFOLU
AFSEC
AGOA
AGRA
APSA
AU
AUC
BLO
BIT
CAADP
CAF
CBC
CCC
CCIA
CEMES
CET
CEWS
CM
CMR
COMWARN
CPIA
CSA
CTN
CVTFS
DAFF
DDA
DFID
DTA
EAC
EAFA
ECCAS
ECOWAS
EGNOS
EPA
ESA-RFBS
FAMIS
FAO
FDI
African Agricultural Markets Programme
Australia-Africa Partnerships Facility
Alliance for Commodity Trade in Eastern and Southern Africa
Agriculture, Forestry and Other Land Use
African Electro-Technical Standardization Commission
African Growth and Opportunity Act
Alliance for a Green Revolution in Africa
Africa Peace and Security Architecture
African Union
African Union Commission
Brussels Liaison Office
Bilateral Investment Treaties
Comprehensive Africa Agriculture Development Programme
COMESA Adjustment Facility
COMESA Business Council
COMESA Competition Commission
COMESA Common Investment Area
Common Exchange Marketing Electronic System
Common External tariff
Continental Early Warning System
Council of Ministers
Customs Management Regulations
COMESA Conflict Early Warning System
Country Policy and Institutional Assessment
Climate Smart Agriculture
Common Tariff Nomenclature
COMESA Virtual Trade Facilitation System
Department of Agriculture Forestry and Fisheries (South Africa)
Doha Development Agenda
Department for International Development (of the UK)
Double Taxation Agreements
East African Community
East African Farmers Associations
Economic Community of Central African States
Economic Community of West African States
European Geostationary Navigation Overlay Service
Economic Partnership Agreement
The Eastern and Southern Africa Regional Food Balance Sheet
Food and Agricultural Marketing Information System
Food and Agricultural Organization of the United Nations
Foreign Direct Investment
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FEMCOM
FEWSNET
FTA
GAFSP
GDP
GIS
GISAMA
HIV/AIDS
IC
ICT
IIA
IITA
IPA
IPCC
IPPC
IRM
ITC
MDGs
NAFSIP
NAIP
NEPAD
NTBs
NEPAD
Federation of Women in Business in Eastern and Southern Africa
Famine Early Warning System Network
Free Trade Area
Global Agriculture and Food Security Programme
Gross Domestic Product
Geographic Information System
Guiding Investments to Strengthen Agricultural Markets in Africa
Human Immune Virus/Acquired Immune Deficiency Syndrome
Intergovernmental Committee
Information and Communication Technology
International Investment Agreements
International Institute of Tropical Agriculture
Investment Promotion Agencies
Intergovernmental Panel on Climate Change
International Plant Protection Convention
Investor Road Map
International Trade Centre
Millennium Development Goals
National Agriculture and Food Security Investment Plans
National Agricultural Investment Plan
New Partnership for Africa Development
Non-Tariff Barriers
New Partnership for Africa’s Development
NGOCC
Non-Governmental Organization Coordinating Council (of Zambia)
NPPO
ODA
PACA
PPP
PTA Bank
RECs
REPSS
RIPAs
RISM
RCTG
RKC
SACAU
SACU
SADC
SMEs
SAPP
SPS
STDF
STR
SQA
National Plant Protection Organisation (South Africa)
Official Development Assistance
Partnership for Aflatoxin Control in Africa
Public Private Partnership
Trade and Development Bank for Eastern and Southern Africa
Regional Economic Communities
Regional Payment and Settlement System
Regional Investment Programmes for Agriculture
Regional Integration Support Mechanism
Regional Customs Transit Guarantee
Revised Kyoto Convention
Southern African Confederation of Farmers’ Union
Southern Africa Customs Union
Southern Africa Development Community
Small and Medium Enterprises
Southern Africa Power Pool
Sanitary and Phytosanitary Standards
Standards and Trade Development Facilitation
Simplified Trade Regime
Standards and Quality Assurance
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TFTA
TIFA
TMSA
TRIPDA
TTCID
TTNF
TWG
UEMOA
UN
UNAIDS
UNCTAD
UNECA
UNEP
UNFCC
USAID
WEZAD
WTO
ZEP-Re
ZAFWIB
Tripartite Free Trade Area
Trade and Investment Framework Agreement
Trade Mark Southern Africa
Tripartite Regional Infrastructure Projects Database
Tripartite Technical Committee on Industrial Development
Tripartite Technical Negotiating Forum
Technical Working Group
West African Economic and Monetary Union (French Acronym)
United Nations
United Nations Joint Programme on HIV&AIDS
United Nations Conference on Trade and Development
United Nations Economic Commission for Africa
United Nations Environmental Programme
United Nations Framework Convention on Climate Change
United States Agency for International Development
Women Entrepreneurs Association of Zambia
World Trade Organisation
COMESA Re-Insurance Company
Zambia Federation of Women in Business
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INTRODUCTION
1.
The Thirty Fourth Meeting of the Council of Ministers was held from 26 to 27 March 2015
in Addis Ababa, Ethiopia. The main purpose of the meeting was to consider the progress of
implementation of the integration agenda towards achievement of the vision of COMESA of
being a fully integrated regional economic community, that is internationally competitive and
prosperous with high living standards particularly for the ordinary people, and that is fully part of
the continental integration process.
2.
The meeting was attended by:
a.
b.
c.
3.
The following Member States: Burundi, Comoros, Democratic Republic of Congo,
Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius,
Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, and Zimbabwe;
The following COMESA institutions: African Trade Insurance Agency (ATI),
COMESA Brussels Liaison Office (BLO), COMESA Business Council, COMESA
Competition Commission (CCC), COMESA Clearing House, COMESA Court Of
Justice, COMESA Federation of National Associations of Women in Business in
Eastern and Southern Africa (FEMCOM), COMESA Leather and Leather
Products Institute (LLPI), COMESA Monetary Institute (CMI), Eastern and
Southern African Trade and Development Bank (PTA) Bank) and PTA-REInsurance Company (ZEP-RE); and
The following co-operating partners attended: African Union Commission,
Eastern Africa Power Pool (EAPP), the European Union, the Islamic
Development Bank, UNAIDS, the United Nations Economic Commission for
Africa (UNECA), and the International Trade Centre, Reunion Island Regional
Council, India, United States of America, and Nigeria.
The full list of participants is attached as Annex 1 to this Report.
OPENING OF THE MEETING (Agenda Item 1)
4.
The meeting was called to order by Honourable Ato Ahmed Shide, Ethiopia’s State
Minister of Finance and Economic Development. He welcomed all the delegates to the meeting,
and thanked the Member States for electing Ethiopia to the chairmanship of the Bureau.
Statement of the Guest of Honour
5.
The Guest of Honour, His Excellency Debretsion Gebremichael, the Deputy Prime
Minister and Minister of Information, Communication and Technology of the Federal Republic of
Ethiopia, welcomed all present to Addis Ababa, Ethiopia, and to the Thirty-fourth Council of
Ministers meeting.
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6.
He invited the honourable Ministers to feel at home as they deliberated on the various
issues that affect the regional integration of COMESA.
7.
His Excellency Debretsion Gebremichael, paid tribute to the outgoing Assistant
Secretary-General (Finance and Administration), Ambassador Nagla El-Hussainy, for her
distinguished service to COMESA. He said that COMESA as an institution is highly indebted to
Amb. El Hussainy’s hard work and dedication; and sincerely thanked her for diligently executing
her duties in the past ten years; and steering the Secretariat’s Administration and Finance
matters with the highest competence. He wished her all the best in her future endeavours.
8.
He noted that the regional integration programmes are bearing very positive results. For
instance, in the area of trade development, we moved from preferential trading arrangements to
a fully-fledged Free Trade Area (FTA) in which we can trade free of all barriers. Under this
arrangement, intra-COMESA trade grew in 2013 by over 8% compared to 2012, from levels of
US $19.3 billion to US $20.9 billion. Further, he said the Customs Union, when fully
implemented will build on the benefits and positive developments of the Free Trade Area as well
as better present our region as a unified and attractive investment area.
9.
His Excellency Debretsion Gebremichael noted with concern that while COMESA
exports commodities to the rest of the world and imports finished goods, intra-regional trade has
mostly been in agro-processed and semi manufactured products. We, therefore, need to
enhance regional economic activity by adding value to these commodities within the region.
That way we will increase job opportunities and greatly contribute to raising incomes among our
citizens.
10.
He added, however, that since the region has witnessed significant flows of both
regional cross border and foreign direct investment, this is gradually bringing about changes in
the structures of COMESA economies from raw material and primary commodity producers to
producers of semi-finished and finished manufactures. Thus, the COMESA region in particular,
and the African continent in general is poised to become the manufacturing hub of the world
given, among others, its abundant natural resources and vibrant and youthful population.
11.
In the area of agricultural and industrial development, His Excellency highlighted the
positive strides that have enabled some COMESA Member States to produce staple foods such
as maize, rice and sugar, among others, in excess of their countries’ needs over the last few
years. These increased production levels have not only contributed to food self-sufficiency and
increased commodity exports within and beyond the region, but have also contributed to deeper
linkages with agro-processing and value-addition in various sectors. This is emphasised by the
theme of these Policy Organs’ Meetings, which is: “Inclusive and Sustainable Industrialization”.
He said the theme was appropriately chosen because COMESA’s intention is to harness the full
potential of industry’s contribution to the achievement of sustainable development, and lasting
prosperity for all. “Inclusive and Sustainable Industrialization” is the only only way to generate
the income needed to enable individuals, households, and governments to pursue their own
development priorities and to support their path to self-reliance, as clearly articulated by United
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Nations Industrial Development Organization (UNIDO). He stressed, therefore, that this must be
the ultimate goal of COMESA’s efforts to achieve sustainable development in the region.
12.
He emphasised the other critical factors for economic development as: infrastructure
development, proximity to markets, competitiveness of logistics services, efficiency of crossborder operations, and sustained investment in transport, energy, water and communications
and information technology.
13.
He informed the meeting that Ethiopia is one of the fastest growing economies, not only
in Africa, but the world. The economic growth rate for several years has registered impressive
levels, ranging between 6 and 12 percent. However, some reputable institutions such as the
World Bank and the International Monetary Fund (IMF) forecast continued average growth rate
of about seven (7) percent over the coming few years. Ethiopia aims to achieve 11.2 – 14
percent economic growth rate annually as well as to achieve the Millennium Development Goals
and also attain middle-class income status by 2015. To achieve these goals, the country is
heavily investing in large-scale economic infrastructure and energy projects and aims to export
energy to other African countries. He urged all Member States to allocate substantial budgetary
resources to infrastructure development and renewal, so that the whole COMESA region can be
inter-linked and equitably developed.
14.
His Excellency Debretsion Gebremichael concluded by saying that the objectives of the
Common Market provide the region with the rationale for integration and should always guide
the Ministers and all nationals of COMESA not lose sight of what the region wants to achieve.
Key among the set objectives is the goal to improve the standards of living of all the peoples of
the region, especially those who are at the bottom part of the pyramid. He urged the honourable
Ministers to keep this in mind as they deliberate during the Council meeting.
15.
He wished the delegates fruitful deliberations; and declared the Thirty Fourth Council of
Ministers’ Meeting officially opened.
Statement of the Secretary General
16.
Earlier, the Secretary General, Mr Sindiso Ngwenya, welcomed the delegates and
thanked them for coming to the meeting. He thanked the Government of the Republic of
Ethiopia for hosting the meeting, and also the guest of honour, the Deputy Prime Minister of the
Federal Republic of Ethiopia for finding time to grace the meeting.
17.
He said that the Council of Ministers provides leadership in policy formulation and
furthering regional integration in COMESA. He indicated that the COMESA Treaty provides that
by 2015 the Common Market should have been established and so it was important for the
institution to take stock of where it has come from and where we are. COMESA was the first
REC to launch the FTA in 2000 and since then intra-COMESA trade has grown from US $3.1
million in 2000 to US $22.4 billion in 2014. However, the capacity for intra-COMESA trade
stands at US $98 billion and this has to be tapped into.
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18.
On the agricultural potential of the region, he said that COMESA is importing 22 billion
tonnes of grain annually. This should be addressed through mechanisation of agricultural as
well as training of farmers to harness the potential of the region in agricultural development that
will result in job creation. Thus, there is need for a paradigm shift and focus on areas that have
a high potential in job creation and increasing the intra-regional trade.
19.
The region’s economies have been growing at an average of 6.5 percent. This growth
should be accompanied by increased job creation in order to eliminate the rampant
unemployment especially among the youth population of the region.
20.
He noted that the Tripartite FTA Negotiations are still on-going and the Tripartite Summit
will take place on 10 June 2015 in Egypt. The Tripartite countries have a combined GDP of US
$1.3 trillion and a combined population of almost 600 million people, and so the potential for
structural transformation and sustainable economic development within the region is great.
21.
He highlighted that COMESA countries are already using innovative ways for financing
infrastructure projects. For example, infrastructure bonds have been launched in Ethiopia,
Kenya, Rwanda, Uganda and Zambia in 2012 and 2013. Kenya has been successful in
establishing private participation in the power sector, including thermal, geothermal and wind.
Investments in roads, power, water and urban infrastructure were also included in the bond
floatation scheme. Zambia also issued a successful Eurobond in September 2012. He further
highlighted to the council the crucial role the PTA bank, ATI, ZEP-RE, COMESA Court of
Justice and the COMESA Clearing house are playing in promoting the COMESA regional
integration agenda.
22.
He concluded by thanking the co-operating partners that work together with COMESA to
finance the various programmes and also advance the agenda of regional integration.
Vote of Thanks
23.
Hon. Gideon Dlamini, the Minister of Commerce, Industry and Trade thanked His
Excellency Debretsion Gebremichael, the Deputy Prime Minister and Director of Information and
Communication of the Federal Republic of Ethiopia for finding time to attend the meeting. He
thanked the Government and the people of Ethiopia for the facilities and hospitality that made
the meeting possible for them to have fruitful deliberations.
24.
He said that indeed the delegates, as well as the whole region, were motivated by the
statement of the guest of honour; and the example set by Ethiopia in terms of infrastructure and
other economic development projects. He added that since the region has come this far, all
Member States are committed to making regional integration the reality it is supposed to be, by
putting in the hard work needed, for the benefit of all the citizens of COMESA. He said that the
meeting will also draw inspiration from the statement of the Secretary General who highlighted
the growth of the region’s economies and also the potential for intra-regional trade. He
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concluded by saying that even if there is still work to be done, the goals of COMESA will be
achieved as all Member States work together to take the region forward.
25.
Following this, the Chairperson invited delegations to a group photograph with the Guest
of Honour, His Excellency Debretsion Gebremichael, before proceeding with the meeting.
ELECTION OF THE BUREAU (Agenda Item 2)
26.
The following Bureau presided over the meeting:
Chairperson
Vice Chairperson
Rapporteur
:
:
:
Ethiopia
Madagascar
Democratic Republic of Congo
ADOPTION OF AGENDA AND ORGANISATION OF WORK (Agenda Item 3)
27.
The meeting adopted the following agenda:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Opening of the Meeting
Election of the Bureau
Adoption of the Agenda and Organization of Work
Report on the Status of Implementation of COMESA Priority Programmes in
2014 by Hon. Raymond Tshibanda Ntungamulongo, Minister of Foreign Affairs
and International Co-Operation and Outgoing Chairman of the COMESA Council
of Ministers
Report of the Eighth Meeting of the COMESA Ministers Responsible for Gender
and Women’s Affairs (for endorsement)
Report of the Sixth Joint Meeting of COMESA Ministers responsible for
Agriculture, Environment and Natural Resources (for endorsement)
Report of the Eighteenth Meeting of COMESA Ministers of Justice and Attorneys
General (for endorsement)
Report of the Tenth Ministerial Meeting of the COMESA Fund Committee (for
endorsement)
Appointment of Commissioners of the COMESA Competition Commission (for
endorsement)
Report of the Thirty Fourth Meeting of the Intergovernmental Committee
Statements by Co-operating Partners
Any Other Business
Closed Session of the Council of Ministers
Adoption of Report and Closing of the Meeting
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REPORT ON THE STATUS OF IMPLEMENTATION OF COMESA PRIORITY PROGRAMMES
IN 2014 BY HONOURABLE RAYMOND TSHIBANDA NTUNGAMULONGO MINISTER OF
FOREIGN AFFAIRS AND INTERNATIONAL CO-OPERATION AND CHAIRMAN OF THE
COMESA COUNCIL OF MINISTERS (Agenda Item 4)
28.
Council received the report on the status of implementation of COMESA priority
programmes in 2014, by the outgoing Chairperson of the Council of Ministers, Hon. Raymond
Tshibanda, Minister of Foreign Affairs and International Co-operation of the Democratic
Republic of Congo. The report was read on his behalf by Mme Jacky Nzomini.
29.
The report, document reference: CS/CM/XXXIV/2 highlighted the institutional and
capacity weaknesses that cause delays in implementing the policies and programmes in
COMESA. It also contained the status of negotiations of the COMESA, EAC and SADC
Tripartite Free Trade Area.
30.
He highlighted how the global economy is likely to impact on national economies and by
extension COMESA’s collective quest through regional co-operation and integration to create a
single market.
31.
Council was informed that the global financial crises of 2007 initially had a negative
impact on COMESA’s economies because of reduced demand in the markets of the region’s
major trading partners. This negative impact was short lived as demand from emerging
economies resulted in increased prices for COMESA’s commodities and enabled the region to
achieve a consistent annual average growth rate of above 5 percent. The high commodity
prices were due to strong demand by emerging economies, particularly the People's Republic of
China.
32.
The period from 2011 to the middle of 2014 witnessed an increase in portfolio financial
flows into the region as capital sought positive returns on investment due to negative interest
rates in the developed economies. The capital inflows were further enhanced by the policy of
quantitative easing by the United States as a means of preventing deflationary pressures and
kick starting economic growth in the world largest economy. In October 2014, the United States
stopped quantitative easing and this, giving rise to capital flight back to the United States. This
resulted in currencies in the region depreciating against the dollar with possible inflationary
consequences; and also had implications for debt servicing for Member States.
33.
Council was informed that 2014 witnessed an unprecedented fall in the price of Brent
crude oil per barrel by more than 50 percent from approximately US $105 to US $55. Although
this is good news for oil importing countries as it will translate in lower fuel prices, the paradox is
that the oil price fall is accompanied by the fall in the prices of all commodities thus wiping out
any short term gains. These developments further confirm that our economies can mitigate the
risks of global eco-system through strengthening and deepening regional integration.
34.
Hon. Tshibanda informed Council that the challenges faced by COMESA as the region
tries to diversify through industrialization is that there is excess capacity in developed
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economies and emerging industrialized economies which will make it difficult for existing and
newly established industries to compete. Within the commitments made under the World Trade
Organization, COMESA may then have to come up with "smart protectionism" to support its
industries that do not have export support, unlike their competitors.
35.
Council recalled that at its meeting in Kinshasa in February 2014, Council agreed to take
measures to implement the decisions we have taken over the years through domestication.
Further, each Member State would implement these decisions by the end of the year. It was
noted that the performance in this area is not encouraging in that the Member States have not
been able to domesticate the decisions on the COMESA Custom Union and other programmes.
For the Member States that are part of the COMESA Fund, this posed the risk of them losing
the grant funding from the COMESA Regional Integration Support Mechanism (RISM). To avoid
the loss of funds, the Member States concerned were requested to make commitments that the
domestication of the decisions would be implemented in 2015. It is quite clear that there is need
for individual and collective efforts to ensure that the Member States meet their commitments.
Council was urged to put in place institutional arrangements in each Member State, for the
implementation of regional integration programmes which are by nature multi-disciplinary.
36.
On the COMESA Free Trade Area, Council was informed that is encouraging to note
that since the launch of the COMESA FTA in 2000, intra-COMESA trade has increased from US
$3.1 billion to US $22.3 billion in 2014. The accession of D R Congo, Ethiopia and Uganda in
the FTA is bound to see intra-regional trade increase to US $25 billion in the coming two years.
In 2014 three Member States joined the FTA, bringing the number of Member States
participating in the FT A to 17.
37.
The COMESA Free Trade Area has been given a further boost by the inclusion of small
scale cross border traders through the implementation of the COMESA simplified trade regime
on the basis of a common list of products that are agreed upon between Member States. This
system has been designed to ensure that small scale traders are part of the COMESA FTA by
dispensing with the requirement of the Certificate of Origin, which is not only difficult to obtain
but costly for small scale traders. COMESA, thanks to funding from the European Union and
USAID has established trade information desks at border posts in: Burundi, D R Congo, Kenya,
Malawi, Rwanda, Uganda, Zambia and Zimbabwe. These information desks provide information
and assist cross border traders with vital information. It is expected that the simplified trade
regime will be operational between Ethiopia and Kenya in 2015.
38.
On the Customs Union, Council was informed that in 2014, with support from the World
Bank amounting to US $850,000 national and regional workshops were undertaken on the
Customs Union. It was established that in some cases existing national customs laws are more
than 90 percent aligned to COMESA regulations thus making it relatively easy for Member
States to domesticate the instruments. In addition the studies and workshops thereof confirmed
that there would be no revenue losses for most counties from implementing the COMESA
Custom Union on the basis of the agreed Common External Tariff (CET). It is against this
background that the Council was called upon to redouble efforts to implement the Customs
Union in 2015 and 2016.
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39.
On the COMESA Clearing House, Council was informed that in 2014 seven Member
States went live on the Regional Payment and Settlement System (REPSS) which is operated
by the COMESA Clearing House with the Central Bank of Mauritius as the Settlement Bank.
The seven countries are: Kenya, Malawi, Mauritius, Rwanda, Swaziland, Rwanda and Zambia.
The use of REPSS facilitates trade by allowing payments to be settled the same day. This is a
major improvement to the current system whereby payments can take days, if not weeks. In
addition, there will be significant savings by importers as REPSS does away with the need for
confirmation of letters of credit by first class overseas banks.
40.
Council noted that on the basis of the US $10 billion intra COMESA import figures for
2015, if all Member States were to fully utilize the Clearing House then approximately US $450
million would be saved on account that there are no letters of credit to be confirmed. Another
way of looking at the saving is that Member States would collectively make foreign exchange
savings from importing services from Europe and North America of US $450 million. Council
was encouraged to work with all central banks, commercial banks and the private sector to fully
utilize REPSS.
41.
Council was informed that the draft COMESA Industrial Policy was complete, and it had
been considered by the 34th Intergovernmental Committee, which met on 22-24 March 2015 in
Addis Ababa. On the basis of the work done, Council was requested to recommend to the
Authority of the Heads of State and Governments, the adoption of the COMESA Industrial
Policy, which will provide a framework for the region to industrialize taking into account the
complementarities of the region’s economies. Central to successful industrialization is the need
to develop regional value chains, which will enable COMESA have Intra-industry trade and
realize competitiveness in a global economy where production is based on countries identifying
segments of production in the value chain where their industries are competitive.
42.
On the COMESA, EAC and SADC Tripartite FTA negotiations, Council was informed
that most of the technical issues that have delayed the launch of the Tripartite FTA have been
agreed upon. In the past six months, the Tripartite negotiations made more progress than was
made in the past two and a-half years. This is attributed to changes in negotiating strategies
whereby the three regional organizations prepared common positions in advance of the
negotiations. The tabling of the common positions enabled the Sectoral Tripartite Council of
Ministers in Bujumbura to agree that the Tripartite FT A would be signed by the Tripartite
Summit that was scheduled to be held in Sharma EI Sheik, Egypt on 10 June 2015.
43.
On Innovative Means of Infrastructure Financing, Council was reminded of the critical
importance of infrastructure and energy for national economic development and regional
integration. Without interconnected infrastructure, power generation and inter connected power
grids it is not possible to realize the benefits of regional integration. There is clear evidence that
successful economies and coherent and dynamic regional integration in other parts of the world
has been facilitated by infrastructure development. The major milestone achieved in 2014 was
the launch of the COMESA Infrastructure Fund (CIF), which is managed by the PTA Bank with a
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capitalization of US $25 million. The PTA Bank contributed US$ 15 million to the CIF, with the
other US $10 million from the COMESA Fund. The CIF is hosted in Mauritius and the Board of
Directors of the Fund has appointed a Fund Manager. The CIF is will be the vehicle for the
mobilization of funding for regional infrastructure projects that are in the COMESA Priority
Investment Plan, which has a portfolio of bankable projects worth US $1.2 billion.
44.
Council was informed that the Secretariat in collaboration with the CIF should prepare a
comprehensive programme that will show the status of funding of priority regional programmes.
Among others, this should include: funding secured, funding gap and sources of funding.
45.
Council was informed that the cassava processing, leather and foot wear, and garments
and textiles clusters have continued to contribute to entrepreneurship development, production
of value added products and intra-COMESA trade. The impact varies from country to country
depending on whether Member States have mainstreamed the cluster programme into the
national industrial policy and provide funding to enable to clusters to grow. The major challenge
facing the MSMEs is that of lack of easily accessible and affordable financing. This is why in
Kinshasa in 2014 the Summit directed that the Ministers of Finance as well as the Central Bank
Governors should consider the modalities for establishing an MSME Fund and Women
Economic Empowerment Fund. COMESA has not made much progress on this matter as the
joint meeting of Ministers Finance and Central Bank Governors have not met. The region should
however, leave no stone unturned in 2015 by ensuring that the Ministers of Finance and Central
Bank Governors conclude the matter on the establishment of the COMESA Women Economic
Empowerment Fund, which should take into account the best practices and policies in some of
the Member States.
46.
On agriculture, Council was informed that a total number of 14 Member States out of 19
have signed their national CAADP Compacts, and nine have completed their National
Agriculture and Food Security Investment Plans (NAFSIPs). Further, Burundi, Ethiopia, Kenya
Malawi, Rwanda, Zambia and Zimbabwe have accessed funding totalling US $253.8 million
from the Global Agriculture and Food Security Programme (GASFP). Earlier in 2015, D R
Congo also signed the regional CAADP compact, which will enable the Member State access
funding for agricultural development.
47.
On climate change, in 2014 COMESA’s regional negotiators continued to advocate for
the inclusion of agriculture and adaption in the Agreement on Climate Change, which is
expected to be signed in December 2015. In addition, the negotiators are working as part of the
African Union group of negotiators towards the simplification of procedures for accessing
climate funding from the Global Environmental Facility (GEF). Out of the 19 Member States,
Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Sudan, Zambia and Zimbabwe have
accessed funding totalling US $2.5 billion from the GEF and other sources. The lesson to be
learnt is that the countries that have benefitted from the funding are those that have established
national focal points.
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48.
Council was informed that in 2014 the region continued to experience challenges to
trade in agriculture and livestock products due to different Sanitary and Phytosanitary (SPS)
requirements by Member States. Out of the 28 SPS issues affecting trade, only ten were
resolved, highlighting the need to expedite the conclusion of the programme on harmonization
of the equivalence of SPS standards among Member States.
49.
Council was informed that the Member States have not, individually and collectively, fully
exploited the services offered by the COMESA institutions. These institutions contribute to
regional co-operation and integration, and some of them are now Pan-African institutions in that
they provide services not only to COMESA Member States but the whole continent. Therefore,
the Member States that have not yet joined these institutions were urged to do so.
50.
Council was informed that because its meetings are far apart, this has the potential of
making Council take its eyes from the ball in terms of implementation of decisions. Since
Council is mandated to provide guidance and direction on all programmes and cognizant that
meetings are expensive, the least Council should meet twice a year as provided for in the rules.
51.
Hon. Tshibanda informed Council that he has directed the Secretariat to re-activate, in
2015, the Special Task Forces both at technical and ministerial level, so that these committees
can play their advisory role to Council. He urged the Member States to explore ways and means
of strengthening institutional and human capacity to effectively address the complex challenges
of regional integration, at national level; and to share best practices on this, among the Member
States.
52.
He concluded his statement by saying that as he hands over the baton to the new
Chairman, he had confidence that collectively COMESA shall succeed in realizing the vision of
its founding fathers, of a region that is politically stable and economically competitive, with high
standards of living. He reiterated the commitment of D R Congo, as a member of the Bureau of
Council for the coming year, to play its role in strengthening COMESA.
53.
Council adopted the report on the status of implementation of COMESA Priority
Programmes in 2014.
REPORT OF THE EIGHTH MEETING OF THE COMESA MINISTERS RESPONSIBLE FOR
GENDER AND WOMEN’S AFFAIRS (for endorsement) (Agenda Item 5)
54.
Council was informed that the report of the Eighth Meeting of the Ministers Responsible
for Gender and Women’s Affairs, document reference: CS/GEN/MIN/VIII/8, and noted the
implementation of awareness-raising and advocacy programmes for the empowerment of
women and gender mainstreaming in COMESA. The Ministers’ meeting was preceded by the
technical committee meeting from 02 to 04 February 2015.
55.
Council noted that the title of the technical committee meeting should be amended to
include experts from ministries in charge of youth and social affairs.
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Decision:
56.
Council endorsed the decision of the Eighteenth Meeting of the COMESA
Ministers Responsible for Gender and Women’s affairs that the Secretariat should revisit
the title of the technical committee meeting to include experts from ministries in charge
of youth and social affairs.
Gender Mainstreaming and Women Empowerment
57.
Council was informed that the Secretariat continued to promote gender mainstreaming in
its programmes and at Member States’ level. Further, presentations were made by various
divisions and units of the Secretariat, at the Gender Technical and Ministerial Meeting on
gender mainstreaming and women empowerment initiatives in climate change, the benefits of
the simplified trade regime, the MSME policy, SME tool kit, and trade information desks to
women cross border traders.
Decisions:
58.
Council endorsed the decision of the Eighth Meeting of the COMESA Ministers
Responsible for Gender and Women’s affairs that:
i.
ii.
All Divisions, Units and Programmes should ensure that gender is
mainstreamed at all levels of programming, from design to evaluation; and
The Secretariat’s statistical office should disaggregate statistical data
wherever possible.
Gender Mainstreaming in CAADP
59.
Council was informed COMESA and its partners have developed a regional CAADP
compact while Member States have designed national plans to accelerate the implementation of
the programme. In order to ensure that the programme is inclusive and does not leave out any
of the intended beneficiaries, particularly women and youth, the Secretariat embarked on the
development of a “CAADP Regional Gender Framework” to enhance gender inclusion in the
CAADP implementation process.
Decision:
60.
Council endorsed the decision of the Eighteenth Meeting of the COMESA
Ministers Responsible for Gender and Women’s affairs that CAADP should strengthen
synergies with the ministries responsible for gender and ministries of Agriculture in
respect to the implementation of the CAADP processes.
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COMESA Women Economic Empowerment Fund (WEEF)
61.
Council was informed that the WEEF was established at the 31st meeting of the Council
of Ministers, and 15th Summit of the COMESA Authority in October 2011. The 16th Summit of
the COMESA Authority urged the Secretariat to ensure a speedy implementation of the WEEF.
The 32nd meeting of the Council of Ministers held in Kinshasa, in the Democratic Republic of
Congo referred the implementation of the WEEF to the Ministers of Finance and Central Bank
Governors to consider the proposed implementation modalities.
62.
Council was further informed that the Secretariat through the COMESA Monetary
Institute presented the background to the establishment of the WEEF and the proposed
implementation modalities to the inaugural meeting of the experts of the COMESA Convergence
Council held in Nairobi, Kenya from 13 to 15 November 2014. In the proposed implementation
modalities, the PTA Bank was proposed to manage the WEEF, and the Convergence Council
approved that proposal.
Decision:
63.
Council endorsed the decision of the Eighteenth Meeting of the COMESA
Ministers Responsible for Gender and Women’s affairs that the Secretariat, PTA Bank
and Member States should expedite the operationalization of WEEF for the promotion of
women entrepreneurs in the region.
COMESA Social Charter
64.
Council was informed that following the adoption of the COMESA Social Charter by the
Council of Ministers at their 32nd Meeting in Kinshasa in February 2014, the Secretariat
embarked on the dissemination and sensitization of Member States to sign and ratify the charter
to enable its implementation. The Secretariat disseminated the Social Charter to all Member
States and sensitization missions were undertaken on the need to sign and ratify the Charter.
Decision:
65.
Council endorsed the decision of the Eighteenth Meeting of the COMESA
Ministers Responsible for Gender and Women’s affairs that the Secretariat should resend the COMESA Social Charter to Member States in order to allow them to familiarize
themselves with the Charter and facilitate signature and ratification.
Review of the COMESA Gender Policy and Gender Mainstreaming Strategy
66.
Council was informed that the Secretariat undertook the review of the COMESA Gender
Policy and the Gender Mainstreaming Strategy to ensure inclusion of regional and global
emerging issues and priorities on gender equality and empowerment of women. The policy was
developed in 2002 and has been in existence for 12 years now. Based on this background the
Council made a decision for COMESA to review the policy as well as its implementation tool,
CS/CM/XXXIV/8
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the mainstreaming strategic plan, to ensure inclusion of emerging issues like provisions of the
Social Charter, Africa Agenda 2063, and Beijing +20. The policy is a major guiding instrument to
gender mainstreaming in the regional integration agenda for the Secretariat and Member
States. The situation analysis report and the draft revised policy were presented to the
Technical and Ministerial Meeting in February 2015. Decisions on the next steps towards the
finalization of the policy were made, including ensuring participation of member to ensure
ownership and its implementation.
Decisions:
67.
Council endorsed the decision of the Eighteenth Meeting of the COMESA
Ministers Responsible for Gender and Women’s affairs that:
i.
ii.
iii.
iv.
v.
vi.
Directed the Secretariat to expand the sample on the review of the
COMESA Gender Policy and include Member States from the North, East
and Indian Ocean;
Directed the Secretariat to ensure that an action plan with clear time
frames, targets, budget and indicators is included for the Gender Policy
implementation;
Urged co-operating partners to financially and technically assist the
Secretariat to finalise the Gender Policy;
Directed the Secretariat to ensure active participation of Member States in
the Gender Policy review process in order to ensure ownership;
Directed the Secretariat to have timelines for the development of the
Gender Policy and the Strategic Plan and share it with the Member States;
and
Directed the Secretariat to ensure constant monitoring of the
implementation of the Gender Policy.
Youth Empowerment
68.
Council was informed that in line with the Council decision that COMESA should
implement a youth programme in partnership with the private sector the Secretariat partnered
with Global Peace Foundation and UNIDO and developed a comprehensive Youth Programme.
The programme takes into consideration the provisions of the COMESA Social Charter, AU
Youth Charter, and UN Youth Programme and has the following focus areas: education/training
for employability; enterprise support; participation and civic engagement; and research and
documentation. The youth programme was adopted by the Ministers responsible for Gender
and Women’s Affairs.
Decisions:
69.
Council adopted the COMESA Youth Programme with the following amendments:
CS/CM/XXXIV/8
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i.
ii.
The Secretariat should ensure that strategic priorities, outcomes and
outputs include special measures on gender for the identified gaps in the
programme; and
The Secretariat should include the aspect of internship under employment
and mentorship under entrepreneurship in the designed programme.
Development of Pilot Projects on Youth
70.
Council was informed that the Secretariat, in partnership with UNIDO and Global Peace
Foundation, developed pilot projects on youth empowerment. The Secretariat was in the
process of mobilizing funds for the projects, which were adopted by the Ministers responsible for
Gender and Women’s Affairs.
Decisions:
71.
Council endorsed the decision of the Eighth Meeting of the COMESA Ministers
Responsible for Gender and Women’s affairs that:
i.
Adopted the three pilot projects on: youth employment; youth environment
management; and character and creativity initiative;
Directed the Secretariat to replicate the pilot projects in other Member
States; and
The replication of the youth pilot projects will be the responsibility of both
the Secretariat and Member States, while the aspect of internship will be
the responsibility of Member States.
ii.
iii.
Implementation of COMESA Gender Policy and Council Decisions at Member State Level
72.
Council was informed that the Secretariat continued to engage Member States to report
on the implementation of the COMESA Gender Policy. In the reports, Member States
highlighted progress made in legal reform, women’s access to finance, skills development,
support and protection services, education and training, gender budgeting among others. This
enhanced sharing of good practices.
Decisions:
73.
Council endorsed the decision of the Eighth Meeting of the COMESA Ministers
Responsible for Gender and Women’s affairs that:
i.
Directed the Secretariat to invite Member States to indicate if they have any
special initiatives they would like to share when formulating the agenda for
the Technical Committee Meeting on Gender;
CS/CM/XXXIV/8
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ii.
iii.
iv.
Urged Member States to establish similar mechanisms to assist women as
the case of WISE in Burundi, women micro-finance initiatives in Sudan, and
Egypt;
Directed the Secretariat to revise the current reporting template provided to
Member States to be result-based with clear indicators;
Directed the Secretariat to give Member States deadlines when to submit
the list of female experts in COMESA-led sectors including:
trade/commerce; agriculture; economic policy analysis; climate change;
governance, peace and security; gender; public health; youth
empowerment; women empowerment; infrastructure development;
transport and communication; investment and private sector promotion;
and social policy development and analysis.
Networking and Partnerships
74.
Council was informed that the Secretariat engaged and worked with various cooperating partners in its quest to strengthen programmes, build relations and partnerships for its
work on gender, women and youth empowerment. The partners engaged include Dr Manu
Chandaria, Africa Chairperson for Global Peace Foundation, AfDB, ACBF, DFID, Embassy of
Norway, Embassy of China, Embassy of Sweden, European Union, Gender Links, Global
Peace Foundation, UNAIDS, UNECA, UNFPA, UNIDO, and UN Women.
75.
Council further noted that COMESA, EAC and SADC established the High Level Task
Force on Gender, Women, Girls and HIV/AIDS in 2011 to undertake advocacy missions in the
region. The Task Force was being housed at UNAIDS. However, at the last ended HLTF
meeting in October 2014 in Johannesburg, it was recommended that the HLTF be housed by
the RECs (COMESA, EAC and SADC) on a rotational basis to ensure ownership. In this regard,
COMESA being the current Chair of the Tripartite was proposed to house the Task Force.
UNAIDS will continue managing the Secretariat in the interim until the role is transferred to one
of the RECs.
Decision:
76.
Council endorsed the decision of the Eighth Meeting of the COMESA Ministers
Responsible for Gender and Women’s Affairs that the High Level Task Force on gender,
women, girls and HIV/AIDS be housed at COMESA Secretariat and that UN agencies will
support its operations.
REPORT OF THE SIXTH JOINT MEETING OF MINISTERS OF AGRICULTURE,
ENVIRONMENT AND NATURAL RESOURCES (for endorsement) (Agenda Item 6)
77.
Council received the report of the Sixth Joint Meeting of Ministers of Agriculture,
Environment and Natural Resources, document reference: CS/IPPSD/MC-AENR/EXP/VI as
follows:
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Role of Agroforestry in Climate Change Mitigation
78.
Council noted the importance of the fertilizer tree technologies as well as the need for
Member States to raise the profile of agro-forestry within their national investment agriculture
plans.
Decisions:
Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
79.
i.
ii.
iii.
iv.
Member States should raise the profile of agro forestry within their NAIPs
and allocate resources to the sub-sector as part of their farm input support
programmes;
Directed the Secretariat to develop a programme on promotion of fertilizer
tree technologies to assist countries to share their experiences by mid2016;
Directed the Secretariat to sign a memorandum of understanding with the
AU-NEPAD International Non-Governmental Organisations (INGOs) CSA
Alliance by the end of 2015; and
Directed the Secretariat to join and actively participate in the activities of
the Global Alliance on CSA by June 2015.
Comprehensive Africa Agriculture Development Programme (CAADP)
80.
Council was informed that to date, sixteen (16) Member States have officially launched
the CAADP implementation process. Twelve (12) of these have signed their national CAADP
compacts. Eight (8) have finalized the design of their National Agriculture and Food Security
Investment Plans (NAFSIPs); Rwanda launched the second phase of its Agriculture Sector
Investment Plan (ASIP) for the second 5-year cycle of the country’s CAADP implementation
costed at US $2.5 billion. The CAADP regional compact was also signed between COMESA
and the co-operating partners on 14 November 2014 in Kinshasa, DR Congo.
Decisions:
Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
81.
i.
ii.
The Secretariat should support Member States in their efforts to mobilize
resources for the implementation of programmes and bankable projects in
the context of their National Agriculture and Food Security Investment
Plans; and
The Secretariat should support Member States that have not done so, to
complete the design and operationalization of their National Agriculture
and Food Security Investment Plans and complete the process of
CS/CM/XXXIV/8
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developing the
implementation.
Regional
Agriculture
Investment
Programmes
for
Livestock and Veterinary Governance Programme
82.
Council was informed that COMESA has partnered with AU-IBAR to implement the
Reinforcing Veterinary Governance in Africa (VET-GOV) Programme. As part of this
programme, Zambia, Mauritius, Malawi and Seychelles have begun to allocate a budget for the
operation of the livestock policy hubs. The Secretariat is in the process of developing a
harmonized livestock policy framework, which is expected to be finalized in 2015.
Discussion:
83.
Council noted that the lack of a clear policy in the livestock farming sector in the region
poses threats as there are various technologies in other parts of the world that are endangering
the livestock farming sector in COMESA. There should be increased investment in the livestock
farming technology in the region as well as improving the existing livestock farming
technologies. Council further noted that the next meeting of the Ministers of Agriculture should
consider the issue of investment in the livestock development sector in greater detail.
Decisions:
84.
Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
iii.
iv.
Urged Member States to increase investment in livestock development;
Directed the Secretariat to assist Member States develop harmonized
regulations on the control of trans-boundary animal diseases, including
zoonosis and expedite implementation by end 2016;
Urged Member States to strengthen national animal health and sanitary
infrastructure including laboratories, veterinary clinics, abattoirs, and
quarantine and marketing facilities, among others; and
Directed that the position of coordinator and support staff that were funded
under the African Union should be absorbed into the COMESA budget from
01 January 2016.
Fisheries Development
85.
Council was informed that the COMESA mobilized seed money from NEPAD Planning
and Coordinating Agency (NPCA) and received technical assistance from Smart Fish Project
mainly on the trade component of the development of the fisheries strategy. In a bid to actualize
the decision made by COMESA Ministers that Member States should incorporate the fisheries
programmes into their national food security plans due to the potential contribution of fisheries
and aquaculture to food security, COMESA supported Uganda to conduct a national
consultative meeting on the development of a comprehensive aquaculture policy in that country.
CS/CM/XXXIV/8
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Discussion:
86.
Council was informed that in regards to fisheries development in the COMESA region,
Seychelles was grateful to the COMESA Secretariat for their initiatives in supporting Member
States develop aquaculture and fisheries sectors. Investment in the Blue Economy has both the
potential for economic growth and food security for the region and this initiative is a clear
indication that COMESA is looking in the right direction. In the Abu Dhabi Blue Economy
Declaration and the Africa Vision 2063, the sustainable use of the region’s ocean resources
serves as one of the cornerstone of development and economic growth. Seychelles thus called
for a more inclusive global development agenda, which emphasizes the economic potential of
the seas while protecting maritime resources. Council was informed that the COMESA fisheries
development plan is the perfect catalyst to achieving those goals. For example, in 2004 the total
world production of fisheries was 140 million tonnes of which aquaculture contributed 45 million
tonnes. The growth rate of worldwide aquaculture has been sustained and rapid, averaging
about eight percent per annum over the last thirty years, while the take from wild fisheries has
been essentially flat for the last decade. The aquaculture market reached US$86 billion in 2009,
thus the sector has the potential to transform the region and Seychelles supported it fully.
Council was further informed that Seychelles will be paying close attention to the development
of the aquaculture programme, and is ready to contribute to its formulation.
Decisions:
87.
Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
Directed the Secretariat to develop COMESA guidelines for aquaculture,
fish and fishery products based on the East African Community (EAC) SPS
guidelines by 2016; and
Directed the Secretariat to support Member States in the development of
aquaculture.
Sanitary and Phytosanitary (SPS) Programme
88.
Council was informed about the progress made on domestication of the COMESA SPS
regulations as follows:
a.
b.
c.
d.
Enhanced surveillance programmes for priority risks such as fruit fly surveillance
in Zambia and Zimbabwe and aflatoxin mitigation in Zambia, Kenya and Malawi.
Enhanced competence of regional reference laboratories for plant health, animal
health and food safety through provision of equipment and training programmes
Strengthened satellite aflatoxin analysis laboratories participating in the
proficiency testing scheme, (DRC, Rwanda, Kenya, Malawi, Zambia and
Zimbabwe), for mutual recognition of certificates of analysis and one time testing
in order to reduce trading costs and delays in placing goods on the market.
Enhanced harmonization of phyto-sanitary import requirements to increase
COMESA horticulture exports to the Republic of South Africa (litchis from
Madagascar, prepared chilies from Kenya and strawberries from Ethiopia)
CS/CM/XXXIV/8
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e.
f.
Harmonised SPS measures and introduction of risk based approaches to reduce
trading costs along key trade routes shared by seven Member States (Sudan,
Egypt, Kenya, Uganda, Zambia, Zimbabwe and Malawi); and the
Development of the Green Pass Certification Scheme into an effective trade
facilitation tool by ensuring convergence with international SPS certificates for
food safety, plant health and animal health, entrenched in the SPS legislation of
the Member States.
Decisions:
89.
Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
iii.
Urged Member States to adopt simplified, risk based and cost-effective
SPS measures in their legislation and border control procedures;
Directed the Secretariat to develop guidelines for the COMESA SPS
regulations and provide more details on the operation of the Green Pass
Certification Scheme; and
Urged Member States to allocate funding for country level action plans
developed through these initiatives.
Cassava Cluster Programme
90.
Council was informed that the Secretariat has been working to promote value addition by
supporting the formation of national and regional clusters in the cassava sub-sector, as a
mechanism of boosting job creation, intra-regional trade and poverty alleviation. The Zambian
Government has granted a license to South African Breweries to produce cassava beer in
Zambia. This will enable a ready market for SME clusters. The Republic of Zambia developed
and finalized the cassava development strategy which can be shared with other Member States.
91.
The Kenya Women Economic Empowerment Fund has pledged to finance SMEs along
the cassava value chain and to enhance coordination and creation of networks.
Decisions:
92.
Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
Urged Member States to develop deliberate policies and strategies for local
sourcing, depending on availability, of at least 30% of cassava raw material
by industries utilizing cassava and cassava products;
Urged Member States that have prioritized the cassava sub-sector in their
CAADP National Agriculture Investment Plans to increase budget
allocation to the sub-sector; and
CS/CM/XXXIV/8
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iii.
Directed the Secretariat to facilitate Member States to access clean
cassava cuttings beginning 2015.
Gender Mainstreaming Strategies
93.
Council was informed that the Secretariat documented at least three case studies on
Climate Smart Agriculture (CSA) best practices from Africa with strong gender dimensions in,
Malawi, Ethiopia and Kenya in August and September 2014. In Ethiopia, the case study was on
the sustainable land management programme implemented by Ministry of Agriculture, and in
Malawi on Conservation Agriculture, implemented by the Ministry of Agriculture, in partnership
with Total Land Care (TLC). The documentaries are part of the “Africa Rising” initiative by the
African Union. In order to advance the implementation of the CAADP National Agriculture
Investment Plans and address gender issues in agriculture, COMESA is working on developing
a regional framework to enhance gender inclusion in the CAADP implementation processes.
Decisions:
94.
Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
iii.
Urged Member States to strengthen the capacity of gender experts to
contribute to the entire CAADP process;
Urged the Secretariat and Member States to incorporate gender sensitive
planning in all interventions on climate change mitigation and adaptation at
regional and national levels; and
Urged the Secretariat and Member States to support training and
awareness-raising for female and male delegates on issues related to
gender balance and climate change.
Climate Change Negotiations
95.
Council was informed that the COMESA-EAC-SADC Tripartite Climate Change
Programme in partnership with the United Nations Economic Commission for Africa's African
Climate Policy Centre (UNECA/ACPC) and the CGIAR Programme on Climate Change,
Agriculture and Food Security (CCAFS) convened a regional workshop from 11-14 February
2014 in Arusha, Tanzania. The theme of the workshop was: "Building Resilience in the
Agriculture Sector in Africa in a changing Climate: Enhancing Uptake of Climate Smart
Agriculture." This was in preparation for the June 2014 Session on the Fortieth session of the
Subsidiary Bodies of the UNFCCC (SBSTA and SBI). The Meeting agreed that Africa should
strengthen its involvement in defining issues relating to agriculture that are of common interest.
These should be pursued in agriculture negotiations under SBSTA. The African Group of
Negotiators attended the Durban platform of action in Geneva to review the negotiating text and
consolidate the African position to be presented to AMCEN in Cairo in March 2015.
CS/CM/XXXIV/8
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Decision:
96.
Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that urged Member States to support
the participation of experts from agriculture and environment sectors in the on-going
climate change talks.
National Climate Change Policies and Strategies
97.
Council was informed that a total of nine Tripartite Member States have so far been
supported to develop their national climate response policies and strategies and these are
Botswana, Burundi, Comoros, DRC, Egypt, Kenya, Sudan, Swaziland and Zimbabwe. Burundi,
Ethiopia, Kenya, Rwanda, and Zambia, Comoros, DRC, Egypt, Sudan, and Swaziland are at
various stages of the strategy formulation. The Secretariat has continued to provide support to
the development of a national climate change policy to guide the response strategy in
Swaziland. In Zimbabwe, the final draft of the national strategy was presented to the
Government and validated by all stakeholders in July 2014.
Decision:
98.
Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
Directed the Secretariat to continue supporting Member States in the
development and implementation of national policy and response
strategies on Climate Change by 2016; and
Urged Member States to expedite national processes so that the policies
and strategies on Climate Change can be concluded by 2016.
Up-scaling Climate Smart Agriculture (CSA)
99.
Council was informed that as at September 2014, 1 million out of the targeted 1.2 million
farmers were practicing Conservation Agriculture (CA) in the COMESA region. A study will be
commissioned on the banana production systems to assess their compliance to conservation
agriculture core values. COMESA has been supporting the strengthening of national platforms
called National Conservation Agriculture Task Forces (NCATF) in Ethiopia, Kenya, Madagascar,
Malawi, Swaziland, Uganda, Zambia, Zimbabwe; and these are undertaking national census’ on
conservation agriculture.
100. Council was further informed that in partnership with UNDP, and the Government of
Seychelles is implementing a climate smart agriculture up scaling project. The project
addresses salinity stresses and enhances production through a combination of eco-systems
based on mitigation measures and integrated water resource management in adaptive
agriculture.
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Decisions:
101. Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
Member States should fast track the development of the climate smart agriculture
investment frameworks; and
Member states should upscale the practical pilot projects on climate smart
agriculture.
Information Communication and Technology (ICTs)
102. Council was informed that two ICT innovations for information dissemination and sharing
among farmers are being piloted in Uganda and Zambia in partnership with Eastern and
Southern Africa Small Scale Farmers Forum (ESAFF-Uganda) and East and Southern Africa
Agribusiness Network (ESAANet-Zambia) respectively. In Uganda, ESAFF has developed an
SMS platform and acquired a toll free number. Initially the system will be used to communicate
weather information, market prices and market tips. In Zambia, ESAANet has developed a
platform utilising SMS technology. ESAANet is currently working with the conservation farming
units on the conservation agriculture content to upload on the platform.
Decision:
103. Council endorsed the decision of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that the Secretariat up-scales the
climate smart agriculture ICT to the remaining countries, by 2016.
Centre of Excellence for Dry Lands
104. Council was informed that pursuant to the decision of the Meeting of the Ministers of
Agriculture, Environment and Natural Resources held in 2011, the Secretariat had engaged a
consultant to explore the possibility of setting up a Centre of Excellence in Djibouti. The
feasibility study was concluded, recommending the centre as a viable proposition. The
consultant’s report was presented and endorsed at a regional validation workshop, held in
Djibouti in December 2014.
Decisions:
105. Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
iii.
Directed the Secretariat to mobilise resources to support the establishment
of the Centre of Excellence for Dry Lands by 2016;
Member States appoint national institutions, which will network with the
Centre; and
Member States fast-track the appointment of the focal points who will be
engaged on the establishment of the centre of excellence.
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Forestry Development
106. Council was informed that COMESA adopted a regional strategy on forestry
development in 2009 whose main objective is to improve productivity of the forestry sector and
enhance its contribution to the region’s economy. The Democratic Republic of Congo, Ethiopia,
Kenya, Madagascar and Uganda are benefitting from the Forestry Carbon Partnership aimed at
supporting reducing emissions from deforestation and forest degradation readiness activities.
Further, Burundi, Malawi, Zambia and Zimbabwe are being supported under the same
programme and these Member States have strategies in place, while Sudan and Zimbabwe
have commenced some work on readiness for the project. COMESA has engaged the Centre
for International Forestry Research (CIFOR) to support the implementation of forestry
enhancement pilot projects in Malawi and Zambia. A regional capacity building programme on
measurable reporting and verification is also being developed.
Decisions:
107. Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
Member States take note of the progress made on forestry development;
and
The Secretariat, in consultation with the Centre for International Forestry
Research, replicates the Reduced Emissions from Deforestation and
Degradation (REDD) Project in the remaining COMESA countries by 2016.
Seed Development Programme
108. Council was informed that access to quality seeds by the 80 million small-holder farmers
in the region is low at 23 percent. However, with the COMESA Seed Trade Harmonisation
Regulations in place, it is envisaged that farmers’ access to improved seed varieties will
improve. This will be achieved through simplified customs procedures, speedy variety release
and marketing; and elimination of inhibitive quarantine requirements without dissemination of
insect pests and diseases. Following the directive of the COMESA Ministers of Agriculture in
September 2013, ACTESA developed the COMESA Seed Harmonisation Implementation Plan
(COMSHIP), which is now operational and focuses on:
a.
b.
c.
d.
National seed regulatory reforms conducted in line with COMESA Seed Trade
Harmonisation Regulations,
Strengthening awareness and sensitisation of COMESA Seed Trade
Harmonisation Regulations,
Monitor and improvement of the implementation of COMSHIP, and
Small-holder farmer seed and crop productivity enhanced.
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Decisions:
109. Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
Adopted the COMESA Seed Trade Harmonisation Implementation Plan
(COMSHIP); and
Urged Member States to support implementation of COMSHIP at nationallevel.
Joint Fertilizer Procurement Initiative
110. Council was informed that after its approval by the Ministers of Agriculture, Environment
and Natural Resources in September 2013, COMESA through its specialized agency ACTESA
in collaboration with AFAP, has commenced implementing the fertilizer programme. In
collaboration with UNECA and the AU Commission, ACTESA undertook a study on the maize
value chain in Malawi, Uganda, Tanzania and Zambia, and livestock value chain in Ethiopia and
Botswana. Based on the studies ACTESA is in process of developing fully-fledged Livestock
and Maize value chain programmes.
Decisions:
111. Council endorsed the decisions of the Sixth Joint Meeting of Ministers of
Agriculture, Environment and Natural Resources that:
i.
ii.
iii.
iv.
v.
vi.
ACTESA should establish a fertilizer financing facility comprising a set of
financial instruments to spur rural transformation through investments in
small and medium enterprises working along the fertilizer value chain;
ACTESA should provide at least 500 of these enterprises with AFAP
Agribusiness Partnership Contracts (APCs) that will allow for sustained
business and technical support over the next 2-3 years in all Member
States starting in 2015;
ACTESA should continue developing and expanding the Eastern and
Southern Africa Fertilizer Trade and Investment Platform for: sustained
dialogue between the public and private sector regarding key policy and
regulatory issues affecting the performance of fertilizer markets in the
region; facilitation of regional fertilizer trade; and increased private sector
investment and engagement in the fertilizer industry;
ACTESA should establish an extensive network of trained and accredited
agro dealers to improve the availability and accessibility of fertilizer to
smallholder farmers (in particular, women and youth) in the region;
Urged Member States to support the implementation of the COMESA
fertilizer policy and regulatory framework to facilitate fertilizer trade and
investment; and
Urged Member States to adopt the Fertilizer Marketing and Distribution
Programme.
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REPORT OF THE EIGHTEENTH MEETING OF MINISTERS OF JUSTICE AND ATTORNEYS
GENERAL (for endorsement) (Agenda Item 7)
112. Council received the report of the 18th Meeting of Ministers of Justice and Attorneys
General, document reference: CS/LEG/MJAG/XVIII/9and noted the implementation of the
various legal and institutional affairs programmes in COMESA as follows:
Draft Amendments to the COMESA Competition Rules on the Determination of Merger
Notification Thresholds and Method of Calculation (2012)
113. Council noted the background of the Draft Amendments to the COMESA Competition
Rules on the Determination of Merger Notification Thresholds and Method of Calculation (2012).
It was noted that the Commission is responsible for implementing Article 55 of the COMESA
Treaty under which the COMESA Competition Regulations were adopted in 2004 by the
COMESA Council of Ministers. The Commission became operational in January 2013 when it
started enforcing the provisions of the Regulations. As part of the preparations for the
operationalization of the Commission, the Commission’s Board of Commissioners invoked the
provisions of Article 23(4) as read with Articles 15(2) and 39 of the COMESA Competition
Regulations and set the merger notification threshold at US $Zero with the approval of the
COMESA Council of Ministers in November 2012. With the approval of the Council in 2012, the
Commission revised the merger notification fees from 0.01% of the merging parties’ combined
annual turnover or value of assets in the Common Market to 0.5% or US $ 500,000, whichever
is higher.
114. Council noted that the business community and other stakeholders have raised
concerns with the zero thresholds since its effect is that all mergers where the parties have
operations in two or more Member States are to be notified to the Commission irrespective of
the size of the parties concerned and the effect of their merger in the Common Market. There
are also concerns that the merger notification fees are too high thereby discouraging investment
in COMESA. The Commission carried out wide consultations both at regional and international
levels on the concerns raised by the business community. The Commission also managed to
get assistance from the World Bank to review the merger control framework and come up with
proposals for the appropriate merger notification thresholds and fees.
115. The amendments to the Rules on the Determination of Merger Notification Threshold of
2012 are intended to set quantifiable thresholds to ensure that the COMESA merger control
framework captures only those transactions that have an effect within the Common Market. The
amendments also introduce provisions on the method of the calculation of the combined annual
turnover or the value of assets of the parties to a merger which issue was not addressed in the
2012 Rules. This is crucial as it brings clarity and certainty. With respect to the merger fees, the
Commission found that the current fees are among the highest in the world and the
amendments are intended to reduce the maximum fees from US $ 500,000to US $200,000. The
Commission made comparisons with a number of jurisdictions that charge merger filing fees in
the Common Market and other jurisdictions. The comparisons made the commission to arrive at
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the recommended merger filing fees as the optimum for the Common Market. The percentage
used in the calculation of the fees is also being reduced from 0.5% to 0.1%. This is intended to
increase investments in COMESA by having more companies notifying their transactions and
not hiding behind the corporate veil trying to evade high notification fees; and the amendments
also provide for Form 12 that outlines the manner in which merger notifications should be made.
116. Council further noted the proposed amendments of the Rules on the Determination of
Merger Notification Thresholds and Method of Calculations as follows:
a.
Rule 1- Citation: The word “citation” was not correctly translated in French and
there is need for amendment to align it to the English text. Accordingly the
French Text should be amended accordingly to ensure that the correct
translation of the word “citation” in French is used so as to align it with the
English text.
b.
Rule 2 – Interpretation: There were a number of abbreviations and acronyms that
had been used in the Rules which had not been interpreted in the Regulations
and therefore would make the understanding of the Rules difficult to the reader.
In accordance with precedence and the need to make the Rules user friendly,
there is need to have an interpretation section in the Rules.
c.
Rule 4 - Notification Thresholds: Paragraphs (a) and (b) are cumulative and
therefore the Rule should be amended to reflect the cumulative nature of the
provision; and there is need to qualify the word “firm” in order to indicate that we
are talking of two different firms namely an “acquiring firm” or a “target firm” and
not a joint “acquiring and target firm”. The meeting noted the need to use “at
least” as opposed to “more than” when referring to the two thirds aggregate turnover. The amendment was necessitated by the fact that with the current
thresholds even very small firms engaging in mergers without effect in the
Common Market need to notify the Commission.
d.
Rule 5 - Method of Calculation of Annual Turnover and Assets: The title is
amended to read “Method of Determination and Valuation of Annual Turnover
and Assets.” This was done in order to avoid repetition in the sub-heading under
Sub-rule 5 (3); the term “Generally Accepted Accounting Practice” was not
defined hence is liable to misinterpretation and it is important that the term be
defined and relocated to the new sub Rule 3 since it is also part of the method of
calculation of annual turnover and valuation of assets; some of the sub-titles in
the rule did not reflect their actual contents and therefore introduced ambiguities
and to remove the ambiguities the sub titles in the Rule be revised as follows:
i.
ii.
iii.
e.
Valuation of Assets
Determination of Annual Turnover
Method of Calculation of Annual Turnover and Valuation of Assets
Rule 6 - Entry into Force: The provision on the entry into force of a piece of
legislation is normally the last provision and therefore this provision should be
moved to the end of the Rules as Rule 8 with the current Rules on “Amendment
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of Rules” and “Repeal of the Rules on the Determination of Merger Notification
Threshold, 2012” being renumbered 6 and 7 respectively.
Decision:
117. Council adopted the draft amendments to the COMESA Competition Rules on the
Determination of Merger Notification Thresholds and Methods of Calculation 2012.
Draft Amendments to COMESA Competition Rules, 2004
118.
Council noted the amendments to the COMESA Competition Rules as follows:
a.
Title and Chapeau: Although the title of the Rules was not in line with the practice
with regards to amendments at national level, the Ministers noted that the SubMinisters had agreed not to change the title since COMESA needs to develop its
own style in view of the varied practices in Member States; and that there is need
to insert a chapeau as a prefix to the amendments just after the title.
b.
Rule 1- Citation and Numbering: There is no citation provision for reference
purposes as is the practice and therefore a citation provision should be inserted;
and the amendments need to be numbered.
c.
Rule 2- Amendments to Rule 2 of the COMESA Competition Rules: There is
need to adopt an appropriate numbering for the new definitions that were being
inserted within the existing definitions without upsetting the current numbering of
the existing paragraphs within Rule 2(2); and there is need to split the inserted
definition of “Ministers” and “firm” and not lump them together.
d.
Rule 3: Amendment of Rule 55 of the Principal Rules: The Ministers noted that
there was need to amend the title to read “Replacement of Rule 55 of the
principal rules. They also noted the need to recast rule 55(8) in line with the
wording of the replaced Rule 55 in order to ensure that the Commission is not left
with wide discretionary powers in reference to the notification of non notifiable
mergers. The Ministers agreed to recast the chapeau to the amendments to Rule
55; and further noted the withdrawal by the Commission of the Appeals
procedure for further consultations and consideration by the Competition
Commission’s Board.
Decisions:
119.
Council made the following decisions:
i.
Adopted the draft amendments to the COMESA Competition Rules (2004)
outlined in the preceding paragraphs.
ii.
Council further endorsed the following decisions of the Eighteenth Meeting
of COMESA Ministers of Justice and Attorneys General:
a.
The COMESA Competition Commission reconsiders the appeal
procedure and the cost implications of the procedure; and
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b.
The consideration of the amendments on the appeals be deferred
until the outstanding issues have been addressed by the
Commission.
General Provision
Official Languages of COMESA
120. Council noted that Article 9 of the COMESA Competition Rules (2004) does not include
Arabic as an official language of COMESA and hence should be amended to include Arabic as
the fourth official language of COMESA in line with the Treaty.
Decision:
121. Council adopted the amendment of Rule 9 of the COMESA Competition Rules to
include Arabic as an official language.
Form 12
Notice of Merger
122. Council was informed that Form 12 on Notice of Mergers, which is currently being used
by the Commission since the year 2012, was not prescribed as required by the Regulations
hence the proposal to have the Form 12 prescribed through an amendment to the COMESA
Competition Rules (2004). The form needs to cite the authority under which it is made in terms
of the enabling provision. The enabling clause for the development of the Form in issue is
Article 24(3) of the COMESA Competition Regulations as read with Rule 55 of the COMESA
Competition Rules respectively. The enabling clauses should be inserted at the beginning of the
Form.
123. Under Section IX of the Form, some of the certified documents that the merging parties
were required to produce were difficult to certify due to their nature and size and therefore
documents such as technical reports and other related documents should be removed from the
list of those required to be certified. Further, there is need to be consistent in the form by using
the term “firm” in place of “undertaking” as this is the term used in the Rules on Notification
Threshold.
124. Under the part “form instructions”, there is need to include the instruction in Merger
Assessment Guidelines regarding the mode of notification. Under the executive summary of the
Merger Information, the words “up to 500” should be put in the preceding paragraph and
deleted from the paragraph below; and under section IX titled “service of documents” the word
“procedure” should be replaced with the word “notification”.
Decision:
125.
Council adopted the revised Form 12.
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Report on the Status of Signature, Ratification and Domestication of COMESA Legal
Instruments
126. Council was informed that the Common Market has developed a number of legal and
legislative instruments that forms the basis of the implementation of the COMESA Integration
Agenda. Article 195 of the COMESA Treaty provides for the creation of a depository for the
storage of COMESA Legal Instruments. There is need for domestication of COMESA legal
instruments at the Member State level in order to give full effect to the COMESA regional
integration agenda. Article 26 as read with Article 27 of the Vienna convention on the Law of
Treaties provides that every Treaty in force is binding upon the parties to it and must be
performed in good faith. Thus, there is need to provide updated records of instruments signed
and ratified by each Member State in order to update current records in the Secretariat.
127. Council was further informed that the Republic of Mauritius held National Workshop on
Domestication of COMESA Legal Instrument with the technical advisory services of the
Secretariat aimed at addressing outstanding issues in relation to signature, ratification and
domestication of COMESA legal instruments; and the Secretariat is ready to provide technical
services to Member States that are ready to have national workshops aimed at addressing
issues in relation to signature, ratification and domestication and that Member States can also
apply for resources for the holding of such workshops.
Decisions:
128. Council endorsed the following decisions of the Eighteenth Meeting of COMESA
Ministers of Justice:
i.
Member States should update information on the domestication of Legal
Instruments at the Member States;
ii.
Member States assist the Secretariat with the following documents:
a.
b.
c.
d.
Copies of Legal Instruments that have been deposited with the COMESA
Official Depository;
Copies of Gazettes through which the domestication of Legal Instruments
of COMESA were published;
Copies of other bilateral trade and investment agreements that Member
States have notified to COMESA; and
Any other relevant information and related copies in relation to signature,
ratification and domestication of legal instruments.
iii.
Member States work with the Secretariat to domesticate instruments that have not
yet been domesticated at the national level;
iv.
Member States be urged to comply with the decision of Council on the signing of
outstanding legal instruments ,the depositing of ratification instruments with the
Secretariat and on reporting on domestication of COMESA legal instruments to
the Secretariat; and
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v.
Commend the Republic of Mauritius for the holding of a National Workshop aimed
at addressing outstanding issues in relation to signature, ratification and
domestication of legal instrument.
Progress Report of the COMESA Court of Justice
Work Plan
129. Council was informed that the objectives of the Court of Justice’s work plan for 2014
were largely achieved with the Court holding three Court sessions for the Appellate Division and
one for the First Instance Division by December, 2014. Two training sessions were also held for
the Judges in June and July, 2014. Publicity seminars have not been held as planned due to the
fact that dates coincided with other meetings of COMESA Organs.
Pending Cases
130. The Appellate Division met from 24 to 26 April 2014 and from the 08 to 10 September
2014 to hear an Application to the Court for an advisory opinion under Article 32 of the
COMESA Treaty. The second case that was before the Appellate division was a pending
appeal that was to be heard during the September Court session but the parties consented to
have it taken out of the cause list.
131. The First Instance Division deliberated on and delivered a decision in a pending
preliminary application between Collins Hwalima Dube and COMESA Secretariat from 17 to 18
September 2014.
132. The Appellate Division met from 11 to 12 December 2014 and deliberated on the
application for an advisory opinion. The ruling was delivered on 05 February 2015. The Division
was also scheduled to hear a pending Appeal No. AD. 1 of 2013 - the Republic of Mauritius Vs.
Polytol Paints and Adhesives Manufacturers Co. Limited but the same was marked as settled
on 06 February 2015 in terms of a consent filed by both parties.
133. The First Instance Division heard a pending reference between Collins Hwalima Dube
and COMESA Secretariat on 02 February 2015. The same was adjourned to May 2015 on
application by the Defense Counsel.
Training for Judges
134. Council was informed that the Honourable Judges were trained on International Dispute
Resolution starting with an Introduction to International Arbitration from 11 to 12 June 2014.
The second part of the training was held from 28 July to 01 August 2014. The last part of the
training was to be held from 28 October to 01 November 2014 in Kigali, Rwanda but was
postponed due to constraints of funding and also the fact that the dates coincided with the
meeting of the Audit and Budgetary Sub-Committee.
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Publicity Seminars
135. Council was informed that in 2014 publicity of the Court’s activities was greatly
enhanced through collaboration with the Public Relations Unit of COMESA Secretariat which
has regularly published information on the activities of the Court on the COMESA web site,
COMESA e-newsletter and mainstream media. The Court had planned to hold two Publicity
Seminars on 15 September 2014 in Khartoum, Sudan and on 27 October 2014 in Kigali,
Rwanda but both could not take place due to other meetings that coincided with those dates.
The Court will intensify publicity activities through taking part in Law Societies continuous
professional development seminars and as well as through meetings of the Business Council of
COMESA and other stake holders.
Seat of the Court
Handover of the Court Building
136. Council was informed that following the decision of the Thirty-Second Council of
Ministers Meeting held in Kinshasa, Democratic Republic of Congo from 22 -23 February, 2014
and the decision of the Fifteenth Administrative Meeting of the Court that met in Lusaka from 28
to 29 April 2014, that a mission be sent to Khartoum, Sudan to evaluate the COMESA Court of
Justice Building, a mission comprising the Honourable Dr Justice Tadesse, the Registrar and
the Administrative and Finance Officer took place from 06 to 14 May 2014. The team from the
Court accompanied the engineers appointed by the Secretariat who were to make a final
assessment before the building could be handed over to the Court. Based on the assessment
made by the engineers and their discussions, the building was declared ready for use and
handover to the Court. The building is well equipped with furniture and equipment.
137. The handover ceremony of the COMESA Court of Justice building by the Minister of
Justice Honourable Mohammed Dousa to the Assistant Secretary General, Administration and
Finance, Ambassador Nagla El-Hussainy and later to the Registrar was held in Khartoum,
Sudan on Thursday, 26 June 2014.
Current State of the Court Building
138. Some of the issues that had been raised in previous missions regarding the state of the
Court building are currently being addressed by the Sudanese Government. The official
inauguration ceremony of the Court Building was held on 05 March 2015. The ceremony was
conducted by the Vice President of the Republic of Sudan, His Excellency Dr Hassabo
Mohammed Abd El-Rahman, and was attended by Judges of the Court and COMESA Ministers
of Justice and Attorneys-General.
Host Agreement
139. The issues that had been raised by the Court relating to diplomatic immunities and
privileges of the Court are being addressed by the Sudanese Government comprehensively so
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as to implement the Host Agreement and the Treaty provisions. The Government of the
Republic of Sudan expressed its commitment to the implementation of the host agreement.
Decision:
140. Council commended the Government of the Republic of Sudan for putting up and
furnishing the Court building.
Relocation to Sudan
141. Council was informed that the Twenty First Meeting of the Bureau of Council of Ministers
held on 12 September 2014 in Lusaka, Zambia approved a supplementary budget for the
relocation of the Court to Khartoum, Sudan. All staff relocated to Sudan in December 2014 and
the Court has begun its operations from Sudan in earnest.
ICT Development
142. Council was informed that during the Sixteenth Administrative Meeting of the COMESA
Court of Justice held Khartoum, Sudan from 14 to 15 September 2014, the Court decided to
continue developing its ICT in order to facilitate research, communication, publicity and
accessibility of its services. This includes the installation of appropriate hardware and software
as well as servers and the implementation of a case flow management system so as to have a
fully automated case management system.
Regularization of Tenures of Office of the Judges of the Court
143. Council recalled that the Seventeenth COMESA Summit of the Authority of Heads of
State and Government which took place in Kinshasa, Democratic Republic of Congo, on
27February 2014 regularized the appointment of five Judges of the Court as follows:
a.
b.
c.
d.
Honourable Justice Kheshoe P. Matadeen, (Mauritius) (Appellate Division);
Honourable Justice Duncan G. Tambala, (Malawi) (Appellate Division);
Honourable Justice Luke Malaba, (Zimbabwe) (First Instance Division);
Honourable Justice James Munange Ogoola, (Uganda) (First Instance Division)
by extending their tenures for a period of two years from 03June 2013; and
e. Honourable Justice Hortense Rabenjarivelo née Rakotomena, (Madagascar)
(First Instance Division) by issuing a letter extending her tenure of office to 03
June 2015.
Recruitment
144. Council recalled that the Twenty First Meeting of the Bureau of Council of Ministers held
on 12 September 2014 in Lusaka, Zambia approved the request of the COMESA Court of
Justice to recruit an Assistant Registrar at P4 in view of the current manpower requirements of
the Court. The Court intends to advertise for the post of Internal Auditor as soon as the Job
Description for the Assistant Registrar is approved by this Meeting. This is so that both posts,
which fall within the Professional Category, can be advertised together in all the Member States
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as provided under the Treaty thereby saving on costs. A Finance Assistant will be also be
recruited locally in Sudan as soon as the Court is settled in Sudan.
Decision:
145. Council endorsed the decision of the Eighteenth Meeting of COMESA Ministers of
Justice and Attorneys-General adopting the Job Description for the Assistant Registrar.
Audit Reports
146. Council was informed that the Internal Auditors of COMESA Secretariat and External
Auditors audited the Court for the financial year ending 31 December 2013. The Reports were
presented to and approved by the Policy Organs Meetings held in Lusaka, Zambia in
December, 2014.
Recommendation on Confirmation of the Registrar
147. Council was informed that the Seventeenth Administrative Meeting of the Court held
from 03 to 04 February 2015 in Lusaka, Zambia discussed the recommendation for the
confirmation of the Registrar who had completed one year of probation and she has since been
confirmed in her position.
Payment of Gratuity to Judges of the COMESA Court of Justice
148. Council recalled that the Court of Justice is established in terms of Article 7 of the
COMESA Treaty. Article 19(1) as read with Article 20 of the Treaty, which further provides that
the Court of Justice shall consist of a First Instance Division that has seven Judges that preside
over matters in it and the Appellate Division, which has five Judges who preside over matters
thereat in terms of Article 20(1) of the Treaty.
149.
All the Judges of the Court of Justice are appointed by the Authority, including the
Judge President of the Court who sits in the Appellate Division of the Court and the Principle
Judge who heads the First Instance Division of the Court.
150. The tenure of office for a sitting judge in the COMESA Court of Justice is a period of five
years, renewable for a final term of five years in terms of Article 21 of the Treaty. The COMESA
Treaty does not stipulate the working terms and conditions of the Judges but the same are
determined by the COMESA Council of Ministers on the recommendation of COMESA Ministers
of Justice and Attorneys General. The working terms and conditions of the judges are outlined
in the contracts that the Judges are issued by the Chairperson of the Authority.
151. During the establishment of the COMESA Court of Justice, on the advice of COMESA
Ministers of Justice and Attorneys-General, the COMESA Council of Ministers in 1997decided
that apart from the Registrar and other administrative officials of the Court who are full time
workers, the Judges of the Court shall be appointed on an ad hoc basis, sitting when there is
work for them until the workload of the Court Justifies the permanent sitting of the Court. The
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budget under the authority of the Court which is borne by Member States is approved by the
COMESA Council in Article 42 of the Treaty.
152. Council was informed that the outgoing Judges of the COMESA Court of Justice had
made a formal request for the payment of gratuity and in response to the request the
Secretariat carried out the following:
a.
Internal consultations with relevant divisions within the Secretariat and the
Registrar of Court of Justice who presented the case of the Court to the Justice;
b.
Developed a paper on the proposal for Judges’ Gratuity following a decision of the
Twenty First Meeting of the Bureau of Council of Ministers Meeting which was held
in Lusaka, Zambia from 11 to 12 September 2014; and
c.
Presented the paper on the payment of Gratuity to Judges of the Court the
Eighteenth Meeting of Ministers of Justice and Attorneys General which was held
on 04 March 2015 in Khartoum, Sudan.
153. Council was informed that there is no legal basis for the payment of gratuity to the
judges of the Court of Justice. The Terms and conditions contained in the Judges’ letters of
appointment did not include the payment of gratuity. The comparative analysis made could not
be used to justify the payment of gratuity without considering the volume of work of each Court
or Tribunal; and consideration should also be given to affordability and budgetary implications
before a policy decision is made on the payment or non- payment of gratuity.
154. Council recognizes the immense contributions of the Judges during their terms of
service. In principle there is agreement as to the need to pay a gratuity however there is need
for the development of a legal framework in order to implement the payment of gratuity. The
Ministers also pointed out the need to consider the availability of resources to pay such gratuity.
Decisions:
155. Council endorsed the following decisions of the Eighteenth Meeting of COMESA
Ministers of Justice and Attorneys General:
i.
Having due regard to the immense contribution of the Judges during their
tenure, there is no legal basis and justification to support the payment of
gratuity;
ii.
Since the issue of payment of gratuity is a policy issue with financial
implications, in line with Article 7(2) of the Treaty, the matter should be
considered by the appropriate technical committee before being forwarded
to Council for a decision; and
iii.
The terms and conditions of service of the COMESA Court of Justice Judges
be reviewed holistically by the Council of Ministers.
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Election of Judges of the COMESA Court of Justice
156. Council was informed that the Secretariat called for nomination of candidates for the
positions of Judges of the COMESA Court of Justice. The decision to call for the nominations is
pursuant to the Decision of the Thirty-Second Meeting of the COMESA Council of Ministers
which was held in Kinshasa, Democratic Republic of Congo (DRC) from 22 to 24 February
2014. That decision was an endorsement of the one made by the Seventeenth Meeting of
COMESA Ministers of Justice and Attorneys-General that decided that in order to ensure
continuity of the Court, in the event that all the Judges have served the mandatory ten years
and hence not eligible for re-appointment, the procedure for appointment of new Judges of the
COMESA Court of Justice should commence at least six to twelve months prior to the expiry of
the term of outgoing Judges to ensure continuity.
157. Under Article 21(1) of the Treaty, it is provided that the President and Judges of the
Court shall hold office for a period of five (5) years and shall be eligible for re-appointment for a
further five years. Article 21(2) further provides that the President and the Judges shall hold
office throughout the term of their respective terms unless they resign or die or are removed
from office in accordance with the provisions of the Treaty.
158. Article 22 of the COMESA Treaty provides that the President or a Judge shall not be
removed from office except by the Authority for stated misbehavior or inability to perform the
functions of his office due to infirmity of the mind or the body or due to any other specified
cause.
159. Council was informed that the current composition of the President and Judges of the
COMESA Court of Justice as per the appointments made by the COMESA Authority through the
Final Communiqué of the Thirteenth Summit of the COMESA Authority of Heads of State and
Government which was issued at Victoria Falls Town, Zimbabwe on 08 June 2009 is as follows:
Appellate Division
a.
b.
c.
d.
e.
Honourable Justice Nzamba Kitonga (SC), (Judge President) (Kenya) ;
Honourable Justice Ernest Linesi Sakala, (Zambia);
Honourable Justice Borhan Mohamed Tawhid Amrallah (Egypt);
Honourable Justice Kheshoe P. Matadeen, (Mauritius); and
Honourable Justice Duncan G. Tambala, (Malawi).
First Instance Division
a.
b.
c.
d.
e.
f.
g.
Honourable Justice Samuel Rugege (Principal Judge) (Rwanda)
Honourable Justice Adrien Nyankiye (Burundi);
Honourable Justice James Munange Ogoola (Uganda);
Honourable Justice Menberetsehai Tadesse (Ethiopia);
Honourable Justice Luke Malaba (Zimbabwe);
Honourable Justice Stanley B. Maphalala (Swaziland); and
Honourable Justice Hortense Rabenjarivelo neé Rakotomena (Madagascar).
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160. The current Judges of both current benches of the Court, that is both the Appellate
Division and First Instance, were initially appointed with effect from 03 June 2005 and their
terms were renewed through the appointments that the Authority made during its Thirteenth
Summit which was held at Victoria Falls Town, Zimbabwe on 08 June 2009.
161. Unlike the initial appointment which was made for five years for each Judge, when the
appointments were renewed, some of the Judges were appointed for a period of three years in
order to ensure continuity and not to allow periods when they would be no Judges at the Court.
The Seventeenth Summit of the COMESA Authority which was held on 27 February 2014
regularized the appointment of these Judges to five years so that there is total compliance with
Article 21 of the COMESA Treaty. This therefore means that at the end of the Judges tenure,
which shall be 03 June 2015, all the Judges shall have served a total period of ten years and
therefore are not eligible for re- election.
162. Council recalled that the Thirty-second Meeting of COMESA Council of Ministers
decided that in order to ensure continuity of the Court, in the event that all the Judges have
served the mandatory ten years and hence not eligible for re-appointment, the procedure for
appointment of new Judges should commence at least six to twelve months prior to the expiry of
the term of the outgoing Judges. Council was informed that to therefore, ensure continuity, the
Eighteenth Meeting of COMESA Ministers of Justice and Attorneys-General elected Judges to
be considered for appointment by the COMESA Authority at its next Summit.
163. Council was further informed that the election of the Judges was done according to the
Rules of Procedure for the Election of the Judges of the COMESA Court of Justice(2005) which
inter alia provide as follows:
a.
Each State should nominate a candidate to the Court having the qualifications
stipulated under Article 20 of the Treaty;
b.
Nominations are then forwarded to the Secretariat for onward transmission and
consideration by a Meeting of Ministers of Justice and Attorneys General;
c.
The Meeting of COMESA Ministers of Justice and Attorneys-General sitting as
an election panel should recommend five nominated candidates to the electoral
college. Those with the highest votes will be forwarded as candidates for
appointment as Judges of the COMESA Court of Justice - Appellate Division;
d.
The Meeting of COMESA Ministers of Justice and Attorneys General sitting as an
election panel should recommend seven of the nominated candidates with the
next highest votes for appointment as Judges of the COMESA Court of Justice –
First Instance Division;
e.
In line with Article 20(4) of the Treaty, COMESA Ministers of Justice and
Attorneys-General should make a recommendation of the candidate with the
highest votes of the first five Judges to be appointed Judge President of the
COMESA Court of Justice; and
CS/CM/XXXIV/8
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f.
In line with Article 20(5) of the Treaty, COMESA Ministers of Justice and
Attorneys General should make a recommendation of the candidate with the
highest votes of the seven Judges to be appointed to the First Instance Division
as Principal Judge of the COMESA Court of Justice.
Recommendation:
164. Based on the results of the electoral process carried out in accordance with the
rules for the election of judges in COMESA by the Eighteenth Meeting of COMESA
Ministers of Justice and Attorneys-General, Council recommends to the Authority the
following appointments:
Appellate Division
i.
ii.
iii.
iv.
v.
Judge President: Honourable Justice Ms Lombe P. Chibesakunda, (Zambia)
Judge Honourable Justice Mr David Chan Kan Cheong, (Mauritius)
Judge Honourable Justice Mr Michael Charles Mtambo, (Malawi)
Judge Honourable Justice Mr Abdalla Elamin El Bashir, (Sudan)
Judge Honourable Justice Mr Wael Marodouh HassanYoussef Rady (Egypt)
First Instance Division
i.
ii.
iii.
iv.
v.
vi.
vii.
Principal Judge: Honourable Mr Justice Andrew Mutema, (Zimbabwe)
Judge Honourable Justice Mr Leonard Gacuko, (Burundi)
Judge, Honourable Justice Mr Ali Sulaiman Mohamed, (Ethiopia)
Judge, Honourable Justice Ms Mary N. Kasango, (Kenya)
Judge, Honourable Justice Ms Qinisile Mabuza, (Swaziland)
Judge, Honourable Justice Mr Benard Derek Errol Victor Georges,
(Seychelles)
Judge, Honourable Justice Ms Clotilde Mukamurera, (Rwanda)
REPORT OF THE 10TH MINISTERIAL MEETING OF THE COMESA FUND COMMITTEE (for
endorsement) (Agenda Item 8)
165. Council received the report of the 10th Ministerial Meeting of the COMESA Fund
Committee. Council was informed that the COMESA Fund Committee held in Lusaka, Zambia
on 09 December 2014 considered the overall progress under the RISM programme and the
status of disbursements of 2012 and 2013 RISM resources approved under the previous calls
for submissions. The IC also noted that as at the beginning of March 2015, due diligence
missions had been undertaken to Comoros, Djibouti, DR Congo, Madagascar, Malawi, Sudan,
Swaziland, Zambia and Zimbabwe in line with COMESA’s financial rules and regulations to
facilitate grant disbursements. In addition, short term experts were engaged to provide support
in terms of project formulation and set up. Further, Madagascar and Ethiopia made their
assessed contributions to the COMESA Fund in November 2014 and January 2015 respectively
bringing the total contributions to US $6,981,343 which represents about 70 percent of the total
assessed contributions of US $10 million.
CS/CM/XXXIV/8
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166. Council also noted that the COMESA Fund Ministers considered responses under the
5th call for submissions and approved a total of €11,981,130 to thirteen Member States. The
five addenda to the RISM grant agreements had been signed for the budget support countries
of: Burundi, Kenya, Mauritius, Rwanda and Seychelles - and only one grant agreement with
Ethiopia remained outstanding. Disbursements to Kenya, Mauritius and Rwanda were made
while payments for Burundi and Seychelles are being processed.
167. With regards to the deadline for project formulation and signature, Council noted that the
Secretariat is providing technical support to the project eligible countries, in the formulation
process. It is expected that by the deadline of 08 May 2015, project documents would have
been signed for Comoros, Madagascar, Malawi, Sudan, Swaziland, Uganda and Zambia.
168. The Tenth COMESA Fund Ministerial Committee also approved the 2015 work plan
whose main focus is the launch of the 6th call for submissions after the approval of the rider to
the RISM consolidation financing decision. The rider is expected to: modify the performance
indicators laid down in the performance assessment framework of the RISM consolidation
programme; increase the implementation period of the programme; and allow the use of
COMESA procedures in certain cases under project-based support. The 6th call for
submissions will focus on assessment of performance on indicator targets set for 2014 and also
consider progress made in achieving 2015 targets.
169. Council was further informed that the COMESA Fund Committee also considered the
concept paper on the CAF sustainability strategy. The Secretariat submitted the approved
concept paper to Member States for comments and has commenced drafting of the CAF
sustainability strategy.
Discussion:
170. Council was informed that the Government of Seychelles is grateful for COMESA’s role
in developing the framework for the CAF through the use of the RISM framework. Similarly,
Seychelles appreciated the financial support from the European Union and informed Council
that the country’s participation in the COMESA Fund has been largely beneficial to Seychelles.
As a small nation with international responsibilities, Seychelles undertakes commitments which
sometimes result in the re-alignment of its national policies. This often has associated costs
which in turn exert pressure on the country’s human and financial resources. Therefore, the
CAF/RISM framework provides the necessary support for the country to set up the required
structures and adjustments. The CAF/RISM is a remarkably efficient development tool for the
countries of the COMESA region. During the past four years, the region has made tremendous
progress towards regional harmonisation and, therefore, Seychelles reiterated its support for the
continuation of RISM.
CS/CM/XXXIV/8
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Decisions:
171. Council endorsed the decision of the 10th Ministerial Meeting of the COMESA Fund
Committee that:
i.
ii.
iii.
iv.
Urged Member States through the National Inter–Ministerial Coordinating
Committees (NIMCC) establish the status on achievement of the 2014
targets and collect relevant sources of verification in anticipation of the
sixth call for submissions;
Urged Member States to follow-up and plan for implementation of the 2015
targets so as to secure RISM allocations for 2016;
Urged Member States to provide comments on the concept paper of CAF
sustainability strategy by 7 April 2015; and
Directed the Secretariat to finalize the CAF sustainability strategy and
present it to the next meeting of the COMESA Fund Ministerial Committee.
APPOINTMENT OF COMMISSIONERS OF THE COMESA COMPETITION COMMISSION (for
endorsement) (Agenda Item 9)
172. Council received the report on the appointment of Commissioners of the COMESA
Competition Commission, document reference: CS/LEG/MJAG/XVIII/2. Council was informed
that the current Board was appointed by the Council of Ministers in October 2011. The
Commissioners were appointed on a three year term effective 08 October 2011; as per Articles
13 and 14 of the Competition Commission regulations. The term of office of the current Board
came to an end on 07 October 2014 hence the need to constitute another Board to ensure that
there is no gap in the oversight role at the Commission.
173. Council was informed that pursuant to Article 13(1) of the regulations of the Competition
Commission, the Board shall consist of not less than nine (9) and not more than thirteen (13)
Commissioners appointed by Council on the recommendation of the Secretary General. Further,
the Secretary General is given the authority to nominate individuals from Member States to be
appointed to the Board of the Commission. The individuals to be appointed as Commissioners
are nominated on their ability and experience in competition law and policy, industry, commerce,
public administration, labour, economics, law, consumer protection and small scale business
matters, pursuant to Article 13(3) of the regulations.
174. The nominations of the Secretary General are to reflect the regional character of the
Common Market. In order to ensure Member States’ involvement in the appointment of the
Commissioners, the Secretary General has developed a practice whereby he solicits from
Member States to submit names of suitable candidates for consideration for the position of
Commissioner.
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175. Article 14(1) of the regulations stipulates that the Commissioners shall hold office for an
initial term of three (3) to five (5) years and no Commissioner may serve for more than two (2)
terms.
176.
Council was informed that currently the Board consists of 10 members as follows:
1
2
3
4
5
6
7
8
9
10
Name of Commissioner
Alexander J Kububa
Matthews Chikankheni
Ali Mohammed Afkada
Chilufya Sampa
Daniel Gappy
Thabisile Langa
Francis Kariuki
Rostom Omar Rostom
Rajeev Hasnah
Jean Kyazze
Country
Zimbabwe
Malawi
Djibouti
Zambia
Seychelles
Swaziland
Kenya
Egypt
Mauritius
Uganda
177. The tenure of office for all the Commissioners expires on 07 October 2014. Since the
appointment of all the Commissioners apart from the ones from Uganda and Zimbabwe was
done on the same date the others having served for only one term are eligible for renewal for a
further term of three to five years.
Discussion:
178. Council was requested to remove the nominee submitted by Mauritius, and informed that
a new nominee would be forwarded by Mauritius as soon as consultations are completed by the
Member State.
179. Council was informed that the Competition Commission is critical for the governance of
the competition sector in the region. It was noted that it was important to also inform all Member
States at the time of renewal of the Board, and not only those Member States that are
nominating candidates to the Board for the first time.
Decisions:
180.
Council endorsed the decisions of the COMESA Competition Commission that:
i.
ii.
All the members who have completed their tenure for the first time should
have their term renewed for a further term of three years;
The nominations solicited from Egypt and Seychelles that expressed
written intention to change their representation on the Board be considered
for appointment;
CS/CM/XXXIV/8
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iii.
iv.
v.
1
2
3
4
5
vi.
Name of Commissioner
Matthews Chikankheni
Ali Mohammed Afkada
Chilufya Sampa
ThabisileLanga
Francis Kariuki
Country
Malawi
Djibouti
Zambia
Swaziland
Kenya
Status
For renewal
For renewal
For renewal
For renewal
For renewal
Council appointed the following new Commissioners:
1
2
3
4
5
6
6
vii.
The Commissioner from Zimbabwe, Mr Alexander Kububa, who has served
two terms on the Board, be replaced, in accordance with Article 14(1) of the
Regulations;
The Secretariat should solicit for a new nomination from Zimbabwe and
Mauritius;
In order to balance the official languages and attain a balanced geographic
distribution, nominations submitted from Ethiopia, Democratic Republic of
Congo and Uganda be considered for appointment; Council renews the
tenure of the following Commissioners:
Name of Commissioner
Dr
Amira
Abdel
Ghaffar
Mohamed,
Senior
Legal
researcher, Egyptian Competition
Commission
Nominee to be submitted after
internal consultations have been
finalised at national level
Mr Merkebu Zeleke Seme, Head
of the Competition Authority,
Ethiopia
Nominee to be submitted after
internal consultations have been
finalised at national level
Mr Patrick Okilangole
Nomination to be submitted after
recruitment of new Head of
National Competition Commission
Georges
Jude
Emmanuel
TIRANT
Country
Egypt
Status
New nominee
Mauritius
New nominee
Ethiopia
New nominee
Congo DR
New nominee
Uganda
Zimbabwe
New nominee
New nominee
Seychelles
New nominee
And the Secretariat should inform all Member States at the time of renewal of the
Board, and not only those Member States that are nominating candidates to the
Board for the first time.
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REPORT OF THE THIRTY FOURTH MEETING OF THE INTERGOVERNMENTAL
COMMITTEE (Agenda Item 10)
181. The Chairperson of the Intergovernmental Committee, Mr Admassu Nebede Gedamu,
Director, Ministry of Finance and Economic Development of the Federal Republic of Ethiopia
presented the Report of the Thirty Fourth Meeting of the Intergovernmental Committee meeting
that was held from 22 to 24 March 2015 in Addis Ababa, Ethiopia. The report (document
reference: CS/IC/XXXIIII/9), which was prepared in compliance with the provisions of the
Treaty to facilitate deliberations and decision making by the Council and Authority, was
presented as follows:
MINISTERIAL REPORTS
182. Council was informed that some of the decisions in the Sectoral Ministerial reports that
were presented to IC for noting contained observations that had been highlighted as decisions.
Therefore, during the presentation of the sectoral ministerial meeting reports to Council, the
focus should only be on the decisions that require the endorsement of Council, and not
observations. The Secretariat is to prepare a brief to Council, focusing only on the actionable
decisions in order to facilitate quick decision making by Council.
Decisions:
183.
Council decided that in line with Articles 9(c) and 10 of the COMESA Treaty:
i.
The Secretariat should, while preparing sectoral ministerial reports to
Council, present only actionable decisions; and
ii.
In preparing Sectoral Ministerial Reports to Council, the Secretariat should
reflect observations in the record of discussions, and not as decisions.
TRADE AND CUSTOMS
Customs Union
184. Council was informed that the inaugural meeting of the Heads of Customs
Subcommittee was convened on 5 – 6 February 2015 in Nairobi, Kenya and the Second ExtraOrdinary Trade and Customs Committee meeting was on 9-11 February 2015 in Nairobi, Kenya.
The Report of the Heads of Customs was presented to the Trade and Customs Committee
meeting. The report of the Inaugural Meeting of the Sub-Committee of Heads of Customs is
document reference: CS/TCM/HOC/1/7.
185.
Council noted that the Sub-committee of Heads of Customs:
a.
b.
Was formally inaugurated and will meet as a subcommittee of the Trade and
Customs Committee;
Adopted its work programme as set out in the report of its meeting;
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c.
d.
e.
f.
Established the Customs Regulations Committee as provided for under the
Customs Management Regulations;
Established an ad hoc working group of experts to assist address the issue of
tariff splits which Member States wish to be added to the CTN and requested
Member States to submit their tariff splits by 31 March 2015;
Re-affirmed the application of the principle of variable geometry to the Customs
Union, in accordance with previous decisions of the Council; and
Requested each Member State to submit by 25 April 2015 the profile of the
status of implementation of the Customs Union instruments, namely, the
Customs Management Regulations, the Common Tariff Nomenclature, and the
Common External Tariff; which will be show which Member States and to extent
to which they are implementing the Customs Union.
Discussion:
186. Council noted the critical role of the Heads of Customs in implementation of the customs
and trade facilitation programmes of COMESA and welcomed the reinstitution of the SubCommittee of Heads of Customs.
187. Council further noted the importance of regular meetings of the Sub-Committee in order
to advance programme implementation. Council adopted the outcomes of the Inaugural Meeting
of the Sub-committee of Heads of Customs document reference: CS/TCM/HOC/1/7.
Decision:
188. Council decided that the Sub-Committee should hold its meetings at least once
every six months.
Trade in Services
189. Council was informed that the Trade and Customs Committee meeting recalled that
substantive negotiations on the schedules of specific commitments in the four priority sectors of
transport, communication, financial and tourism services had been completed by the Fifth
meeting of the Committee on Trade in Services. What Member States were expected to do after
that meeting was to clean their schedules to ensure that the schedules complied with
international scheduling practices. The WTO Secretariat provided comments on the schedules
of specific commitments of those Member States that had submitted their reviewed schedules
and the Member States incorporated the comments into their final schedules.
190. The following Member States had submitted their reviewed schedules taking into
account the comments provided by the WTO: Burundi, Djibouti, Kenya, Mauritius, Sudan, Egypt,
D R Congo, Uganda, Swaziland, Malawi, Zambia and Seychelles.
191. However the schedule for D R Congo needed to be cleaned up further since there are
some brackets and other improvements in market access that were required. DR Congo was
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requested to clean up its schedule. Those Member States that had not submitted their
schedules were urged to do so.
Decisions:
192.
Council decided that:
i.
ii.
iii.
Member States that had not submitted their revised schedules of specific
commitments in the four priority sectors of transport, communications,
financial and tourism should do so by 30 June 2015;
The commitments made by Member States should add value and therefore
be WTO plus; and
The Secretariat should circulate the submitted finalised Schedules to all
Member States by 30 April 2015.
Preparations for the Second Round of Services Negotiations
193. Council was informed that the Secretariat sought consultancy services on the three
additional priority sectors of energy, business services and construction and related engineering
services and the bids were at evaluation stage. After completion of the studies the second round
of negotiations in the three additional priority sectors of Business services, Energy services and
Construction and Related Engineering services and further improvements in the initial four
priority sectors as well as other work on the COMESA Services programme could commence in
July 2015. It was noted that there was need for capacity building for Member States in order to
better understand the three priority sectors in preparation for negotiations.
Decisions:
194.
Council decided that:
i.
ii.
iii.
The second round of negotiations in the three additional priority sectors of
Business services, Energy services and Construction and Related
Engineering services commence in July 2015;
To ensure that the commitments of Member States in the three sectors go
beyond their WTO commitments in order to add value, a baseline study
should be undertaken of current WTO commitments of Member States in
the sectors to be used in the negotiations; and
The Secretariat should undertake capacity building activities for
stakeholders.
Review of the COMESA-EAC-SADC Tripartite Arrangement
195. Council received an update on the state of negotiations for the establishment of the
Tripartite Free Trade Area (TFTA) among the Member/Partner States of COMESA, EAC and
SADC.
CS/CM/XXXIV/8
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196. On the legal text for establishing the TFTA, the meeting noted that significant progress
has been made. The Draft TFTA Agreement has been finalized, except for the preamble and
the interpretation sections. The TWG on Trade Remedies and Dispute Settlement have
developed three articles which are yet to be considered by the TTNF. These are Article 16 on
Transitional Arrangements with regard to Trade Remedies, Article 19 on Preferential
Safeguards and Article 30 on Dispute Settlement. The following annexes have been concluded:
Annex 3 on Non-Tariff Barriers, Annex 5 on Customs Cooperation, Annex 6 on Trade
Facilitation, Annex 8 on Technical Barriers to Trade, Annex 9 Sanitary and Phytosanitary
Measures, and Annex 10 on Dispute Settlement.
197. On Tariff Offers, the meeting noted that 20 out of the 26 Member/ Partner States have
now produced offers. The meeting further noted that the SACU offer was not satisfactorily
ambitious, as it constituted a liberalization of only about 3%, since about 57% out of the 60% of
the tariff lines already have a 0% MFN duty rate.
198. On Rules of Origin, the IC was informed that an interim arrangement was discussed by
the Eighth Meeting of the TWG on Rules of Origin and recommended to the Extraordinary
Meeting of the TTNF the following two options:
a)
b)
to use agreed common rules and value addition rule of 35% ex-works cost as
interim rules of origin of the TFTA to be launched at the Third Tripartite Summit;
or
to use agreed common rules for the launch of a Partial TFTA at the Third
Tripartite Summit.
199. The meeting noted that the COMESA Protocol on Rules of Origin refers to ex-factory
cost and not ex works cost, and highlighted the importance of ensuring better clarity on this. The
TWG has now completed work on and agreed upon product specific rules of origin for 34
chapters and 42 Headings, out of a total of 97 chapters of the HS.
Global and Intra-Tripartite Imports 2012 , Values in US$ millions
Tripartite Global Imports
Intra-Tripartite Imports Extra-Tripartite Imports
323,876.30
42,877.90
280,998.40
Agreed 34 Chapters
53,419.30
16%
Agreed 42 Headings
4,799.00
1%
Total( Agreed Chapters and Headings)
58,218.30
18%
8,312.00
19%
45,179.30
16%
1,650.30
4%
3,148.70
1%
9,962.30
23%
48,328.00
17%
CS/CM/XXXIV/8
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200. An analysis on agreed product specific rules of origin as indicated in the table above
shows that the total tripartite imports for the 34 chapters in 2012 were US$ 53.4 Billion
accounting for 16% of the total Tripartite imports. The intra-Tripartite imports were US$ 8.3
Billion accounting for 19% of the total intra-Tripartite Trade while the extra-Tripartite imports
were US$ 45.2 Billion accounting for 16% of the total extra-Tripartite imports.
201. The 42 headings total tripartite imports were US$ 4.8 Billion accounting for 1% of the
total Tripartite imports. The intra-tripartite imports were US$ 1.7 Billion which accounted for 4%
of the total intra-Tripartite imports and the extra-Tripartite imports were US$ 3.2 Billion
accounting for 2% of the total extra-Tripartite imports.
202. The 34 chapters and 42 headings combined accounted for 18% of the total tripartite
imports, 23% of the intra-tripartite imports and 17% of the total extra-tripartite imports
203.
The analysis shows that the intra-tripartite imports for the agreed chapters and headings
is still low accounting for 23% of the total intra-tripartite imports and 18% of the total tripartite
imports.
204.
On Movement on Business Persons, the Technical Committee has now produced a
Draft Agreement on Movement of Business Persons. A few brackets remain on some provisions
including the issues of visas on arrival and guiding principles.
205. On Industrial Development the Tripartite Technical Committee on Industrial
Development in accordance with a directive from the Second Tripartite Summit has developed a
work programme and roadmap as well as draft modalities on cooperation on industrial
development which should foster value addition and improve productive capacity of
Member/Partner States. What remains is for the Ministers to adopt the work program and road
map and the co-operation modalities.
206. On the basis of the progress attained, the Third Meeting of the Tripartite Sectoral
Ministerial Committee recommended the launching of the Tripartite FTA at the Third Tripartite
Summit to be held in Egypt, based on the principle of variable geometry. The Ministers agreed
that Phase I issues that were not exhaustively negotiated over the last two years would be
concluded after the launch of the TFTA Agreement and a provision has been included in the
Draft TFTA Agreement for their continued negotiation, as a built-in agenda.
207. It is expected that at the Third Tripartite Summit, the Heads of States and/or
Government of the Tripartite countries will sign the Tripartite FTA Agreement, adopt the PostSignature TFTA Implementation Roadmap and launch Phase II negotiations on Trade in
Services and trade related areas in accordance with the Declaration Launching the Tripartite
FTA Negotiations adopted on 12 June 2011 by the Second Tripartite Summit. The IC noted that
the Third Tripartite Summit will be held in Egypt from 07 to 10 June 2015, to sign the Agreement
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Establishing the Tripartite Free Trade Area and to launch the Second Phase of the Negotiations
covering trade in services and trade related areas.
Decisions:
208. Council welcomed the progress made in the negotiations and recommends to
Council that COMESA should adopt a common position in the Tripartite negotiations, as
follows:
i.
ii.
iii.
The Tripartite Free Trade Area should be launched on 10 June 2015 at the
Third Tripartite Summit on the principles of variable geometry, reciprocity,
the acquis, interim rules of origin and the built-in agenda given that there is
a critical mass of Member/Partner States that are ready;
On rules of origin, the agreed common rules and value addition rule of 35%
ex-factory cost should be used as interim rules of origin of the Tripartite
FTA to be launched at the Third Tripartite Summit.
On Trade Remedies:
a.
b.
c.
iv.
v.
vi.
vii.
viii.
Detailed procedures on Trade Remedies to be discussed as part of
the Built in Agenda, that is Annex 2;
Existing REC provisions will apply within RECs and WTO provisions
will apply across RECs in the interim; and
The feasibility of developing a preferential safeguard as part of the
built-in agenda will be considered;
On dispute settlement, Annex 10 as finalised by the Fourth Meeting of the
technical working group on Trade Remedies and Dispute settlement,
should be adopted;
Phase II negotiations and negotiations on the Built in Agenda should be
launched by the end of 2015 and the TTNF should begin preparatory
processes and convene a meeting to launch the negotiations;
The industrial pillar Work Programme and Roadmap and the draft
Modalities on Cooperation on Industrial Development should be adopted
by the Ministers;
The remaining issues in the Agreement on Movement of Business Persons
should be resolved and the Agreement adopted; and
COMESA Member States should always hold consultative preparatory
meetings in the margins of the tripartite meetings, produce written
common positions for use during the negotiations, and effectively
participate.
Common Position on COMESA-India Trade and Economic Relations
209. Council recalled its decision of 2011 in Malawi for COMESA to establish a formal trade
and economic cooperation with India. Subsequently, an MOU was signed in July 2012 between
the COMESA Secretariat and India to advance the progress of the proposed cooperation. The
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MOU marked the launching of a COMESA-India Joint Study Group (JSG) Report to determine
the feasibility of the proposed economic cooperation between India and the COMESA region for
the advice of both parties prior to substantive negotiations.
210. The COMESA-India JSG Report is under preparation by a joint group of both parties,
and the on-going work was based on a structure of the report agreed in the MOU and endorsed,
in principle, by Member States during COMESA’s preliminary consultations on the subject. It is
anticipated that the final report of the study will guide the two parties to determine the feasibility
of the proposed economic cooperation between India and COMESA.
211. The JSG Report contains seven chapters, covering the following: Chapter 1- an
overview of broad macro-economic conditions in both India and the COMESA region, Chapter
2- trade liberalization in goods, Chapter 3- investment liberalization, Chapter 4- trade in
services, Chapter 5- other areas of economic cooperation, Chapter 6- computable general
economic modelling (CGE) and analysis, and Chapter 7- conclusions and recommendations. So
far, the first four chapters of the draft report have been completed. The remaining work has
phased into the completion of the remaining three chapters. The four chapters are summarized
below:
212. The preparation of Chapter 5 required the input of all Member States through
submissions to the Secretariat of concise narratives on other areas of interest that member
States would like included in the draft JSG Report for consideration by both parties; and once
the five chapters are ready, the next step would be for the joint technical teams to consult and
agree on the parameters for the scope of work for finalizing Chapters 6 and 7. This was
important for the generation and preservation of a common understanding and subsequently
interpretations of results of simulations, including an agreement on the institutional
arrangements and modalities for the conduction of the CGE modelling as ascribed under
Chapter 6 of the Report. The results of the modelling will guide the making of appropriate
conclusions and recommendations in the report.
213. The four chapters were circulated to the Member States and indications of country
specific areas of interest have been received from three Member States for inclusion in the
proposed chapter five. These areas of interest are:
a.
Co-operation with India in the manufacturing sector; health delivery services and
water sanitation; support for SMEs; mining and mining equipment, energy and
infrastructure development; development of the region’s agricultural sector,
including irrigation development; technology transfer and the delivery of capacity
building activities; and the enhancement of the role of women in advancing
development through access of funds to support their business incubation
programmes for overall economic development; the maritime sector; a range of
options of importance to regional integration and cooperation with third parties
such as India: covering agreed trans-national disciplines for coordination in all
sectors; appropriate trade policy and regulations in order to assist the COMESA
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States to participate more effectively in trade negotiations, in implementing of
international trade related conventions, and trade related legislation and
regulatory reforms, amongst others; trade development which should cover
cooperation with India at the levels of business development and activities aimed
at improving information management systems, partnerships, linkages, joint
ventures and exchange of information and experiences, access to credit and
investment finance, trade promotion and market development, institutional
support as well as support to trade in services, including financial services; and
research and development ventures that espouse innovation and technology
transfer.
b.
Areas of should include general provisions to the developmental needs of
COMESA States in order to promote sustained growth in the COMESA region;
increase production and supply capacity of the States concerned; to foster
structural transformation and competitiveness of the region’s economies as well
as their diversification and value addition programmes in support of regional
integration ambitions of the COMESA region; and to promote growth in all
sectors of interest to the COMESA region.
c.
A proposal is further made to include a requirement for the creation of a
development fund funded by India for the region to finance activities covered
under the scope of the proposed cooperation agreement, and which should
include an agreed Action Matrix with defined timelines and targets to implement.
214. The importance of cooperating with India was recognized but emphasis needed to focus
on strengthening the COMESA integration agenda and the Tripartite FTA before engaging in
additional special arrangement with third countries.
Discussion:
215. Council emphasised that priority should be given to consolidating the COMESA regional
integration programmes, the Tripartite FTA and the Continental FTA, prior to entering into trade
liberalisation arrangements with third parties. The meeting agreed that the focus in relations with
third parties should be on economic co-operation in key priority areas such as technology
transfer, capacity building, ICT, investment, among others.
Decision:
216. Council decided that in relations with third parties, Member States should focus
more on economic co-operation and investment in areas such as information and
communication technology, pharmaceuticals, access to medicine, agriculture, standards,
SME development and value chain development.
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Progress Report on Implementation of the COMESA Policy Research Programme
217. Council was informed that the Secretariat secured funds from the ACBF project entitled
“Enhancing Capacity of the COMESA Secretariat to Support Economic and Trade Policy
Analysis and Research”. The US $3 million grant is intended to enhance the capacity of the
COMESA Secretariat in economic and trade policy research and analysis. Following this
approval the Grant Agreement was signed between the two parties in February 2013.
218. The specific sector covered by the capacity building intervention is to provide institutional
strengthening and enhance the capacity of the COMESA Secretariat in economic and trade
policy research and analysis as well as to enhance the capacity of Member States in trade
negotiations. The project falls within ACBF’s mandate and is contributing to the achievement of
the objective of the Foundation’s proposed strategic framework which is to enhance the capacity
of Africa’s regional economic communities and institutions in respect to the implementation of
regional co-operation and integration programs and the management of regional public goods
and services.
219. The project was officially launched on 11-13 August 2014 in Nairobi Kenya during which
research areas were identified and partnerships and networks with leading policy research think
tanks and training institutes were made. As a result of the ideas emanating from the workshop,
the COMESA Research Agenda was developed.
220.
The following progress and achievements have been registered;
a.
b.
c.
d.
e.
Two studies have been finalized; an audit of the existing NTBs among COMESA
Member States and assessment of their impact on COMESA and Intra-trade
potential analysis study was completed. These studies were disseminated in
various inter-governmental meetings and the COMESA 2014 Policy Organs
Meeting in Lusaka in December 2014. Preparatory work to undertake the
COMESA Common Market Study is in progress. The research Unit also prepared
a draft COMESA engagement policy with the United States;
The project is preparing COMESA engagement policy with other emerging
economies like the BRICS, Turkey and Japan;
The project has supported the Secretariat in undertaking in-house analysis and
studies including: the sugar competitiveness study, analysis of the CET
harmonization between the 4 EAC member States and COMESA, Trade flows for
the Tripartite for the agreed chapters and headings and the ongoing COMESA
industrialization policy;
The project has established research collaborations with existing policy research
institutions like the Economic Commission for Africa (ECA), and the United
Nations African Institute for Economic Development and Planning (IDEP).
A consultant to develop Harmonized System of National Accounts (SNA)
guidelines for Member States in the financial sector has been hired and is
expected to finalize the work by April 2015.
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f.
The project carried out capacity building interventions;
i.
ii.
iii.
g.
Capacity building for the Madagascar Government in areas for
liberalization in Trade in Services was carried out
Training for Secretariat staff and officials from Member States in Trade
Policy Analysis using E-Views software.
Internal training in COMESA Secretariat on trade policy analysis using
various software at the Trade and Customs Division
Preparatory work to undertake the COMESA Common Market Study is in
progress. A baseline study on the COMESA Market is already being done
Discussion:
221. Council noted the importance of the research unit which provides evidence based policy
research is recognized. However, it was noted there was need for a sustainability plan to ensure
that the unit is maintained once the grant funds have been exhausted. It was further
emphasized that there is need for COMESA to reduce over dependence on donor partners and
fund its own programmes. There is also a need for the research unit to work collaboratively with
policy makers. The research unit should be considered in the framework of the restructuring of
the COMESA Secretariat.
Decisions:
222.
Council decided that:
i.
Policy research should directly support regional integration by addressing
practical challenges;
ii.
After the COMESA Policy Organs’ meetings in March 2015, COMESA
should convene a meeting of the think tanks and private sector in the
region and brief them on the frontier issues for research that would have
come out of the Policy Organs’ meetings;
iii.
There is need to build the capacity of the research unit as well as
networking with existing research institutions;
iv.
The Triple Helix Concept of collaboration between the Government, private
sector and academia should be promoted in COMESA Member States;
v.
There is need to address challenges such as data gaps at the secretariat,
training on methodology, data transmission from Member States to
Secretariat; and
vi.
There should be a clear strategy on how to secure additional funding to
support the project because the US $3 million grant is not enough to
accomplish all the identified research needs.
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Internal Market
Status of Preparation for Joining the COMESA FTA by Congo DR, Ethiopia, Eritrea
and Uganda
223.
Council was informed that the Member States updated the meeting as follows:
224. Ethiopia has started internal consultations and preparation of the accession instruments
to participate in the FTA on a phased approach basis. Ethiopia needed the enhancement of its
capacity on rules of origin which is critically important for the FTA to be built. In this regard
continuous capacity building on the COMESA rules of origin will be undertaken by the
Secretariat.
225. DR Congo reiterated its commitment to joining the FTA albeit on a phased approach;
with 40% tariff reduction upon joining, 30% in the second year and 30% on the third and final
year. The country was waiting for adoption by its Parliament of the law for the country to join the
FTA.
226. Eritrea has, since 1998, reduced tariffs for trade with COMESA countries by 80% and is
only left with 20% tariff reduction to move to the FTA. Eritrea further re-affirmed its commitment
to join the FTA, and the Member State is working closely with the Secretariat to build capacity to
enable the Member State expeditiously join the FTA.
227. Uganda started implementing the FTA as from July 2014. However, it has not yet
deposited its instrument of accession with the Secretariat. The law giving effect to the COMESA
FTA had been passed by Parliament and will be officially deposited with the Secretariat; it will
be circulated to Member States for information and necessary action. Uganda will maintain
some sensitive products that also apply to the EAC trade regime. However, the sensitive list of
products shall be phased out once Uganda has domesticated the COMESA Treaty. The
meeting was further informed that Uganda submitted the Accession Instruments to the
Secretariat.
228. It was noted that the Treaty did not provide for sensitive products when Member States
participate in the FTA. However, in the event that the sensitive list is allowed by Council, the list
should be phased out over a definite time period. In order to deal with cases of industries that
may face injury due to trade liberalisation, Safeguards could be applied in accordance with
Article 61 of the Treaty. In this regard, Uganda pointed out that the proposed maintenance of
sensitive products would not be permanent but temporary and accordingly, it will prepare a
schedule for phasing them out and a paper for consideration by the policy organs at their next
meeting in March 2015 would be prepared.
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Decisions:
229.
Council decided that:
i.
ii.
iii.
iv.
v.
Congo DR be urged to finalise the accession instruments and deposit them
with the Secretariat before the next Policy Organs meetings;
Ethiopia be urged to expedite the internal consultations and finalise
instruments and deposit them with the Secretariat, in the near future;
Uganda be urged to prepare a paper and a schedule for phasing out the
sensitive products:
Uganda be commended for beginning to implement the FTA and submitting
the Accession Instrument; and
Eritrea be urged to expedite its process of joining the FTA.
Protection for Kenya Sugar Industry
230. Council recalled that at the commencement of the implementation of the COMESA Free
Trade Area in the year 2000, Kenya sought and was granted in 2002 a sugar safeguard as the
country demonstrated that its sugar sector would not be able to compete with sugar from other
COMESA Member States. The safeguard had been extended a number of times since then with
the most recent being an extension of the safeguard from March 2014 to February 2015.
231. It was further recalled that as per Directive Number 1 of 2007, Kenya was expected to
do a number of things which would make the sugar sector competitive. These included
privatising state owned mills, doing research into new early maturing and high sucrose content
sugar cane varieties and adopting them, paying farmers on the basis of sucrose content instead
of based on weight, maintaining the safeguard as a tariff rate quota with the quota increasing
while the above quota tariff falls until it reaches 0% and maintaining and providing infrastructure
including roads and bridges in the sugar growing areas.
232. The Thirty Second Meeting of Council held in February 2014, extended the Kenya sugar
safeguards by one year and directed Kenya and the Secretariat to undertake a comparative
assessment on the competitiveness of sugar production in the COMESA region. This study was
finalized.
233. The study found that the COMESA sugar safeguards had enabled the Kenyan sugar
milling companies to continue with operations, without which it is unlikely that all of them would
have continued to operate to this day.
234. The terms and conditions of the safeguards allowed Kenyan sugar stakeholders to look
beyond their borders and be better integrated with the COMESA and other sugar players by
bench-marking their operations against lower cost operators. The safeguards had been
successful in ensuring Kenya sugar stakeholders focused more on the bigger, regional and
international picture and less on internal limitations and constraints. The Directive no 1 of 2007
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of the safeguard had been implemented and finally the parliament had approved privatization of
the 5 public sugar companies where 51% would be sold to a private investor, 30% to the
farmers and 19% through initial public offer once they become profitable.
235. The safeguards made it possible for new investors to enter the Kenyan sugar sector and
provided a ready market for cane farmers which has enabled them continue cane farming as a
business and a source of livelihood. Again, without the safeguard, it would have been difficult
for these investors to enter a market that was flooded with cheaper sugar imports.
236. While the safeguard may not save every farmer or producer, the Kenyan sugar sector
was expected to be largely competitive by the end of the safeguard period. This will happen if all
stakeholders continue to exert concerted efforts in the areas of research and development,
adoption and application of research results, improvements and re-investment in factory
operations, greater efforts and investment in downstream and diversification activities including
co-generation and bio-fuel production.
237. During the COMESA safeguard period, the sugar industry composition had changed to
about 70% (2014) private holding compared to initial 33% in 2004. This illustrates the level of
business confidence arising from the protection. The young entrants comprising Kibos (2008),
Sukari, Transmara (2011), Butali (2011) and Kwale International Sugar Company limited
(KISCOL) (2014), and the expansions at West Kenya Sugar Company are showing the way that
a private Sugar Industry holds much optimism for efficient operation and production.
238. Among the currently operating sugar mills, the private sugar mills with an exception of
Mumias which is treated as a public operated mill are efficient. Nzoia Sugar Company which is a
public owned Company is also operating efficiently and KISCOL which is expected to
commence crushing in February 2015 has high potential and forecasts to be competitive; it’s
benchmarking its operations with Brazil and Mauritius.
239. It was noted that if the new entrants are given sufficient protection for a period of time,
they will stabilize and significantly improve the competitiveness of the sugar industry in Kenya.
New entrants like KISCOL have a very high potential of competing in the industry not only in
COMESA but the world at large. However given the heavy investments, they need a grace
period before they are exposed to the free market.
240. Council was informed that the Kenyan delegation had made a presentation to the Trade
and Customs Committee. It was emphasized that due to the successful use of the sugar
safeguard over the past twelve (12) years, there has been a surge of new investors in the sugar
sector. It was also highlighted that there are potential social and economic repercussions should
the protection of the sugar sector lapse at the end of February 2015, as there are approximately
six million Kenyans who depend on the sector. The duration of protection sought by Kenya was
Three (3) years under article 49(2) on infant industry subject to concurrence by Member States.
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241. Council further considered the Draft Criteria for Allocating Country Specific Quotas,
document reference: CS/IC/XXXIV/9(a)(ii); and Draft Criteria for Determining that an Industry is
an Infant, document reference: CS/IC/XXXIV/9a(i).
Discussion:
Criteria for the Allocation of the Quota for Importation of Sugar into Kenya:
242. Council supported the application of the extension of the sugar safeguard for Kenya, and
underscored the importance of having a system that benefits all sugar exporting Member States
especially in terms of promoting intra-COMESA trade. In this regard the meeting supported the
idea of allowing Member States to assist meet the sugar deficit in Kenya.
243. Council noted that in accordance with the recommendation of the extra ordinary meeting
of the Trade and Customs Committee, the Secretariat drafted a system for allocating the
Kenyan sugar deficit for all Member States should be developed. In discussing the draft formula,
the meeting emphasized that it should be transparent, equitable, balanced and rational.
244. Council agreed that this matter needed an ad hoc technical committee of experts in the
sugar sector to thoroughly deal with the formula as this would not be effectively handled at
Intergovernmental Committee level due to the complexity of the matter, and time constraints.
The technical committee should be comprised of experts from all Member States, with the
participation of relevant stakeholders and report within three months.
245. Council was informed that while Malawi supports the request by Kenya, the
administration of the import permits should be simple, quick, transparent, and efficient to ensure
a win-win situation and avoid unnecessary delays that increase the cost of business and limit
access to the Kenyan market.
246.
Kenya expressed its appreciation for the understanding extended by the Member States.
Protection of Infant Industries
247. Council noted that infant industry protection is provided for in the COMESA treaty, in
Article 49(2). An infant industry is based on the supposition that emerging domestic industries
need protection against international competition until they become mature and stable. In
economics, an infant industry is one that is new and in its early stages of development and not
yet capable of competing against established industry competitors.
248. Council discussed the protection of infant industries as well and noted that the
Secretariat had prepared draft criteria for determining an infant industry. It was noted that this
was a technical matter which needed adequate time and therefore agreed on the establishment
of an ad hoc technical committee to study the matter and make recommendations within three
months. Council noted, however, that care should be taken to avoid a proliferation of
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committees; and that the formula to be developed should aim to enhance intra-COMESA trade
in sugar.
249. Council further emphasised the need to have one ad hoc committee to handle both
issues of the criteria for the allocation of the quota for importation of sugar into Kenya; and the
determination of infant industries’ criteria.
Decisions:
250.
Council decided that:
i.
ii.
iii.
iv.
v.
vi.
vii.
The Kenyan sugar sector should be given a one year extension of the
existing safeguard subject to review and renewal for another one year;
The extension will operate on the basis of the terms and conditions set out
in Directive No. 1 of 2007;
The administration of import permits should be simple, quick, transparent,
and efficient to avoid unnecessary delays that increase the cost of
business and limit access to the Kenyan market;
Kenya should disaggregate the HS code for sugar into various categories
with a view to avoiding protection of varieties that are not produced in
Kenya;
The Secretariat should provide bi-annual reports on the application of the
protection by Kenya, in line with directive No. 1 of 2007;
Member States should submit sugar statistics to the Secretariat annually;
and
An ad hoctechnical working committee should be convened not later than
30 June 2015, to thoroughly deal with the draft criteria for allocating
country specific quotas, and the draft criteria for determining that an
industry is an infant; and report to the next Trade and Customs Committee
meeting. With regards to sugar exports to Kenya, the status quo should
remain.
Resolution of Reported NTBs (The Fridge, Soap, Palm Oil and Milk Cases)
251. Council was informed that the Secretariat engaged the services of KPMG, Malawi, to
carry out an independent technical verification of production processes at Palfridge Limited in
Swaziland, Mopirove Limited in Mauritius and Bidco Oil Refineries in Kenya and carried out the
verifications as follows:
a.
b.
c.
252.
18-22 August 2014 at Palfridge Limited in Matsapha, Swaziland;
27-31 October 2014 at Mopirove Limited in Port Luis, Mauritius; and
10-14 November 2014 at Bidco Oil Refineries Limited in Thika, Kenya.
The results of the independent verification were as follows.
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Fridges and Freezers
253. The fridges and freezers manufactured by Palfridge, Swaziland met the threshold of
25% for goods of particular economic importance to the economies of Member States and
therefore qualified for preferential tariff treatment under the COMESA Trade regime.
Discussion:
254. Council was informed that Zimbabwe and Swaziland had held bilateral discussions on
the margins of the 34th IC meeting, to discuss the process of elimination of the NTBs on fridges
and freezers. The bilateral discussions had come to the agreement that the Secretariat will take
to the Zimbabwe Customs Authority the costing documents for their inspection, which should
facilitate the finalisation of the matter.
255. Council noted that since the recommendation that “Zimbabwe should allow preferential
importation of fridges and freezers from Swaziland under the existing preferential arrangements,
pending the definitive resolution of the matter” was contested between Zimbabwe and
Swaziland, rule 10 of the Protocol on Rules of Origin protocol should be followed. That is, the
importation of fridges should be allowed from Swaziland into Zimbabwe and after the verification
based on the rules of origin protocol the duties will be refunded to the importer, where
applicable.
Decisions:
256.
Council decided that:
i.
ii.
The Secretariat should organise a meeting between Swaziland and
Zimbabwe by 30 April 2015, and facilitate resolution of the matter not later
than 30 May 2015;
In the meantime, rule 10(4) of the Protocol on Rules of Origin will apply.
Soap
257. Council was informed that the verification found out that the soap manufactured by
Mopirove, Mauritius met at least the 35% value addition criterion and therefore qualified for
preferential tariff treatment under the COMESA trade regime.
Decision:
258. Council noted that Mauritius and Madagascar have agreed to resolve the matter
through the good offices of the COMESA Secretariat, as quickly as possible.
Palm Oil
259. Council was informed that the verification found out that the pure palm-based cooking oil
manufactured by Bidco, Kenya met the at least 35% value addition criterion and therefore
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qualified for preferential tariff treatment under the COMESA trade regime. It was noted that
Kenya and Zambia had been engaging on the pure palm-based cooking issues and Zambia had
requested for Bidco in Kenya to provide the costings to Kenya Revenue Authority and thereafter
Kenya should respond to the Zambian letter. It was further noted that during the verification
mission, the independent consultant was accompanied by the KRA officials and encouraged
Kenya to verify the documents and respond to Zambia.
Discussion:
260. Council noted that KRA had submitted the costing documents to Zambia as requested to
facilitate the definitive resolution of the matter.
Decision:
261. Council decided that Zambia verify the costing documents and respond to Kenya,
by 30 April 2015.
Milk
262. Council was informed that the Secretariat commissioned a study with a view to clarify
issues on the Zambia-Kenya milk trade dispute. The study found that the raw material
(pasteurized milk), which is used in the manufacture of UHT and fermented milk products,
already conforms to a low TBC of 3000cfu/ml. Thus, from a scientific and technical basis, the
ban of Kenyan UHT and fermented milk cannot be justified. It is also well acknowledged that
TBC of raw milk, which is the basis for the ban is an indicator of quality or potential for spoilage
rather than milk safety.
263. According to the findings of this Technical Study, basing on random samples of
laboratory analytical results on raw milk and other aspects detailed in this report, Kenya is
compliant with the Zambia raw milk TBC 200,000cfu/ml, as implemented in Zambia, and meets
other relevant Zambia standards and importing requirements.
264. However, Kenya is encouraged to enhance the continuous improvements, to assure
high level of consistent compliance of the milk to Zambia import regulations. Kenya has also
demonstrated capacity to comply with regional (EAC) and international (Codex, ISO, and OIE)
standards. Overall, Kenya has a more robust food (milk) safety control and monitoring system
than Zambia. Kenya has effective milk safety controls for the dairy processing value chain, as
well as, practices compliant to international/regional standards plus guidelines, coupled with an
effective, official public Agency, KDB, which is specifically dedicated to overseeing the dairy
sector regulatory system. KDB keeps track of and monitors the formal raw milk sector through
the carrying out Biannual Milk Quality Surveys, which include microbiological laboratory analysis
of milk samples collected and summarizing the results into a reference database for intervention
and strategic direction.
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Discussion:
265. Council was informed that Zambia had formally communicated to the Secretariat
advising its concerns about the consultant’s report on milk. Council was reminded that the Trade
and Customs Committee Meeting agreed that the Secretariat would facilitate a meeting between
Kenya and Zambia not later than 30 April 2015 and that recommendation should stand.
Decision:
Council decided that the Secretariat follows up this matter and organise a
meeting between Kenya and Zambia not later than 30 April 2015.
266.
Non-Recognition of Seychelles as COMESA FTA Member by Kenya
267. Seychelles reported that its products were not being accorded the COMESA FTA
treatment by Kenya. In response Kenya informed the meeting that it had already taken action to
address the matter and issued a gazette notice recognising Seychelles as a member of the
COMESA FTA. The meeting noted this positive development.
Progress Report on the COMESA Electronic Certificate of Origin (eCOO)
268. Pursuant to the decision of the Council at its 32nd Meeting held in Kinshasa, D R Congo,
the Secretariat developed a framework of the electronic Certificate of Origin (eCOO) which was
presented to the Thirtieth Meeting of the Trade and Customs Committee. The presentation
highlighted the features of the online certification as well as the process to be followed in
utilizing the eCOO.
269. The Secretariat concluded the tendering process and M/S Mauritius Network Services
won the tender to implement the system. The Secretariat was in the process of mobilizing funds
for the implementation of this System. The design time to implementation is expected to be
completed within six months. That notwithstanding, it was noted that there is need to improve
the Arabic version of the portal; and also convene a meeting between stakeholders and the
developers of the system.
Progress Report on the Trade Facilitation Portal
270. Council also noted that during the 30th TCM meeting the Secretariat made a live
demonstration of trade facilitation portal. The portal is work in progress and the population of the
portal is on-going. The portal will assist exporters and importers with information necessary
while transacting in the COMESA region, and address the information challenges being faced
by traders. In order to populate the portal, the Secretariat requires information on the
regulations, and both national and universal documents for importation and exportation from the
Member States. A template for collection of information is being developed to assist Member
States provide documents to the Secretariat.
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Simplified Trade Regime, and Minimum Regulations on Treatment of Small Scale
Cross Border Traders
271. Council recalled that the Thirty Third Meeting of the Council, held in December 2014 in
Lusaka received an update on the Simplified Trade Regime and adopted the Regulations on
Minimum Standards for Treatment of Small Scale Cross Border Traders.
272. Council also noted that a Trade Facilitation Programme for the Great Lakes Region is
being developed with support from the World Bank, estimated US $5 million to cover the
establishment and strengthening of Trade Information Desks, streamlining of customs
procedures, and awareness creation on standards for treatment of small scale cross border
traders.
Intellectual Property
273. Council was informed that Intellectual Property Committee meeting was held from 23 to
25 February 2015 in Nairobi, Kenya. The main objectives of the meeting were to inaugurate the
Intellectual Property Committee, and adopt its Rules of Procedure and Work Programme. The
Committee was inaugurated in accordance with the decision of the Thirtieth and Thirty First
Meetings of the COMESA Council of Ministers; and it adopted its Rules of Procedure and fiveyear Work Programme under the following headings: strategic partnerships; resource
mobilization; meetings and conferences; audit; harmonisation; law reform, intellectual property
policies; information and communication technologies; commercialisation; enforcement and
innovation infrastructures; copyright and related rights; traditional knowledge, genetic resources
and folklore; capacity building and awareness creation.
Decisions:
274.
Council decided that:
i.
ii.
iii.
iv.
v.
The Secretariat engages with WIPO on collaborative efforts of undertaking
intellectual property audits as WIPO had already undertaken the same;
The Secretariat scales down the Work Programme to a level that COMESA
could complement the work that is already being done by WIPO, ARIPO
and OAPI;
Capacity building be mainstreamed into already existing intellectual
property programmes;
Council adopts the work programme; and
Traditional knowledge and genetic resources needs to be looked at within
the context of trade as COMESA is a trade organisation.
Science, Technology and Innovation
275. Council was informed that the Fourth Meeting of the Technical Committee on Science
Technology and Innovation (STI) was held on 23-25 February 2015 in Nairobi, Kenya. The main
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objectives of the meeting were to consider progress of the Science, Technology and Innovation
Programme including the COMESA innovations award.
276. Council also received a presentation on white spaces, which were defined as the unused
broadcasting frequencies in the wireless spectrum. National and international bodies assign
different frequencies for specific uses, and in most cases licence the rights to broadcast over
these frequencies. This frequency allocation process creates a band plan, which for technical
reasons assigns white space between used radio bands or channels to avoid interference. In
this case, while the frequencies are unused, they have been specifically assigned for a purpose,
such as a guard band. Most commonly, however, these white spaces exist naturally between
used channels, since assigning nearby transmissions to immediately adjacent channels will
cause destructive interference to both.
277. The white space is very critical because Africa is lagging behind in internet connectivity,
but even in the most developed countries, there are huge gaps in internet access. The current
system of fixed broadband access is still unaffordable to many. Thus white spaces stand to
transform the way wireless internet is being purchased and used. However white space is not
yet widely adopted, but it is gaining attraction. The demand for unlicensed spectrum using Wi-Fi
technologies at 2.4 GHz and 5 GHz has been growing at very high rates and that growth is
expected to continue for the foreseeable future
278. The technology is very much needed in rural areas, where people do not receive very
good broadband services. One of the biggest problems in rural areas is meeting the device
points, the houses are separated by longer distances and it's very difficult for cable and fibre
optics to meet this. The traditional Wi-Fi structures can only go five kilometres or so while the
White Space technology can travel 10 kilometres and service many more customers at one
time.
279. Council noted that there is a possibility for collaboration in television white spaces and a
forum can be created for various countries to share experiences. The meeting further recalled
that in an earlier meeting held in Swaziland in 2010, Prof. Calestous Juma of the Harvard
Kennedy School identified 5 areas of focus for collaboration between member states that can be
enhanced through collaboration on the white spaces. These areas are: Education, health,
energy, agriculture and climate change.
2014/15 COMESA Innovation Awards
280. Council was informed that the COMESA Innovation Awards were launched in 2013. The
awards are aimed at recognizing and celebrating individuals and institutions that have used
science, technology and innovation to further the COMESA regional integration agenda. The
inaugural awards were given out at the 17th Summit of the COMESA Heads of States and
Government held in February 2014 in Kinshasa, DR Congo.
281. The 2014/15 awards are to be given to innovations that have the potential for long-term
technological or economic impact at national and regional level. The awards focused on new
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products, new methods of production and ways of improving technology. Also included in the
criteria was methodology of opening up new markets, conquest of new sources of supply of raw
materials and implementation of new forms of commercialization, among others. A total of 60
submissions were received, and 20 were shortlisted.
282. The judging and evaluation panels met in Lusaka from 16 to 19 March 2015. The full
report is document reference: CS/TCM/STIAWR-JP/2/3, and the submissions received were
reviewed based on the following criteria:
Criteria
Score
Description
Novelty,
Creativity/Innovativeness
35%
New Idea, Significant advancement in the field,
Product/prototype, commercial viability, Patentability
Scalability
20%
National, regional
exchange)
20%
Job creation, revenue, value addition, cost savings,
efficiency, competitiveness, wealth creation, enhance
access to services
15%
Improve quality of life/human development (women
and youth productivity)
Economic Impact
Social Impact(actual
potential)
or
&
global
10%
Environmental Impact
Total
Environmentally sustainable
100
(impact
on
foreign
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283. Based on the above criteria, the evaluation panel considered the following for the 2014/15 COMESA Innovation Awards as
outlined in the summary in the table below:
TITLE OF THE PROJECT
1
Integrated car tracking and
monitoring
system with
alcohol breathalyzer sensor
to demobilize the car to
prevent drunk driving
2
Intelligent Traffic Robot Cop
with inbuilt 360 degrees
camera system and solar
power
3
Improvement of
thermal energy efficiency by
introducing TEKUTANGIJE
cooking Technology
DESCRIPTIONS
WINNER
The system has a private alcohol sensor inside the car such that anytime
the driver enters the car while drunk, it senses and sends a signal. A
private camera allows for photos to be taken of people inside the car,
instant tracking via mobile phone, hi-jack button put next to the driver and
only disclosed to him/her such that in-case the driver is hi-jacked, s/he
presses the button which then sends an SMS to his family members
notifying them that the driver is in an emergency and needs immediate
help.
Youth Category:
The system also enables one to stop his or her car by SMS in case it is
stolen as well as take photos of the thugs, and listen to conservations
inside the car.
The Traffic Robot is a high-tech traffic robot capable of ensuring smooth
movement of traffic of vehicles and pedestrians at intersections of urban
centers, independently. It ensures the safety of vehicles, drivers and
pedestrians, and allows remote monitoring of the flow of traffic and
pedestrians. It has a dual function of regulation of traffic coupled with that
of remote monitoring of traffic using inbuilt 360 degree cameras capable of
capturing images over a distance of 200 meters. It is solar powered and
can remit traffic data instantly to a control center.
To preserve carbon sinks, reducing Greenhouse Gases (GHG) emissions
from the burning of biomass, preserving the health of the population by
releasing smoke with special chimney and acquisition of boiled water to
drink.
It is an energy efficient technology reducing energy loss through heat
recovery system, management of the oxygen needed for combustion
chamber and carrying the combustion gases from kitchen through the
chimney. In addition, it has full recovery of the energy operator for cooking,
Jacob Maina Rugano
Nairobi, Kenya
Women Category:
Therese Izay-Kirongozi Bakemamie
Kinshasa, DRC
SME Category:
Isidore Nzeyimana
Kigali, Rwanda
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serving at the same time to heat water and roasting of different products.
4
A Low-cost Accurate and
Energy Efficient Outdoor
Localization
System
for
security,
disaster
management and tourism
sectors
5
Extraction of fragrance from
lemon grass for cosmetics
and pharmaceutical usage
While GPS is the most commonly used outdoor localization system, it
suffers from many problems such as poor accuracy in urban areas, and
high latency. Moreover, turning the GPS on can drain the phone’s battery
in a few hours. This device provides an accurate, energy-efficient and lowcost alternative to GPS. The device can provide an accurate estimate of
the user’s outdoor location using only the smartphone, which is
ubiquitously available anywhere around the world. It uses the energy
efficient sensors available on all commodity off-the-shelf phones and it
does not require any infrastructure or hardware to be installed.
Group Category:
This is a simple, locally assembled system for extracting fragrances from
lemon grass that can be used to manufacture shampoo, bar soap,
detergents, and air fresheners. Since this fragrance is bio-based it has
minimum effect on environmental degradation compared to imported
fragrances, which are petro-chemical based. The extraction technology
can provide alternative income to farmers by growing lemon grass in large
scale as a cash crop.
Institutional Category:
1. Moustafa Youssef
2. Heba Allah Aly Abd El-Halim Aly
Ismail
Alexandria, Egypt
Andrew Oduory
Western Institute of Professionals
Luanda, Kenya
284. Council noted the runners-up who were also recommended for award of the certificate of recognition as outlined in the table
below:
YOUTH
First Runner
up
TITLE OF THE
PROJECT
DESCRIPTION
NAME AND COUNTRY
Bio-degradable products
from Agricultural waste
The project focuses on utilization of locally
generated raw materials (agricultural wastes) to
make biodegradable bags to a better substitute for
polythene bags, cheap disposable sanitary pad for
school girls in Uganda and Charcoal briquettes
Atuheire Korinako Godfrey,
(paper Bags, Charcoal
Briquettes
and
Uganda
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Disposable
pads)
sanitary
which is a better substitute for wood charcoal. This
project contributes a lot to environmental
protection and creation of employment for the
youth in both village and town areas.
Fredrick Alunala Mahumu,
Second
Runner up
Integrated Barcode &
Near
Field
Communication device
for payment
This technology uses barcodes to effect payments
at point of sale location. This is done through
scanning of a customer’s barcode sticker attached
to a phone or a credit/debit card. A push
notification if initiated to the customer’s phone for
them to key in a PIN to confirm the transaction.
This technology is applicable in supermarket retail
outlets, public transport sector payments,
healthcare clinics and insurance payment among
others.
Kenya
WOMEN
TITLE OF THE
PROJECT
First Runner
up
Second
Runner up
Mosquito repellent from
local essential oils
Production
of
biodegradable
handmade paper bags
based in water hyacinth
DESCRIPTION
The business works with rural women in cultivating
geranium and citronella and then adds value to
the production by extracting the precious essential
oils and producing mosquito repellent candles in
short time and different cosmetic products in long
term.
Current Rwandan market as the alternative after
the ban of manufacturing, importing, using and
selling polythene which included polythene retail
bags and plastic fill used to packaged foods and
consumable products in Rwanda. The present
project targets the entire geographical area where
the plant infestation is a likelihood of a menace for
eradication and to provide the entire population of
NAME AND COUNTRY
Mukakabano Virgine,
Rwanda
Clemence Uwayisenga,
Rwanda
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Rwanda with high quality of biodegradable paper
bags at the lowest price.
SMEs
First Runner
up
Second
Runner up
TITLE OF THE
PROJECT
DESCRIPTION
Multi
-purposes
environmental friendly
cleaner
Production of Multi- purposes industrial
cleaner and degreaser that eliminates and
grease build-ups, oily deposits, oilcan
spots, grimes, carbonized oil, gear lubes,
tar and bituminous deposits and hard stain.
Mobile
payments
system
between
Diaspora and merchants
TITLE
OF
PROJECT
THE
First Runner
up
Spot fertilizer applicator
NAME AND COUNTRY
Abdalla Ismail Mohamed Ali
Egypt
Mobile
payment
application
allows Muhire Louis Antoine
Rwandan migrants to pay airtime, tuition
fees, and utility bills for their relatives in Rwanda
Rwanda, at a low cost.
INSTITUTIONAL CATEGORY
NAME AND COUNTRY
DESCRIPTIONS
A fertilizer application implement that is
hand held and activated by the downward
force of the operators hand. It helps
farmers to precisely and efficiently apply
fertilizer to crops within 50% improved
efficiency and labour requirement.
Improves the efficiency of application of
fertilizers, cost and time saving, reduces
environmental impact.
Musenga Silwawa
Zambia
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285. Council was informed that the judging panel had observed that there was an increase in
the spread of submissions, from nine (9) to 13 Member States; and the presentation of the
submissions had improved. However, there was need for improved training for the submissions
to be improved, as well as commitment of more funds for managing the calls for submissions to
the Secretariat. It was noted that country level submissions would assist in improving the
submission process, and that is important to call on the private sector to support and sponsor
the future awards.
Decisions:
286.
Council decided that:
i.
ii.
iii.
iv.
v.
The report of the Innovation Awards Evaluation Panel be adopted and the
2014/15 Innovation Awards be given to the nominees indicated in the table
above;
The Member States should recognize the potential contribution which TV
white spaces and database enabled spectrum access can make to
improving spectrum efficiency;
Member States should come up with policy incentives to encourage the
utilization of the spectrum that will be available due to the ongoing digital
migration to provide wireless broadband internet to Academic, Research,
Health and Agricultural institutions to catalyze innovations, especially in
the rural areas;
The Secretariat should coordinate in partnership with the Ubuntu Net
Alliance project and the Innovation Council the sharing of best practices on
the deployment of white space following the examples of Kenya, Malawi,
South Africa, Tanzania that have run successful White space pilot
programmes; and
The Secretariat should work with stakeholders to develop a model policy
framework to guide Member States in developing local regulations and
policies to enhance the utilization of “white spaces”.
COMESA Regional Integration University
287. Council recalled its decision made in Swaziland in 2010, which proposed the setting up
of a professional or graduate school of regional integration. The Council of Ministers also noted
that there was need to establish a Regional Integration Research Network to facilitate a
collaborative initiative aimed at enhancing the generation and dissemination of research related
to regional integration. The specific objectives of the research network will be to enhance and
promote research activities in the area of regional integration issues and to support and promote
the dissemination and exchange of research findings in regional integration. This would be
addressed within the framework of the proposed regional university. The presentation also
highlighted some regional integration training institutions that the proposed COMESA University
of regional integration can emulate, namely:
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a.
b.
c.
d.
e.
European University Institute and the College of Europe;
The United Nations University Centre for Regional Integration Studies;
Pan-African University;
West African Institute; and
The Institute for Regional Integration and Development.
288. Council was informed that no institution on the continent has graduated students with a
degree in regional integration. The field is open and the gap exists. With regard to the multilateral institutions, PAU has a programme on which experts have raised numerous questions - it
lacks focus and covers ‘anything’ and ‘everything’; the WAI one is yet to be finalized. Besides,
the WAI Masters will be restricted to ‘West Africa’ integration. It is clear that there is a huge
opportunity for COMESA to enter the scene but it must offer some uniqueness and be of high
quality.
289. Council noted that regional integration is a complex process and to navigate this
important process requires expertise for: policy formulation and analysis; managing the process;
negotiating treaties, protocols and other regulations/policies; understanding the process;
participation in the process - to exploit opportunities; and training/teaching about the process.
290. It was further noted that designing the institutions and the management systems
required by regional communities requires experts. Building a regional organization is a complex
task and yet there are relatively few experts on whom to draw. A subsequent challenge is the
skilled staff required for managing the institutions themselves once they have been set up. This
requires specialist training programmes to upgrade the skills of staff in our regional
communities.
291. Regional Community secretariats and national agencies play an important role in
spearheading and managing regional integration programmes and yet they face serious
capacity challenges in supporting the implementation of key regional integration programmes.
This has led to unsustainable over-reliance on short term consultants paid for by donors;
besides, these consultants often lack the requisite or relevance skills.
292. Generally, the need for capacity building for national coordinating units in Member
States to leads to lack of effectiveness in fulfilling their mandate in facilitating and implementing
regional integration programmes. There seems to be inadequate appreciation and lack of
prioritization of regional integration policy and implementation issues by some government
officials primarily involved in policy making and implementation. This is usually attributable to
inadequate human resource that is specialized in regional integration matters.
293. At the regional level, attitudes during negotiations further reflect a lack of appreciation of
regional interests. Negotiators tend to take a national rather than a regional approach to
regional integration. Arguably, this has the potential to produce programmes that are merely a
reflection of the interests of a few Member States and not a reflection of the Region;
predominantly national programmes end up being regionalized. Skills for negotiating for regional
integration need to be developed. Moreover, despite the critical role of statistics and research
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data in general to support decision making, there is lack of capacity in this area which ultimately
undermines decision making. Negotiations and other decisions require based on research.
294. The key strategy for a way forward therefore must be in sustainable capacity building.
Research and training institutions to address regional integration are therefore of absolute
necessity. Institutions of higher learning could also contribute to research work. Institutional
capacity building programmes that promote a more inclusive integration agenda and facilitate
knowledge development for the region are urgently required. Institutions such as the proposed
COMESA university are therefore of utmost importance.
Models for the Regional Integration University
295. The opportunity to start from a blank page and create an entire institution right from
concept to reality is a rare and unique opportunity. It offers multiple possibilities that would be
unthinkable, for example, if it were to establish a new centre at an established university.
Therefore, this opportunity requires vision, passion and courage to attempt to innovate and to
deliberately create a new and outstanding centre of learning. Based on the current situation,
there are five possible approaches for organizing the COMESA University. description and
analysis of each approach is presented below:
A traditional university using modern technologies to supplement its teaching
296. COMESA-URI could find a home in any one of the Member states. A campus will be
developed and infrastructure put in place. Being a small specialist university, not too much
space will be required - two or three classrooms and office space should be sufficient. The
library resources and the course material could then be hosted physically at the centre as well
as on an online learning platform. Here, students will stay on campus and engage with their
faculty and with each other. Learning from the example of the College of Europe (CoE) is
essential. CoE provides students with a specialized grounding in the European dimension of
their fields of study, as well as an in-depth understanding of Europe in all its complexity.
297. By working together in an international community of students, academic assistants,
faculty and staff members from all corners of Europe and beyond, students experience Europe
first hand and benefit from a wide range of teaching methods and from challenging teamwork
and negotiation exercises. The programmes are enriched by study trips to the European
institutions and also to neighbouring countries. Due to the College’s extensive network of
contacts, students have the opportunity to meet personally and discuss with policy-makers,
practitioners, and representatives of the business community throughout their year at the
College. CoE offers a unique experience of studying with professors and fellow students from all
corners of Europe and further afield. The curriculum offers a blend of academia and practicals
(e.g., simulation exercises, field trips) allowing the students to come into direct contact with both
prominent leaders of today’s Europe and representatives of the corporate world. The College is
an experience of a life-time, providing students with the knowledge, lived-experience and tools
to build Europe’s future. This is the experience that will be available to COMESA-URI students.
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298. The university could then offer e-programmes once it has established successfully.
Universities such as London and Stanford offer outstanding degrees that are associated with
their outstanding track record.
A dual-mode institution
299. COMESA-URI could be established as a traditional university operating as a dual-mode
institution. Under such an arrangement, it would serve both on-campus and off-campus
students. Examples here could come from Australia, which is one of the most active countries in
the export of higher education; the University of Southern Queensland is an example of a
traditional university operating as a dual-mode institution. It serves both on-campus and offcampus students, with the latter group comprising about 75 per cent of the student body.
300. This case outlines a planned institutional response to the emerging global higher
education market, which has been characterized by increasing competition for students, as
more and more institutions offer online courses and programmes. USQ Online is described as
‘an E-university for an E-world’. Building upon long years of experience in distance education
experience, USQ Online was established in 1997 to provide Internet-based courses and
programmes, with a commitment to offer education anywhere, anytime. Perhaps the most
important message here is that in this type of initiative, institutional leaders need to take a
strong proactive approach and to put in place an organisational development strategy
appropriate to the specific institution and e-learning: and a significant financial investment.
A pure virtual university
301. A study on the challenges of the Africa Virtual University (AVU) which has had little
impact in spite of the resources that it has received from the World Bank, the African
Development Bank and other donors is a case in point. Many scholars see it as a northern
institution that is irrelevant to Africa’s needs. It is also viewed a ‘cash cow’ for the Vice
Chancellors of the various universities who have sat on its boards and who have gone ahead to
fight it as a competitor - which compelled it to change course. The AVU supports teaching at
universities as opposed to the initial goal of offering its own qualifications while nested within
universities which saw it as a competitor and a university within universities. AVU is a good case
for studying the success and failure of virtual intergovernmental/regional universities.
302.
The following are the alternative models for virtual universities:
A new centralized and autonomous Virtual University
303. This would involve setting up a new university with the best practices learned from
mega-universities and other successful universities with the participation of the best national
universities, traditional and non-traditional, and the governments. Each member would bring
financial resources and may bring, after a careful evaluation, some technology, content and
regional centres. The role of the host governments would be as associates of COMESA-URI
and not as active players so as not to interfere with the management. Here, there is the evident
risk that students could receive poor quality education if the new Virtual University is not
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correctly designed. May be the outcome would be better with greater involvement of
governments but this would in turn not auger well with the university. The other challenge would
be that of marketing a new comprehensively e-learning institution - this could be a hard sell due
to issues of quality, technological reach and its faceless nature.
A network of universities under an umbrella Virtual University
304. Networks are useful structures for institutions which wish to pool their limited resources
in order to form a bigger organization, or to reduce the risks of huge investments, or to
complement their services and products to gain economies of scope and scale. For the case of
distance learning, the figures could be an ‘umbrella distance learning university’ where courses
are produced and delivered by different universities. Technology can be managed by one or a
few of them, digital libraries are built based on the individual libraries, and the point of contact
with the student is the umbrella university, which is usually a small new organization. Who is
responsible for administrative services and keeping the integrity of courses, programmes and
services? Each institution offers the courses in which it is most recognized and has developed
unique or remarkable competencies. COMESA-URI would then play the role of ‘umbrella’ that
will be responsible for the quality of the overall system. In this model, the host government
would play the role of regulator. However, COMESA’s expertise is not on providing higher
education and it would be difficult to regulate universities which feel that they are indeed the
experts. COMESA would also spend enormous resources here with little return. The Africa
Virtual University changed course when its initial attempt at such a model failed.
305. At the moment, AVU, for example, changed from focus on teaching to offering teaching
support and teaching material to member universities across the Continent. Another virtual
institution, the Switzerland based World Trade Institute (WTI) has a similar arrangement. It
provides partner universities with teaching material while collaborating with universities to offer
programmes ‘as programmes of those universities. WTI also runs some online short courses
Institutions interested in being part of the network must be aware of the internal adjustments
that involve such integration; interfaces and interoperability with other institutions in terms of
systems (processes, information and software applications) and infrastructures (hardware and
communications), social interfaces (communications, regulations, and culture) between students
and faculty across the network. Additionally, institutions must be open to accept the standards
defined by the network for distance learning education even if that means drastic changes in
their current organization structure. Unless there is a real commitment of institutions to enter
into distance learning (that is distance learning as a strategic issue) the network would fail.
A Virtual University offering free competition among Institutions
306. In this model, the organization is simply a market of distance learning services where
convenience, quality and price would be the differentiators among institutions. Such a market
could be characterized by alliances between institutions, some kind of educational brokers and
individual institutions competing in the same market or positioning themselves in different
niches. Each University decides on its own programmes and courses, technology, pedagogical
model, geographical presence and administrative processes. Students would decide which
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university best fits their needs. In this model, the host government would play the role of
regulator.
307. This model has numerous challenges. First, fierce competition among host institutions
would not auger well for COMESA-URI. On the other hand, there would be no one brand but
rather, multiple brands and poor quality could become a common feature.
Decisions:
308.
Council decided that:
i.
ii.
The COMESA Virtual University be established, working with a network of
universities, which will incorporate an Academy of Science, Technology
and Innovation as well as Research Networks. This virtual university will
then progressively transform into a permanent autonomous University to
be launched in October 2015; and
Further, Council adopted the following operationalization plan for the
establishment of the university:
Proposed Operationalization Plan COMESA-URI
March
2015
Activity
1. Summit to Approve Launch of the URI and
Direct the Secretariat to take Immediate
Steps to Operationalize it
2. Meeting between SG/ASG and Capacity
Development Adviser to Review
Operationalization Plan and designate name
for ESA-URI
3. Appointment of Interim Executive Director
4. Recruitment of Management Team
5. Signing of MoUs/Host Agreements - with
Partner Universities and the Main Hub.
6. Finalisation of Curricula Design and
Development
7. Design and establishment of online ELearning Knowledge and Training Platform
(to be purchased off-the-shelf)
8. Establishment of Resource Centre/Library
and Research Network
9. Establish Mentorship and Fellowship
Scheme
10. Formal Launch: Inaugural Guest Lecture
and Launch of Masters Programme
April
2015
June
2015
July
2015
August
2015
October
2015
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CO-OPERATION AMONG MEMBER STATES IN THE MANUFACTURING OF ESSENTIAL
DRUGS; AND AMENDMENT OF THE TRIPS AGREEMENT ON COMPULSORY LICENSING
FOR MEDICINE
309. Council was informed that pharmaceutical production in and for Africa is not only
imperative to guarantee access to drugs and commodities for AIDS and other health challenges
on the continent, but presents an opportunity for Africa to industrialize. However, Africa is
largely dependent (more than 80 percent) on imported pharmaceutical and medical products.
The need for such drugs presents a potential market opportunity for African pharmaceutical
companies. For example, there are more than 10 million people on antiretroviral (ARV)
treatment in Africa. Using a low estimate of US $140 per person a year, the current number of
people on ARV treatment in Africa represents a market opportunity of more than US $1.4 billion.
This market will more than treble over the next decade as more people are placed on ARV
treatment, as a step towards Ending AIDS, and other uses of ARV treatment are expanded. The
total pharmaceutical spending for the continent in 2012 was estimated at US $18 billion, and
this market is expected to reach US $30 billion by 2016 and potentially US $45 billion by 2020.
The large support from the President’s Emergency Plan for AIDS Relief and the Global Fund to
Fight AIDS, Tuberculosis and Malaria can be tapped as major sources of financing an ARVfocused pharmaceutical industry. Through 2012, the Global Fund had already spent nearly US
$12 billion dollars in Africa. Local production of ARVs can serve as a path-breaker to broader
pharmaceutical- and medical-based industrialization.
310. Local production of pharmaceuticals can also advance industrial development, reduce
external dependency, facilitate stronger regulatory oversight to curtail counterfeit products,
improve the trade balance and create jobs. Some 38 Member States of the African Union have
some form of pharmaceutical production. Yet the companies vary in product quality and the
ability of the regulatory authorities to enforce standards. Manufacturers largely rely on imports
for most inputs. The challenges that prevent the industry from scaling up production include
steep investment requirements; the need for expertise and skilled workers; stringent quality
standards as a prerequisite to access donor funded prequalified markets; cross-border
regulatory harmonization for regional markets; an uneven playing field for locally produced
drugs against finished product imports that are value-added tax–exempt or duty-exempt; and
insufficient access to supportive industries.
311. Strengthening local production requires governments to offer fiscal and non-fiscal
incentives and coordinate policies so as to strengthen the industry and to support regulatory
authorities in order to reassure investors. A conducive private sector investment climate is also
needed.
Amendment of the TRIPS Agreement on Compulsory Licensing for Medicine
312. Egypt made a presentation highlighting the urgency of acceptance of the Protocol on
Amendment of the TRIPS Agreement, which is open only up to 31 December 2015. The
presentation covered the following points:
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a.
The TRIPS Agreement provides protection for various forms of IPR including
patents.
b.
New pharmaceuticals are basically inventions, so they fall under patents
protection.
c.
This patent protection gives the patent holder protection to prevent others from
using his patented product for 20 years.
d.
However, the TRIPS has recognized that there are some cases where patents
shall meet some exceptions, including in cases of emergency or failure to agree
with the patent holder on reasonable terms due to his abuse of the situation or
failure to produce this product (for a product that is badly needed).
e.
The most important exception is “compulsory licensing”, which means that the
government of the state, where a patent is registered, and under some
exceptional circumstances, can permit others to use a protected patent.
f.
The patent holder in such a case can’t prevent others from using his patent, but
he is just entitled to remuneration for the forced use of his patents by others.
g.
The problem that Article 31 of the TRIPS Agreement mandated that the products
produced under the compulsory licensing system to be directed predominantly to
the use of domestic market.
h.
This Article was widely interpreted by poorer WTO Members (LDCs), as to be
denying them a privilege or an exception to patentability that will be entertained
by other better off Members (developing countries).
i.
This interpretation arose because this Article practically means that one cannot
import or export products produced under compulsory licensing.
j.
Therefore, countries with no industrial capacity will not be able to issue
compulsory licenses in cases of emergency, while developing countries that are
better off than LDCs will be able to make use of this system.
Sequence of events to tackle this problem under WTO
a.
Provided the complaints by LDCs (especially the African Group) about the
explained above problem, and after tough negotiation, the Doha Ministerial
Conference issued the “Declaration on the TRIPS agreement and public health”.
b.
This Declaration primarily came after calls by developing and least developed
WTO members, spearheaded by the African Group (Egypt played a leading role
among the African Group back then).
c.
Paragraph 6 of the Doha Declaration mandated the TRIPS Council to find a
solution to the difficulties faced by countries with insufficient or no manufacturing
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capacities in the pharmaceutical sector in making effective use of compulsory
licensing.
d.
In 2005, WTO members adopted by consensus the Protocol Amending the
TRIPS Agreement. This has a special significance as it is the sole amendment
proposed to any of the WTO multilateral trade agreements since their adoption in
1994.
Benefits of the Protocol to COMESA Member States:
a.
This Protocol provides developing and least developed countries with large
flexibilities in terms of importing products produced under compulsory licensing
from other countries (Unlike the mandate of Article 31 of the TRIPS).
b.
However, there are some requirements and prerequisites before the beneficiary
country can made use of such a system, including labelling and other procedures
to prevent the diversion of these products to other richer countries.
c.
The Protocol also considers any economic block that has at least half of its
members LDCs, as a single market.
d.
This means that COMESA is considered as a single market under this protocol
and is exempted from the requirements (concerning prevention of diversion or
other borders procedures.
Current State of Play
a.
The Protocol requires at least two thirds of WTO Members to notify about its
acceptance before it enters into force.
b.
Egypt accepted the Protocol in 2008.
c.
So far, the number of countries is about only half, with very limited notifications
from African countries.
d.
Egypt would like to stress that the African countries are the ones that called for
this Protocol, and it is mainly in their interests.
Discussion:
313. Council agreed that this was a key priority for Africa in general and COMESA in
particular, and called for appropriate prioritisation of programmes and partnerships on access to
medicine as well as implementation of the interim solution contained in the decision of August
2003 of the General Council of the WTO. The meeting further called for immediate acceptance
of the Protocol amending the TRIPS Agreement and notification to the WTO Secretariat in order
to beat the December 2015 deadline and to be in time for the next WTO Ministerial Conference
which will be hosted by Kenya in December 2015. The meeting noted that acceptance will not
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be valid after December 2015 and therefore called upon Member States to note the urgency of
this matter.
314. Council was informed that only four COMESA Member States have so far accepted the
Protocol amending the TRIPS Agreement. These are: Egypt, Mauritius, Rwanda and Uganda.
Further, Council was informed that Seychelles had completed its accession to the WTO and will
become the 161stmember of the WTO. Further, Seychelles will also soon sign the Protocol
amending the TRIPS Agreement, and encouraged all other Member States that are yet to sign
to do so because the protocol enables the growth of the industry in developing countries.
Decisions:
315.
Council decided that Member States:
i.
Identify and take actions aimed at creating a conducive regulatory, policy
and investment environment for the access, manufacture and distribution
of Anti-retroviral and other drugs and medical commodities;
ii.
Support the continental and regional efforts to end the epidemics of AIDS,
TB and Malaria as well as other continental health challenges;
iii.
Hold a pharmaceutical business roundtable with pharmaceutical
manufacturers/associations, policy makers and other stakeholders as an
entry point for deeper engagement with the pharmaceutical industry on
requirements for strengthening local production;
iv.
Create a COMESA Pharmaceutical Working Group to open a larger public
private dialogue on encouraging investments and partnerships in the
industry; and
v.
That have not yet accepted the Protocol amending the WTO TRIPS
Agreement should do so immediately and notify the WTO Secretariat, by
December 2015, after which date the acceptance will be invalid.
CONSIDERATION OF THE CONSOLIDATED REPORT OF THE SECRETARY GENERAL ON
THE IMPLEMENTATION OF COMESA PROGRAMMES
316. Council was informed that the Secretary General presented the consolidated report on
the status of implementation of the Common Market Programmes, as well as the reports of the
COMESA Institutions. He informed the meeting that Articles 14 and 17 of the COMESA Treaty
provide that it is the responsibility of the Secretary General to submit all reports on the activities
of the Common Market to the Council and the Authority. The report was prepared in compliance
with the provisions of the Treaty to facilitate deliberations and decision making by the Council
and Authority. The reports of sectoral committees were also summarized in the Consolidated
Report, and the full sectoral committee reports were submitted as background documents for
the Intergovernmental Committee.
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317. The reports of sectoral ministerial committee meetings are not for discussion by the
Intergovernmental Committee as Article 7(2) of the Treaty provides that the Secretary General
may convene Sectoral Ministerial meetings to consider and take decisions on technical sectoral
issues not having budgetary implications. The Treaty clearly spells out how the decisions,
recommendations, and regulations should be implemented by the Member States. Further, the
obligations of the Member States as outlined in Article 5 state clearly that the Member States
shall make every effort to plan and direct their development policies with a view to achieving the
objectives of the Common Market.
INFRASTRUCTURE
TRANSPORT FACILITATION
CNS/ATM Project
318. Council was informed that the COMESA airspace integration project’s main goal is to
provide safe, efficient air navigation services in a unified air space to support trade, tourism
and regional socio-economic integration in COMESA. The project is hosted by Rwanda. The
Project implementation Unit (PIU) is based in Kigali, Rwanda. The project is funded by ADB,
and companies were shortlisted to bid for the three studies for COMESA airspace integration
project as follows:
a.
b.
c.
Consulting Services for Establishment of a Cooperative Legal and Institutional
Regional Framework for a Unified Single Upper Airspace in the COMESA
Region;
Consulting Services for Establishment of Regulatory Framework and Agency for
COMESA Unified Single Upper Airspace; and
Consultancy Services for Assessment of Technical and Financial Feasibility of
Unified Single Upper Airspace in the COMESA Region.
319. The request for proposals was sent to the shortlisted companies to submit their offers
after the clearance from the African development bank. The closing date for submitting the
offers is 27 March 2015 and the evaluation of the offers will be undertaken immediately to fast
track the implementation.
Air Transport Liberalization
320. Following the 32nd Council decisions, the Secretariat circulated to all Member States the
AFCAC/IATA study on Air Transport Liberalization and Market Analysis to Member States; and
conducted a similar study for the COMESA region 2015 in order to quantify economic benefits
of air transport liberalization taking into account the need for COMESA Carriers to increase their
market share. The Secretariat is liaising with African Civil Aviation Commission (AFCAC) and
IATA to carry out the study on the economic benefits of the Legal Notice No. 2 and YD
implementation. The study will cover all Member States.
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Surface Transport
Axle Loads Limits and Vehicle Overload Control
321. Council was informed that the harmonisation of transit transport instruments such as
axle loads limits and vehicle overload control across the Member States is intended to ensure
that vehicles operating on the road networks comply with the pavement design standards. The
Tripartite has developed a Tripartite Strategy and Implementation Plan for the synchronised and
coordinated implementation of agreed measures focused at supporting Member States to
implement the legislative, policy, regulatory systems and standards at national and corridor level
necessary for ensuring harmonised vehicle overload controls in the ESA region. The strategy
was discussed in a workshop which was held on 10-12 November 2014, Gaborone, Botswana.
The main objective of the Workshop were to develop a Tripartite Strategy and Implementation
Plan, Identify regional regulatory frameworks develop a programme human and institutional
capacity building. The workshop validated the following:
a.
b.
c.
d.
Standardised vehicle and axle/axle unit load limits;
Weighbridge verification intervals should be no longer than 12 months with
interim routine checks;
Auditing of weighbridge operations to be carried out at least annually; and
Overloading offences should be decriminalised and replaced with an
administrative system incorporating fees.
322. As a result of the workshop recommendations, a vehicle load management MoU was
drafted. The MoU has been circulated to Member States for comments, and a consultant was
recruited to draft an indicative regional weighbridge location plan 02 April 2015. The MoU and
the regional weighbridge location plan will be discussed in regional workshop, which will be held
from 21 to 23 April 2015 in Addis Ababa, Ethiopia.
Decision:
323. Council decided that Member States should provide comments on the MoU and
participate in the validation workshop which will be held from 21 to 23 April 2015.
Management and of Maintenance of Road Infrastructure
324. Council was informed that roads are main mode of transport for both freight and
passengers in the COMESA region currently accounting for nearly 90 percent of freight, their
management and maintenance is key in conducting both intra COMESA and international trade.
The Member States have established dedicated road funds and road development agencies in
order to ensure the sustainability and social and economic values of these roads. The IC
recalled the 32nd Council decisions that the Secretariat should undertake a study on the
performance of the road funds and make recommendations on scaling up funding for
sustainable road maintenance; and that the report should be submitted to the next infrastructure
ministerial meeting and subsequently to the Ministers of Finance for final decision. The meeting
was informed that a study will be conducted on the appropriate methods of managing the road
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funds and road user charges. The terms of reference of the study has been finalised, and the
Secretariat will mobilise funding for this study.
One-Stop Border Posts (OSBP)
325. Council noted that the One Stop Border Posts (OSBP) programme implementation has
reduced the time of crossing the borders. Secretariat staff and the EU visited Chirundu OSBP,
Zambia and Zimbabwe where the trucks cross the borders in around two hours.
326. Following the 32nd Council decision that the Secretariat circulates the OSBP
instruments, the instruments and procedures were circulated to Member States to facilitate the
implementation.
DEVELOPMENT OF PHYSICAL TRANSPORT INFRASTRUCTURE
North/South Corridor
327. Council was informed that studies are being carried out for prerequisite project
preparation work to bring five road sections in Botswana, Malawi and Zimbabwe along the
North/South Corridor to a ready state for investment financing. These roads are:
a.
b.
c.
d.
e.
64km Pandamatenga – Nata road section in Botswana;
111km Palapye – Martins drift (border with South Africa) road section in
Botswana;
205km Lilongwe City Junction (M1) – Jenda road section in Malawi;
120km Bulawayo – Gwanda road section in Zimbabwe, and
200km Gwanda – Beitbridge link in Zimbabwe.
The Establishment of the Navigation Line between Lake Victoria and the
Mediterranean (VICMED) Sea Project
328. Council was informed that the objective of this mega-project is to establish a navigational
route connecting Lake Victoria and Mediterranean Sea through the river Nile. The River Nile
Transport Corridor pre-feasibility study commenced and the ADB is in the process of securing
funding for the study slated for conclusion in May 2015.
Policy and Regulatory Harmonisation in ICT
329. Council was informed that most Member States updated and reviewed their national
policies in line with the regional ICT policy. The policy has paved the way for the establishment
of ICT regulators, and currently 15 countries have regulators, while the ministries handle
regulatory functions in the remaining countries.
ICT Consumer Protection Regulations
330. Council was informed that following the 32nd Council decision that consumer protection
regulations be developed, a consultant was recruited and the regulations have been drafted.
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The regulations have been circulated to Member States for comments, and the received
comments have been incorporated into the draft document which will be considered in the next
ARICEA annual general meeting.
Cyber Security Programme implementation
331. Council was informed that following its February 2014 decision that a high level forum on
cyber security be organised to counter new forms of organized cybercrime, the Secretariat sent
a letter to Member States informing them of the forthcoming high level cyber security forum. The
Secretariat also discussed the possibility of funding the forum with the World Bank and the
European Commission; and the Secretariat also participated in the cyber security needs for
development conference organised by the EU Commission. The EU commission will develop a
programme for capacity building for 2016.
The COMTEL Project
332. Council was informed that the COMTEL project aims at creating an enabling platform for
unlocking value in the installed terrestrial fibre optic infrastructure by the regional networks and
value added services to break the region’s dependence on international clearing houses,
international satellite operators, undersea cable operators, and international intellectual property
traffic peering, thereby keeping regional traffic in the region and creating an environment for the
uninhibited low cost movement of traffic across borders. The intellectual property clearing house
and regional intellectual property peering points is an intelligent network overlay which controls
the routing of traffic running over operator networks. Traffic flows to the intellectual property
clearing house will be for regional and international traffic only. Traffic within each country will
be routed internally through local internet peering points. The feasibility study and financial
analysis were completed by Cross Connect and the project business plan will be presented to
the operators and investors.
The COMESA Model Energy Policy Framework
333. Council was informed that the objective of the model energy policy framework is to
provide an outline of contents expected in national energy policies. The Member States would
then domesticate it and harmonise policies in the spirit of regional integration. It was noted that
national energy policy documents of nine countries are compliant with the COMESA model
policy framework and that five countries are in the process of reviewing their policies. Moreover,
some countries, such as Madagascar has requested the Secretariat to assist in developing its
national energy policy.
334. Council was informed that Rwanda had adopted the energy policy framework on Friday,
20 March 2015.
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335. The status of domestication/internalization of the model energy policy framework by
Member States is indicated in the table below:
Compliant to the COMESA Compliant
to
the
Model
Energy
Policy COMESA
Model
Framework
Energy
Policy
Framework (Draft)
Under
Review Initiated
expected to Comply
with the COMESA
Model Energy Policy
Framework
Djibouti
Comoros
Kenya
Ethiopia
Madagascar
Malawi
Burundi
Sudan
Democratic Republic of
Congo (DRC)
Egypt
Mauritius
Rwanda
Seychelles
Swaziland
Uganda
Zambia
Zimbabwe
Source: Information compiled by COMESA Secretariat
Guidelines on the Encouragement of Investment and Utilization of Renewable
Energy Sources in the COMESA Region
336. Following the endorsement of the four renewable energy guidelines on Feed-in-Tariffs
(FiT), Power Purchase Agreement (PPA), Public Private Partnership (PPP) and Joint
Development of Projects by the COMESA Council of Ministers, the Secretariat circulated the
guidelines to Member States and Council urged the Member States to use them in developing
their legal and regulatory frameworks. To this end, the Secretariat has offered to provide
technical assistance for the Member States to enable them fully understand and further
internalize the guidelines.
Zambia-Tanzania-Kenya (ZTK) Power Transmission Project
337. Council was informed that during the 11th Energy Ministers’ meeting held in Livingstone,
Zambia on 15 December 2014, an Inter-Governmental Memorandum of Understanding was
signed for the power project. The IC was further informed that it was agreed that each country
should develop, own and manage the assets in their respective boundaries and have a project
management unit to coordinate and monitor the implementation of the project.
338. On the project status, Kenya has completed the feasibility studies and detailed project
design and has further mobilized financial resources for the construction of the Isinya-Namanga
segment. Kenya has also commenced the engineering, procurement and construction process.
The expected completion date for the segment in Kenya is June 2017. Tanzania has mobilized
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the resources as part of its national transmission backbone project, and has engaged an
engineering, procurement and construction contractor for the Iringa-Singida segment while the
financing arrangements for the segment Iringa-Mbeya and Singida-Namanga is in progress. The
expected completion year for the segments under construction is 2016. Zambia has completed
the resource mobilization and the procurement of the engineering, procurement and
construction contractor for the Pensulo-Kasama segment. The feasibility study for KasamaMbeya segment is underway. The expected completion date for the segment under construction
from Pensulo to Kasama in Zambia is September 2015. The feasibility study for the extended
segment from Pensulo to Kabwe still remains outstanding.
339. Council was further informed that COMESA and the Ministry of Mines, Energy and
Water Development of the Republic of Zambia signed in December 2011 an implementation
agreement for the Zambia-Tanzania-Kenya (ZTK) Interconnector Project, under the 10th
European Development Fund. The total funding under this agreement amounts to €4 million.
THE EAST AFRICAN POWER POOL (EAPP)
340. Council was informed that the steering committee and the Council of Ministers’ meeting
of the Eastern Africa Power Pool (EAPP) were held in Bujumbura, Burundi on 22 - 23 January
2014. The meetings deliberated and made decisions related to the strengthening of the
permanent secretariat of EAPP with the requisite human resources and other administrative and
financial issues.
341. Council noted that the programme goal of technical assistance for enhanced
implementation and operationalization of the EAPP coordinating centre and Independent
Regulatory Board was to contribute to the efficient and effective market operation, system
operation coordination, and regulatory services for the regional power market. The activities
related to this programme include the master plan update (component I), market development
(component II), and systems operations (component III). The final draft market rules and
guidelines, as well as draft reports of the master plan and operations training modules were
received in the last quarter of 2014. The fourth twining progress report was also reviewed and
approved, and the project was completed successfully.
342. Council was informed that the objective of the programme on capacity building in
support of enhanced renewable energy development and institutional strengthening to
implement the EAPP corporate plan was to foster enhanced integration of renewable energy in
the regional master plan, and support institutional strengthening.
343. It was further noted that COMESA effected the first and second disbursements
amounting to US $200,000 following agreements on the proposed work plan. The disbursed
amount was utilized for the implementation of part of the activities in the work plan, including
training seminars for operations and environment technical committee members. The EAPP
submitted a request for the disbursement of the remaining amount to implement the rest of the
activities in the agreed work plan.
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344. Council was informed that the source of finance for this programme is mainly the
Ministry of Foreign Affairs of Norway, and the Swedish International Development Agency
(SIDA) who have so far contributed US $4.34 million. USAID, under the Integrated Partnership
Assistance Agreement, has also contributed US $348,376.
345. Additionally, USAID is assisting the EAPP secretariat as well as the institution’s
Independent Regulatory Board (IRB) in the areas of the power purchase agreement,
transmission agreement, grid code and renewable integration workshop, institutional
assessment, review of IRB’s five year plan and review of IRB’s operational manual. On the
project status, the IC was informed that the project had started and NEXANT (the implementing
company) was working on the above activities.
346. Council noted that the objective of the technical assistance and training services project
was to foster the integration of the electricity markets in Eastern Africa with a view to creating a
regional electricity market providing the least costly, environmentally friendly and affordable
electrical energy. On the project status, it was noted that a number of activities were completed
which included development of a mechanism to allow open access to spare capacity in
interconnectors, setting up dispute resolution mechanisms, mechanisms for financing pool
operations, standardization of import/export licenses, capacity building and training for national
regulators. It was noted that the source of finance of this project is the European Commission,
and a grant for €1.74 million has been obtained.
347. Council was further informed that the EAPP implemented the new organizational
structure, which was proposed by the governance and human resources committee and
subsequently approved by the conference of Ministers of EAPP. The meeting also noted that
the governance and human resources committee had now become one of the permanent
organs of EAPP, and as part of the implementation of the reform, EAPP had also appointed a
new Secretary General.
The Design of the EAPP Headquarters Project
348. Council was informed that the Government of the Democratic Republic of Ethiopia made
available a prime site of 2,000 square meters free of charge (estimated at a cost of 14 million
birr or US $770,000) in Addis Ababa, for the construction of the EAPP Headquarters. In
December 2014 the consultant delivered the revised preliminary design drawings and report for
the subsequent official approval of the same by the EAPP General Secretariat. In this regard,
the EAPP General Secretariat approved the submitted preliminary design and drawings and
associated report and requested the consultant to continue to the next final design and drawings
stage as per the revised schedule agreed by the Secretariat.
Decision:
349.
Council made the following decisions:
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i.
ii.
Noted the progress made on the implementation of the activities of the
Eastern Africa Power Pool; and
Commended the Government of Ethiopia for providing a site for the
construction of the proposed headquarters of the EAPP.
Preparation and Financing of Infrastructure Projects under the 11th European
Development Fund
350. The High Level Committee of the 11th EDF met in December 2014, in Gaborone,
Botswana and identified physical infrastructure projects for financing. The meeting was informed
that the third meeting of the High Level Committee is scheduled to take place on 03 and 04
June 2015. The EA-SA-IO regional indicative programme will be signed on 05 June 2015
between the region, and EU.
Decision:
351.
Council commended the EU for their support to COMESA.
PROGRESS REPORT ON THE IMPLEMENTATION OF THE COMESA MSME STRATEGY
352. Council was informed that the COMESA MSME strategy was adopted by the Council of
Ministers who met in Kinshasa, DR CONGO in February 2014. The policy objectives are to
create and maintain an enabling environment for long term growth of MSMEs in the COMESA
Region, through building competitive productive capacities to expand the supply of value added
goods and services to regional global markets. This will play a big part in reducing poverty,
create employment, promote trade and investments and consequently regional integration.
353. Council was informed that the implementation of the MSME strategy is demand led.
Djibouti has shown its interest in implementing the strategy by requesting the Secretariat for
technical and financial assistance for domestication of the policy. In this respect, the draft
national MSME strategy for Djibouti is being finalized and a validation workshop is due to be
held in Djibouti in April 2015.
354. Comoros has also requested the Secretariat to assist the country in developing a
national MSME strategy cantered on value addition using local resources in order to create
employment, and increase trade and investment. The Secretariat is in process of securing a
budget and identifying a consultant to work with Comoros on the strategy.
355. The Secretariat is also in the process of mobilizing resources to fund the operations of
MSME in the region. The African Development Bank (ADB) has a facility of US $125 million
intended for lending to microfinance institutions for onward lending to MMSEs. The other facility
is a direct lending to MSMEs in various sectors of the economies of Member States. ADB will
fund projects valued at between US $200,000 and US $500,000 under this facility. The
modalities of implementing the two facilities are being worked out by the Secretariat before
being circulated to Member States.
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Decisions:
356.
Council decided that:
i.
ii.
Member States that do not have updated MSME policies and strategies
should domesticate the COMESA regional MSME Policy; and
The Secretariat should facilitate the SMEs from the region to access the
existing regional and continental financing arrangements.
DRAFT COMESA INDUSTRIAL POLICY
357. Council recalled its decision of 24 February 2014 that directed the Secretariat to prepare
a policy on industrial development for the region. The COMESA Industrial Policy is anchored on
key strategic pillars/intervention areas aimed at diversifying and transforming the economies of
Member States in line with the theme of the COMESA Summit 2015, namely: “Inclusive and
Sustainable industrialization”. The key intervention areas at both national and regional level are
outlined below:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
Promotion of linkages among industries through specialization and value chains;
Promotion of the agro industry;
Promotion of industrial research and development, transfer adaptation and
development of technology;
Incentives to labour intensive industries and those who use the local resources;
Access to market, industrial and technological information;
Improve the industrial environment for both national and foreign investors;
Development of human resources, including training, management skills,
indigenous entrepreneurs and industrialists;
Basic infrastructure development (electricity and water supply, efficiency and
affordability);
Promotion of special economic zones including agro industrial parks;
Combating illicit trade to promote and protect local industries;
Encourage Diaspora investments through specific policies; and
Sustainable industrial development.
358. Council was informed that consultations were done with Member States, as well as
COMESA institutions on the operationalisation of the policy.
Discussion:
359.
Council noted that the Industrialisation Policy should clearly include the following:
a.
b.
c.
The representation of local content;
The M&E system in place to continually evaluate the policy implementation;
The SMEs participation in the supply chains;
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d.
e.
f.
g.
The need to have constant review, progress reports, and an appropriate
reporting format;
The role of the governments, and the private sector. This includes among others
co-investment as outlined in Chapter 12 of the COMESA Treaty;
The compilation of relevant import and export statistics related to Member States’
domestic markets and how the region can competitively produce selected
commodities, for example pharmaceuticals;
A strategic implementation plan, with clearly defined responsibilities and
timeframes.
Decisions:
360.
Council:
i.
Adopted
amendments:
a.
b.
c.
d.
e.
f.
ii.
the
COMESA
Industrialization
Policy,
with
the
following
Representation of local content;
An M&E system in place to continually evaluate the policy
implementation;
SMEs participation in the supply chains;
Progress reports, and an appropriate reporting format;
Clearly defined role of governments, and the private sector; and
Compilation of relevant import and export statistics related to
Member States’ domestic markets; and
Further, Council decided that the Secretariat should prepare a strategic
implementation plan for the Industrialisation Policy.
DRAFT COMESA MONITORING AND EVALUATION POLICY DIRECTIVE
361. Council was informed that COMESA recognizes that effective institutions and policies
are essential for sustainable development. COMESA also places a lot of importance on
strengthening the capacity of Member States to oversee transposition of legal instruments,
protocols and implementation of regional integration programmes. Emphasis on monitoring and
evaluation is a critical element in the fulfilment of any organization’s mandate. Key to the
evaluation process is the measurement of results and success in the implementation of the
programmes. Transparency and public participation brings about a degree of assurance that the
actions of proponents of development are congruent with citizens’ perceptions of need and this
is an important factor in the measurement of success and programme effectiveness.
362. Council therefore noted that the M&E Policy will lay a foundation for strengthening
existing implementation capacities towards the realization of development results across the
COMESA region. In addition, it will provide guidance to the Secretariat, Member States and
institutions on tracking, assessing and reporting on the progress and outcomes of COMESA
programmes according to the provisions of the Treaty establishing the Common Market. The
transformation of Africa is achievable through evidence-based knowledge and innovation. Key
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capacities geared towards enhancing integrated planning and implementation for development
results are critical components of this transformation.
363. The M&E policy endeavours to implement Article 173 of the COMESA Treaty on
Implementation and Monitoring Arrangements. The article defines the scope of co-operation
between Member States and the Secretariat, and provides that: “Subject to Provisions of this
Treaty, the Secretariat shall be responsible for following up and monitoring the implementation
by the Member States of the provisions of the Treaty and the regulations made, directives
issued, recommendations made and decisions taken and opinions delivered by the Council”
364. The Council of Ministers in 2010 directed that Member States should set up or
strengthen National Regional Integration Coordinating Committees (NRICC) and other relevant
stakeholder consultative forums to oversee implementation of COMESA’s regional integration
programmes.
365. In 2009, Council during its 26th Meeting held on 04 June, in decision CS/CM/XXV/3(a),
paragraph 210 directed that: “the programming, budgeting and accounting and reporting of the
COMESA Court of Justice, Regional Investment Agency (RIA) and COMESA Leather and
Leather Products Institute (LLPI) be harmonized with those of the COMESA Secretariat.
Secondly, Council also directed that COMESA streamlines the implementation of a performance
management system”.
366. Further, the Sixteenth Summit of the COMESA Authority of 24 November 2012
instructed the Council of Ministers to institute and effect an appropriate performance
management appraisal system on an annual basis for the executive management that includes
the Secretary General, Assistant Secretary General (Programmes) and Assistant Secretary
General (Administration and Finance); and directed Council to undertake the annual appraisal of
executive management through the outgoing Bureau of Council of Ministers.
367. The Africa-wide Capacity Development Strategic Framework (CDSF) endorsed by the
14th AU Assembly of February 2010 aims at, among others, developing essential capacity and
capable institutions in support of Africa’s reform agenda. This was reiterated during the high
level Durban retreat, which brought together the African Union (AU) Chair and Chief Executives
of Regional Economic Communities (RECs) on 28-29 March 2013. Under the auspices of the
AU Multi-Agency Capacity Development Support Programme for Africa’s Regional Economic
Communities, the United Nations Development Programme (UNDP) provided Technical and
Financial Support to develop the COMESA M&E Policy Framework.
368. The policy, in addition, responds to the Busan Partnership on Effective Development
(2011); Paris Declaration (2005) for making aid more effective and the Accra Agenda for Action
(AAA, 2008). The shared principles of ownership of development priorities by developing
countries focus on results, inclusive development partnerships, transparency and accountability
to each other; and form the foundation of co-operation for effective development. To achieve
transparency and accountability as well as enhance focus on results, there is need to have an
effective monitoring and evaluation policy framework in place.
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369. The IC was informed that it is against this background that the COMESA Secretariat
initiated the process of developing the M&E Policy. The main purpose of the policy is to develop
a conceptual framework for performance measurement. UNDP provided technical and financial
support in the development of the policy, which involved Kenya, Uganda. Malawi and DRC were
also invited to the task team however due to other commitments they did not participate. The
draft produced by the task team was presented during the regional validation workshop held in
Nairobi, Kenya from 08 to 11 April 2014. Comoros, Djibouti, Egypt, Kenya, Malawi, Madagascar,
Mauritius, Sudan, Swaziland, Seychelles, Uganda, Zambia and Zimbabwe attended the
workshop. The following COMESA institutions were represented: RIA, LLPI, COMESA Court of
Justice. UNDP, USAID development partners were also present.
370. The M&E Policy Framework Guidelines is organized into eight sections: the foreword
puts into context the events and discussions leading up to the development of the policy
framework; the executive summary details the progress made towards achieving regional
integration, responsibility for planning and implementation of programmes and progress made
towards institutionalization of the monitoring and evaluation function in COMESA; section one
presents a general overview of the COMESA M&E policy; section two presents the COMESA
M&E Policy’s goal and principles; section three is concerned with defining the proposed roles
and responsibilities of the Member States, COMESA institutions and the Secretariat in ensuring
delivery on M&E commitments; section four presents the minimum M&E requirements as
stipulated by the COMESA Treaty obligations; section five offers a summary of internationally
accepted M&E standards; section six suggests structures for operationalising the M&E policy,
with specific roles and responsibilities of COMESA programme managers and implementers;
and the final section contains the annex, which includes supporting documents such as the
COMESA M&E framework, sample reporting formats and other reference material.
Discussion:
371. Council noted that some Member States are unable to fully benefit from the online M&E
system due to lack of broadband width and reliable internet connections as experienced during
the national workshops that were conducted.
Decisions:
372.
Council:
i.
ii.
iii.
iv.
Adopted the M&E Policy and Guidelines;
Urged Member States to put in place an effective monitoring and evaluation
policy framework;
Gave the M&E Unit the responsibility to be the liaison between the
Secretariat and the COMESA National Coordinating Committee;
Urged Member States that have not established the COMESA Coordinating
Committee to do so immediately to facilitate implementation of the M&E
Policy;
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v.
vi.
vii.
viii.
Directed the Secretariat to hold national workshops in Member States that
did not benefit;
Re-organise workshops where they were held before; in order to build
capacity on the use of the M&E On-Line System in all Member States;
Urged all Member States, the Secretariat and all COMESA institutions to
start using the M&E online system immediately; and
Adopted the TORS of the COMESA National Coordinating Committee.
PROGRESS REPORT ON THE MEDIUM TERM STRATEGIC PLAN FOR 2016-2020
373. Council was informed that the strategy management process commenced at the
Secretariat in 2014, with consultations at different levels including the Secretariat, COMESA
institutions, and the African Union Strategy Department to capture issues linked to Agenda
2063. Subject matter experts in different areas such as industrialisation, trade, gender, peace
and security were consulted, and further consultations were been held with other RECs such as
EAC and IGAD.
374. The COMESA agenda is to deepen and broaden the integration process among Member
States through the adoption of more comprehensive trade liberation measures such as the
complete elimination of tariff and non-tariff barriers to trade and elimination of customs duties;
through the free movement of capital, labor, goods and the right of establishment; by promoting
standardized technical specifications, standardization and quality control; through the
elimination of controls on the movement of goods and individuals; by standardizing taxation
rates (including value added tax and excise duties), and conditions regarding industrial cooperation, particularly on company laws, intellectual property rights and investment laws;
through the promotion of the adoption of a single currency and the establishment of a Monetary
Union; and through the adoption of a Common External Tariff (CET).
375. At the core of strategy formulation process is Inclusivity. This means that the benefits of
regional integration must be all-encompassing if they are to improve the living standards of all
women and men, young and old alike thus building greater prosperity and social cohesion.
Inclusivity will also call for co-operation between governments and private sector actors to
harness the investments necessary to strengthen the productive and trade capacities of our
Member States. The 2016-2020 Medium Term Strategic Plan is guided by three themes as
follows:
a.
b.
c.
Strengthening stakeholder involvement;
Improving implementation in all COMESA programmes; and
Improving regional and organizational readiness by entrenching risk
management practices to ensure business continuity or low disruptions in the
regional integration agenda.
376. In the period between April and May 2015, the Secretariat will consult Member States
and other experts at the continental and RECs level to get comprehensive input into the 20162020 MTSP. A validation workshop will also be held before the end of May 2015 before
submitting the draft to Permanent Secretaries of COMESA coordinating ministries.
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Decision:
377.
Council noted the status of development of the MTSP 2016-2020.
PROGRESS REPORTS OF THE COMESA INSTITUTIONS
378. While considering the reports of the COMESA institutions, Council noted that it was
important for the reports to be submitted to the Member States at least two weeks before the
meetings, as per COMESA regulations, in order to allow the Member States time to fully
consider the issues at hand and make valuable and relevant recommendations. It was also
emphasised that the reports should be circulated in the three official languages, and the time
allocated for the consideration of the reports should be increased in the meetings.
Decisions:
379.
Council decided that:
i.
ii.
iii.
The reports of the institutions should be submitted to the Secretariat and
copied to the Member States at least two weeks before the meeting;
Sufficient time should be allocated for discussion of institutions reports during
the meeting; and
The reports that are submitted late should attract a penalty.
COMESA COURT OF JUSTICE
380. Council was informed that the last progress report of the COMESA Court of Justice was
presented to the 33rd Intergovernmental Committee meeting on 04 to 06 December 2014 in
Lusaka, Zambia. This report covers the period from then to date.
381. The Court held the Seventeenth and Eighteenth Administrative Meetings of the Court
from 03 to 04 February 2015; and from 06 to 07 March 2015 in Zambia and Sudan respectively.
The meetings considered the progress report, the 2015 schedule of meetings, the Court
sessions, budget and work programme.
382. Further, Council noted that the Court prepared its Medium Term Strategic Plan for 2011
– 2015 in July 2010 and it is being implemented through its work programmes as developed
yearly. However, this MTSP comes to an end in December 2015 and, therefore the Court is
currently working with the Secretariat to develop the 2016-2020 MTSP.
383. The Appellate Division met on from 11 to 12 December 2014 and deliberated on an
Application for an advisory opinion. The ruling was delivered on 05 February 2015. The
Appellate Division was also scheduled to hear a pending Appeal No. AD. 1 of 2013, of the
Republic of Mauritius Vs. Polytol Paints and Adhesives Manufacturers Co. Limited but the same
was marked as settled on 06 February 2015 in terms of a consent filed by both parties. The First
Instance Division heard a pending reference between Collins Hwalima Dube Vs. COMESA
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Secretariat on 02 February 2015 and the same was adjourned to May 2015 on application by
the defense counsel.
384. Council was informed that in 2015, the Court will intensify publicity activities in Member
States and targets to carry out at least three publicity seminars before the end of the year.
Further, the Court will advertise, in all Member States, the posts of assistant registrar and
internal auditor following the approval of the job description for assistant registrar by the
Ministers of Justice and Attorneys-General meeting held on 04 March 2015. The Court was also
in the process of advertising for general service category posts that will be filled locally in
Sudan.
385. Council was further informed that the inauguration of the Court took place on 05 March
2015 in Khartoum, Sudan at a colourful ceremony that was presided over by the Vice President
of the Republic of Sudan, His Excellency Dr Hassabo Mohammed Abd El-Rahman. Also in
attendance were various Ministers and delegates from the Ministries of Justice and AttorneysGeneral of several Member States. The Honourable the Judge President of the Court, Mr
Justice Nzamba Kitonga and other Honourable Judges of the Court were also in attendance, as
well as the Secretary-General of COMESA, Mr Sindiso Ngwenya.
386. The Judge President, Justice Nzamba Kitonga, thanked the Government of the Republic
of Sudan for putting up the Court building and its continued support to the Court as it settles
down in its permanent seat. Further, since this was his last appearance before the IC following
the expiry of his tenure of office, he thanked the Member States and the Secretariat for the
support rendered to him over the last ten years when he was heading the COMESA Court of
Justice.
Discussion:
387. Council was informed that Sudan is fully committed to the advancement of regional
integration in general, and the facilitation of the work of the Court of Justice in particular, and will
continue to support the institution in the execution of its duties. The meeting also commended
Justice Nzamba Kitonga for his dedicated service to the COMESA Court of Justice over the last
ten years.
Decisions:
388.
Council:
i.
ii.
Commended the Government of the Republic of Sudan for putting up and
furnishing the Court building worth US $5 million, and for organizing a
successful inauguration of the Court;
Urged Member States to continue paying their assessed contributions on
time, in accordance with Article 42(4) and 166(6) of the COMESA Treaty to
enable the Court achieve its objectives;
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iii.
iv.
Decided that Libya be exempted from clearing the assessed contributions
until the country’s current challenging situation stabilises; and
Commended outgoing Justice Nzamba Kitonga for his dedicated service to
the COMESA Court of Justice as Judge President, over the last ten years.
COMESA LEATHER AND LEATHER PRODUCTS INSTITUTE
389. During the COMESA Heads of State Summit held in DRC on 26-27 February 2014,
COMESA/LLPI was directed to assist Member States to formulate national leather value chain
strategies aligned with the regional strategy. The principal objective was to revitalise the
regional leather sector by enhancing value addition at Member State level. To achieve this, LLPI
adopted the Triple Helix Approach as mechanism of building strong and closer collaboration
linkages that would facilitate a sustainable development of the leather value chain in the region.
390. The Triple Helix Approach advocates for the shift from a dominating industrygovernment dyad in the industrial society, to a growing triadic relationship between universityindustry-government in the knowledge society. The approach asserts that the potential for
innovation and economic development in a knowledge society lies in the realms of universities
and specialized institutions; and in the hybridization of industrialization and development
processes.
391. In 2014, COMESA/LLPI designed eight (8) strategies through a holistic participatory
process of value chain stakeholders anchored on the Triple Helix methodology. The
government, private sector and academia participated in formulating these strategies as equal
partners, and they are all expected to play important roles in the implementation at respective
national levels. In order to legitimise and give a formal meaning to these new relationships,
COMESA/LLPI was proactive and signed MoUs with chambers of commerce, universities and
leather associations in pursuing the critical aspect of incubating technology transfers and
sustained capacity building initiative.
392. The meeting was informed that as part of enhancing the skills of SMEs in the area of
value addition, leather goods manufacturing and business management in the leather sector,
LLPI trained 331 SMEs from Member States. The institution also continued with its resource
mobilization endeavours from development partners and secured US $75,000 from the PTA
Bank for the purchase of equipment for three incubation centers in Ethiopia, Sudan and
Uganda.
393. Council was informed that LLPI worked with national institutions, in the spirit of
upholding the Triple Helix philosophy. The execution of the work was funded directly by
COMESA/LLPI and included activities such as one-to-one meetings with enterprises,
specialised institutions, academia and government line ministries. Two workshops were held,
which were attended by stakeholders drawn from all segments of the value chain. The
unpacking of the strategies that are set to be implemented in 2015, would entail working with
the three institutions in designing responsibility matrices, which allocates roles among
government, private sector and academia to ensure the attainment of the vision.
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394. Of the strategies mentioned, seven were national strategies for Burundi, Eritrea, Malawi,
Kenya, Uganda, Rwanda and Sudan. The other strategy was for a major SME cluster in
Ethiopia. The implementation of the strategies would require resources; and the LLPI continued
to engage potential funding partners to assist in this end. The focus in 2015 would be to unpack
the national strategies developed by the Member States and translate them into tangible results
for the SMEs in the leather sector.
395. The meeting noted that India recently announced a policy direction towards the leather
sector where it intends to increase its total earnings from US $13 billion to US $26 billion. This
will have a major impact on Africa’s leather sector as 60 percent of the imports of raw materials
to India are sourced from Africa. This should influence Africa’s position in such a way that
appropriate policies should be put in place regarding value addition. The meeting was informed
that the LLPI is taking measures to ensure that adequate value adding initiatives are carried out
to avoid flight of our natural resources as merely raw material with no value added. The Member
States’ leather production and processing associations have, therefore, been trained with the
aim of addressing the mismatch of skills in the leather sector.
Discussion:
396. Council commended the LLPI for its efforts in SME and value chain development in the
leather sector in the region, and urged the institution to tap into the industrial policy. The
meeting also noted that LLPI commended the PTA Bank for the financial support to LLPI.
Decisions:
397.
Council decided that the LLPI be directed to:
i.
ii.
iii.
To be involved in the co-certification of their training programmes with the
global and regional institutions linked to LLPI;
Standardise, harmonise and develop a common regional curricula related
to footwear leather goods and leather processing for the middle level and
universities in the region; and
Establish contacts with other regional blocks to explore emerging
opportunities and expand inter-regional market demand.
THE EASTERN AND SOUTHERN AFRICAN TRADE AND DEVELOPMENT (PTA) BANK
398. Council was informed that the PTA Bank currently has 28 shareholders: 18 African
sovereigns from COMESA, EAC and SADC, eight (8) institutional investors, namely the African
Development Bank, ZEP/COMESA Reinsurance Company, Africa-Re, the National Pension
Fund of Mauritius, Mauritian Eagle Insurance Company, Seychelles Pension Fund, Rwanda
Social Security Board (RSSB) and BancoNacional de Investemento (BNI) and two other nonregional members, namely China and Paritetbank (Belarus). BNI, which is wholly owned by the
Mozambique Government, is a landmark transaction that marks the start of a mutually beneficial
relationship with a new country in the region.
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399. As at 31 December 2014, the Bank’s balance sheet had risen by 42% to US $3.5 billion,
reflecting another record increase in the volume of financing to Member States, spread across
various sectors and countries. As a result the Bank’s profitability has continued to strengthen
while its financial position and capacity to attract greater funding in support of expanded
financing activities has improved further.
400. The balance sheet and profits of the Bank more than doubled in the past three years,
with the former rising to an estimated all-time high of about US $3.5 billion. An important
element of the Bank’s strong performance is the improved quality of its assets, which is evident
in the continued reduction of non-performing loans, which has declined from a high of 11.6% in
2009 to 3.04% as at December 2014.
401. Guided by the Bank’s mandate to strengthen intra–regional trade and drive economic
growth in sub-Saharan Africa, the Bank’s exposure was distributed across public and private
sector entities. The Bank’s exposure to government and quasi-government projects remained
significant at 53%, largely driven by the deliberate focus on the agribusiness, infrastructure and
petrochemical sectors. The sectors are targeted mainly because they drive economic growth
within Member States, and the loan portfolio mix by country and sector at the end of 2014 was
as shown in the Figure below.
The PTA Bank’s Loan Portfolio Mix (as at end 2014)
402. With growing confidence, the Bank’s existing and new shareholders paid-in a record
level of US $66 million of equity capital in 2013, comprising new subscriptions and payments for
previously subscribed shares. A new capital increase of US $100 million was also adopted by
the Bank’s current shareholders in September 2013, to be implemented over a three year
period. Further, following the introduction of a new category of shares, the African Development
Bank took the lead with a US $20 million investment in the Bank’s new class B shares. The
Bank has also attracted several new shareholders, namely the National Pension Fund of
Mauritius, Mauritius Eagle Insurance, the National Bank of the Republic of Belarus and ZEP
Reinsurance.
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403. In 2014, the Bank’s shareholders’ funds grew 29%, from US $140 million to US $617
million, exceeding the 24% growth in the Bank’s net loan assets. This compares favourably with
and surpasses the 17% (US $525 million) projected for 2014 in the Bank’s corporate plan. Of
the US $140 million increase in total equity, US $63 million was in the form of new capital
subscriptions including share premium, while US $77 million was from retained earnings for the
year. Long term funding was raised from existing strategic partners such as the African
Development Bank and China Development Bank, while new partnerships were forged with KfW
of Germany, the European Investment Bank and AFD of France. New relationships have also
been initiated with BNDES of Brazil, China EXIM Bank, while existing relation with US Exim
Bank is being expanded with new long term funding.
404. Further in October 2014, the Bank also closed its 2nd international syndicated loan
facility, which was initially launched at a size of US $200 million, but resulted in 1.6 times oversubscription from the initial launch amount. The strong support that PTA Bank enjoys among its
correspondent banking partners was further demonstrated by the fact that 12 banks joined the
general syndication, with strong African participation from Egypt, Nigeria and South Africa, as
well as China and the Gulf. Notably, the Bank was able to drive down the cost of funding by
25% from the levels achieved in 2012. As at 30 December 2014, total resources available for
lending amounted to US $2.8 billion.
405. The PTA Bank was rated by two international rating agencies, namely: Fitch and
Moody’s. In 2012, Fitch Ratings revised the Bank’s outlook from stable to positive and, in
2013upgraded the international long term rating from BB- to BB with a stable outlook. In
October 2014, Fitch re-affirmed the upgraded rating of BB, with a stable outlook while Moody’s
maintained its Ba1 rating. Both rating agencies cited the Bank’s expanding capital base and
strong liquidity among the critical strengths taken into consideration. Also cited was the Bank’s
improved risk management and governance framework and practices as new developments
that led to the positive rating.
406. The Bank’s interventions in the COMESA region covers a range of activities including:
project and infrastructure financing; trade in services financing; establishment of an
infrastructure fund; the formation of a new trade finance fund for attracting investment in the
COMESA region; and capacity building activities. On infrastructure funding, the Bank finances
infrastructure transactions with minimum capital borrowing requirements of US $1 million while
the upper limit is determined based on an exposure not exceeding a maximum of 10% of the
Bank’s balance sheet size. However, for infrastructure and strategic sovereign backed
investments, the Bank’s exposure to any one project is limited to 25% of the balance sheet size.
The aim is to identify and implement viable projects that help to harness resources from various
long term financing partners including export credit agencies.
407. During the first two years of the corporate Plan (2012-2017), the Bank approved a total
of 47 projects totalling US $886 million and committed 41 projects, US $655 or 74% of the total
approved for the period. The following schematics also show project and infrastructure
approvals by sector and country in 2014.
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Project and Infrastructure Approvals by Sector (2014)
Other-Insurance
0%
Agri-Business
1%
Energy
8%
Health care
10%
Infrastructure
13%
Manufacturing &
Heavy Industries
68%
Project and Infrastructure Approvals by Country (2014)
Burundi
1%
Zimbabwe
24%
DRC
27%
Tanzania
8%
Kenya
18%
Ethiopia
17%
Regional
5%
408. The disbursements of project infrastructure financing in 2014 totalled US $495 million
out of which 40% was disbursed to energy, infrastructure, manufacturing and heavy industries
sectors. With regard to trade in services’ financing, the Bank used both reserve management
instruments and the medium term note facility to finance both trade and projects.
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409. The Bank has been working through trading companies to support small scale farmers
by making available agricultural inputs such as seed, fertilizers and equipment. In this regard,
the following lines of credit were provided to small scale farmers: US $110 million for Malawian
farmers; US $40 million for Kenyan farmers; US $45 million for Tanzanian farmers; US $62
million for Zambian farmers; US $19 million for Zimbabwean farmers; and US $13 million for
Zimbabwean farmers.
Status of the Infrastructure Fund
410. Council was informed that the COMESA Infrastructure Fund (CIF) was launched in 2010
to invest in infrastructure projects in Member States. The CIF set out to attract investments from
COMESA sovereigns and institutions as well as multilaterals, private and public enterprises.
The Fund’s target is to raise US $1 billion in tranches, with the first tranche of US $200-250
million expected to close in mid-2016. The following are some of the milestones achieved so far
in the course of the implementation of the CIF:
i.
ii.
iii.
iv.
v.
vi.
The Bank has established an office in Mauritius where the CIF is hosted;
CIF funds held by COMESA have been transferred to the Fund’s account;
Service providers were selected and approved by the CIF Interim Advisory Board;
The Chief Executive Officer of the Fund was appointed;
The Board of the Bank approved the seed capital investment of US $15 million; and
Privileges and immunities protocols were negotiated with the host government.
Decisions:
411.
Council:
i.
ii.
Commended the PTA Bank for continued financing to infrastructure and
other development projects in the region; and
Encouraged all African sovereign and institutional shareholders to
continue to demonstrate commitment in the Bank.
THE PTA REINSURANCE COMPANY (ZEP-RE)
412. Council was informed that the PTA Reinsurance Company (ZEP-RE) is mandated to
promote and develop the insurance industry of the region through re-insurance business. The
key objectives of the company include: fostering the development of the insurance and
reinsurance industry in the region; promoting the growth of national, sub-regional and regional
underwriting and retention capacities, ultimately supporting regional economic development.
413. The institution currently has 36 shareholders comprising; six (6) governments, ten (10)
government owned insurance and reinsurance companies, 16 private companies, two (2)
COMESA institutions (the COMESA Secretariat and the PTA Bank); and two (2) development
finance institutions. It also operates three regional hubs namely the Southern Africa Hub based
in Harare, Zimbabwe, the Eastern and Central Africa Hub based in Nairobi, Kenya and the
Western Africa Hub based in Abidjan, Cameroon. In addition the company has three country
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offices in Douala, Cameroon, Lusaka, Zambia and Khartoum, Sudan (which also caters for
Sharia compliant reinsurance business).
414. As of end December 2013, ZEP-RE recorded a 22% growth in business underwritten,
from US $81.7 million in 2012 to US $100.2 million in 2013. It also achieved an underwriting
profit of US $8.4 million and an overall profit of US $15.4 million. There was a 34% and 30%
growth in its shareholder funds and total assets respectively. The table below shows the key
performance areas for the years 2011 to 2013:
ZEP-RE Key Performance Areas (2011-2013)
2013
2012
2011
Gross Premium
100,181,402
81,714,820
63,536,571
Net Premium
83,964,961
66,307,584
49,846,359
Net Claims Incurred
40,667,775
30,355,413
26,103,374
Underwriting Profit
8,411,639
5,989,550
3,104,193
Investment & Other Income
14,921,584
15,255,819
11,083,593
Total Assets
201,843,403
154,088,372
130,337,123
Shareholders’ Funds
105,728,865
78,774,839
66,656,019
Net Profit
15,363,153
11,681,683
8,776,828
Combined Ratio
85.2%
85.3%
90.2%
415. The table below shows that as at 31 December 2013, business from the COMESA
region represented over 68% of the business underwritten by ZEP-RE:
2013
Region
COMESA
Non – COMESA (Africa)
Other regions
Gross premium
USD
68,263,181
14,876,871
17,041,350
Total
100,181,402
2012
68.14
14.85
17.01
Gross premium
USD
58,445,133
11,547,019
11,722,668
100.00
81,714,820
%
%
71.52
14.13
14.35
100.00
416. ZEP-RE is currently rated “B+” (financial strength) and “bbb-” (credit rating) by AM Best.
These ratings place the company among the few in the African region with an internationally
recognized investment grade rating. The good rating was attributed to the company’s wellbalanced risk adjusted capitalization, good underwriting performance, a robust risk management
framework and a favourable strategic position as a reputable reinsurer in the region.
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417. ZEP-RE’s business focus going forward is to consolidate its gains in the key traditional
markets while diversifying into non-traditional target markets that offer good profitable business.
To this end the company intends to ensure dominance in its core markets of the COMESA
region and grow more business from new markets. Subsequently, the company restructured its
operations and created three key hubs meant to ensure that the two pronged approach with
regard to business growth is sustainable. ZEP-RE has, however, not lost sight of its founding
goals and the promotion and development of the insurance industry in the region will remain a
key focus area. In addition ZEP-RE will seek to further enhance the partnership it has
established with development finance institutions, especially with regard to equity support and
technical assistance.
Discussion:
418. Council was informed that although DRC joined ZEP-RE in 1996. The meeting was
further informed that the process of submitting Instruments to the Secretariat was underway.
The Member State also requires continued support in the area of sensitisation on the Yellow
Card insurance scheme.
Decision:
419.
Council noted the progress report of ZEP-RE.
COMESA REGIONAL INVESTMENT AGENCY (RIA)
420. Council was informed that since its launch, COMESA RIA has been active in promoting
the COMESA region as a Common Investment Area, building a positive image of the region to a
worldwide audience, and improving Member States’ ability to do the same. More specifically,
COMESA RIA has been able to contribute to the improvement of Member States’ investment
and business climates through various capacity building programmes targeting mainly the
regions’ investment promotion agencies. Programmes have included: training on various topics
related to investment promotion, development of websites and investors’ tracking systems,
development of various publications and the completion of in-depth studies. The capacity of
investment promotion agencies was strengthened to promote their respective countries to
attract new investment and retain the existing investment base.
421. Also contributing to these efforts are the various promotional activities which have been
organized over this time span. Examples include organization of high-level international
COMESA investment forums and ministerial road shows; participation at key events and
support to Member States’ events; development of an investor portal now attracting over
150,000 visitors yearly; various country-level and regional investors’ guides and other
promotional tools; promotion of specific investment opportunities and projects as well as the
dissemination of positive news and information about facilities, regulatory frameworks,
incentives, and procedures. These promotional efforts have succeeded in bridging the gap
between perceptions and reality. They have also raised the profile and image of the region and
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its Member States, as destinations where it is easier to do investment and also where the return
on investment is higher than anywhere else in the world.
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RIA Activities in 2014
Member State
Burundi
Activity
Support to Burundi’s Investment Promotion Authority (API) to
participate to the 5th EU-Africa Business Forum (Brussels,
March 31-April 1 2014) which attracted more than 600 highlevel participants from across the European and African
business community.
Source of funding
EU through APSA
Impact
Promotion of Burundi as an attractive
destination through network and B2B meetings
Comoros
Support to the Comoros National Investment Promotion
Agency (ANPI) to participate to the 5th EU-Africa Business
Forum (Brussels, March 31-April 1 2014) which attracted
more than 600 high-level participants from across the
European and African business community.
EU through APSA
Promotion of Comoros as an attractive
destination through network and B2B meetings
DR Congo
Support to DR Congo’s Investment Promotion Agency
(ANAPI) to participate to the 5th EU-Africa Business Forum
(Brussels, March 31-April 1 2014) which attracted more than
600 high-level participants from across the European and
African business community.
EU through APSA
Promotion of DR Congo as an attractive investment
destination through network and B2B meetings
Ethiopia
Development of an Investor Tracking System (ITS) for the
Ethiopian Investment Corporation (EIC), Ethiopia’s
Investment Promotion Agency. Development of EIC’s
Investment Portal. National training workshop in Addis
Ababa for EIC staff on the administration and management
of ITS and portal. Regional training workshop in Cairo,
Egypt, on the importance of online investment promotion,
organisation of the agency’s work through the ITS and level
of responsiveness to investor inquiries
EU-ACP
Climate
Bizclim
Through the ITS, improved ability of agency to optimize and
make the most out of the process of tracking and managing
the different types of investor requests and contacts from
taking care of initial contacts to the delivery aftercare
services
Through their new investment portal, improved capacity to
reach investors in a timely manner with needed information
in a user-friendly and cost-effective manner and can
ultimately result in the generation of an important amount of
leads
Through training, improved understanding of workflow
organization and responsiveness
Improved overall capacity of EIC to attract investment
Business
Facility,
investment
investment
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Kenya
Madagascar
Development of an Investor’s Guide to Ethiopia
Regular budget
Strengthened portfolio of high-quality promotional tools at
the disposal of the Agency. Availability of organized doing
business contents/ text/ information at the disposal of the
agency to improve quality and speed of responsiveness to
investor inquiries. Improved overall capacity of EIC to
attract investment.
Development of an Investor Tracking System (ITS) for the
KenInvest, Kenya’s Investment Promotion Agency
Development of a road map and improvement
recommendations for the development of KenInvest’s
Investment Portal. National training workshop in Nairobi for
KenInvest staff on the administration and management of
ITS and road map to develop improved investment portal.
Regional training workshop in Cairo, Egypt, on the
importance of online investment promotion, organisation of
the agency’s work through the ITS and level of
responsiveness to investor inquiries
EU-ACP
Climate
Bizclim
Development of an Investor’s Guide to Kenya
Regular budget
Training of the Economic Development Board of Madagascar
(EDBM), Madagascar’s Investment Promotion Agency, on
investment promotion best practices, in Antananarivo. More
specifically, EDBM’s staff and government officials were
trained on the FDI context, the investor’s decision-making
process, the evaluation of their website, a systematic
approach to investors’ requests, planning and organizing,
investor aftercare services, investor targeting, and
investment facilitation.
Development of an Investor Tracking System (ITS) for EDBM
and organisation of national training workshop in
Antananarivo on the administration and use of the ITS
EU through APSA
Through the ITS, improved ability of agency to optimize and
make the most out of the process of tracking and managing
the different types of investor requests and contacts from
taking care of initial contacts to the delivery aftercare
services
Through the road map to develop improved KenInvest’s
investment portal, improved capacity of agency to reach
investors in a timely manner with needed information in a
user-friendly and cost-effective manner and can ultimately
result in the generation of an important amount of leads
Through trainings, improved understanding of workflow
organization and responsiveness
Improved overall capacity of KenInvest to attract investment
Strengthened portfolio of high-quality promotional tools at
the disposal of the Agency
Availability of organized doing business contents/ text/
information at the disposal of the agency to improve quality
and speed of responsiveness to investor inquiries
Improved overall capacity of KenInvest to attract investment
Improved understanding of EDBM of FDI context, investor
decision-making process, online promotional tools
management, responsiveness to investors, investor
aftercare, workflow organisation and working with other
government institutions, etc.
Through the ITS, improved ability of agency to optimize and
make the most out of the process of tracking and managing
the different types of investor requests and contacts from
taking care of initial contacts to the delivery aftercare
services
Improved capacity of EDBM to attract investment
Business
Facility,
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Malawi
Mauritius
Rwanda
Sudan
Support to EDBM to participate in the 5th EU-Africa Business
Forum (Brussels, March 31-April 1 2014) which attracted
more than 600 high-level participants from across the
European and African business community. More
specifically, COMESA RIA, with the support of APSA,
financed the participation of EDBM’s Director of Promotion to
participate.
Support to the Malawi Investment and Trade Centre (MITC),
Malawi’s Investment Promotion Agency, in the organisation
of its mission to the Emirates. More specifically, COMESA
RIA helped MITC secure meetings with Emirati private
sector.
Support to the Board of Investment of Mauritius (BOI),
Mauritius’ Investment Promotion Agency in the organisation
of the Mauritius Africa Partnership Conference (Port-Louis,
25-27 June 2014), the first African conference gathering the
CEOs of African IPAs. More specifically, COMESA RIA
supported BOI in mobilising African investment promotion
agencies and facilitating their participation
Support to the Rwanda Development Board (RDB),
Rwanda’s Investment Promotion Agency, in the organisation
of the Rwanda Services Investment Forum, organised under
the theme of Rwanda Gateway for Investments in the
COMESA region (Kigali, 1-2 December 2014. RIA supported
RDB with the needed contacts to mobilise African investment
promotion agencies, disseminated event information,
provided investment projects and opportunities in the
services sector.
Development of an Investor Tracking System (ITS) for
Sudan’s National Investment Authority (NIA), Sudan’s
Investment Promotion Agency
Development of NIA’s Investment Portal
National training workshop in Addis Ababa for NIA staff on
the administration and management of ITS and portal
Regional training workshop in Cairo, Egypt, on the
importance of online investment promotion, organisation of
the agency’s work through the ITS and level of
responsiveness to investor inquiries
EU through APSA
Promotion of Madagascar as an attractive investment
destination through a presentation, networking and B2B
meetings
Regular budget
Promotion of Malawi as an attractive investment destination
Regular budget
Greater cooperation between African IPAs established at
the institutional level and promotion of African cross-border
investments
Regular budget
Promotion of the services sector as an attractive investment
sector in Rwanda and COMESA
EU-ACP
Climate
Bizclim
Through the ITS, improved ability of agency to optimize and
make the most out of the process of tracking and managing
the different types of investor requests and contacts from
taking care of initial contacts to the delivery aftercare
services
Through their new investment portal, improved capacity of
agency to reach investors in a timely manner with needed
information in a user-friendly and cost-effective manner and
can ultimately result in the generation of an important
amount
of
leads.
Through
trainings,
improved
Business
Facility,
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Swaziland
Development of an Investor Tracking System (ITS) for the
Swaziland Investment Promotion Authority (SIPA),
Swaziland’s Investment Promotion Agency, Development of
SIPA’s Investment Portal
National training workshop in Manzini for SIPA staff on the
administration and management of ITS and portal. Regional
training workshop in Cairo, Egypt, on the importance of
online investment promotion, organisation of the agency’s
work through the ITS and level of responsiveness to investor
inquiries
EU-ACP
Climate
Bizclim
The
COMESA
Region and all
Member States
Promotion of investment projects and opportunities through
the COMESA Investment Teaser 2014-15
Promotion of the COMESA region as an attractive
investment destination through the dissemination of
information, new laws, and positive news through COMESA
RIA’s online investment promotion tools (investment portal,
twitter, direct mails, etc.). COMESA RIA’s online investment
promotional tools have a reach of 150,000 viewers every
year.
Support to the organisation of the 5th EU-Africa Business
Forum (Brussels, March 31-April 1 2014) which attracted
more than 600 high-level participants from across the
European and African business community. COMESA RIA
collaborated with BizClim- the forum’s organizer- to promote
the forum by mobilising high-level speakers and supporting
the participation of the IPAs of Burundi, Comoros, DR Congo
and Madagascar to participate.
Development of various proposals aiming to mobilise
resources from various development partners in view of
organising 2015-16 capacity-building activities for Member
States and to attract investments to the COMESA region.
Regular budget
Business
Facility,
Regular budget and
EU through APSA
Regular budget
understanding of workflow organization and responsiveness
Improved overall capacity of NIA to attract investment
Through the ITS, improved ability of agency to optimize and
make the most out of the process of tracking and managing
the different types of investor requests and contacts from
taking care of initial contacts to the delivery aftercare
services
Through their new investment portal, improved capacity of
agency to reach investors in a timely manner with needed
information in a user-friendly and cost-effective manner and
can ultimately result in the generation of an important
amount of leads
Through trainings, improved understanding of workflow
organization and responsiveness
Improved overall capacity of SIPA to attract investment
Enhanced visibility of COMESA and its Member States as
attractive investment destinations
Enhanced COMESA RIA visibility
Promotion of the COMESA region as an attractive
investment destination through network and B2B meetings
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Decision:
422.
Council noted the progress report of RIA.
AFRICAN TRADE INSURANCE (ATI)
423. Council was informed that the African Trade Insurance Agency (ATI) has continued to fill
a market gap and boost investor confidence not only in the COMESA region but across the
African continent. Demand for political and credit risk insurance continues to grow as investors,
suppliers, contractors and exporters and, in particular their funding banks are looking for ATI to
offer reliable financial solutions to cover their political, sovereign and credit risks.
424. In the past a majority of ATI business came from international companies based outside
Africa, who were typically familiar with trade and investment insurance products. During the
period under review the picture was rather different partly due to the expansion and
diversification of local and regional companies and financial institutions.
425. In 2014 ATI posted positive records in key performance areas and made significant
improvement in its operational processes, while concluding new strategic partnerships. Over the
last five years, the Agency facilitated trade transactions and investment projects worth over US
$16 billion.
Gross Exposure per Country (2014)
Gross Exposure($)
547,776
26,131,455
30,010,451
Benin
Burundi
240,177,338
DRC
Kenya
Madagascar
134,012,473
607,494,705
Malawi
Rwanda
Tanzania
119,877,822
Uganda
Zambia
39,748,911
46,341,840
7,907,394
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426. Council noted that the ATI offers guarantees for trade and investment projects in virtually
all sectors of the economy, including in energy, mining, oil, manufacturing and road
infrastructure and telecommunications sectors. A key milestone was the payment of some very
large claims for example the sovereign default on infrastructure contracts and physical damage
loss resulting from the Westgate mall terrorist attack in Kenya.
427. The growth of the gross and net premium for the last five (5) years indicates that the
Agency is financially sound since it continued to deliver a comfortable net written premium in
financial year 2014.
Gross and Net Premium (2010-2014)
428. The Agency has also seen a constant increase in its capital stock, which stood at US
$180,500,000 as at 31 December 2014. It was expected that as new countries acquire
membership, the Agency’s capacity to support business in Africa would be similarly improved.
429. For the last seven (7) consecutive years, the Agency has been assigned by Standard &
Poor’s a long term “A Strong”, rating for both its Counterparty and Insurer Financial Strength
Ratings, with a ‘Stable’ outlook. During 2014, Standard & Poor's Ratings Services re-affirmed its
“A” Stable long-term for both Counterparty Credit Rating and Financial Strength Rating. The
outlook remained stable. This made ATI the second highest rated institution in Africa and it was
a confirmation that ATI’s capital base and business model remained robust. There is no doubt
that the rating would encourage more utilization of ATI products and services by banks,
importers, exporters and investors worldwide.
430. Country membership expansion within and outside the African region remains a key
priority for ATI’s growth and development strategy. The Agency’s growth strategy, which aims at
expanding the institution’s reach, places ATI in an ideal position to achieve even greater results
in the years to come. In this regard, the ECOWAS Council of Ministers resolved to request all
ECOWAS Member States to join ATI. ATI Management and the ECOWAS Commission have
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embarked on a membership drive that will see all the ECOWAS Member States take up
membership in ATI. This development would no doubt facilitate the attainment of the
Continental Free Trade Area.
Decision:
431. Council decided that the Member States that are not yet members of ATI should
join the institution.
COMESA BUSINESS COUNCIL (CBC)
432. Council was informed that the establishment of COMESA Business Council (CBC) is
mandated by the COMESA Treaty as the consultative committee of the business community
and other interested parties. The CBC is currently supported by key development partners –
United States Agency for International Development (USAID), International Trade Center (ITC)
Investment Climate Facility (ICF) and the private sector which forms the CBC’s business
membership. The meeting made reference to the full report of the CBC, entitled, “5th Business
Council Annual Institution Report, 2015”.
433. The institution has grown substantially and during 2014, the CBC achieved the following
results, among others:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Presented positions of industry to the 17th COMESA Summit, 2014 on: policy and
regulatory frameworks that support SME inclusiveness in public procurement
through deliberate interventions that allow public authorities to dedicate a certain
percentage of public procurement to SMEs that meet specified local content
requirements;
Encouraged industrialization through value addition, and discouraged the
exportation of raw materials by businesses in the region;
Established a dedicated institution for SMEs at a central government level;
Established a customized SME fund to provide finance for SMEs at a regional
level;
Accelerated the implementation of the COMESA Business Visa;
Promoted authentic African products;
Ensured that the agreement on harmonization of agricultural inputs such as
seeds and fertilizers is implemented to ensure that there is inclusiveness within
the regional agricultural market;
Put in place programmes that engage women and youth entrepreneurs in the
regional integration agenda as they constitute the majority of SMEs in Africa;
Carried out a mapping exercise on priority services industries in COMESA;
Developed the local sourcing for partnerships project by securing a US $600,000
fund to train agro food suppliers on standards and food management systems
whilst also establishing supply chain linkages between food suppliers and
corporate industry in the hospitality and food and beverages sector;
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k.
l.
m.
Participated and provided private sector positions to the on-going TFTA
negotiations on the movement of business persons, rules of origin, trade
remedies and dispute settlements;
Facilitated 12 company linkages in the region, of which seven new companies
have been registered in COMESA Member States in partnership with
international investors; and
Facilitated the linkages of 45 SME companies in Africa to participate in the Africa
SME competition awards.
434. Council was further informed that the 10th COMESA Business Dialogue will focus on
addressing constraints to business in illicit trade, and to review a public-private collaboration to
curb illicit trade in the region. It was noted that an estimated US $330 million is lost annually on
counterfeit products in Eastern Africa alone. The issues of illicit trade surround porous borders,
corruption, high tax regimes, poor transit controls and illegal distribution networks.
Decisions:
435.
Council noted the full report of the CBC and urged Member States to:
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
Develop a common public-private action on the on-going detriments to
industry as a result of illicit trade;
Support on-going consultations on the development of the “Made in
COMESA” label;
Partner with and support the private sector in the on-going deliberations on
a Regional Framework on curbing illicit trade in COMESA;
Set up dedicated quality management and control bodies that can provide
free or subsidized cost training programmes on standards and certification
that will boost the competitiveness of SMEs;
Consider that such institutions be set up on the public-private partnership
agenda;
Engage the REC Secretariats to facilitate the participation of the private
sector within the national delegation and regional business council
structures;
Have an agenda item that opens the flow for advocacy of the private sector
within the Tripartite negotiation processes; and
Commend co-operating partners for supporting CBC.
COMESA FEDERATION OF WOMEN IN BUSINESS (FEMCOM)
436. FEMCOM gave a brief report on its establishment that it was established in July 1993, in
Zimbabwe, in line with the decision of the COMESA Authority and Heads of States and
Government made in January 1992. However, over 20 years down the line, FEMCOM continues
to fail to implement its activities according to the work plan because the institution does not have
a programme budget.
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437. Council was informed that in 2014 the FEMCOM Secretariat continued to promote value
addition by supporting the formation of national and regional clusters in agro processing,
cassava and the textiles and garments sectors- as a vehicle for boosting job creation, intraregional trade and contributing to the achievement of the Millennium Development Goals
(MDGs), especially MDG Goal One on the eradication of extreme poverty and hunger.
438. The programme has continued to deliver support in business management and technical
training and acquisition of value addition equipment for the clusters to enable them improve on
the quality, quantity and sales of their products. The programme has also trained the clusters on
incubation development methodology in preparation for the establishment of textiles incubation
centres in Kenya, Malawi and Zambia.
439. FEMCOM is also implementing the COMESA Business Incubator for African Women
Entrepreneurs (BIAWE) Project. This is a two year initiative implemented through FEMCOM and
funded by NEPAD. It is aimed at supporting women entrepreneurs in Africa through upgrading
and building capacities of business incubator(s) in eight1 selected countries and was piloted in:
Burundi, Kenya, Sudan and Swaziland. At the same time, the BIAWE Project is being aligned to
the on-going cluster development programme (Cassava, textiles and garments) for synergies
and sustainability of the two COMESA pilot projects.
440. FEMCOM continued to embark on collaborative activities for example with the Gracia
Machel Trust which advocates for the full and effective participation of women in the fields of
economic and social development programmes aimed at removing negative cultural practices,
laws and barriers that impede women’s full participation in development activities. The institution
also collaborated with the African Women in the Mining Association (AWIMA) -to support
women in the extractive industry by working under the existing frameworks and initiatives of the
COMESA Secretariat. These will include the relevant components of extractives industry under
the MOUs between COMESA and various governments, e.g. Australia and India. The
collaboration is guided by the African Mining Vision (AMV) and the African Union Agenda 2063,
with support from the South African Women in Mining Association (SAWIMA). Through
FEMCOM, Zimbabwe Women in Mining Association, particularly the Chairperson, has been
offered a position on the Executive Board of the AWIMA.
441. Council noted that the FEMCOM National Chapters have been greatly supported by the
Member States to grow to the extent that some are even stronger than the FEMCOM
Secretariat. It was further noted that since the Government of Malawi donated ten acres of land
for the construction of FEMCOM multi-purpose complex, COMESA should facilitate the
construction of the complex.
442. Council was informed that FEMCOM requires a programme budget from the Secretariat
to support the implementation of its activities as outlined in its work plan.
1
Burundi, Djibouti, Kenya, Malawi, Sudan, Swaziland, Zambia and Zimbabwe
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Discussion:
443. Council was informed that Malawi is fully committed to continually support FEMCOM, as
testified to by the Member State’s offer of land for the institution to construct its headquarters.
Council was further informed that it was imperative that the construction of the FEMCOM
complex starts in earnest soon, considering that Malawi donated the land to FEMCOM over
three years ago. It was further noted that FEMCOM activities are part of industrialization and
therefore require programme budget support for the sustainable achievement of its goals.
Decisions:
444.
Council decided that:
i.
ii.
iii.
The Government of Malawi should be commended for giving 10 acres of
land for the development of FEMCOM complex and for providing office
space for FEMCOM;
The Secretariat should mobilise funds for FEMCOM activities; and
Member States should contribute funds for the programme activities of
FEMCOM.
COMESA COMPETITION COMMISSION
445. Council was informed that the activities of the COMESA Competition Commission for the
year 2015 are based on the work programme, which was approved by the Council of Ministers
in Lusaka, Zambia in December 2014. The work programme covers the five pillars namely
competition enforcement, competition advocacy, institutional coordination, technical assistance
and capacity building. In summary, the four pillars involve the following:
a.
Competition enforcement: this involves the assessment of mergers and
acquisitions, investigation of anticompetitive business practices and
investigations of consumer welfare violations within the Common Market.
b.
Competition advocacy: this involves creating awareness to governments,
businesses, consumers and other stakeholders to appreciate the benefits of the
regional competition enforcement regime.
c.
Institutional coordination: this involves enhancing the working relationship with
the national competition authorities of the Member States in the enforcement of
the Regulations at Member States level. This also involves engaged firms in
instituting an enforcement regime that contributes to easing the cost of doing
business in the Common Market.
d.
Technical assistance: this involves the provision of expertise to Member States to
initiate, establish and enhance the implementation and the enforcement of their
respective competition laws in the respective countries. This also involves
capacity building of the national competition agencies through training, staff
exchange programme and funding support.
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446. Council was informed that since December 2014, the Commission has achieved the
following:
a.
Received three (3) merger notifications. In addition, the Commission’s Committee
of Initial Determination sat twice in March 2015 and cleared five (5) mergers and
other forms of acquisitions which were notified to the Commission in late 2014.
b.
Cognisant of the stakeholders’ feedback the Commission received after
commencement of its operations, it recommended some amendments to the
Rules on the Merger Filing Fees as well as the Rules on Merger Notification
Thresholds. The recommendations were presented to the legal drafting
committee in January 2015 and were approved by the Committee of the
Ministers of Justice and Attorneys-General at their meeting in Sudan in March
2015.
447. Council was informed that subsequent to the February 2014 Council directive for the
Commission to intensify advocacy work in Member States, the Commission undertook a
sensitisation and awareness seminar in Egypt on 18 March 2015. The seminar attracted the
participation of over 70 members of the law society and the business community.
448. The Commission also realises that it cannot limit its advocacy work to the Member
States alone hence it accepted an invitation to address the Africa Competition Law Conference
which took place in Johannesburg, South Africa in March 2015. The Commission also
addressed the Global Competition Review Conference which took place in Cape Town, South
Africa, in March 2015. These conferences provided an opportunity for the Commission to
update the regional and global competition family about the enforcement progress it has made
during the last year.
449. On capacity building, in collaboration with the United Nations Conference on Trade and
Development (UNCTAD) the Commission undertook the peer review of the Competition and
Tariff Commission (CTC) of Zimbabwe in February 2015. The objective of peer review was to
provide the CTC with an independent and constructive assessment of its institution and the
substantive content and enforcement of the national competition law. In addition, the peer
review process served as a needs assessment forum for capacity-building and technical
assistance needs of the CTC. Following the recommendations of the peer review exercise
conducted in collaboration with UNCTAD, the Commission provided training to the Board
Members and staff of the CTC to enhance their effectiveness in the enforcement of the national
and regional competition law.
450. Council was informed that the Commission continues to face challenges in its
enforcement work due to the lack of domestication of the COMESA Treaty and the Regulations
by the Member States. Domestication is critical for the effective enforcement of the regional
competition legislation in the respective jurisdictions of the Member States, as well as the
attainment of the regional integration agenda.
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Decisions:
451.
Council decided that:
i.
ii.
iii.
The Member States without national competition legislations namely
Comoros, Democratic Republic of Congo, Eritrea, Libya and Uganda
should be urged to come up with the respective national competition
legislation;
All Member States be urged to implement the Kinshasa decisions
expeditiously; and
Burundi, Comoros, Djibouti, D R Congo, Eritrea, Libya, Madagascar,
Mauritius, Rwanda, Sudan and Uganda be urged to communicate their
account numbers to enable the Competition Commission pay their
respective share of the merger filing fees.
STATEMENTS BY CO-OPERATING PARNTERS (Agenda Item 11)
The European Union (EU)
452. Council received a statement from the European Union, delivered by Mr Daniel Hurtado
Dominguez, who represented the EU Head of Delegation in Lusaka, Zambia. He informed the
meeting that the EU attaches great importance to its solid and long-lasting partnership with
COMESA. He underscored the relevance of this year's theme of the COMESA Policy Organs
meetings: “Inclusive and sustainable industrialization", to addressing the challenges of regional
integration.
453. He called for innovative, "out of the box" approaches to development, building both on
lessons learnt from the past and new opportunities offered by changing globalization patterns
and global value chains. He commended COMESA for playing a leading role in the on-going
negotiations towards a Tripartite Free Trade Area and indicated that the launching of the FTA in
June 2015 will lay a solid foundation towards the realisation of a Continental FTA and address
the complex challenges of overlapping membership of regional organisations in Africa.
454. He assured the Council that the EU is committed to continued partnership with
COMESA. He said that under the 11th EDF the EU is committing a total of €1.3 billion for the
next six years, to support regional economic integration, peace and security as well as the
management of natural resources in eastern, southern Africa and the Indian Ocean region. The
€85 million will be specifically allocated to COMESA to support regional economic integration,
with a focus on reducing trade costs and promoting SME development while providing
institutional support to the COMESA Secretariat and its Member States.
455. In addition to the specific COMESA envelope, Member States will benefit from other
envelopes of the Regional Indicative Programme, such as the €600 million envelope for
infrastructure, the €30 million envelope on maritime security, and the €25 million envelope on
migration.
456. He expressed concern that over the last ten years the EU has been paying more than 50
percent of the COMESA budget and programmes, which is neither sustainable nor desirable for
any party. He thus appealed to Member States to fulfil their obligations with regards to their
assessed contributions and if possible increase them.
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The United States of America
457. Council received a statement from USAID, made by Ms Karen L. Freeman, the USAID
Mission Director, Kenya. She expressed USA’s commitment to support COMESA in taking
advantage of the truly unique opportunities of the new WTO Agreement on Trade Facilitation,
which aims to reduce global trade costs by addressing inefficient and unpredictable customs
and border procedures. She said that this agreement, concluded in Bali at the WTO's 9th
Ministerial Conference, has the potential to transform trade; and trade facilitation can greatly
increase Africa's competitiveness and attract private sector investment. She said that the results
of trade facilitation are already being seen in some Member States. For instance, container
transit times from Mombasa to Kigali have declined from 21 days to six days, while associated
transport costs are down by over US $1,700 per container.
458. She added that the implementation of the TFA is widely recognized as having broader
development benefits and will promote regional integration, private sector investment, and
exports. The implementation of TFA reforms will have great impact on improving disaster relief,
vaccine shipments, food security, and reduce food spoilage. She cautioned that to fully reap
these benefits, WTO members need to ensure that this agreement enters into force and is fully
implemented. In this regard, US supported Kenyan Foreign Minister Amina Mohammed's call
for ratification by the time it hosts the WTO's next Ministerial Conference in Nairobi at the end of
2015 should be heeded.
459. She said that Africa and COMESA can help lead the way because the early movers are
likely to be the ones to reap the greatest rewards. She concluded by saying that the United
States looks forward to working with those countries who demonstrate their commitment to
implementation of the Bali trade facilitation agreement.
460. Mr Mark Linscott, Assistant U.S Trade Representative for WTO and Multilateral Affairs
also emphasised that the implementation of the TFA is widely recognized as having broader
development benefits and will promote regional integration, private sector investment, and
exports. He said the implementation of TFA reforms will have great impact on improving
disaster relief, vaccine shipments, food security, and reduce food spoilage. He also cautioned
that to fully reap these benefits, WTO members need to ensure that this agreement enters into
force and is fully implemented. He said that the United States looks forward to working with
those countries who demonstrate their commitment to implementation of the Bali trade
facilitation agreement.
461. Ms Liser Florizelle, the Assistant U.S. Trade Representative for African Affairs informed
Council that the Obama Administration is working tirelessly with Congress on a seamless
renewal of AGOA, which remains the cornerstone of US economic engagement with Africa. She
emphasized that as Africa seeks an extension of AGOA, the continent should also note US
interest in initiating dialogue on the vision for the U.S-Africa trade and investment relationship
moving beyond AGOA’s unilateral preferences to a more mature, reciprocal trade and
investment relationship that reflects the realities of the 21st century’s global trading system.
The International Trade Centre (ITC)
462. Council received a statement from the International Trade Centre, presented by Ms
Arancha Gonzalez, the Executive Director, ITC. She said that ITC and COMESA have a
longstanding partnership, which was further consolidated through the signing of a Memorandum
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of Understanding on 17 February 2015. The memorandum served to renew commitment and
better focus on regional integration interventions; and set the framework for collaboration
between the two organisations for the next three years.
463. She highlighted the fact that Africa is well positioned on the path towards sustained
growth and development. She reiterated the commitment of ITC to continue being a
development partner to the African Union Commission, the regional economic commissions,
and to individual countries on the continent. Approximately 60 percent of ITC interventions in
2014 were in Sub-Saharan Africa, least developed countries, land-locked developing countries,
and small island developing states.
464. The ITC is currently supporting COMESA, EAC, ECOWAS, L'Union Economique et
Monétaireouest-africaine (UEMOA) and the Economic Community of Central African States
(ECCAS). Its partnership with COMESA is particularly important for the region’s smaller
economies whose prospects are likely to improve in view of the growing opportunities for their
firms to participate in regional value chains. Further ITC will put in place policies for targeted
support for COMESA SMEs. This will equip the SMEs with the tools they need to grow
sustainably and serve as levers of country growth.
465. Ms Gonzalez said that the ITC will partner with COMESA in the areas of: trade and
market intelligence; trade facilitation; support for value chain development working with trade
policy makers and the private sector; and support to trade and investment promotion
organisations and chambers of commerce.
466. She informed Council that two weeks after the signing of the MOU, the experts of the
two organisations met to concretise the course of action. In line with COMESA’s strategic plan,
the following areas of co-operation were identified: market intelligence and sharing of tools
where appropriate, with a particular emphasis on non-tariff barriers and non-tariff measures;
promotion of product development and value addition in agriculture and services sectors;
support to the COMESA trade and investment institutions in particular the COMESA Business
Council; and trade facilitation. She concluded by saying that the will, jointly with the COMESA
Secretariat, organise a regional workshop on trade facilitation, in June 2015, for COMESA
Member States.
India
467. Council received a statement from India, made by His Excellency Mr Gaddam
Dharmendra, the Special Representative of India to COMESA. He reiterated the high
importance that India attaches to its relations with COMESA, based on the long history that
India has with African countries.
468. He pointed out that India values the role COMESA is playing in building closer regional
integration and fostering economic development, and informed the meeting that the 2003 MOU
between India and COMESA forms the basis of India’s co-operation with COMESA. He
reiterated that India-COMESA relations have progressed steadily over the last decade as
evidenced by the signing of an MOU with the COMESA Business Council (CBC) and the
Confederation of Indian Industries (CII) in March 2009. The MOU provides a framework for
promoting co-operation between CBC and CII in the areas of trade, investment and technology.
469. He noted that delegations from COMESA have been attending various commercial
events in India, the most recent of which was the third India engineering sourcing show held in
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Mumbai in 2014. The EXIM Bank of India has also been providing credit lines to PTA Bank for
utilization on projects in the COMESA region, to the tune of US $65 million to date.
470. He concluded by saying that India has noted areas of interest by COMESA Member
States, and now there is need to focus on economic co-operation and investment. He assured
the Council of the continued commitment of India to supporting COMESA’s regional integration
agenda.
ANY OTHER BUSINESS (Agenda Item 12)
471.
The meeting did not consider any issues under this agenda item.
CLOSED SESSION OF THE COUNCIL OF MINSTERS MEETING (Agenda Item 13)
472. The report of the Closed Session of the Intergovernmental Committee on Administrative
and Budgetary Matters is circulated as a separate document reference:
CS/ADM/ADC/XXXIV/7.
ADOPTION OF THE REPORT AND CLOSING OF THE MEETING (Agenda Item 14)
473. The meeting adopted the report, with amendments. The Chair thanked the delegates for
their active participation and closed the meeting.
.................................................
H.E. Ato Ahmed Shide
CHAIRPERSON
...................................................
S.E.M. Henri Rabesahala
VICE-CHAIRPERSON
.................................................
S. E. Germain Kambinga Katomba
RAPPORTEUR