Distr. LIMITED CS/CM/XXXII/2 February 2014 Original: ENGLISH COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA Thirty Second Meeting of the Council of Ministers Kinshasa, Democratic Republic of Congo 22 – 24 February 2014 REPORT OF THE THIRTY SECOND MEETING OF THE COUNCIL OF MINISTERS (AM/MK/FM/AD/SS/MK/AKM)smz/lm CS/CM/XXXII/2 Page 2 ACRONYMS ACTESA ACBF AfDB AFOLU AFSTA AGOA APF ASHTRIP : : : : : : : : ASYCUDA ATI AU CAADP CAF CBT CCA CET CEMES CO CSA CU CVTFS DDA DEvCO DfID EAC EAPP e-COs EDF EPA ESA EEAS EU-ACP FAO FDI FEMCOM FRL FTA GDP GIS HCPI HIV/AIDS ICGLR ICT IMF IMTS IOM LLPI : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : Alliance for Commodity Trade in Eastern and Southern Africa African Capacity Building Facility African Development Bank Agriculture, Forestry and Sustainable Land Use African Seed Trade Association African Growth and Opportunity Act Africa Partnership Forum ACTESA Seed Harmonization and Trade Regulations Implementation Programme Automated System of Customs Data and Management African Trade Insurance Agency African Union Comprehensive Africa Agriculture Development Programme COMESA Adjustment Facility Cross Border Trade Corporate Council on Africa Common External tariff COMESA Electronic Market Exchange System Certificate of Origin Climate Smart Agriculture Customs Union COMESA Virtual Trade Facilitation System Doha Development Agenda European Development Cooperation Department for International Development (UK) East African Community Eastern Africa Power Pool Electronic Certificates of Origin European Development Fund Economic Partnership Agreements Eastern and Southern Africa European External Action Services European Union-African Caribbean and Pacific grouping Food and Agricultural Organization of the United Nations Foreign Direct Investment Federation of Women in Business in Eastern and Southern Africa Fiscal Responsibility Law Free Trade Area Gross Domestic Product Geographic Information System Harmonized Consumer Price Indices Human Immune Virus/Acquired Immune Deficiency Syndrome International Conference of the Great Lakes Region Information and Communication Technology International Monetary Fund International Merchandise Trade Statistics International Organisation of Migration Leather and Leather Products Institute CS/CM/XXXII/2 Page 3 MFIs : MDGs : MSMEs : NEPAD/APRM: NIMCC OECD OSBP PEFA PFM PTA Bank PCMS RAERESA : : : : : : : : RCTG REPSS RFBS RIA RISM SADC SPS STR TFTA TIFA TMSA TWG UN UNAIDS UNCTAD UNECA UNFCCC UNICEF WHO WTO ZEP-Re : : : : : : : : : : : : : : : : : : : : : Micro Financing Institutions Millennium Development Goals Micro, Small and Medium Enterprises New Partnership for Africa’s Development - African Peer Review Mechanism National Inter-ministerial Coordinating Committee Organization for Economic Cooperation and Development One Stop Border Post Public Expenditure and Financial Accountability Public Financial Management Trade and Development Bank for Eastern and Southern Africa Passenger Cargo Manifest System Regional Association of Energy Regulators for Eastern and Southern Africa Regional Customs Transit Guarantee Regional Exchange Payments and Settlement System Regional Food Balance Sheet Regional Investment Agency Regional Integration Support Mechanism Southern Africa Development Community Sanitary and Phytosanitary Standards Simplified Trade Regime Tripartite Free Trade Area Trade and Investment Framework Agreement Trade Mark Southern Africa Technical Working Group United Nations United Nations Joint Programme on HIV&AIDS United Nations Conference on Trade and Development United Nations Economic Commission for Africa United Nations Framework Convention on Climate Change United Nations Children’s Fund World Health Organization World Trade Organization COMESA Re-Insurance Company CS/CM/XXXII/2 Page 4 Table of Contents ACRONYMS ……………………………………………………………………………………………..1 INTRODUCTION ………………………………………………………………………………………..5 OPENING OF THE MEETING …………………………………………………………………………5 ELECTION OF THE BUREAU ………………………………………………………………………..7 ADOPTION OF AGENDA AND ORGANISATION OF WORK …………………………………….8 CONSIDERATION OF THE CONSOLIDATED REPORT ON THE STATUS OF IMPLEMENTATION COMESA PROGRAMMES AND COMESA INSTITUTIONS ……………..8 REPORT ON THE STATUS OF TRANSPOSITION BY MEMBER STATES ………………….8 TRADE AND CUSTOMS …………………………………………………………………………….15 THE COMESA MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) STRATEGY ……….31 AGRICULTURE ……………………………………………………………………………………….40 INFRASTRUCTURE …………………………………………………………………………………..44 LEGAL AFFAIRS …………………………………………………………………………………….60 CLIMATE CHANGE …………………………………………………………………………………..61 STATISTICAL DEVELOPMENT …………………………………………………………………….64 COMESA MONETARY COOPERATION PROGRAMME ………………………………………..67 GENDER AND SOCIAL AFFAIRS ………………………………………………………………….70 COMESA INNOVATIONS AWARDS ………………………………………………………………..71 PARTNERSHIP WITH COOPERATING PARTNERS ……………………………………………..76 REPORTS OF COMESA INSTITUTIONS ON THEIR OPERATIONS …………………………..82 THE COMESA FUND …………………………………………………………………………………82 THE COMESA INFRASTRUCTURE FUND (CIF) INTERIM BOARD REPORT (II)) ………….82 THE COMEA ADJUSTMENT FACILITY (CAF) AND THE REGIONAL INTEGRATION SUPPORT MECHANISM (RISM) ……………………………………………………………………83 THE COMESA BUREAU ON THE THIRD PARTY MOTOR VEHICLE INSURANCE SCHEME ……………………………………………………………………………………………………………87 THE COMESA COURT OF JUSTICE ……………………………………………………………….90 COMESA LEATHER AND LEATHER PRODUCT INSTITUTE …………………………………92 PTA RE-INSURANCE COMPANY (ZEP-RE) ………………………………………………………92 PTA BANK ……………………………………………………………………………………………..94 COMESA CLEARING HOUSE ………………………………………………………………………98 COMESA REGIONAL INVESTMENT AGENCY .…………………………………………………102 AFRICA TRADE INSURANCE AGENCY…………………………………………………………..107 COMESA BUSINESS COUNCIL …………………………………………………………………..110 FEDERATION OF NATIONAL ASSOCIATIONS OF WOMEN IN BUSINESS IN EASTERN AND SOUTHERN AFRICA …………………………………………………………………………113 COMESA COMPETITION COMMISSION …………………………………………………………114 THE ALLIANCE FOR COMMODITY TRADE IN EASTERN AND SOUTHERN AFRICA…....120 COMESA MONETARY INSTITUTE ……………………………………………………………….123 CLOSED SESSION OF INTERGOVERNMENTAL COMMITTEE ON ADMINISTRATIVE AND BUDGETARY MATTERS ……………………………………………………………………………125 CS/CM/XXXII/2 Page 5 INTRODUCTION 1. The Thirty Second Meeting of the Council of Ministers was held on 22 and 23 February, 2014 at the Grand Hotel, Kinshasa, in the Democratic Republic of Congo. 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. 3. The meeting was attended by: a. The following Member States: Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, and Zimbabwe; b. The following COMESA institutions: Alliance for Commodity Trade in Eastern and Southern Africa, African Trade Insurance Agency, COMESA Brussels Liaison Office, COMESA Business Council, COMESA Clearing House, COMESA Competition Commission, Court of Justice, COMESA Federation of National Association of Women in Business, Leather and Leather Products Institute, COMESA Monetary Institute, COMESA Regional Investment Agency and PTA Re-Insurance Company; and c. The following International Organisations: African Capacity Building Foundation, African Union Commission, European Union, International Conference on the Great Lakes Region, International Organisation for Migration, United Nations Economic Commission for Africa, United Nations Economic Commission for Africa; and d. The following observers: Japan, Nigeria, Sweden, and United Kingdom. The list of participants is attached as Annex 1 to this Report. OPENING OF THE MEETING (Agenda Item 1) 4. The opening ceremony of the Thirty-Second Meeting was presided over by the Chairperson of the Council of Ministers, Honourable, Amelia Kyambadde, the Minister of Trade, Industry and Co-operatives, Uganda. She welcomed the Hon. Ministers and all the delegates to the meeting and highlighted the achievements and the focus areas of the Bureau as outlined by the Summit of COMESA Heads of State and Government. 5. Honourable Kyambadde gave the background as to why the Heads of State and Government at the Summit in their wisdom decided to prioritize mobilisation of resources for regional infrastructure development; development of a framework for micro, small and medium enterprises support; and strengthening gender mainstreaming in regional integration. 6. On Infrastructure development, Honourable Kyambadde stated that they organized a High Level Infrastructure Conference in Uganda in September 2013 to showcase projects at the Member State and regional level that were ready for financing in order to attract potential funding for these projects. The Bureau and COMESA Secretariat also participated in the Brazil, Russia, India, China and South Africa (BRICS) Summit in Durban, South Africa in March 2013; CS/CM/XXXII/2 Page 6 organized the COMESA-Dubai Business Forum held in Dubai in May 2013; and participated in the Tokyo International Conference on African Development (TICAD) V which agreed to accelerate infrastructure development. 7. On the Micro, Small and Medium-Sized Enterprises (SMEs), COMESA developed a draft Regional Micro, Small and Medium Enterprises MSMEs Development Policy which was to be submitted to Council for adoption. 8. Under the third priority of Strengthening Gender mainstreaming in Regional Integration, COMESA was in the process of reviewing the COMESA Gender Mainstreaming Strategy and Action Plan to align it with the African Union ‘Gender is My Agenda Campaign,’ and international best practices. 9. On the administrative front, she informed Council that the Bureau worked closely towards the rehabilitation of the COMESA Centre that was gutted by fire. The Bureau had also developed an appraisal mechanism for the executive arm of the Secretariat as directed by the Summit. 10. Honourable, Kyambadde concluded her remarks by thanking the Government of the Democratic Republic of Congo for accepting to host the 2014 Policy Organs’ Meetings and for the excellent preparations. She thanked Honourable Sosten Ngwengwe, the Malawi Trade Minister; and Honourable Raymond Tshibanda, the DRC Foreign Affairs Minister with whom she had worked as Vice-Chair and Rapportuer of the Bureau respectively. She also expressed her sincere appreciation to the Secretary General and the COMESA Secretariat for the support, guidance and leadership given to COMESA. Statement of the Guest of Honour 11. The Guest of Honour, Honourable Raymond Tshibanda N’Tungamulongo, the Minister of Foreign Affairs, International Cooperation and Francophonie, of the Democratic Republic of Congo (DRC) welcomed all delegates to Kinshasa in particular, and to the Democratic Republic of Congo in general. 12. He said that the 32nd Meeting of the Council of Ministers was an important one in the history of the integration of the region because COMESA Member States shared a common vision for development and regional integration, as established by the COMESA Treaty. 13. “We have all continued to cooperate in the building of our Common Market, as we labour through the establishment of the COMESA Free Trade. There is cooperation in COMESA trade facilitation programmes, regional infrastructure programmes, common trade in service negotiations, among others,” he said. 14. Honourable Tshibanda said that the regional integration path had its fair share of challenges. In particular he highlighted the fact that the region is yet to meet the timeframe of achieving the Customs Union, a goal that was set to be achieved by June 2012. He reminded the meeting that although the transition period was extended by two more years to June 2014, this new timeline was not far. 15. In view of the common aspirations, Honourable Tshibanda said that it was time for the Council of Ministers to seriously consider the core reasons that had prevented the institution CS/CM/XXXII/2 Page 7 from making progress in certain areas of regional integration. In order to move into a fully operational Common Market by 2015, COMESA had to find lasting solutions to unlock the constraints to the establishment of the Customs Union. 16. Honourable Tshibanda said that he had every confidence that together the Member States would overcome the challenges that they faced. He added that COMESA as a large regional economic community that is well respected all over Africa and the world, and was a trail blazer in initiating and operating pioneer integration programmes and institutions. COMESA had over the years successfully established programmes in Non-Tariff Barrier elimination, the Yellow Card insurance scheme, Harmonized Road Transit Charges, the COMESA Carrier License scheme, air transport liberalization, harmonized standards and many more. It is, therefore, no surprise that others had emulated COMESA. 17. COMESA had signed and ratified several protocols and other legal instruments. As result, the free movement of goods was already a reality. The investment regimes were largely open, and what was needed was to harmonize them by committing to a common area for investment. 18. Honourable Tshibanda said that going by the zeal and faithfulness that many of our Member States had exhibited in meeting their contributions in COMESA and in our sister organisations, he believed the institution could be greatly improved if the Member States thought and acted creatively. COMESA Member States’ over-dependence on external aid could not continue indefinitely, and Member States had to take concrete steps to operationalize and implement innovative financing mechanisms, such as the Common Market Levy. He called upon the Honourable Ministers to join hands and forge ahead in addressing the fundamental issue of establishing sustainable funding for the integration programmes. The region could build on the strengths of the free movement of goods and services, and the commitment of the leaders to enhancing trade and investment, agriculture and industrial development, among others. 19. On the theme for this year’s Summit of: Consolidating intra-COMESA trade through Micro, Small and Medium Scale Enterprise Development, the Honourable Minister said that the Government of the Democratic Republic of Congo paid its respect to the Government of Uganda, the outgoing Chair of COMESA, for selecting the theme of: “Enhancing intra-COMESA trade through MSME Development”, for 2012. He added that COMESA’s programmes should benefit MSMEs, which comprise more than 90% of the private sector in the region. He concluded that COMESA was in position to establish dedicated financing mechanisms for MSMEs, and to provide a framework for a wide group of partners that indicate their willingness to work with COMESA in this area. 20. The Honourable Minister wished the delegates fruitful deliberations, and declared the meeting open. ELECTION OF THE BUREAU (Agenda Item 2) 21. The meeting elected the following Bureau: Chair: Democratic Republic of Congo Vice Chair: Ethiopia Rapporteur: Uganda CS/CM/XXXII/2 Page 8 ADOPTION OF AGENDA AND ORGANISATION OF WORK (Agenda Item 3) 22. The meeting adopted the following agenda: 1. 2. 3. 4. Opening of the Meeting Election of the Bureau Adoption of Agenda and Organisation of Work Open Session of Council - Report of the Intergovernmental Committee on: (a) (b) (c) 5. 6. 7. The Status of Implementation of COMESA Programmes Reports of COMESA Institutions Statements by Co-operating Partners Closed Session of Council on Administrative and Budgetary Matters Any Other Business Adoption of Report and Closing of Meeting CONSIDERATION OF THE REPORT OF THE TWENTY SECOND MEETING OF THE INTERGOVERNMENTAL COMMITTEE ON THE STATUS OF IMPLEMENTATION OF COMESA PROGRAMMES AND COMESA INSTITUTIONS (Agenda Item 4) 23. The Rapportuer, Honourable Amelia Kyambadde, the Minister of Trade, Industry and Co-operatives (Uganda) presented the Report of the Thirty Second Meeting of the Intergovernmental Committee (IC) that was held from 18 – 21 February 2014 in Kinshasa, Democratic Republic of Congo. The report (document reference: CS/IC/XXXII/5) 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 ministerial committee meetings were submitted to Council for consideration and endorsement. 24. The Council also included the reports of COMESA semi-autonomous and autonomous Institutions. Pursuant to the provisions of Article 10 of the Treaty the IC Report groups the various recommendations under Regulations, Directives, Decisions, Recommendations and Opinions. The section of the report on transposition explains how these legislative requirements are given the force of law at the COMESA level and in Member States. REPORT ON THE STATUS OF TRANSPOSITION BY MEMBER STATES (Agenda Item 4(a)) 25. Council was informed that the COMESA Treaty, “Having regard to the principles of international law governing relations between sovereign states, and the principles of liberty, fundamental freedoms and the rule of law”, holds the Members of the Common Market bound by it. The Treaty, therefore, established the legislative mandate for the COMESA region. It is underpinned by international law. 26. In international relations, treaties, as a source of international law provide a solid foundation for the development of peaceful cooperation among nations globally hence are regarded as the supreme law that binds countries and states that are a signatory to them. Under international law, a State gives its expressed consent to be bound by a Treaty through signing, exchanging instruments constituting a Treaty, ratification, acceptance, approval or accession or through any other means agreed between the contracting parties (Article 11, 1969 Vienna Convention on the Law of Treaties). Further, a contracting party to a Treaty is under a Treaty CS/CM/XXXII/2 Page 9 obligation to perform its obligations in good faith (Article 26, Vienna Convention) and is stopped from invoking provisions of its internal law to resile from performing its Treaty obligations (Article 27, Vienna Convention). These provisions are respected and fully upheld by the COMESA Treaty. 27. Council was further informed that when the Common Market was established, the contracting Member States that signed its Treaty expressed their intention to be bound by the Treaty. The COMESA Treaty, therefore, places important obligations upon the 19 States that currently make up the Regional Economic Community’s Membership. The Member States are bound to its provisions and obligations, which are to be upheld as provided for under Article 5, which says: “The Member States shall make every effort to plan and direct their development policies with a view to creating conditions favourable for the achievement of the aims of the Common Market and the implementation of the provisions of the Treaty and shall abstain from any measures likely to jeopardize the achievement of the aims of the Common Market or the implementation of the provisions of this Treaty. Each Member State shall take steps to secure the enactment of and the continuation of such legislation to give effect to this Treaty.” 28. Council was reminded that the legislative and policy functions of COMESA are exercised by the COMESA Council of Ministers as provided for under Article 9(2)(d) of the Treaty which provides that: “It shall be the responsibility of Council to: make regulations, issue directives, take decisions, make recommendations and give opinions in accordance with the provisions of this Treaty.” 29. Since its formative years, the COMESA Council of Ministers has discharged its Article 9(2)(d) mandate resulting in a number of instruments being issued. The Thirty First Meeting of the Council of Ministers of COMESA, which was held in Kampala, Uganda from 19 - 20 November 2012 received the 2012 Report on the Status of Transposition of Decisions by Member States (document reference: CS/IC/XXXII/11). In consideration thereof, it was a decision of that meeting which mandated the COMESA Secretariat to update the findings on how far Member States have gone with implementing Regulations, Directives and Decisions of the COMESA Council and present the updated finding in a Report on Transposition. 30. Council was reminded that a decision issued by the COMESA Council of Ministers is binding upon those to whom it is addressed. This is provided for under Article 10(4) of the Treaty. Such Decision may be addressed to the Secretariat, or a Member State or a third party/individual. Article 9(3) on Decisions provides that: “Subject to the provisions of this Treaty, the…..decisions of the Council taken or given in pursuance of the provisions of this Treaty shall be binding on the Member States, on all subordinate organs of the Common Market other than the Court in the exercise of its jurisdiction and on those to whom they may under this Treaty, be addressed.” 31. Bearing in mind the above, the Common Market Gazette contains all the decisions taken by the Council in accordance with the provisions of Article 10(1) of the COMESA Treaty. Over the period 2009-2012, Council took a total of 217 decisions (Table 1), as reflected in the CS/CM/XXXII/2 Page 10 Gazette. Out of this, 114 decisions (53%) were for implementation by Member States and 44 decisions (20%) were addressed to the COMESA Secretariat; a further 29 (13%) decisions were not addressed to any party. In cursory analysis of the quality of decisions taken by Council and reflected in the Gazette reveals that 45 decisions (21%) across the categories listed in Table 1 were in effect not decisions. One hand, 29 of the decisions had no party to whom they were addressed and could therefore not be taken as decision per se. The rest were all recommendations, opinions, suggestions, requests, commendations, et cetera, which, according to Article 10(5) of the Treaty: “…shall have no binding force” and thus could not be treated as decisions. Table 1: Decisions in the Common Market Gazette, 2009-2012 Party to addressed which Decisions were Decisions Gazette in the (%) Member States 114 53% COMESA Secretariat 44 20% 3rd Parties 5 2% Joint Sec-MS 19 9% Joint MS-3rd Party 1 0% Joint Sec-3rd party 2 1% Joint Sec-MS-3rd party 3 1% Not addressed to any party 29 13% Total Decisions 217 100% Sec = Secretariat; MS = Member States 32. Council was informed of the following critical issues that emerged from the above statistical observations, which require systematic and diligent attention in order for the COMESA region to enhance its decision making and improve its record of implementation: (a) Number of decisions addressed to Member States: the large number of decisions addressed to Member States over the years has created a back-log in implementation. This back-log has to be cleared. The starting point should be to establish, as a matter of fact, which decisions out of the 114 that were addressed to Member States have been implemented and which ones are still outstanding. The work programme for establishing the status of implementation should be guided by Article17 (8)(j),(k)1 and Article 17(9)2 of the Treaty, starting in 2014 and should, 1The Secretary General shall: (j) on his own initiative or as may be assigned to him by the Authority or the Council, undertake such work and studies and form such services as relate to the aims of the Common Market and to the implementation of the provisions of this Treaty; and (k) for the performance of the functions conferred upon him by this Article, collect information and verity matters of fact relating to the functioning of the Common Market and for that purpose may request a Member State to provide information relating thereto. 2 The Member States agree to co-operate with and assist the Secretary-General in the performance of his functions set out in paragraph 8 of this Article and agree in particular to provide any information which may be requested under sub-paragraph (k) of paragraph 8 of this Article. CS/CM/XXXII/2 Page 11 among other things, seek to use the approach and the presented draft template as the means to establish the status of implementation. (b) Quality of decisions: the large number of decisions as well as the observations that as many as 13% of them were not addressed to any party and 21% were not proper decisions raises fundamental questions about the quality of decisions that end up being made by the Council and thus published in the Common Market Gazette. Therefore another important exercise in parallel with clearing the back-log of decisions should be to improve the quality of future decisions through a process of distilling the decisions and determining which ones are indeed decisions in accordance with the Treaty and are actionable at the policy level of the Council. This should be another component of the work programme in 2014. 33. Council was further informed that Article 10(2) of the Treaty provides that a Regulation issued by the COMESA Council of Ministers is binding on all Member States in its entirety. This essentially means that the question of domestication of Regulations that have been passed by Council is a non-issue as Council Regulations are ipso juris facto binding upon passing. Further, a Treaty obligation is placed upon Member States by Article 5(2)(b) to give Council Regulations the force of law in their territories as it provides that: “Each Member State shall take steps to secure the enactment of and the continuation of such legislation to give effect to this Treaty and in particular: to confer upon the regulations of the Council the force of law and the necessary legal effect within its territory.” 34. Article 9(3) of the Treaty provides as follows: “Subject to the provisions of this Treaty, the regulations……of the Council taken or given in pursuance of the provisions of this Treaty shall be binding on the Member States, on all subordinate organs of the Common Market other than the Court in the exercise of its jurisdiction and on those to whom they may under this Treaty, be addressed.” 35. Council noted the examples of Regulations that had been passed by Council over the period 2009-2012. 36. Council was informed that establishing the status of domestication of the regulations, which Council adopted and which are binding on all the Member States in their entirety requires both compliance with Article 5(2)(b), which gives the regulations the force of law in the territories of the Member States; and also that Member States, in compliance with Article17(8)(j),(k) and Article 17(9) of the Treaty, deposit their national legislative instruments, which confer upon the regulations the force of law and the necessary legal effects within the territories of the Member States. The latter provides the evidence that Member States are in compliance with the relevant provisions of the Treaty. 37. With regards to the published rules and regulations of 2009-2012, it was noted that none of the Member States had deposited their national legal instruments as evidence of enforcing the regulations in their territories. Going forward, the work programme on transposition should focus on ensuring that Member States routinely deposit their legal instruments. All future reports on the status of transposition will reflect the status on rule and regulations based on the deposited evidence from the Member States. CS/CM/XXXII/2 Page 12 38. On the Directives of the COMESA Council of Ministers, Council was informed that Article 10(3) of the Treaty provides that a Directive issued by the COMESA Council of Ministers is binding upon each Member State to which it is addressed as to the result to be achieved but not as to the means of achieving it. Further, Article 9(3) of the Treaty provides as follows: “Subject to the provisions of this Treaty, the….directives…of the Council taken or given in pursuance of the provisions of this Treaty shall be binding on the Member States, on all subordinate organs of the Common Market other than the Court in the exercise of its jurisdiction and those to whom they may under this Treaty, be addressed.” 39. In the current format of the Common Market Gazette (2009-2012), a clear separation between decisions and directives has not been done in so far as the presentation is concerned. However, the content of the Gazette allows for a cursory analysis to distinguish between decisions and directives. For example, at the Member State level, out of the 114 decisions of the Council, 25 (22%) were actually directives addressed to specific Member State not to all the Member States of the region. The future work programme on transposition should endeavor to re-orient the Common Market Gazette to a format that draws clear distinctions between decisions and directives, in the way these are presented. 40. As of end December 2013, the status of signing and ratification of legal instruments was as shown in Table 2. A total of 9 legal instruments (or 75%) out of the total of 12 instruments considered in the table had been signed by the majority (more than 50%) of Member States while 5 instruments (42%) has been ratified. The only instruments that had received significant amounts of consideration by more than 90% of Member States were the COMESA Treaty, the Agreement on Privileges and Immunities, and the Charter establishing the Federation of National Associations of Women in Business in Eastern and Southern Africa. Overall, the region fared well above average (i.e., above 50%) in terms of signing of legal instruments and marginally below average in terms of the ratification of legal instruments. The status saw no marked changed between 2012 and 2013. 41. The status on the signing and ratification of COMESA instruments is clear because the Member States have complied with the Treaty provision that the instruments be deposited with the COMESA Secretary General. Table 2: Summary on status of signing and ratification of legal instruments Numbers Percentages Legal Instrument Signed Ratified Signed Ratified 1 COMESA Treaty 19 19 100% 100% 2 Customs Bond Guarantee 10 9 53% 47% 3 Charter on the Regime of Multinational 9 Industrial Enterprises (MIE) 2 47% 11% 4 Agreement on Privileges and Immunities 19 to be recognized and granted Binding 100% on all MS Binding on all MS 5 Protocol on the gradual relaxation and 17 eventual elimination of visas 17 89% 89% CS/CM/XXXII/2 Page 13 Legal Instrument Numbers Percentages Signed Ratified Signed Ratified 6 Protocol on establishment of the Fund for 14 Cooperation, Compensation and Development 13 74% 68% 7 Charter establishing the Federation of 18 National Associations of Women in Business in Eastern and Southern Africa 18 95% 95% 8 PTA Bank Charter 13 13 68% 68% 9 ZEP-RE Charter 12 9 63% 47% 1 0 COMESA Common (CCIA) agreement 0 0% 0% 1 1 Charter on the Institute (CMI) … 63% … 1 2 Protocol on free movement of persons, 4 labour, services, the right of establishment and residence 1 21% 5% Investment COMESA Summary Statistics Instruments on Area 0 Monetary 12 Legal 1 3 Signed/ratified by more than 75% of 3 Member States 3 25% 25% 1 4 Signed/ratified by more than 50% of 9 Member States 5 75% 42% 1 5 Signed/ratified by less than 25% of 2 Member States 3 17% 25% In all cases the total of 19 Member States was considered A total of 12 legal instruments were considered … means no data available at the time of drafting. 42. Council was also informed that the decisions of the COMESA Court of Justice should are instructive towards the interpretation of decisions, directives, regulations (and rules) and COMESA instruments. The Court’s decisions have significant implications in particular for Member States and the COMESA Secretariat. For example, the COMEA Court of Justice in the matter of Polytol Paints & Adhesives Manufacturers Co. Ltd versus the Republic of Mauritius, Reference 1/2012 to a large extent dealt with the issue of domestication of COMESA instruments. Their Lordships in the matter reasoned that: “Any Member State that acts contrary to the Treaty cannot, therefore, plead the nature of its legal system as a defence when citizens or residents of that State are prejudiced by its acts. This is clearly stipulated in Article 27 of the Vienna Convention on the Law of Treaties, 1969 which provides that “[a] party may not invoke the provisions of its internal law as justification for its failure to perform a treaty.” CS/CM/XXXII/2 Page 14 43. The Court’s ruling, as alluded to above, underscored the fact that once a Member State has signed the COMESA Treaty, it is under an obligation to implement it and cannot raise issues of internal law as a justification from rescinding from implementation. By extension, once the COMESA Council of Ministers has issued its different instruments, Member States to whom the type of instrument issued is addressed, with the exception of Regulations that are binding on all Member States, are under a Treaty obligation to implement same. Discussion: 44. The meeting observed that: a. In the case of the conflict between national law and the COMESA Treaty, it is the obligation of Member States to take the necessary steps to align the domestic law in accordance with Article 5(2) of the COMESA Treaty; b. The identification of capacity constraints and capacity building needs at the national level, as well as the building of the necessary in-country capacity for domestication and implementation, is the responsibility of the Member States; c. While the Secretariat may provide the necessary technical assistance on domestication upon a request by Member States, Member States are obliged to domesticate and implement the decisions addressed to them; d. The Secretariat should ensure that decisions, directives, regulations, recommendations and opinions are distinguished and categorized in reports; e. The Common Market Gazette should be updated such that all regulations and decisions are captured in line with the COMESA Treaty provisions; f. The recommendations, opinions, commendations and other such operatives that have no binding force should not be included in the Gazette; and g. There is need to review instruments that were adopted by Council but have not entered into force due to lack of the requisite signatures and ratifications. Decisions: 45. Council: i. Directed the Secretariat to provide a compendium of all decisions, regulations and directives for implementation by Member States not later than 31 March 2014; ii. Urged Member States to domesticate the COMESA Treaty and all Protocols and submit the instruments to the Secretary General not later than 31 December 2014; iii. Urged Member States to domesticate all outstanding regulations by 31 December 2014; CS/CM/XXXII/2 Page 15 iv. v. Urged Member States that are not in a position to comply with these decisions on domestication of the COMESA Treaty, all Protocols and instruments and all outstanding Regulations to notify the Secretary General of their respective positions, with justifications explaining why they cannot do so. Directed the Secretariat to obtain from Member States: a. b. c. d. Copies of legal instruments that have not been deposited with the COMESA Official Depository; Copies of legal instruments that were previously submitted but destroyed or damaged as a result of the fire in 2011 upon request by Secretariat; Copies of Gazettes through which the domestication of legal instruments of COMESA were published; and Copies of other bilateral trade and investment agreements that Member States have notified to COMESA. vi. Urged Member States that are not able to domesticate the COMESA Treaty and all protocols including regulations to notify the Secretariat and state the reasons thereof. TRADE AND CUSTOMS (Agenda Item 4(a) (ii)) 46. Council was informed that the COMESA Trade liberalization programme is grounded in provisions under Chapter VI of the COMESA Treaty, which enjoins Member States to cooperate in trade liberalization and development. The trade liberalization programmes envisaged the progressive reduction and eventual removal of tariffs for intra-COMESA trade, the gradual establishment of the Common External Tariff (CET) and provision for the definition of products originating in the Member States. In addition, Article 49 calls on “Member States to remove immediately upon entry into force of the Treaty all then existing NTBs and thereafter refrain from imposing any further restrictions or prohibitions on regional goods”. 47. Council received the report of the 29th Meeting of the Trade and Customs Committee (document reference: CS/TCM/TCM/XXIX/13), which contains details of the deliberations and recommendations made. The key elements of the report include the following: 48. Council was informed that the FTA was attained in 2000 with nine Member States and since then five more Member States have joined bringing the total number to fourteen. The existence of the FTA has in part led to a rise in intra-COMESA trade from US $3.1 billion in 2000 to US $19.3 billion in 2012, reflecting a 523 percent growth rate over the period or 44 percent per annum on average. 49. It was further noted by Council that global trade for the COMESA countries in 2012 grew by 9 percent from US $240 billion in 2011 to US $262 billion in 2012. Total exports rose by 12 percent from levels of US $96 billion in 2011 to US $108 billion in 2012, while imports on the other hand also registered a 7 percent growth, from US $144 billion in 2011 to US $155 billion in 2012. CS/CM/XXXII/2 Page 16 50. At country level, some of the countries that greatly contributed to the overall 12% total exports growth in the region were Libya (108% growth), Burundi (24% growth), Rwanda (22% growth), Swaziland (18% growth) and Congo DR (12% growth). Notably among the countries that registered negative growth in their total exports in the year 2012 is Sudan with a decline of 63%. On the import side, among the countries that contributed to the overall 7% growth in 2012 are Libya, Ethiopia, Zambia and Uganda with growth rates of 46%, 36%, 23% and 19% respectively. Others were Kenya (10% growth) and Egypt (9% growth). On the other hand, Sudan and Seychelles are among the countries that experienced drops in levels of their global imports with declines of 35% and 38% respectively. 51. Intra-COMESA total trade grew by 5% in 2012 over 2011 levels, from US $18.4 billion in 2011 to $19.3 billion in 2012. Among the countries contributing to this growth were Libya, Zambia and Rwanda, all with growths in both intra-exports and intra-imports in 2012. 52. Other notable contributors with positive growth in their intra-COMESA exports are Egypt, Malawi, Zimbabwe and Uganda also contributed to the intra-COMESA growth with positive growths in their intra-COMESA imports. 53. Whereas over 98% of Libya’s intra-COMESA trade is with Egypt with imports comprising of different products, Libya’s exports to Egypt are mainly petroleum oils and oils obtained from bituminous minerals and these amounted to over US $92 million in 2012. Zambia’s imports from Congo DR in 2012 amounted to over US $1.2 billion, and these were mainly copper ores and concentrates, copper powders and flakes and cobalt oxides. Zambia’s major intra-export product was maize corn to Zimbabwe worth over US $240 million in 2012. Rwanda’s major intra-export products were mainly tea and coffee to Kenya and Uganda (worth over US $126 million in 2012) while her major intra-COMESA imports comprised of Portland cement, animal and vegetable fats and palm oil all from Uganda. 54. Malawi’s major intra-COMESA imports were petroleum gases and oils from Zambia and these amounted to almost US $300 million in 2012 while Zimbabwe’s intra-COMESA imports for maize and tobacco from Zambia were worth over US $374 million in 2012 (almost 60% of her intra-imports). Over 83% of Uganda’s intra-COMESA imports are from Kenya and these are various products topped by Portland cement and petroleum oils among others. 55. As for the top-most traded products within the region in value terms, Copper ores and concentrates were still ranked as number one for the third year running from 2010 as illustrated in the table below. Ranked second after the Copper ores and concentrates was black tea, previously ranked number one in 2009 and 2008. Portland cement and cobalt ores and concentrates were ranked in the third and fourth positions respectively in 2012. 56. According the UNCTAD report on Economic Development in Africa 2013, in the period from 2007 to 2011, the share of manufacturing in trade between regional economic communities was highest in EAC (58.3 percent), followed by SADC (51.4 percent), COMESA (44.8 percent), IGAD (39.1 percent), AMU (35.2 percent), CEN-SAD (34.3 percent) and ECOWAS (25.7 percent). These variations in numbers are associated with the differing levels of manufacturing development of the member countries of the regional blocs. 57. Compared to other RECs, COMESA does not fare very well in terms of the share of intra-regional trade to total trade as shown in the table below. However, COMESA is the only REC which experienced a sustained increase in intra-trade from 5.1% during the period 1996- CS/CM/XXXII/2 Page 17 2000 to 6.7% during the period 2007-2011 suggesting that the existence of the FTA has a beneficial effect on intra-COMESA trade. For the eight RECs recognized by the African Union, during the period 2007-2011 SADC had the highest intra-trade of 12.9%, followed by EAC at 12% , ECOWAS at 9.4% and COMESA was fourth at 6.7%. 58. Council noted that the low intra-COMESA trade is in part due to the low trade complementarity among COMESA countries. Trade complementarity helps to get a measure of how a country’s (or region’s) export supply fits into the import demand of its trading partners. The analysis of COMESA country bilateral complementarity reveals only partial complementarity in all cases of bilateral trade. An index between 50% and 60% is achieved in nine cases out of a total of 342 possible bilateral trade combinations This is with regard to bilateral trade mainly between Egypt as an exporter and the following countries as importers; Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Seychelles, Swaziland, Uganda and Zimbabwe. An index of between 40% and 50% is achieved in eleven cases. Once again this is mainly between Egypt as an exporter and the following countries as importers; Democratic Republic of Congo, Djibouti, Eritrea, Libya, Rwanda, Sudan and Zambia. While the complementarity index is low, it is important to mention that it is not a static situation. As countries move up the value chain ladder and as industries are set up and mature, the complementarity index has the potential to change for the better. The table below shows the complementarity Index with the coloured entries showing a complementarity index of above 40%. 59. The COMESA region’s export concentration index increased from 32% in the mid-1990s to 42% in 2012. This increase in concentration is attributed to the larger role played by commodity exports among regional member countries in their overall export profile. However at a country level, the following countries’ indices decreased in the period under review, reflecting exports that were less concentrated in few sectors; Uganda, Ethiopia, Egypt, Rwanda, Malawi and Zambia. Discussion: 60. The meeting made the following observations: a. The Private sector has a vital role to play in promoting value addition and intraCOMESA trade in order to improve trade complementarity in the region; b. The study on preference utilization, which has been done by the Secretariat, should be circulated to Member States. In this regard, account should be taken of trade that takes place under other FTAs; c. The statistics of the Member States should disaggregate the figures of Sudan and South Sudan, starting from the year 2012 when the latter became a separate Member State; and d. There is need for the region to have a common industrialization policy. CS/CM/XXXII/2 Page 18 Decisions 61. Council: i. Directed the Secretariat to prepare a paper on the common industrialization policy to advance the industrialization of the COMESA region by 30 June 2014; ii. Directed the Secretariat in collaboration with Member states to ensure that COMESA trade statistics reflect the actual trade done under COMESA Trade Regime taking into consideration multiple memberships in different RECs; and iii. Directed the Secretariat to work with Member States to assess the constraints to increasing intra-COMESA and global trade and recommend appropriate solutions not later than 30 September 2014. Participation in the FTA 62. The meeting received an update on the Member States participation in the FTA. 63. DR Congo had made the decision to join the COMESA FTA following the impact assessment study recommendations. The instrument of accession that was developed for that country was before the legislature and it was expected that DR Congo would finalise its internal consultation processes and join the FTA as soon as possible. The meeting was informed that the Secretary General would receive communication once Parliament resumes and finalises the legal instruments. 64. The State of Eritrea reduced tariffs for COMESA trade by 80 percent. A national workshop on COMESA Programmes focusing on Rules of Origin and benefits of FTA is planned to be held in 2014 with a view to enhancing capacity as the country prepares to participate fully in the COMESA FTA. 65. Ethiopia conducted an FTA impact assessment study in 2011 to address key areas including the Macro-economic framework for competitiveness, trade and investment, industry, agriculture, and agro-industries competitiveness and Institutions and infrastructure. A national validation workshop was held on 16 May 2013 to validate the report. Following the comments made at the workshop, the consultants reviewed and finalised the study report and Ethiopia is expected to make a decision regarding participating in the FTA soon. The meeting was informed that the study recommended two scenarios including one for a phased in approach.. 66. Uganda is at 80% tariff reduction for COMESA trade and had made significant progress in its bid to join the COMESA FTA after the President of Uganda made the announcement to that effect at the last Summit in November 2012. The meeting noted that internal processes were almost complete and that Uganda would be participating in the FTA from July 2014. The meeting was informed that the Finance Bill would be deposited with the Secretariat once it is passed by Parliament by September 2014. CS/CM/XXXII/2 Page 19 67. Swaziland was under derogation which Council at its 28th Meeting decided that it (derogation) be extended beyond December 2010 and that it be linked to the establishment of the Tripartite FTA when Swaziland would participate in the Tripartite FTA. Decisions: 68. Council decided that: i. The Republic of Uganda should deposit with the Secretariat its instruments of accession to the FTA by December 2014. ii. The Democratic Republic of Congo should deposit its instruments of accession to the FTA with the Secretariat by December 2014; and iii. The Federal Republic of Ethiopia should deposit its instruments of accession to the FTA with the Secretariat by September 2014. Non-Tariff Barriers (NTBs) 69. The meeting noted that Article 49 of the COMESA Treaty provides that each Member State undertakes to remove all existing Non-Tariff Barriers to intra-COMESA trade upon entry into force of the Treaty. That notwithstanding, the region has witnessed the proliferation of all forms of NTBs that stifle the free flow of intra-COMESA trade thereby impacting negatively on volumes and values. These NTBs that are usually arbitrarily imposed could pose a challenge in future investments in the affected products. In an effort to effectively deal with this challenge, COMESA has developed mechanisms to identify, report and monitor the elimination of NTBs including the on-line Reporting and Monitoring Mechanism and the SMS NTB reporting tool that are under use by the Tripartite Member/Partner States. 70. The above noted NTB on-line reporting and monitoring mechanism had by December 2013, 461 reported 461 NTBs out of which 378, (representing 82%) have been resolved whereas 83 (representing 18 %) still remain unresolved. It should be noted that the Tripartite NTB on-line reporting and monitoring mechanism as well as the SMS NTB reporting tool have contributed positively to fast tracking the NTB resolution process and hence, the impressive percentage of resolution of reported NTBs. It was noted that despite the measures so far in place to address NTBs including the establishment of Institutional structures on NTBs that included Focal Points and National Monitoring Committees (NMCs) both at regional and national levels, the challenge of imposition of unpredictable NTBs still persists in COMESA. 71. In order to ensure compliance with the various provisions of the Treaty, the Council of Ministers agreed on the need to develop Non-Tariff Barriers Regulations that provide for institutional and legal mechanisms of enforcement. In the past three years the technical committees have by and large discussed and agreed on NTB Regulations which will be submitted in 2014 to the committee of legal experts and Ministers of Justice/Attorneys General for finalization. Discussion: 72. Council made the following observations: CS/CM/XXXII/2 Page 20 a. The draft NTB regulations should be adopted by the Trade and Customs Committee before being submitted to the Legal Drafting Sub-committee. b. Egypt received the Kenya verification delegation and considered the matter to be finalised. On the other hand, Kenya advised that there was need for another mission that would cover the sugar factories and would include the Secretariat and the private sector. c. Swaziland had proposed an extra-ordinary meeting where the issue of exportation of fridges from Swaziland to Zimbabwe would be deliberated; and Zimbabwe proposed bilateral consultations on the issue. d. Mauritius raised the issue of its exports of window and door frames to Burundi, which are facing restrictions, despite a Secretariat mission to assist resolve the matter. 73. Burundi informed the meeting that it had issued a Statutory Instrument rescinding the statutory instrument that had instructed duties and taxes on door and window frames and that the documentation would be availed to the Secretariat. Decisions: 74. Council directed that: i. The draft NTB regulations should be adopted by the Trade and Customs Committee before being submitted to the Legal Drafting Sub-committee; ii. The Secretariat should carry out an audit and impact assessment of existing NTBs by 31 August 2014 and prepare a schedule for immediate removal; iii. Kenya and Egypt should agree on mutually acceptable dates for another verification mission to ascertain the originating status of white milled sugar and LG products by 31 October 2014; iv. The Secretariat should facilitate a bilateral meeting between Swaziland and Zimbabwe on the exportation of fridges by 30 April 2014; v. The Secretariat should lead all future NTB verification missions to the Member States and submit the reports; and vi. Burundi should deposit the instruments rescinding import duties and taxes on doors and window frames to the Secretary by 31 March 2014. Electronic Certificate of Origin (e-COs) 75. Council noted that the Trade and Customs Committee had also considered and accepted a proposal to replace the manual certificates of origin with the electronic certificates of origin in a bid to speed up the process of certification as well as facilitate trade in real time. The e-COs assist in keeping pace with the rapid worldwide shift to e-business, and many CS/CM/XXXII/2 Page 21 international Chambers of Commerce and Industry are now issuing COs electronically, complete with digital rubber stamp and signatures, to provide CO in a secured documentation environment. The benefits of the e-COs are not only to facilitate and provide secured trade, but it also saves time and labour cost; increases transparency and efficiency; improves productivity; reduces paperwork through online data exchange and integration; minimizes data inaccuracy through data sharing; fights forgery; provides 24/7 convenience and the convenience of online application tracking; and provides the convenience of having a direct link to banks for Letters of Credit clearance and Customs for speedy Customs clearance. 76. Council noted that the Member States that are ready to commence operationalisation of the electronic certificate of origin should do so. Decisions: 77. Council: i. Urged Member States that are ready to accept and use the electronic certificate of origin by 31 July 2014; ii. Urged Member States whose legal systems do not provide for e-COs should to enact enabling laws as soon as possible; and iii. Directed the Secretariat to ensure that an additional Section for Payment through REPSS is inserted in the COMESA e-Certificate of Origin by 30 May 2014. Simplified Trade Regime 78. Council noted that the Simplified Trade Regime has been put in place between contiguous Member States in order to enable small scale cross-border traders to benefit from the COMESA trade preferences. The passenger cargo manifest system (PCMS) had been piloted between Zambia and Zimbabwe. The STR was being implemented in seven COMESA countries (Burundi, Kenya, Malawi, Rwanda, Uganda, Zambia and Zimbabwe) while the PCMS is under pilot in two Member States i.e. Zambia and Zimbabwe. An analysis of the implementation of the STR and the PCMS in the region was undertaken. Decisions: 79. Council: i. Directed Member States to apply a processing fee of a maximum of $1 for all STR transactions by 31 December 2014; ii. Directed the Secretariat to prepare an expanded list of commonly traded products by 30 June 2014; iii. Urged Member States to raise the STR threshold to a minimum of US $2,000 by 31 December 2014; iv. Directed Member States to implement the newly introduced Passenger and Cargo Manifest system by 30 October 2014; CS/CM/XXXII/2 Page 22 v. Directed the Secretariat to facilitate the meeting between Kenya and Ethiopia to conclude the STR between them; and vi. Directed Member States to conduct awareness meetings for traders and refresher training workshops for staff on matters relating to STR and PCMS in order to ensure smooth operations at border stations. The Customs Union 80. Council noted that since the Authority launched the Customs Union in June 2009 and agreed on a three-year transition period during which each Member State, pursuant to the provisions of Article 10, 11 and 12 of the treaty, was to enact the following Common Market legislation: the Common Tariff Nomenclature (CTN); the Common External Tariff (CET); and the Common Market Customs Management Regulations (CMRs); to date not a single Member State has domesticated the Common Market legislation for the Customs Union with the result that the process of operationalizing the customs union has not commenced. Further, the Authority in November 2012, noted that the Common Market legislation on the Customs Union was still pending and extended the transition period for a further two years to June 2014 to enable Member States to domesticate the Customs Union Legislation. 81. Council also noted that the Fourth Meeting of the Committee on the Customs Union held on 10-12 June 2013 reviewed the status of implementation of the Customs Union. The Meeting finalized the draft COMESA CTN/CET transposition from HS 2007 to 2012 which is recommended for adoption by Council through the IC. On the basis of the agreed HS2012 Member States are in the process of finalizing their lists and schedules of tariff alignment. 82. The progress on implementation of the key instruments by Member States during the transition period is summarized as follows: on the implementation of the CTN, six Member States (three of them with indicative time line, 2014 - 2015) reported that they are in the process of migrating to the COMESA CTN (DR Congo, Eritrea, Madagascar, Malawi, Mauritius, and Zambia). Similarly, on migration to the CET, five Member States (two of them with indicative time line, 2015) reported that they are in the process of adopting their national tariff into the COMESA CET (Comoros, Eritrea, Madagascar, Malawi, and Zambia). With regards to the submission of list of sensitive products, so far ten Member States have submitted their list of sensitive products (Burundi, Comoros, Eritrea, Kenya, Madagascar, Mauritius, Rwanda, Sudan and Uganda); and two Member State have submitted their final list of sensitive products (Malawi and Swaziland)). Finally, on domestication of CMRs, two Member States reported that they have already incorporated the CMRs in their national customs Laws (Seychelles and Sudan); and nine Member States reported that they were in the process of domesticating the CMRs (Comoros, DR Congo, Egypt, Eritrea, Madagascar, Malawi, Mauritius, Zambia and Zimbabwe). 83. On the challenges, Member States reported that in order to implement regional decisions, there were adjustment costs associated with alignment to the Common Tariff Nomenclature (CTN) and the Common External Tariff (CET) including injury caused to local industry. It also involves financial resources used to change laws, conducting consultations with stakeholders such as the private sector and civil society. Similarly, poor institutional coordination on regional integration matters, for a long time matters have been handled by diverse institutions. Some Member States reported that they experience serious challenges relating to sensitivity of some tariff lines to trade liberalization. For instance, Malawi stated that a good CS/CM/XXXII/2 Page 23 component (35%) of Malawi’s tax revenue comes from trade taxes (customs duties); hence, trade liberalization has led to loss of revenue collected from such taxes. Similarly, resource constraints in the form of financial, human resource and material are also another major challenge in implementation and domestication of COMESA programmes. 84. Concerns were raised by Member States that needed to be addressed before the implementation of the Customs Union such as fear of loss of customs revenues, reviewing the studies on the 5% and the substantial tariff lines below the CET issues (already Secretariat reviewed the two studies) to provide concrete policy recommendations for Member States on how they can participate in the Customs Union. For instance, some Member States have more than 50% of their national tariff lines at 0% rate and are finding it very difficult to move them upwards due to their impact on competitiveness as well as impact on consumer goods prices. Other Member States also have bound several tariff lines at zero percent at WTO and as signatory to the Information Technology Agreement. Any re-alignment to the COMESA CET would entail re-negotiation of their tariff bindings at the level of the WTO in order to compensate those members that would be negatively affected by the tariff change. Similarly, there is the issue of exemption regimes that need harmonization or approximation in order to enforce the CET efficiently and effectively. 85. Regarding the harmonization of the instruments of the Customs Union between COMESA and EAC, a meeting was held on 03-05 September 2013 during which the four COMESA/EAC Member States concluded, amongst others, that: under the principle of variable geometry and in light of the substantial convergence between the two customs unions (80% of the two CETs already harmonized), they can already implement the elements of the COMESA customs union that are in harmony with the EAC customs union; the EAC Customs Management Act (CMA) is the national customs law of the four partner/ member states, and can be used as such in implementing the COMESA CMRs where the COMESA CMRs refer to the national laws of member states; and there is need for formally tabling the issue of joining the customs union before the EAC relevant organs for consideration; in this regard, one of the four member/ partner states that will do so should be supported by the others. Discussion: 86. Council noted the following: a. The need to implement the Council decision on the Customs Union particularly on the implementation of the Customs Management Regulations and the Common Tariff Nomenclature; as well as the need for Member States that have challenges in implementing the CET to seek derogation. b. The noted the need for consultations among senior officials and ministers of the four COMESA/EAC Member States to discuss and give guidance on the way forward on the harmonization of the two CETs and Customs Laws. Decisions: 87. Council: i. Adopted the revised draft COMESA CTN/CET HS 2012 and the draft regional specific and general exemptions; CS/CM/XXXII/2 Page 24 ii. Directed that Industrial exemptions should be discussed separately; and iii. Urged Member States to domesticate the COMESA Customs Management Regulations and the Common Tariff Nomenclature (CTN) that were approved by the COMESA Summit in June 2009. Relations with Third Parties 88. Council noted that the African Growth and Opportunity Act (AGOA), relations with India and multilateral trade negotiations under the WTO are of interest in COMESA’s relations with third countries. Under AGOA, Member States with other African AGOA eligible countries attended the 12th AGOA Forum in Addis Ababa, Ethiopia and raised the issues relating to the extension of AGOA and inclusion of products of export interest to the eligible list. With regard to relations with India, a preparatory meeting was held. With regard to the WTO, implementations of the decisions of the 8th Ministerial meetings as well as issues for the 9th WTO Ministerial meeting were discussed. 89. Council noted that it is paramount for COMESA to focus on a common negotiating position before the Member States can engage the third parties. An impact analysis should be prepared and a report produced so that when COMESA is negotiating with Third Parties, the common position is taken. 90. Council noted that the 9th WTO Ministerial Conference held in Bali in December 2013 adopted the Trade Facilitation Agreement and the need to analyse this agreement and develop appropriate national and regional work programmes for implementation. Decisions: 91. Council: Africa Growth and Opportunity Act (AGOA): i. Urged Member States to devise and implement a lobbying strategy for the seamless extension of AGOA beyond 2015 on a predictable basis targeting USTR, and key congress men/women and in this regard the Member States should work with the Secretariat to proactively engage the US Government; ii. Urged AGOA eligible countries to lobby for the expansion of the scope of AGOA by including products of export interest to them and improving the rules of origin; iii. Urged the United States of America to enhance the capacity of AGOA eligible countries to comply with the SPS, TBT and other standards so as to be able to access the US market; and iv. Urged the United States of America to consider the preference erosion to AGOA eligible countries before extending similar preferences to LDCs in other regions. CS/CM/XXXII/2 Page 25 COMESA –India Relations i. Directed the Secretariat to conduct and complete the study on the impact of either a comprehensive Economic Partnership Agreement (EPA) or an FTA with India, including issues such as trade diversion, by 30 June 2014. World Trade Organisation (WTO): i. Urged the LDC Members of COMESA to carry out the analytical work that would enable them to benefit from the LDC waiver on services during the period for which the Waiver subsists by identifying the services sectors of export interest to them; and ii. Urged the LDC Members of COMESA that are in the process of acceding to the WTO to take advantage of the streamlined procedures and benchmarks that were agreed to by the General Council in July 2012 with regard to their offers on goods and services schedules. Trade in Services 92. Council was informed that the COMESA Treaty, particularly Article 3(b), as read with Article 4(4)(c), provides for the removal of obstacles to the free movement of services within the Common Market. Article 164 of the Treaty, among other things, provides for the free movement of services, and Articles 148, 151 and 152 provide a mandate for work to be done in the liberalization of trade in services. 93. Further, it was noted that trade in commercial services (imports plus exports) was at US $52 billion in 2007, and rose to US $72 billion in 2012. This represented an increase of 38.5 percent. The commercial services imports which were at US $26.7 billion in 2007 rose to a peak of US $37.7 billion in 2011 before subsiding to US $35 billion in 2012. The commercial services imports were dominated by transportation (over 45% of total services imports) reflecting the high transport costs as most of the COMESA Member States are land-linked. Other business services and travel also occupied a significant share of the commercial services imports as indicated in the table below. 94. With regard to commercial services exports, the region exported US $27.4 billion services in 2007, and this trended upward to US $36.9 billion in 2012. The bulk of these exports were travel (over 45% of total services exports) showing the importance of travel and tourism in the region. At second position was transportation (40% of total services exports) again reflecting that due the fact that the majority of COMESA Member States are land-linked, those who import goods from the region have to pay high transport costs. 95. The Trade in Services programme has the objective of reducing and eventually eliminating barriers to trade in services in order to promote regional services trade, contribute to economic growth and employment. The main beneficiaries of liberalization are the competitive service suppliers as well as service consumers. The Fifth Meeting of the Committee on Trade in Services that was held on 05-07 June 2013 in Kampala, Uganda. The Committee conducted negotiations on schedules of specific commitments in the four priority service sectors of transport, communication, tourism and financial. Fifteen Member States submitted their CS/CM/XXXII/2 Page 26 schedules of specific commitments fourteen of which were negotiated. The schedule for one country was not discussed since the Member State did not attend the meeting. 96. Council was informed that the Fifth meeting of the Committee on Trade in Services realised that the schedules of specific commitments needed to be looked at again to take account of the comments and requests made during the meeting and to ensure that the Central Product Classification (CPC) codes were inserted in each sub-sector of services that was in the schedule(s) as well as the use of the correct WTO-GATS language. 97. Noting that the use of Economic Needs Tests (ENTs) could act as disguised restrictions to trade in services, there was need to ensure that wherever ENTs were required, it was essential to specify the institution administering them as well as the criteria and timeframe for the results of the ENT to the conveyed to the applicant ENT service suppliers. Decisions: 98. Council decided that: i. Wherever ENTs are required, Member States should clearly specify the institution that would be administering them and the criteria and timeframe for the results of the ENT to be conveyed to the applicant service suppliers; ii. Member States should submit reviewed schedules to the Secretariat by 30 July 2014; iii. Member States should by 30 July 2014 provide CPC codes in their schedules of specific commitments, including the Annex on Financial Services in the banking services, and also provide the accepted GATS language where that has not been done to consistently maintain uniformity in all Member States schedules of specific commitments; and iv. Member States that have commitments in the telecommunication sector should adopt the WTO Reference Paper as an Annex attached to the schedules of specific commitments for all COMESA Member States. COMESA-EAC-SADC Tripartite 99. Council was informed that the Tripartite framework was borne out of a realisation that the regional integration processes of COMESA, EAC and SADC were similar and in some cases identical. With overlaps in the membership of these 3 RECs, it was seen prudent for the 3 RECs to co-operate and harmonise their programmes. The Tripartite is anchored on three pillars, namely: Infrastructure Development, Market Integration and Industrial Development. 100. The Second Tripartite Summit held in Sandton, Johannesburg in June 2011 launched the Tripartite FTA negotiations which have two phases. The first phase which deals with trade in goods and movement of business persons spans to June 2014 while the second phase which will deal with other trade related issues, trade in services, competition and intellectual property will commence after completion of phase one negotiations. Egypt offered to host the Third Tripartite Summit. CS/CM/XXXII/2 Page 27 Progress on the Market Integration Pillar 101. Council was informed that only 12 Tripartite Member States are ready with their tariff offers and the rest were urged to finalized their tariff offers as soon as possible. Seychelles had submitted their tariff offers, which cover 5,549 tariff lines. 95.78% of the tariff lines will be liberalised upon entry into force of the agreement, 0.51% over an eight (8) year period and the remaining 3.71% of the tariff lines represent an exclusion list. 102. DR Congo and Angola could not present their tariff offers since they were not ready. Given that this was the last but one TTNF session, it does not appear that the two countries will make tariff offers by June 2014. 103. Mozambique, Malawi and Sudan promised to submit their tariff offers in the next TTNF. 104. Zimbabwe reported to the TTNF that its offer will be ready during the second half of the year when internal consultations and ongoing study have been concluded and the offer will be based on the acquis in COMESA and SADC. Zimbabwe’s offer will be directed to four countries that are not yet members of an FTA, and these are Angola, DR Congo, Eritrea and Ethiopia. 105. Council noted that six Member/Partner States did not give any status on their tariff offers because they were absent at the 8th TTNF. These are Comoros, Djibouti, Eritrea, Ethiopia, Libya and Madagascar. The TTNF directed the TTF to engage with the Governments of these Member States on their participation in the tripartite. It is worth noting that these are COMESA Member States. 106. On the Technical Working Groups (TWG), the meetings struggled to form a quorum as a number of Member/Partner States could not arrive on time for these. Two out of three TWG eventually formed a quorum just before the TTNF. Not much progress was achieved in the TWG meetings, except in the SPS/TBT/NTBs where Article 26 and Annex 9 on TBT, Article 27 and Annex 10 on SPS were adopted. The finalisation and adoption of Annex 3 on NTBs would be dependent on the finalisation of Article 10 (2.2) (4) by the TWG on Trade Remedies and Dispute Settlement. The TWG on SPS/TBT/NTBs is the first one to finish its work. 107. On the Rules of Origin, the TTNF could not agree on the definition of ‘their vessels’ and ‘their factory ships’. Mauritius and Seychelles will submit their proposal on the additional option on Article 6(2) of Annex 4 to the TTF which will then be circulated and discussed at the next meeting of the TWG to be held in March 2014. Member/Partner States are to consult on Articles 9(1) and 9(2) before the 7th TWG meeting. 108. Council was informed that the TWG on rules of origin has recommended the use of product specific rules. In this regard, the meeting observed that 22.7% of the product specific rules of the 3 RECs were common and 26% were similar representing 53% of the total intra as indicated in the table below. Baskets A B C D Different Common Similar Missing in all Baskets Total # of Lines 1,396 1,180 1,356 1,274 5,206 % 26.8 22.7 26.0 24.5 100.0 CS/CM/XXXII/2 Page 28 109. On the Customs Cooperation, Documentation, Procedures and Transit Instruments, in view of the WTO Trade Facilitation Agreement agreed in Bali in December 2013, the TTNF directed the TTF to undertake an analysis of Annex 5 and make recommendations for any necessary changes to the provisions. The analysis paper will be considered by the next TWG meeting including implications on Article 14 of the Draft TFTA Agreement. 110. Trade Remedies and Dispute Settlement, due to lack of quorum, the results of the discussions of this TWG could not be presented to the TTNF. The TTNF directed the TTF to convene a meeting of the REC experts to finalise Part V and Annex 2 on Trade Remedies and Article 40 and Annex 14 on Dispute Settlement taking into account the discussions of the informal session and these should be circulated to member/Partner States by end of February 2014. The TTF was directed to finalise the Analysis Paper on Safeguards and circulate to Member/Partner States by 28th February 2014. 111. On the Draft TFTA Agreement, most of the operative provisions had have been adopted. However, a number of issues in Articles 4, 5, 7, 10 and 42 (c) on the Draft TFTA Agreement were referred to the TCSO and bracketed because there was no agreement among Member/Partner States. 112. A number of Articles in Part VI (Trade Related Areas) were deleted from the draft TFTA Agreement with the understanding that these will be part of the Built-in Agenda under Phase two of the negotiations and others moved to the Infrastructure and Industrial Development pillars. Articles 24 (Competition), 25 (Cross Border Investment), Article 28 (Intellectual property Rights) and Article 31 (Trade in Services) were moved to Phase two, Built in Agenda, Article 29 (Infrastructure Development Pillar), Articles 32 and 33 (Productive Capacity and Competitiveness and Sector Strategies and Rural Trade programmes respectively) moved to the Industrial Development Pillar . Article 30 on Movement of Business Persons was to be handled in a separate and parallel track. Article 34 on Export promotion and Schemes and Special Economic Zones were bracketed to enable Member/Partner States to consult on the article. Articles 26 and 27 on TBT and SPS respectively were adopted. Article 35 (Research and Statistics) was moved to Other Areas of Cooperation in Part VII. 113. In Part VII: Articles 36 (Cooperation in Other Areas) and 37 (Coordination of Trade Policies and Negotiations) were bracketed to enable Member/Partner States to consult on them 114. In Part VIII: Article 38 (Organs for the Implementation of the TFTA) was adopted with amendments whilst Article 39 (Tripartite Committee on Trade and Customs) was deleted. 115. In Part IX: TTNF noted that the TWG on Trade Remedies were still considering the part and agreed to await the outcome. 116. In Part X: TTNF agreed to delete Part X on the basis of all Member/Partner States being members of an TFTA and issues regarding their relations with Third Parties to be dealt with under the MFN provision 117. Council was further informed that the representative of the Namibian Government expressed concern to the TTNF meeting over the not so impressive progress made by the Ninth TTNF and urged Member/Partner to expedite the negotiations in the Tenth and last TTNF to be held in April in Bujumbura, Burundi. CS/CM/XXXII/2 Page 29 118. Further, COMESA should have a unified position on the negotiations of the TFTA as the negotiations move forward with the other RECs in the Tripartite. 119. Council was informed that during the Second Tripartite Summit meeting in Johannesburg in June 2011, Egypt invited the Third Tripartite Summit meeting to be held in Cairo. Egypt reiterated readiness to host the meeting and invited delegates to the meeting in autumn of 2014, on a date to be confirmed after consultations. 120. Some Member States stated the need for flexibility to use export taxes for industrial development, and that therefore the TFTA should not prohibit them. Accordingly, the TFTA should be silent on the matter, leaving it to the Member States the option to use them. 121. The meeting further noted the need to finalise the two critical issues of Rules of Origin and Tariff offers. The meeting noted the need for a fully functional TFTA which contains ambitious tariff offers and business friendly Rules of Origin reflecting the best practices in COMESA. For instance some countries are prepared to open up only 60% of the tariff lines while 57% are already zero rated meaning they are only opening up 3% more, as shown in the table below. Summary of Tariff lines at Zero Percent Ref. Year Reporter MFN at 0% MFN Positive Lines 1 2009 Angola 0 5,201 0.0 5,201 WITS 2 2009 Congo DR 0 5,794 0.0 5,794 WITS 3 2011 Comoros 750 4,629 13.9 5,379 WITS 4 2011 Djibouti 22 6,867 0.3 6,889 WITS 5 2009 Egypt, Arab Rep. 577 4,876 10.6 5,453 WITS 6 2006 Eritrea 2 5,267 0.0 5,269 WITS 7 2011 Ethiopia 245 5,224 4.5 5,469 WITS 8 2006 Libya 5,224 0 100.0 5,224 WITS 9 2011 Madagascar 326 6,027 5.1 6,353 WITS 10 2011 Malawi 1,159 4,120 22.0 5,279 WITS 11 2011 Mauritius 5,551 856 86.6 6,407 WITS 12 2010 Mozambique 182 5,016 3.5 5,198 WITS 13 2010 Seychelles 4,797 894 84.3 5,691 Customs 14 2011 Sudan 387 4,916 7.3 5,303 WITS 15 2011 Zambia 1,561 4,456 25.9 6,017 Customs 16 2010 Zimbabwe 586 5,369 9.8 5,955 Customs 17 2011 EAC 1,948 3,312 37.0 5,260 WITS 18 2012 SACU 4,076 3,164 56.3 7,240 SACU MFN at 0% as % of total Total lines Tariff Source CS/CM/XXXII/2 Page 30 Decisions: 122. Council: i. Directed the Secretariat to prepare a paper on the economic implications of export taxes on the FFTA, by 30 June 2014; ii. Decided that the TFTA should be a fully functional TFTA which contains ambitious tariff offers and business friendly Rules of Origin reflecting the best practices in COMESA; iii. Urged COMESA Member States to use the principles of acquis and reciprocity in making offers to the other Tripartite Member/Partner States; and iv. Directed the Secretariat to develop simplified mechanisms for Trade Remedies that are WTO compliant at the same time reflective of regional realities. Progress on the Industrial Development Pillar 123. Council was updated on the progress on the Industrial Development pillar of the Tripartite. The Industrial Development committee met to consider, review and finalise its work programme and roadmap, discuss draft modalities and prepare its annual work plan. The work plan and roadmap were adopted and main activities for the period October 2013 - October 2014 cover institutional strengthening and capacity building at national and regional levels, policy coherence in industrial development and related areas, resource mobilisation for implementation of the regional industrial pillar earmarked programmes and monitoring and evaluation. 124. On resource mobilisation, the industrial development pillar will benefit largely from the Tripartite Capacity Building Programme funded by the African Development Bank. 125. Council was further informed that the TSMC established the tripartite technical Committee on movement of Business persons in July 2013 and the Committee had its first meeting on 17-20 September 2013. The Committee is mapping a common methodology and approach on what is to be negotiated. While there is a common understanding that this involves temporary movement of business persons in the Tripartite area, categories of business persons to be included in the scope, the definition of business persons and whether this should be a visa or non-visa regime have not yet been agreed. Member/Partner States had up to 10 February 2014 to consult on these matters and submit their comments to the chair of the TTF. Therefore, the negotiations of the Agreement on Movement of Business Persons should be expedited. Discussion: 126. The meeting noted the need for making progress on the industrial development pillar as one of the three pillars of the Tripartite Arrangement in light of the importance of industrialization for the Tripartite region. To this end Member States should also include the Private Sector in the delegations to the Policy Organs’ Meetings. CS/CM/XXXII/2 Page 31 Decision: 127. Council decided that the elaboration of the programme on Industrial Development, led by the EAC under the Tripartite, should be expedited. Infrastructure Development Pillar 128. The meeting was informed that good progress had been made under the infrastructure development pillar. Various infrastructure development meetings had been organized in the region and with various partners such as the BRICS countries and Japan. In this regard various projects have been identified and submitted to various partners as joint programmes, which include transport, energy and ICT. 129. The meeting underscored the importance of infrastructure development as one of the pillars for the Tripartite arrangement and called for comprehensive reports at the next meetings. Decision: 130. Council decided that infrastructure development, led by SADC under the Tripartite, should be appropriately prioritised in the Tripartite Arrangement. THE COMESA MICRO, SMALL AND MEDIUM ENTERPRISES (MSME) STRATEGY (Agenda Item 4a (ii)) 131. Council was informed that the COMESA Micro, Small and Medium Enterprises (MSME) Policy was formulated in line with Article 100(b), Chapter XII of the Treaty. The Treaty outlines the need for Member States to formulate and implement an industrial strategy focused on facilitating the development of MSMEs, including supply chain linkages between larger firms and MSMEs to enhance competitiveness and leverage economies of scale. 132. Further, Council noted that in line with the above commitment, the COMESA Secretariat has developed an MSME Policy strategy to support the development and growth of MSMEs in the region. The strategy was adopted in Lusaka on 21 August 2013. 133. The guiding Principles of the Strategy are: a. b. c. Inclusivity: ensuring gender equity, attention to youth, those with disabilities and addressing geographical, historical and structural disadvantage and marginalization Competitiveness: adopting the acceleration and expansion of value addition as the central strategy for regional and global market penetration and wealth creation Sustainability: embracing approaches that enhance African self-reliance and environmental soundness of MSME-led growth. 134. The Strategy defines the role of the key stakeholders including, the COMESA Secretariat, Member States, MSMEs, private sector and other stakeholders such as civil society; and it also addresses the following interventions areas: a. b. c. d. Access to markets and market information, regional and international Productive capacity and access to technology Access to financial services and business development services Conducive policy, legal and regulatory environment CS/CM/XXXII/2 Page 32 135. Council was informed that the following are the matrix of the major constraints and proposed actions/responsibility centers to overcome them: No Major constraints 1. Access to markets and Market Information 2. Productivity Access Technology Proposed actions/solutions Increased Access to Markets: Illustrative actions: (i) Identify new/niche local, regional and international markets (ii) Identify/establish producer/market linkages (iii) Assist MSMEs to reach with market linkages (iv) Provide marketing training, feasibility studies, and promotion options such as access to trade shows. (v) Provide access to quality national infrastructure (vi) Market identification and promotion for livestock and natural resource products and services Value-Added Production and Service and Enhanced to Technologies Illustrative actions: (i) Expand value adding technologies (ii) Establish Grades and Standards, quality assurance, price differentials (iii) Support crop/risk diversification for food security (iv) Establish value adding and market expansion certifications such as ISO, organic and Fair Trade Labeling, Pest Risk Assessment and sanitary and phyto-sanitary (v) Support on- and off-farm value addition such as processing (vi) Explore value added options for existing and new products 3. Access to Financial Increased Access to Financial and Business Development Services Business Services Illustrative actions: Development (i) Identify and promote innovative finance options Services such as inventory credit/warehouse receipts, DCA Guarantees, credit throughout grower companies, savings and credit schemes within producer organizations, insurance (health, life, input loans), futures markets, forward contracts (ii) Expand private sector BDS (iii) Value of finance/capital accessed (iv) Number of MSMEs accessing finance (v) Number of MSMEs receiving BDS 4. Policy, Legal Regulatory Environment and Improved Enabling Environment for Growth Illustrative actions: (i) Support relevant ministries and organizations in CS/CM/XXXII/2 Page 33 identifying policy and regulatory constraints to competitiveness. (ii) Influence/inform infrastructure development including rural electrification and ICT (iii) Support public/private dialogue to overcome policy and regulatory constraints to MSME growth. (iv) Support collaborative efforts to promote workable contract enforcement mechanisms (v) Value of investment in value chain (vi) Number of barriers to competitiveness identified and addressed Discussion: 136. Council noted that on the issue of access to markets and market information, the matters relating to national quality infrastructure should be more pronounced in the strategy, as these are fundamental to any effective MSME development policy. 137. On financing mechanisms, Council proposed that more emphasis, clarity and detail should be dedicated to the discussion on alternative means of financing given that studies have shown that one of the major constraints to MSME development is the lack of access to alternative sources of financing. 138. On the situation analysis in the strategy, Council proposed that the section should include a detailed discussion on the current status of the MSME sector in the region; and that the gender dimension should be given emphasized as well. 139. Council also discussed the need to highlight the role of higher institutions of learning, for example universities, in stimulating innovation. Further, incentives should be proposed to encourage large scale companies to support research aimed at uplifting the small scale companies. 140. Council further noted that since the goal of the policy is “to stimulate economic development, accelerate job-creation, create wealth and rapidly reduce poverty in the COMESA Region”, the policy should have a detailed discussion, policy proposals and strategies on rural industrialization which has the potential to generate quick wins in terms of jobs as well as reducing poverty in rural areas. Decision: 141. Council adopted the COMESA MSME Strategy Summary of the Findings and Support Mechanisms for MSMEs in Nine COMESA Member States 142. Council was informed that the Secretariat undertook a study on the funding and support mechanisms for Micro, Small and Medium Enterprises (MSMEs) in selected COMESA Member States in 2013 for which information was available. A systematic country sampling methodology used during the study that covered nine countries. The nine countries surveyed came from all the three sub-regions that make up the COMESA region. Five countries in Southern Africa CS/CM/XXXII/2 Page 34 (Lesotho, Malawi, Swaziland, Zambia and Zimbabwe), three countries in East Africa (Kenya and Rwanda and Uganda) and one country from North Eastern Africa (Egypt) were surveyed. For this reason the results of the survey can be considered to a fair representation of the MSMEs in COMESA region. 143. The study primarily focused on the funding and other support mechanisms that the Governments of the COMESA Member Countries provide to MSMEs in their countries. The objectives of the study are as follows: a. b. c. 144. To identify the most effective MSME support structures and strategies among the COMESA Member Countries. To recommend structures or system that would best address the needs of the COMESA Member Countries in providing support to MSMEs in their respective countries. To access how the support mechanisms from Governments could be used to promote the development of MSMEs. Council was informed that the following is the summary of the study findings: a. Universal recognition of the importance of MSMEs: All the countries surveyed recognised the importance of MSMEs in economic development particularly in employment creation. All countries were seeking ways of supporting MSMEs to enable them to participate fully in the growth and development of their economies. For this reason, each of the surveyed countries had a Government policy that supports the growth of MSMEs in their country. The policies differed, however, in their clarity and emphasis. For example, while the policy in the Kingdom of Swaziland is somewhat silent when they meet of preferential treatment provided to MSMEs, in Uganda the MSME policy addressed the preferential treatment to MSMEs in government procurement policy and in the provision of credit and financial assistance. b. Responsibility for and type of support to MSMEs: Generally the responsibility for coordinating the support to MSMEs has been placed in either the Ministry responsible for Industry and Commerce or in the Central Bank. However, since MSMEs operate in all economic sectors almost all government ministries have a role to play in the promotion and development of MSMEs. The picture that emerges in the countries that have effective and successful MSME policies (Uganda, Kenya, Rwanda) is one of shared responsibility whereby the overall responsibility for training and development rests with the Ministry responsible for Industry and Commerce, while the responsibility to provide funding rests with the Central Bank or Ministry of Finance. In some countries (Zimbabwe, Rwanda) a dedicated ministry for MSMEs has been established, which facilitates accountability. However the effectiveness of such a ministry depends on the collaborative efforts of the central bank in using monetary regulatory policy to steer resources in support of MSMEs. In the case of Zimbabwe the reserve bank of Zimbabwe is provided for it minimum lending of 50% of each bank’s portfolio to the MSME sector. c. Format of support Government support to the SMEs: The survey reveals that the most sought after support is access to finance, hence the importance of the Central Banks in the process of providing support to MSMEs. However, apart from CS/CM/XXXII/2 Page 35 access to finance, the range of support services includes access to markets (e.g. preferential treatment in government supply contracts), skills training, training in quality enhancement in production, questions on understanding international trade agreements, etc. For this reason, that supporting MSMEs involves multiple government ministries or departments. The survey confirms this multiple focus approach: in Rwanda there are 5 government institutions supporting MSMEs, while Uganda (5), Swaziland (12), Zambia (5), and Egypt (5). Having many government agencies providing support to the MSMEs is a good idea but to ensure that there is an overall coordinating Ministry or Agency. d. The role of the Central Banks: It is the mandate of country’s respective Central Bank to regulate its financial sector. The survey shows that there is a need to develop the micro finance sector as a vehicle for providing access to finance to the MSMEs as the traditional banking sector has not always provided for the needs of the MSME sector. However, in providing for flexibility of the Microfinance sector it is critical to retain the basic tenets and prudential guidelines of from the survey it is evident that the central bank is to critical roles to play: i) establishing a separate flexible but effective supervision system for the microphone in sector and or other activities designed for financial assistance to the MSME sector; and ii) using monetary policy and banks regulatory policy to encourage the channeling of financial resources to MSMEs. This strategy has been effectively adopted in Zambia and in Rwanda, where the licencing and supervisory requirements for the MFI’s, while not being lax, are not as strict as those for the banking sector, even though MFI’s and the banking sector both fall under the supervision of the central bank. The main issue in the Central Bank regulatory framework is that the regulations should not be difficult for the MFIs to operate because the main concern of MSMEs is the ease of doing business. If the regulatory environment for MFIs is restrictive, it restricts the emergence of new MSMEs thereby hindering development. e. The financial capacity of the MFI’s and government support agencies: Except in the case of Egypt and Kenya, the survey highlights that most of the COMESA member state governments have limited financial resources to support the MSME sectors in their countries. In the case of Zimbabwe was the central bank and said, (dedicated financial assistance of organisation for MSMEs) note of any funds to provide to the MSME sector owing to the economic challenges the country is facing. The MFIs themselves (the term “MFI” is used loosely to include non-bank financial institutions) suffer from in adequate local capital markets and in many restrictions they are not allowed to take deposits and so have to use their own funding. This returns the growth of the MFI and, through it, the growth of the MSMEs which is low in the MFI’s credits. In most cases the available funding is generated below 30% of the requirements of the markets. f. The size of the MSME sector: The size of the SME sector in the COMESA region is big and growing, ranging from 15% to 50% of GDP. Zimbabwe tops the list in respect of the number of MSMEs with 2.8 million MSMEs. This may be attributed to high technical skills and high literacy rates. However access to credit by these MSMEs is near impossible because of the failure of the country to attract both multilateral funding and foreign direct investment (FDI). Zimbabwe is followed by Uganda in terms of MSMEs density. Uganda has 1.1 million MSMEs and MSME sector is considered as the country’s biggest employer employing about 2.1 million people. CS/CM/XXXII/2 Page 36 g. The spread of MSME activities across economic sectors: MSME activities are spread of one for the economic sectors but really preponderance for agriculture (this is logical given that most African economies are agricultural), retail, and services. Little information was available on the size and nature of MSMEs in the Kingdom of Swaziland. In Zambia MSMEs were dominating in the agricultural sector followed by the retail industry. MSMEs in Egypt had a strong bias in the manufacturing sector followed by trade. This might be mainly attributed to the weather conditions in the region which are not favourable to farming. The number of MSMEs in the country is mainly determined by the availability of funds that SMEs get mainly through the MFIs. Therefore when the operations of MFIs are tightly controlled by Central Banks, there is an adverse effect on the activities and operations of MSMEs. Apart from private doctors consulting rooms and - in the case of Zimbabwe - private medical and nursing homes, MSMEs are rarely found in the health sector, probably because of high level of professional training required the higher level of investment required in the technical side of the business. h. Gender balance in the MSME sector: Women dominate the MSME sector. Only in one country (Egypt) out of the nine surveyed were women-owned MSMEs less than 50%. It is not surprising that most MFIs target women as their clients. The main reasons underlying this is that women are considered as better re-payers and the money borrowed will benefit the whole family. The other reason is of the activities that the women engage in such as agriculture and manufacturing. Generally in all the COMESA Member States women dominate as the clients of the MFIs with Zambia and Egypt having 55% and 70% on average of the total clientele base of the MFIs. i. Interest rate regimes: Commercial Bank interest rates in the COMESA region averaged between 7%-8% while the microfinance lending interest rates averaged between 30%-45%. For example Rwanda which had the highest lending interest rate in East Africa in 2012 had 23% as its lending interest rate. Swaziland’s lending interest rate in MFIs was between 30%-40% in 2012-2013. Egypt, on the other hand, has 21.4% as its lending interest rates. Interest rates are not a big issue when it comes to promoting the growth of MSMEs but government regulation and the availability of funds often hinder the development of the MSMEs. If government regulation is not prohibitive then MFIs will flourish. j. Default rates on loans: The survey was not conclusive regarding the default rates MFI lending. However the fact that MFI is lending its more than doubled the rate at which the banking sector is lending probably reflects, among other things, the perception (rather than the reality) of the higher default risk they will lay available statistical evidence (for Rwanda) suggests that the default the rate is between 9% and 10% This has been attributed to different reasons including; financial illiteracy, poor harvest being caused by poor weather conditions and – in the case of Lesotho some MSMEs were treating their loans as grants or subsidies. 145. The table below shows the estimated number of MSMEs, estimated funding, contribution to GDP and employment: CS/CM/XXXII/2 Page 37 Country No. of MSMEs Estimated Funding GDP Contribution Employment (#) Employment % 1 Egypt 1,100,000 $1 billion 75% 2 Kenya 1,600,000 $2.5 billion 20% 3 Malawi 987,480 $50 million NA 4 Rwanda 42,000 $10 million 35.70% 5 Swaziland 50,000 NA NA NA 6 Uganda 1,100,000 NA 75% 2,500,000 7 Zambia 1,030,000 $360 million NA NA NA 8 Zimbabwe 2,800,000 $120 million NA 5,700,000 NA 8,709,480 NA = Figures not available $4.04 billion 75% 1,050,320 NA 63% NA 9,250,320 Decisions: 146. Council directed: i. The Secretariat to complete the survey in the remaining Member States by 30 August, 2014; and ii. The Secretariat to submit the Report to the Joint Committee of Ministers of Finance and Central Bank Governors for their action and decision in 2014. Guidelines for Operation of the Micro, Small and Medium Enterprises Fund for COMESA 147. Council recalled that Micro, Small and Medium Enterprises (MSMEs) have been at the core of economic growth and development in many countries all over the world. The industrialized and developed countries of today including Germany, China and Japan have all been built from an aggressive role of the MSMEs in production and value addition activities. In the COMESA region, MSMEs are estimated to have contributed at least 50% - 70% of the Gross Domestic Product (GDP) and a total of between 50% and 60% of aggregate employment. 148. The role of MSMEs in ensuring food security and improved livelihoods for the majority of the population of the COMESA Member States can therefore never be underestimated. Despite their cardinal role in facilitating economic growth and development, MSMEs in general and in COMESA Member States in particular are faced with many challenges including low levels of skills, poor access to markets, lack of technology and lack of access to finance. 149. It is, therefore, apparent that in its implementation of policies, strategies and initiatives that address inclusive growth and improved livelihoods for its people, COMESA needs to place emphasis and prioritise the development of MSMEs. In cognizance of the importance of MSMEs CS/CM/XXXII/2 Page 38 in employment creation and poverty alleviation the Heads of State of COMESA Member States at their 2012 Summit in Uganda, directed the COMESA Secretariat to among other things, put in place a sustainable way of facilitating MSMEs to have access to finance. When MSMEs have access to finance, they will be able to grow their businesses, create employment and increase their contribution to GDP, thereby leading to a rise in economic growth and development. 150. Council was informed that pursuant to the Uganda 2012 Summit directive on MSMEs, the COMESA Secretariat undertook a study on MSMEs financing which enabled it to generate a report on guidelines for the establishment and operation of a fund that would focus on financing MSMEs for COMESA Member States (“The COMESA MSME Fund”). 151. The COMESA Secretariat seeks to develop policies, strategies and initiatives that address inclusive growth and improved livelihoods by establishing a COMESA MSME Fund, to support MSME businesses within its COMESA Member States. Access to affordable and appropriate financial services by MSMEs is key to achieving broad based development and economic growth, poverty alleviation and improvements in the standards and quality of life of the majority of people who currently fall under the marginalized and vulnerable groups. 152. The COMESA MSME Fund should be registered as a Special Purpose Vehicle (SPV) that will be used to mobilise funds for onward lending to MSMEs. The COMESA MSME Fund would have its own governance structures and Board of Directors that would report to the COMESA Secretariat and other relevant stakeholders. Additionally, it will have its own separate management structure from COMESA Secretariat and an independent Fund Manager, appointed through a competitive tender process. 153. The distribution of loans to MSMEs from the COMESA MSME Fund would be effected by selected financial institutions/participating financial institutions (PFIs) in respective COMESA Member States, based on set guidelines and parameters. The COMESA MSME Fund would be designed based on a financial model that includes opening of credit lines with PFIs. The PFIs who would access funds from the COMESA MSME Fund credit lines, would be expected to meet agreed terms and conditions meant to promote access of finance at competitive interest rates by MSMEs. 154. The COMESA MSME Fund composition will include risk mitigation and minimization facilities such as Capacity Building and Credit Guarantee/Insurance. In order for MSME’s to be empowered, there is need to ensure that there is adequate capacity building, which includes among other things, training on management skills and corporate governance issues. In October 2013, the COMESA Secretariat signed an MOU with AMSCO to support capacity building initiatives in COMESA Member States. This is one such facility that could be used for capacity building for MSMEs. The credit guarantee/insurance facility on the other hand would be used to secure the loans advanced to MSMEs, thereby reducing the risk profile of the MSMEs. 155. The objectives of the COMESA MSME Fund include the following: a. b. c. d. e. Enable MSMEs access to finance. Facilitate poverty alleviation Promote economic growth and development Creation of employment Promotion of financial inclusion (inclusive growth). CS/CM/XXXII/2 Page 39 156. Council was informed about the options of the Financing Sources for the MSME Fund, which are the following: 157. a. Institutional Investors – Pension Funds and Insurance Companies: The meeting noted that institutional investors have large deposits with commercial banks, which are earning negative returns. Part of those funds could be channeled in financing MSMEs where returns will be positive. A survey was conducted in August 2013, in 5 COMESA Member States namely Kenya, Uganda, Malawi, Zambia and Zimbabwe to assess the willingness of Pensions and Insurance Companies to invest in the MSME Fund. In total, the Institutional Investors in those countries expressed willingness to invest at least US $280 million in the MSME Fund on condition that it is properly structured to address risks associated with MSME financing. The institutional investors’ sector is very large, with funds under management in excess of US $15 billion, in 5 COMESA Member States mentioned above. Combining the efforts of Member States in this venture would produce a colossal sum, which can form the primary source of funds for the MSME Fund. b. Collective Investment Schemes/Associations and the Diaspora: Collective investment schemes and associations can also contribute to the MSME Fund. This is a growing sector and hence it cannot be ignored. Although about 90% of the Diaspora funds finance consumption activities, even the 10% balance of that can make a significant contribution to the MSME Fund. c. Developmental Financial Institutions (DFIs): This includes development banks such as the African Development Bank (AfDB). DFIs can provide either credit lines to the MSME Fund for onward lending to MSMEs or Credit Guarantees to the financial institutions who lend to MSMEs on behalf of the MSME Fund. For instance, on 01 June 2012, the AfDB announced the official launch of the African Guarantee Fund (AGF), which is a guarantee scheme aiming at easing access to finance for African SMEs. The AGF began operations in the second half of 2011, based on a guarantee capital of US$50 million already approved by the three founding shareholders namely AfDB, Denmark and Spain. The AGF’s target was to increase the share capital from US $50 million to US $500 million within 3 to 5 years from its inception. The AGF anticipates that through levering its guarantee capital of US $500 million, it will generate approximately US $2 billion of new lending to MSMEs in the medium term. The MSME Fund could coordinate its activities with those of the AGF, especially for MSMEs in COMESA Member States. d. Other Developmental and Capacity Building Institutions: This includes institutions such as AMSCO that can support the MSME Fund through initiatives such as capacity building. In August 2013, the COMESA Secretariat signed an MOU with AMSCO for capacity building for MSMEs. This category also includes Insurance Companies and Credit Guarantee Schemes that can partially guarantee the MSME Fund. Council noted the following recommended guidelines: CS/CM/XXXII/2 Page 40 i. A Special Purpose Vehicle (SPV) should be established, which will constitute the COMESA MSME Fund. The SPV will have its own independent Board of Directors and governance structures; ii. The COMESA MSME Fund to be managed by an independent Fund Manager, whose Terms of Reference would be agreed with the Board of Directors; iii. The COMESA MSME Fund and Fund Manager should develop a financing model and package that will be used when undertaking road shows to raise a pool of funds, to be loaned out to MSMEs; iv. The loans from the COMESA MSME Funds to be distributed to borrowing MSMEs through PFIs in respective COMESA Member States; v. The Terms of Reference and qualifying guidelines for PFIs to be prepared by the COMESA MSME Fund Manager, in consultation with the COMESA Secretariat and in accordance with international standards and practice; and vi. The COMESA Secretariat to set up a Task Force to operationalize the COMESA MSME Fund. Decision: 158. Council directed that the proposed COMESA MSME Fund be submitted to the Committee on Monetary and Fiscal Affairs in 2014, and thereafter to the Joint Meeting of Ministers of Finance and Central Bank Governors to examine and finalise the structure of the Fund. AGRICULTURE (Agenda Item 4 (a)(iv)) 159. Council was informed that the report of the Fifth Meeting of the Joint Ministers of Agriculture, Environment and Natural Resources is reflected in full in document reference: CS/IPPSD/AGC-MAENR/V/2. The Joint Ministers meeting was held in Addis Ababa on 19 - 20 September 2013, to address the COMESA Agriculture development agenda in line with the Articles 129 -137 of the COMESA Treaty. 160. Council was informed that the above meeting reviewed the report and recommendations of the Fifth Joint Technical Committee on Agriculture, Environment and Natural Resources based on the progress report for the year 2013. The ministers meeting considered and adopted the Report and the recommendations with amendments and made the following decisions for endorsement by the Council: 161. On food security; the main focus of the meeting was how COMESA can achieve regional food security. The available data and information sources indicate that hunger is still a threat in most COMESA Member States. However, there are serious gaps in food security data and information; while various countries are using different indicators and methodologies. 162. On the Comprehensive Africa Agriculture Development Programme (CAADP), the IC was informed that COMESA has mobilized technical, financial and organizational support to facilitate Member States in implementing the CAADP agenda. The pre-compact support has CS/CM/XXXII/2 Page 41 quantitatively yielded the following results: 14 countries have signed their national CAADP compacts, namely Rwanda, Burundi, Ethiopia, Swaziland, Uganda, Malawi, Kenya, Zambia, Democratic Republic of Congo, Seychelles, Djibouti, Sudan, Madagascar and Zimbabwe. 163. In post-compact support, the following has been achieved: Nine (9) countries have finalized the design of their National Agriculture and Food Security Investment Plans (NAFSIPs): Rwanda, Uganda, Kenya, Burundi, Ethiopia, Malawi, Zambia, Democratic Republic of Congo and Djibouti. 164. In conjunction with NPCA, COMESA has coordinated eight independent technical reviews of the NAFSIPs; in the above countries, except for Djibouti. Six (6) countries; Rwanda, Ethiopia, Malawi, Burundi, Zambia and Uganda have successfully accessed funding from the Global Agriculture and Food Security Programme for implementation of selected investment programmes in their NAFSIPs. Regionally, the COMESA Regional Compact and Policy Investment Framework have been completed and validated by stakeholders. 165. Qualitatively, CAADP has: provided a common and comprehensive framework for agricultural development in the region and continent-wide; placed agriculture at the epi-centre of the global discourse on African development; improved agricultural policy making processes by enhancing inclusiveness; increased financial flows to the agriculture sector from both domestic and international partners; improved coherence of financial in-flows to the agricultural sectors of the continent. 166. Council was further informed that the Agriculture Ministers decided to strengthen the coordination of regional CAADP Partners Platform and harness other financial resources for implementation of National CAADP National Agriculture and Food Security Investment Plans (NAFSIPs). 167. On the Cassava Cluster Programme, Council was informed that the Secretariat is working to promote value addition in the cassava sub-sector value chain, as a mechanism of boosting job creation and intra-regional trade. 168. Further, the meeting was informed that the Agriculture Ministers decided that Member States should fund and facilitate knowledge and technology learning and innovation in the cassava sector. 169. On livestock development, Council was informed that the Agriculture Ministers had noted the status of implementation of the programme on “Reinforcing Veterinary Governance in Africa (VET-GOV)’’ being implemented by African Union Inter African Bureau of Animal Resources (AU-IBAR) in partnership with Regional Economic Communities, United Nations Food and Agriculture Organization (FAO) and the World Animal Health Organization (OIE). The programme has undertaken the review and preliminary analysis of livestock and related policies, animal health strategies and legislations in all COMESA Member States. 170. Council was informed that the Agriculture Ministers decided that Member States should work with regional and international organizations on improvement of livestock policies. 171. On fisheries development in the COMESA region, Council was informed that the Agriculture Ministers noted that COMESA has a strategy to guide mainstreaming of fisheries in COMESA programmes, which was developed in 2009 and was adopted at the Fourth Joint Ministerial meeting held at Mbabane, Kingdom of Swaziland in 2011. The challenges of CS/CM/XXXII/2 Page 42 implementation of the strategy due to lack of funding to implement its action plan was also highlighted. The Ministers also noted the progress being made in mainstreaming the Strategy in other COMESA programmes, particularly, Trade, Gender, SPS, FAMIS and Cross Border Trade. The Ministers then decided to operationalise the strategy for implementation. 172. Council was further informed that the Agriculture Ministers noted the progress in gender mainstreaming in agriculture and climate change, especially the integrating of gender concerns in activities implemented in agriculture and climate change related issues. 173. The Agriculture Ministers decided that the Secretariat should facilitate capacity building and strategic Action Plan on Mainstreaming Gender on Agriculture and Climate Change (RESTRAP). 174. The Agriculture Ministers also noted the progress report on the implementation of the Natural Resources, Climate Change and Environmental Programme and the progress on the implementation of the COMESA-EAC-SADC Tripartite Climate Change programme which is designed to run from 2012 - 2016; the status of negotiations on Inclusion of Agriculture in the UNFCCC Process; and that COMESA Secretariat has been supporting the Member States develop submissions on agriculture to the United Nations Framework Convention on Climate Change (UNFCCC) to ensure that Member States prepare submissions on agriculture. In order to advance the adoption of Climate Smart Agriculture, the Secretariat is supporting the development of the Climate Investment framework. 175. The Ministers noted that in order to address the challenges and opportunities presented by Climate Change, there is a need to mainstream Climate Change and its impacts into the economic policies, development projects, and international aid efforts. 176. Council further noted that the Agriculture Ministers decided that the Secretariat should continue giving support technically to African Group Negotiators on Climate Change and participation of Member States at the Climate change talks. Ministers also decided that Member States should appoint their national Climate Smart Agriculture (CSA) focal points and should allocate additional resources for up scaling Climate Smart Agriculture and to develop National Climate Change Policies, Strategies and Action Plans. 177. On the Sanitary and Phytosanitary Programme (SPS) programme, Council was informed that the Secretariat has introduced an economic analysis tool to assist countries analyze trade flows that are sensitive to SPS measures, estimate the impact of specific SPS issues on trade and cost the investments necessary to implement cost effective capacity building options. Other capacity development initiatives under implementation include; aflatoxin control in the maize and groundnuts value chains; mitigation of plant pests and diseases such as the fruit fly to enhance trade in horticulture products and the SPS and trade facilitation initiative on key trade routes. 178. Council was informed that the Agriculture Ministers decided that Member States should support economic analysis for prioritization of SPS capacity building needs and integration of the necessary investment in CAADP Investment Plan and Member States interested in the use of Aflatoxin should adopt the “Regional Registration Guide for Bio-pesticides”. CS/CM/XXXII/2 Page 43 179. Council noted that agriculture in most of the Member States is done by the women from clearing to harvesting, so it was important to also encourage men to take a greater role in agricultural production in the Member States. Decisions: 180. Council: i. Directed the Secretariat to harmonize agricultural livestock and fisheries country data collection, dissemination by 30 September 2014; ii. Directed the Secretariat to produce a report quantifying the impact of postharvest losses on nutrition and food security, as well as the impact of food imports on local production; iii. Urged Member States to provide inputs and participate in the activities of Regional Food Balance Sheet (RFBS) annual reports; iv. Directed the Secretariat to mobilise additional funds for the coordination of regional CAADP partners’ platforms; v. Urged Member States to provide budgetary support to facilitate knowledge and technology innovation in the cassava sector; vi. Urged Member States to work with regional and international organisations to improve and harmonise livestock policies in their NAFSIPs; vii. Directed the Secretariat to submit to the next meeting of Minister of Agriculture the Strategy for the mainstreaming of fisheries development in the region ; viii. Directed the Secretariat to facilitate capacity building on mainstreaming gender equality and women empowerment in agriculture and climate change; ix. Directed the Secretariat to provide technical support to the African Group of Negotiators on Climate Change negotiations; x. Decided that Member States should designate national focal points for climate smart agriculture and allocate additional resources for up scaling climate smart agriculture and notify the Secretariat by 30 August 2014; xi. Decided that Member States should develop national climate change policies, strategies, and action plans; xii. Adopted the ACTESA Charter; and xiii. Adopted the COMESA Policy on Bio-Technology and Bio-safety. CS/CM/XXXII/2 Page 44 INFRASTRUCTURE (Agenda Item 4 (a)(v)) 181. Council was informed that the COMESA programmes related to infrastructure are based on the Treaty, Chapter 11, Articles 84 to 98 on co-operation in the development of transport and communications, Chapter 20, Article 139 on development of comprehensive information systems and Chapter 13, Articles, 106 to 109 on co-operation on the development of energy. They are also based on the Decisions of the different COMESA Authority of Heads of State and Government and the COMESA Council of Ministers. 182. It was recalled that the Sixteenth Summit of the COMESA Authority of Heads of State and Government, held in Kampala, Uganda in 2012 recognized the crucial role of transport and communication in economic integration and trade promotion. In this regard, the Summit directed the Secretary General of COMESA to liaise with the Chairperson of the AUC and other RECs and other partners to ensure that resources are mobilized for hardware infrastructure projects during the tenure of Uganda as Chairperson of COMESA. 183. The Summit commended the Republics of Zambia and Zimbabwe on the successful implementation of the One Stop Border Post (OSBP) facility at the Chirundu-OSBP Border posts and urged Member States to replicate the facility and also welcomed the decisions taken by Council on different infrastructure related programmes. Moreover, the Summit endorsed decisions to facilitate the establishment of the knowledge communities for consolidation of peace, development and to protect the COMESA cyber space. 184. Council was informed that the Seventh meeting of the Infrastructure Ministers Responsible for Transport, Communications, Information Technology and Energy which was held in Kampala Uganda on 12 -13 September 2013 took a number of decisions related to infrastructure sector. 185. On regional infrastructure development, Council was informed that transport, Information Communications Technology (ICT), energy and trans-boundary water travel is critical in enabling the production and the conveyance of commodities through the various means of transport and communications. Thus, COMESA accords infrastructure its rightful role in regional integration programming. 186. The COMESA High Level Infrastructure Investment Conference identified 66 infrastructure projects, which were presented to the Kampala Investment Conference held in September 2013 and the table below summaries the status of these projects. The total number of projects included in this summary is 66 and the total estimated investment required for them is US $40 billion. Summary of Projects Status Sector Sub-sector Projects Preparation No Transport Railways Ports Roads Airports 7 1 6 Amount Mill US$ 2.5 0.4 2,720.0 for Projects Read Implementation in No 2 7 14 5 for Total Amount Amount in Mill Mill US$ US$ 12,200 14,700 7,476.0 7,476.4 2,071.90 4,791.90 1,461.0 1,461.0 CS/CM/XXXII/2 Page 45 Border Posts Power Transmission Power Generation Petroleum Gas Optic Fibre Links Energy ICT All Projects 4 4 4 3,609.8 3,613.8 1 9.1 9 24,208.6 24,217.7 2 2.5 3 - 6,721.0 2,600 635.0 6,721.0 2,602.5 635.0 21 2738.5 44 60,983 66,219 187. The infrastructure conference was held to mobilize funding for the implementation of infrastructure projects in the region. However, the conference did not receive any pledges from cooperating partners or potential donors. In this regard, it is recommended to involve the Ministers of Finance in mobilizing the financing for the various infrastructure projects. The other outcomes of the COMESA High Level Infrastructure Investment Conference are highlighted below: a. It was agreed that COMESA had built consensus on projects that should be implemented as regional priority projects, as elaborated in the Transport and Communications Strategy and Priority Investment Plan (TCS PIP) and the East Africa Power Pool Master Plan; and b. There is the need to create an efficient and effective regional energy market to address accessibility, sustainability of supply, deficit, efficiency and affordability to power that is inhibiting growth and development in the region. i. The following are the actions that are required to realize these agreed outcomes: a. COMESA Member States, supported by the Secretariat, to follow-up with potential financiers, investors and partners, including the Africa 50 Fund, in resource mobilization for the financing of the projects in the Priority Investment Plan and Energy Master Plan presented during the Conference; b. COMESA Secretariat should continue to raise awareness on the Priority Investment Plan and the Energy Master Plan and the portfolio of projects; c. COMESA Member States, with the support of partners, should facilitate capacity building at national and regional level to ensure that projects are adequately prepared and packaged to bankability; d. Member States and development partners should work together in developing innovative financing modalities for the delivery of the priority projects in the Priority Investment Plan and the Energy Master Plan; e. COMESA Secretariat and development partners should develop integrated solutions and establish institutions to implement the identified projects; CS/CM/XXXII/2 Page 46 f. COMESA Member States, supported by the Secretariat, to put in place harmonized policies and concrete reforms to enable the implementation of public-private partnerships, regional procurement legislation, and prioritize the development of regional and national capital markets; g. A follow-up mechanism should be developed and incorporated into the annual planning cycle of the COMESA Secretariat to monitor and report on progress on the implementation of the projects contained in the Priority Investment Plan and the Energy Master Plan; and h. The outcomes of the High Level Investment Conference shall be presented to the COMESA Summit to be held in Democratic Republic of Congo in December 2013 for their information and further guidance. 188. On the issue of financing for the infrastructure projects, Council was informed that the Infrastructure Ministers decided that: a. Member States should be encouraged to utilize innovative financing instruments (such as infrastructure bonds, preference shares, guarantees), mechanisms (such as project and structured finance techniques) and wide resource mobilization from non-traditional partners such as private investors, equity funds, carbon funds, etc, and leveraging and blending with grants from the traditional donors, with emphasis on regional infrastructure development; b. The Secretariat should coordinate the processes among Member States, domestic and international investors, donor agencies including the EU, and other stakeholders for establishing infrastructure projects’ financing vehicles such as Special Purpose Vehicle (SPV) in order to fast-track infrastructure development to realize the Trans African Highways; and c. PTA Bank and Secretariat should effectively play the assigned roles in the Africa 50 Fund. 189. On the CNS/ATM Systems Project, Council was informed that the Infrastructure Ministers urged Member States to support the implementation of the CNS/ATM Systems Project in full collaboration with all stakeholders, including security and military authorities at national and regional levels. 190. On transit transport facilitation, Council was informed that Article 85 on roads and road transport of Chapter 11 of the COMESA Treaty provides for the scope of co-operation in transport facilitation. The intention of these programmes is to remove the barriers to transport and trade which are due to administrative and procedural nature. 191. In July 2013, the percent of implementation, by COMESA Member States of Harmonized Road Transit Charges (HRTTC), Axle Load Limit, Max. Length 22.0m, COMESA Carrier Licence (CCL), COMESA Transit Plates and High Frequency X-border Land Mobile Radio Communications System (HFX), were 62.5%, 81.3%, 31.3%, 50.0%, 43.8% and 62.5% respectively. CS/CM/XXXII/2 Page 47 192. The table below outlines the status of implementation of road transport facilitation programmes in July 2013. CS/CM/XXXII/5 Page 48 Country Angola Burundi Comoros Congo D R Djibouti Egypt Eritrea Ethiopia Kenya Madagascar Libya Malawi Mauritius Rwanda Seychelles Sudan Swaziland Uganda Zambia Zimbabwe Total No. Of Countries to Implement No. Of Countries Implementing Percent Implementation ABREVIATIONS N/A % CCL COMESA Transit Plates HFX Overload Control HRTC MWG STATUS OF IMPLEMENTATION OF ROAD TRANSPORT FACILITATION PROGRAMMES, JULY, 2013 HRTC Axle Load Max. Length CCL COMESA Overload MWG HFX % Limit 22.0m Transit Control Performance Plates Certificate No No No No No No No No Nil Yes Yes No (18)* No No No No Yes 37,5 N/A. N/A. N/A. N/A. N/A. N/A. N/A. N/A. N/A, No Yes No (18)* No No No Yes Yes 37,5 Yes Yes No(18) No No No No No 25,0 No Yes No(20) No No No Yes No Yes Yes Yes Yes Yes No Yes No 75,0 No Yes No(18)* Yes Yes No Yes Yes 62,5 Yes Yes Yes Yes Yes No Yes Yes 87,5 N/A. N/A. N/A. N/A. N/A. N/A. N/A. N/A. N/A, No Yes NA No No No No No Yes Yes Yes Yes Yes No Yes Yes 87,5 N/A. N/A. N/A. N/A. N/A. N/A. N/A. N/A. N/A, Yes Yes No (18)* No No No No Yes 37,5 N/A. N/A. N/A. N/A. N/A. N/A. N/A. N/A. N/A, Yes Yes No (18)* No No No Yes No 37,5 No Yes Yes Yes No No Yes Yes 62,5 Yes Yes Yes Yes No No Yes Yes 87,5 Yes Yes Yes Yes Yes Yes Yes Yes 87,5 Yes Yes Yes Yes Yes No Yes Yes 87,5 16 16 16 16 16 16 16 16 10 13 5 8 6 0 11 10 62.5 81.3 31.3 50.0 43.8 0 56.3 62.5 Not applicable due to geographical location The percentage performance shows the extent to which each country has implemented the programmes COMESA Carrier Licence Plaque Fitted at the front and rear of heavy goods commercial vehicles involved in COMESA transit operations High Frequency X-border Land Mobile Radio Communications System This is an application of fees based on pavement damage (Fourth Power Law) and the use of the COMESA procedures and certificate of overload control Harmonised Road Transit Charges Multidisciplinary \Working Group CS/CM/XXXII/2 Page 49 193. On the issue of the consumer protection policy guidelines, Council was informed that the Infrastructure Ministers decided that the consumer protection guidelines be converted into regulations to pave the way for implementation: 194. On the Free and Open Source Software (FOSS), Council was informed that the Infrastructure Ministers decided that the regional FOSS Guidelines be developed to assist Member States to effectively utilizes Open Source Software for the advancement of ICT. 195. On regulatory policies, Council was informed that Article 96 on telecommunications and Article 98 on common provisions of Chapter 11 of the COMESA Treaty provide that the policies and regulatory regimes should be harmonised in order to create an enabling environment to increase investment in the sector. Moreover, the provisions of Chapter 13 of the COMESA Treaty on co-operation in the development of energy provides for the scope of co-operation. 196. Council further noted that infrastructure programmes are also based on decisions of COMESA Council of Ministers. For instance, the ICT Policy was adopted by the Council in March 2003 and the COMESA Model Energy Policy Framework was adopted by the Council in November 2007. Many COMESA countries are using the adopted transport, ICT, IT and energy policies, regulatory guidelines and model bills as guidelines to develop their national ones. Moreover, a number of regional associations of regulatory authorities related to infrastructure sub-sectors have been established and are now operational. The intention is harmonization in the region, capacity building and information sharing within the spirit of integration, in order to encourage investment in infrastructure. 197. On the implementation of the COMESA Legal Notice No.2 on Air Transport Liberalisation, Council noted that the Infrastructure Ministers made the following decisions: Decision 1 2 3 198. Timeline Implementing Agency Implement the COMESA single air transport services 2014 COMESA market under the Tripartite framework based on full (Within the implementation of YD. Tripartite) Review the principles and thresholds on ownership, 2014 COMESA effective control and the right of establishment regimes in Africa and COMESA in the context of implementing the YD and COMESA Legal Notice 2. Formulate a policy document on the establishment of a 2014 COMESA single African air transport services market to conform to the African Civil Aviation Policy (AFCAP), in harmonization with Tripartite, and the AU. The status of implementation of regulatory policies in ICT is shown in the table below: CS/CM/XXXII/2 Page 50 Status of Regulatory Policies Related to Telecommunications, Broadcasting, Postal and Energy Sectors Telecommunications Broadcasting Postal Energy MS Policy Law Regulator Policy Law Regulator Policy Law Burundi Yes Yes Yes No No No Yes Yes Comoros Yes Yes Yes No No No Yes No Regulator Yes NO No Djibouti D R Congo Egypt No Yes Yes No Yes Yes No Yes No Yes Eritrea No No Yes No The Ministry regulates No Ethiopia No No The Ministry regulates No No Yes Yes No Yes No No Yes Yes No Yes Yes No No No No No Yes No No Yes Ministry regulates Ministry regulates The Ministry regulates Yes Kenya Yes Yes Libya No No Yes Yes The Ministry regulates No Yes No Yes Yes No No No No No Development of National Energy Policy (NEP) based on COMESA Model Policy Regulator Development of Ministry NEP is in progress Regulates Development NEP initiated of Ministry Regulates Ministry Regulates to the Ministry Model Regulates Policy Compliant COMESA Energy Framework Compliant to the COMESA Model Energy Policy Framework Development of NEP is in progress Development of NEP is in progress Yes Ministry Regulates Yes Compliant to the Yes COMESA Model Energy Policy Framework CS/CM/XXXII/2 Page 51 Madagascar No No Yes No No No No No Yes Malawi Yes Yes Yes Yes Yes Mauritius Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Rwanda Yes Yes Yes Yes Yes Seychelles Yes Yes The Ministry regulates Yes Yes Sudan Yes Yes Yes Yes Yes Yes in Parliame nt Swaziland Under establishment No No The Ministry regulates No No Zambia Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No No Yes Yes Yes Yes Under establishm ent Yes Zimbabwe Yes Yes Yes Yes Yes Yes Compliant COMESA Energy Framework Compliant to the Ministry COMESA Model Regulates Energy Policy Framework Development of Yes NEP is in progress Ministry Regulates Yes Yes Uganda Yes to the Yes Model Policy No Yes Yes Compliant COMESA Energy Framework Compliant COMESA Energy Framework Compliant COMESA Energy Framework Compliant COMESA Energy Framework to the Yes Model Policy to the Yes Model Policy to the Yes Model Policy to the Yes Model Policy CS/CM/XXXII/2 Page 52 199. On the implementation of the COMESA Legal Notice No.2 on Air Transport Liberalisation, Council noted that the Infrastructure Ministers made the following decisions: Decisions: 200. Council endorsed the following decisions of the Seventh Meeting of Ministers responsible for Infrastructure: a. Civil Aviation 201. On the implementation of the COMESA Legal Notice No 2 on Air Transport Liberalisation: Decision 1 2 3 4 Timeline Implementing Agency Implement the COMESA single air transport 2014 services market under the Tripartite framework based on full implementation of YD. COMESA (Within Tripartite) Strengthen the air transport statistics Database 2014 /Observatory at the COMESA Secretariat Review the principles and thresholds on 2014 ownership, effective control and the right of establishment regimes in Africa and COMESA in the context of implementing the YD and COMESA Legal Notice 2. Formulate a policy document on the 2014 establishment of a single African air transport services market to conform to the African Civil Aviation Policy (AFCAP), in harmonisation with Tripartite, and the AU. COMESA the COMESA COMESA b. Physical Infrastructure 202. Council urged Member States to make effective use of the policy component of the Transport and Communication Strategy and Priority Investment Plan ; including updating the status of priority projects c. The CNS/ATM Systems Project 203. Council urged Member States to support the implementation of the CNS/ATM Systems Project in full collaboration with all stakeholders including security and military authorities at national and regional levels. CS/CM/XXXII/2 Page 53 d. The River Nile Corridor Development 204. Council: i. ii. Decided that Egypt should make a formal proposal on the use of River Nile inland water transport to the Secretariat; Directed that a Steering Committee be constituted comprising representatives from the seven riparian states to oversee the development of the Waterway. e. The Great Lakes Railway Project 205. Council urged the concerned Member States to continue coordinating in planning for new railway projects so as to interface with the Great Lakes Railway and maximize on regional railway network integration. f. 206. New Railway Projects Council: (i) Commended Djibouti and Ethiopia for adopting innovative financing mechanisms for implementing the modern standard railway gauge, including capacity building for rail network whose construction has already commenced; (ii) Commended Kenya, Uganda and Rwanda for their decision to develop a modern standard gauge network, including the innovative ways of financing and capacity building; (iii) Urged the other countries to share the best practices that had been developed; (iv) Urged Member States that are developing interconnected networks should ensure appropriate coordination in design, construction and operation in order to maximize on the provision of seamless services; (v) Urged that there should be effective coordination among Member States as they develop and upgrade rail networks; and (vi) Urged Member States to apply innovative means for resource mobilization to fund the construction of the networks. g. Civil Aviation 207. Council directed the Secretariat to: (i) Enhance coordination in order to come up with one safety oversight programme for the COMESA Cooperative Development of Operational Safety and Continuing Airworthiness Programme (COSCAP) Project ; and (ii) Prepare a regional programme on Aviation Security by 31 October 2014. CS/CM/XXXII/2 Page 54 h. The COMESA Carrier License 208. Council urged Member States to implement the COMESA Carrier License. i. 209. Axle Loads Limits and Vehicle Overload Control Council directed that: i. The Secretariat should finalise the module for overload control to be integrated in the CVTFS by 30 June 2014; and ii. The Secretariat should present the CVTFs which include the overload module to a Workshop of Officials from Ministries responsible for Infrastructure, Transporters and Regional and National Transport Operators, Freight Forwarders and Revenue authorities by 31 October 2014. j. 210. Management and Maintenance of Road Infrastructure Council directed that: i. The Secretariat should carry out a review of existing national road funds and produce a report on how at the national and COMESA level the monies collected by the Road Funds could be securitized and leveraged to enable a significant funding for the maintenance of existing infrastructure by 30 June 2014; ii. The Secretariat in collaboration with the PTA Bank and other partners should convene a joint meeting of officers from National Roads Authorities and Ministries of Finance to consider the study findings and make recommendations on how Road Funds could be transformed into innovative means of infrastructure financing by 30 September 2014; and iii. The Secretary should submit the report of the workshop should be submitted to appropriate COMESA Technical and Ministerial Committees for decision by 31 October 2014. k. Railways Operations and Management 211. Council urged Member States to take appropriate measures to revamp the operations of railways. l. 212. Corridor Development and Management Council directed the Secretariat to: i. Prepare and submit Corridor briefs to Member States, Development Banks and cooperating Partners by 30 June 2014. CS/CM/XXXII/2 Page 55 m. Project on One-Stop Border Posts (OSBP) 213. Council urged Member States to adopt and speed up the application of One Stop Border Posts (OSBP’s) at their border posts. n. Regional Co-operation in Shipping 214. Council directed the Secretariat to mobilize resources to undertake the development of the common standards and Regulations for Inland Water Transport. o. The COMESA Strategic Meteorological Programme Decision 215. Council Directed the Secretariat to allocate financial resources to the Secretariat to implement the COMESA Comprehensive Meteorological Programme. INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) Policy and Regulatory Harmonisation Decision 216. 217. Council urged Member States to: i. Submit their needs for enhancing the postal, telecommunications and broadcasting sectors reform process before or by 15 December 2014; and ii. Allocate budget for participating in the activities. Development of Physical Infrastructure COMTEL Decision 218. Council noted the progress made in the implementation of the COMTEL project and decided that the Secretariat convene a workshop on COMTEL. VSAT Closed User Group Communications Network Decision 219. Council directed the Secretariat to convene a meeting for Member States to discuss the sustainability and usefulness of the system and synchronize the network with other similar initiatives on the continent. CS/CM/XXXII/2 Page 56 ICT Facilitation Association of Regulators for Information and Communications in Eastern and Southern Africa (ARICEA) 9th Annual General Meeting Report Election of the Executive Committee Decision 220. Council directed the Secretariat to develop a proposal to merge ARICEA and EACO in consultation with the two institutions. Hosting of ARICEA Secretariat Decisions 221. Council: i. Directed the Secretariat to issue an RFP for hosting of ARICEA to Member States by 30 April 2014; ii. Urged Member States interested in hosting the ARICEA Secretariat to write by 30 June 2014 to COMESA Secretary General expressing their interest; iii. Directed the Secretariat to set up an Evaluation Committee constituted of Member States that have not submitted offers to conduct the evaluation under the supervision of the ARICEA Executive Committee; and iv. The report of the evaluation will be submitted for the next AGM. Consumer Protection Policy Guidelines Decision: 222. Council directed ARICEA to convert the consumer protection guidelines be converted into regulations to pave the way for implementation. Standards and Type approval Decisions 223. Council directed: i. The Secretariat to mobilize funding for the cyber security programme; ii. Urged Member States to allocate funding for implementation of the cyber security programme; and iii. Directed the Secretariat to convene a workshop under the tripartite arrangement to agree on a common position for the African Union next Summit in June 2014. CS/CM/XXXII/2 Page 57 Information Society Measurement Programme Decisions 224. Council: i. Urged Member States to produce statistical reports and submit a copy to COMESA Secretariat; ii. Directed COMESA Secretariat to circulate a questionnaire by 31 March 2014 for completion by Member States. Quality of Postal Service Decision 225. Council urged Member States to submit projects to Universal Postal Union to benefit from the Quality of Services Fund. IT Master Plan Decisions 226. Council directed the Secretariat to develop a regional five year IT Strategy which takes in account global development in the field of ICT by June 2014. Geographical Information Systems Decisions 227. Council directed the Secretariat to structure the GIS System and provide access to focal points in Member States for updating Infrastructure Project Information. Free and Open Source Software Decisions 228. Council directed the Secretariat to develop regional FOSS Guidelines to assist Member States to effectively utilizes Open Source Software for the advancement of ICT by 30 June, 2014. e-Government Programme Decision 229. Council directed the COMESA Secretariat to consult with the Government of the Republic of Uganda in order to finalise the MOU as soon as possible to facilitate implementation of the e-Governance Academy. CS/CM/XXXII/2 Page 58 e-Legislation and e-Learning Decision 230. Council directed the Secretariat to fast track the development of the business model which would ensure a responsive and active e-Learning programme. ICT Trade Facilitation The COMESA Virtual Trade Facilitation System (CVTFS) Decision 231. Council Directed the Secretariat to roll out the CVFTS in the entire COMESA region and produce periodic reports which should quantify the economic benefits of the system to trade facilitation and economic competitiveness. Decision 232. Council directed the Secretariat to fast track the building and setting up of the new data center and a disaster recovery site by 30 June, 2014. Physical Infrastructure Country Energy Profiles Decision 233. Council urged Member States that had not submitted their energy profiles to the Secretariat to do so by 30 June 2014. PREPARATION AND FINANCING OF INFRASTRUCTURE PROJECTS Decisions 234. Council: i. Urged Member States to utilize innovative financing instruments (such as infrastructure bonds, preference shares, guarantees) mechanisms (such as project and structured finance techniques) and wide resource mobilization from non-traditional partners such as private investors, equity funds, carbon funds, etc, and leveraging and blending with grants from the traditional donors, with emphasis on regional infrastructure development; ii. Directed the Secretariat to coordinate the processes among Member States, domestic and international investors, donor agencies including the EU, and other stakeholders for establishing infrastructure projects’ financing vehicles such as Special Purpose Vehicle (SPV) in order to fast-track infrastructure development to realize the Trans African Highways; CS/CM/XXXII/2 Page 59 iii. Directed the Secretariat to build the capacity of the key stakeholders in Member States, Secretariat, Inter-Regional Coordination Committee and regional organizations with domestic and international funds and mobilize resources so as to sustainably underpin the new approach; and iv. Directed the PTA Bank and Secretariat to work with the AfDB on the operationasition of the Africa 50 Fund. COMESA High Level Infrastructure Investment Conference Programme Decision: 235. Council urged Member States participate in the COMESA High Level Infrastructure Investment Conference. PROGRESS ON THE IMPLEMENTATION OF THE COMESA-EAC-SADC TRIPARTITE PROGRAMMES 236. The meeting received for noting the report of the Tripartite Infrastructure Sub-committee meeting held in Pretoria, South Africa which provided an account of the status of the Tripartite Infrastructure programming. The meeting noted that many of the items discussed under this report were contained in the progress report which it had already considered. The meeting further noted that this report would be considered by the Tripartite Task Force in its forthcoming meeting. 237. The meeting also took note of the issues that were discussed which included the following: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) Cooperation with PMAESA regarding port performance monitoring; The Tripartite CNS / ATM Project; Operationalization of the Joint Competition Authority (JCA); Project Preparation and Implementation Unit (PPIU) Activities; Corridors Infrastructure Development (including the Tripartite plus IGAD Corridor Programme (TICP)) and Border Posts; Financing Infrastructure; The Tripartite Infrastructure Master Plan and the Tripartite Infrastructure Project Database; The South West Indian Ocean Maritime Corridor (SWIOMC) Scoping Study; Railways Revitalization Initiative (RRI); Corridor Monitoring; The Tripartite Trade and Transport Facilitation Programme; Harmonization of a Third Party Motor Vehicle Insurance Scheme; Energy Projects related to Zambia-Tanzania-Kenya Power Transmission Project, DRC-Zambia Power Transmission Project, Zimbabwe-ZambiaBotswana-Namibia (ZIZABONA), Ethiopia – Kenya Power Interconnection Project; and Convening of the meeting of the Tripartite Sectoral Ministerial Committee of Infrastructure. CS/CM/XXXII/2 Page 60 Decision 238. Council decided that the Tripartite Infrastructure Sub-Committee should include ICT in the Tripartite programme. LEGAL AFFAIRS (Agenda item 4 (a)(vi)) 239. Council noted the report of the Seventeenth Meeting of COMESA Ministers of Justice and Attorneys General was held on 06 November 2013 in Lusaka, Zambia to consider and approve several legal documents. A full report of the Meeting is contained in document reference: CS/LEG/MJAG/XVII. 240. The Meeting of Ministers of Justice and Attorney General considered and adopted the following Legal Instruments: a. b. c. The Draft COMESA Social Charter The Draft Rules of Procedure for the COMESA Committee of Elders (CCOE) The Draft COMESA Seed Trade Harmonisation Regulations Decisions: 241. Council endorsed the following decisions: i. Article 21 of the COMESA Treaty, which provides that the tenure of office of the President and Judges of the Court shall be five years and shall be eligible for a further term of five years, should be adhered to strictly and any other tenure less than the ones prescribed under Article 21 is ultra vires; ii. The tenure of office of the Honourable Justice Mr Kheshoe P. Matadeen (Mauritius), the Honourable Justice Mr Duncan G. Tambala (Malawi), the Honourable Justice Mr James M. Ogoola (Uganda) and Honourable Justice Mr Luke Malaba (Zimbabwe) should be extended by a period of two years so that there is conformity with Article 21(1) of the COMESA Treaty in that the Judges save the mandatory two five year terms; iii. The Chairperson of the COMESA Authority should issue letters of appointment to the four Judges regularizing their tenure in accordance with Article 21 of the COMESA Treaty; iv. 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; and v. The tenure of office of Honourable Justice Madame Hortense Rabenjarivetor nee Rakotomenabe be regularized through the issuance of a letter extending her tenure of office to 03 June 2015. CS/CM/XXXII/2 Page 61 242. The meeting was also informed that the Ministers considered a programme for the enhancement of domestication of COMESA Legal Instruments that require domestication at the national level in accordance with commitments of COMESA Member States under the Treaty, and took the following decisions: i. Directed the Secretariat to develop a virtual or electronic depository of all COMESA Legal Instruments for easy access by Member States; ii. Directed the COMESA Secretariat to mobilise financial resources for a capacity building programme on domestication and mangement of legal instruments; iii. Directed the COMESA Secretariat to engage with parliamentarians on the importance of the domestication of legal instruments; and iv. Directed the Secretariat that capacity building programmes on domestication of legal instruments should include parliamentarians. 243. Finally on Legal Issues, the meeting was informed that the Ministers of Justice Meeting launched the Serialized COMESA Official Gazette aimed at enhancing the enhancement of domestication of legal instruments and the implementation of Council Decisions. Decisions: 244. Council adopted the following Legal Instruments: i. The Draft COMESA Social Charter; ii. The Draft Rules of Procedure for the COMESA Committee of Elders (CCOE); and iii. The Draft COMESA Seed Trade Harmonisation Regulations CLIMATE CHANGE (Agenda Item 4 (a)(vii)) 245. Council received an account of the progress made during the period January to December 2013. It was noted that with financial support from EU, DFID and Norwegian Ministry of Foreign Affairs and the commitment of the three Regional Economic Communities (COMESA-EAC-SADC) to work directly with 26 Member States had allowed the Climate Change programme to get more results and impact at the advocacy level. 246. The core objective of the COMESA-EAC-SADC Climate Change Programme is to address the impacts of climate change in the region through successful adaptation and mitigation actions, which also build economic and social resilience for present and future generations. 247. Council was informed that the baseline and trend analysis data (2009-2013) has shown that countries have mobilized more money for climate change interventions from 2010 onwards; they have mainstreamed climate change into their national strategies, policies, and action plans; they have put in place better negotiation frameworks to support the African Group of Negotiators; and they have come up with policy frameworks and interventions which will pave CS/CM/XXXII/2 Page 62 the way to the reduction of Green House Gases while enabling more than 600,000,000 people in COMESA-EAC-SADC to become climate resilient. By getting the political leaders of these targeted countries aware and supportive of the issues and the related responses, it will enable the programme to address common and specific climate change related problems within these countries in a more effective and sustainable way. 248. Partnerships have been entered into for the sustainability of interventions in the Member States and in the region. The programme is working with national, regional and international agencies and organizations such as NEPAD, IOC, SIDS, AMCEN, AGN, UNDP, ASERECA, UNECA, AGN, IGAD, PACJA, FAO, EAFF, AUC, SACAU, ACT, GART, PELUM to implement key activities jointly. The programme is supporting the Forum for Climate Change Journalists in Eastern and Southern Africa (FCCJESA); the Forum has created more visibility and awareness in all the 26 Member States and beyond. 249. Council noted that the Climate Change Programme has made progress in ensuring that the African Climate Solution is accepted by the global community and Climate Change mainstreamed in national planning; supporting Member States to access Adaptation funds and other climate change financing sources and mechanisms through national investment frameworks for climate adaptation in agriculture, forestry and other land uses and as at December 2013 the following COMESA countries had either Conservation Agriculture investment frameworks or other AFOLU investment framework in place as indicated below: Country Ethiopia Kenya, Madagascar Conservation Agriculture (CA) Framework CA framework in place CA Framework in place CA Framework in place Malawi Rwanda CA Framework in place Uganda CA Framework in place Other AFOLU Framework /strategy in place Climate Resilient Green Economy Strategy National Policy for Climate Smart Agriculture Agriculture Sector National Strategy and Climate change National Green Growth & Climate Resilience Strategy ï‚· SLM investment framework ï‚· Zambia Zimbabwe CA Framework in place National Policy and regulatory Framework on climate change National Climate Change Response strategy National Climate Change Response strategy 250. The following is the indication of the Global Climate Change adaptation funds accessed by Member States: Accessibility to Adaptation Funds as at November 2013. Worldwide COMESA COMESA Amount Amount Dates CS/CM/XXXII/2 Page 63 At project level Project approved National Implementing entity accreditedDirect access 29 15 5 1 countries approved/ endorsed approved for transferred indicated COMESA Counties (US $) Djibouti $4,658,556 $1,046,122 Jun 2012 Egypt Eretria Mauritius Madagascar Rwanda (REMA) $6,904,318 $6,520,850 $9,119,240 $ 5,104,925 $ 9,969,619 $1617,003 $889,329 $876,773 $1,314,206 $ 3,249,930 Jun 2012 Mar 2011 Sep 2011 Dec 2011 Nov 2013 251. Council was further informed that detailed national frameworks for resource mobilization were developed in Uganda, Burundi, Zambia and Swaziland; twenty-two (22) Member States participated in resource mobilization workshops in Zambia, Kenya and Madagascar; ten (10) Member States evaluated increased their total climate finance resources from US $560m in 2011 to over US $830 million in 2013; National Climate Change Policies, Response Strategies and Resource Mobilisation Plans were supported in Botswana, Burundi, Kenya, Swaziland and Zimbabwe; and Conservation Agriculture Investment Frameworks developed in Ethiopia, Kenya, Malawi and Zimbabwe. 252. In efforts to enhance the adoption of Climate-Smart Conservation Agriculture in the COMESA-EAC-SADC region, 1.2 million farmers adopted elements of conservation agriculture by 2016, 40 percent being women farmers; seven (7) sub-grantees were engaged to promote CSA in at least 14 countries; conservation agriculture demo plots and pilots were initiated in Zambia, Uganda and Zimbabwe; Zambia and Zimbabwe had over 550,000 small holder farmers practicing conservation agriculture; and national frameworks for climate smart agriculture were prepared for the five Partner States of Burundi, Kenya, Rwanda, Tanzania and Uganda. 253. Council was also informed that the Programme supported Rwanda to register the prison biogas project; conducted a feasibility study on waste management in Lusaka, Mombasa and Bulawayo with a focus on waste to energy opportunities; and restored Carbon Funds in ten (10) Member States. 254. Council noted the following challenges in the Implementation of the Climate Change Programme: a. b. c. The three RECs have not yet completed hiring all the staff responsible for the implementation; The selection and award of potential organizations to implement most of the activities under the RF (Result facility) has not yet been concluded; and At Member States’ level, raising resources for the Adaptation Fund has been a substantial challenge. Revenues from monetisation of Carbon Credits (CERs) have been far lower than originally hoped, as a result of falling carbon prices. The CS/CM/XXXII/2 Page 64 Fund is increasingly dependent on voluntary contributions from developed countries. Revenues from sales of CERs dropped from US $100 million in 2010 to US $18 million in 2012, and continue to plunge. Forecasts for the entire period of 2013-2020, at current market prices of US $ 0.16 per tonne, are for roughly US $8 million. 255. Council noted the progress on the COMESA-EAC-SADC Climate change programme. STATISTICAL DEVELOPMENT (Agenda Item 4 (a)(viii)) 256. The COMESA Treaty and specifically Articles 139 and 140 provide the policy context for development of statistics in the COMESA Region. Critical to the work envisaged in the Treaty are the aspects of provision of regular, timely and harmonized statistics for the purpose of monitoring the “efficient implementation of the objectives of the Common Market”. 257. Council was informed that statistical development in COMESA has been driven by a gradual and sector based strategy which has implied that individual statistical clusters are developed over a series of work programmes based on identified priorities, which are linked to COMESA’s policies on regional integration. 258. Council noted that the 2010-2013 COMESA Multi Annual Statistical Work programme, which focused on selected clusters of statistics, ended in 2013 and below is the progress made so far: a. b. c. d. 3 The programme on international merchandise trade statistics involved assisting Member states migrate to the latest United National Manual on International Merchandise Trade Statistics. By end of 2013, nine (9) Member states were fully implementing selected recommendations on making available selected data fields and additional nomenclature reporting.3 Other countries are not fully implementing this recommendation; The COMESA-UNCTAD programme on development of foreign direct investment statistics involved a dedicated capacity building program to enable Member states implement the recommendations of the following international frameworks; IMF Balance of Payments Manual and the OECD Benchmark Definition of Foreign direct Investment and Manual on Statistics of International Trade in Services. Subsequently as a result of this program, eight (8) Member States are now consistently funding national FDI surveys;4 The COMESA region was part of a worldwide survey known as the International Comparison Programme (ICP) which focused on determining the purchasing power parities of economies. Seventeen (17) Member States participated in this and results on the real size of COMESA economies soon to be published;5 Inflation monitoring remains a key component of national macroeconomic policy. In order to have regional comparison of this, COMESA started a process of harmonizing inflation measurement in 2010 and this culminated in a comprehensive COMESA harmonized These are; Ethiopia, Madagascar, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda and Zimbabwe. 4 The following countries are consistently funding national FDI surveys; Rwanda, Uganda, Kenya, Mauritius, Zambia, Malawi, Swaziland and Madagascar. Burundi and Zimbabwe initiated their surveys in 2013. 5 COMESA countries not included in the ICP surveys and comparison were Libya and Eritrea. CS/CM/XXXII/2 Page 65 e. f. consumer price index (HCPI) for fifteen (15) Member States at the end of 2013. This index is disseminated monthly by the Secretariat;6 Development of infrastructure statistics in COMESA over the duration of the multiannual work plan involved both capacity building though training workshops and actual survey implementation in Member states. COMESA was part of the AfDB led Africa wide survey called the Africa Infrastructure Knowledge Program in which seventeen (17) COMESA Member states participated. The actual survey implementation was completed in most countries by end of 2013 and results will be disseminated in 2014;7 and Statistics on international trade in services have generally not been as developed as the merchandise trade statistics. COMESA undertook a study on developing these statistics with an initial core group of four countries. Consequent to this study a regional workshop was held composed of statisticians and trade policy analysts and a roadmap of the minimum recommendations of the Manual on Statistics on International Trade in Services can be implemented in each Member State. 259. Further, dissemination is the last stage of the statistical production process. COMESA undertook a redevelopment of the COMSTAT data portal (URL) and this portal now serves as the premier dissemination tool for statistics on COMESA. Another related achievement in 2013 was the publication and dissemination of the following flagship publications, the 2013 COMESA International Trade Statistics Bulletin, 2013 COMESA Infrastructure Statistics Bulletin and the 2013 COMESA Investment Report. 260. Council was informed that the Secretariat provided technical assistance to the Southern African Customs Union (SACU) Secretariat on merchandise trade statistics for South Africa, Botswana, Namibia, Swaziland and Lesotho. Technical assistance related to utilization of trade data for Tripartite trade negotiations was provided to the EAC Secretariat. Data sharing arrangements were implemented with Southern African Development Community (SADC), United Nations Statistics Division (UNSD), the European Union Statistical Office (EUROSTAT) and International Trade Centre (ITC). 261. COMESA collaborated with the African Development Bank (AfDB) through the Multinational Building Capacity for MDG Monitoring and Results Measurement Program. COMESA managed and disbursed funds to seven Member states under its supervision as well as provide technical assistance related to the program. 262. Further collaboration was with the European Union Statistical Office (EUROSTAT), the United Nations Statistics Division (UNSD), the United Nations Conference on Trade and Development (UNCTAD), the Food and Agriculture Organization (FAO), Southern African Development Community (SADC) and the East African Community (EAC) on common clusters of statistics. 263. The table below summarizes the programme’s impact since the launch of the 2010 2013 Multiannual work programme: 6 Countries included in the HCPI publication are; Egypt, Sudan, Ethiopia, Kenya, Uganda, Rwanda, Burundi, DRC, Zambia, Malawi, Zimbabwe, Seychelles, Mauritius, Swaziland and Madagascar. 7 COMESA countries not included in the current round of the AIKP Survey are; Libya and Eritrea. CS/CM/XXXII/2 Page 66 Programme Impact International From none in 2010, twelve Member states now implementing core Merchandise Trade recommendations of UN Manual on Merchandise Trade statistics. Statistics(IMTS) Secondly country capacity was enhanced in the compilation of IMTS. Foreign Direct From two Member states, eight are now consistently funding and Investment Statistics executing FDI Surveys which are a critical source of FDI data based on international best practice and recommendations. Two countries initiated their surveys in 2013. National capacity also enhanced on concepts and definitions of FDI statistics. In all over 300 officials from Central Banks, Statistical Offices, Investment Centers and related Ministries were trained in FDI related BOP concepts during the course of the multi annual work programme. International Comparison Program Estimates of comparable PPP based GDP available for seventeen (17) COMESA Member states. Statistical offices’ capacity to undertake ICP surveys was enhanced and over 38 statisticians were trained. Harmonized Consumer Price Index From a situation of a non-existent comparable index COMESA now has a harmonized CPI for fifteen (15) Member states. Statistical offices in these countries have inculcated the computation of the HCPI in their regular statistical work flow. Over 50 statisticians have been trained in methodologies of the HCPI. Infrastructure Statistics From scanty infrastructure data in 2010, more comprehensive infrastructure data now available in seventeen (17) Member states. Over 160 sector ministry experts and statisticians were trained on Manual of Infrastructure Statistics. Statistics on As a consequence of the COMESA Study, a national roadmap of how International Trade in to achieve the minimum core recommendations of the Manual on Services Statistics of International Trade in Services is now available.38 Trade negotiators and BOP statisticians were trained on Dissemination COMSTAT data now available to policy makers as evidenced by an average of 631visits per month in 2013, the initial year after redevelopment. Annual flagship publications now available for policy makers in soft and hard copy. 264. Council also noted that the 5th Meeting of the Committee on Statistical Matters approved a new statistical strategy covering the period 2014-2017. Document reference: CS/TCM/RISP/STATS/CCSM/V/8, which contains the deliberations of the Committee at its meeting. CS/CM/XXXII/2 Page 67 Decisions: 265. Council: i. Approved the work on the development of the following clusters; Foreign Direct Investment statistics, the harmonized consumer price indices, international merchandise trade statistics, infrastructure statistics, and the national accounts in the new 2014-2017 annual work plans; ii. Adopted the COMESA Statistics Strategy; iii. Directed the Secretariat to work with Member States to define a roadmap on the migration process from the 5th balance of payments (BPM5) framework to the 6th balance of payments (BPM6) framework; iv. Directed Member States to immediately commence the dissemination of Statistics of International Trade in Services (SITS) data based on a minimum core dataset of: v. 1. Bilateral SITS by EBOPS with main partners and for main sectors; 2. FDI Statistics flows, income and period end positions; and 3. Foreign Affiliates Statistics (such as employment, turnover, output, value added, exports and imports and number of enterprises) broken down by activity according to ISIC Categories for Foreign Affiliates in services (IFCA). Directed the Secretariat to work with EAC and SADC to synchronize data requests from Member States taking cognizance of the AfDB’s project on data sharing as a way of addressing the problem of data remittance from Member States. COMESA MONETARY COOPERATION PROGRAMME (Agenda Item 4 (a) (ix)) 266. Council recalled that COMESA has a programme of monetary cooperation which will culminate into the Monetary Union. The mandate to set up a Monetary Union in COMESA is derived from Article 4(4) of the Treaty, which states that COMESA Member States shall, “in the field of monetary affairs and finance, co-operate in monetary and financial matters and gradually establish convertibility of their currencies and a payments union as a basis for the eventual establishment of a monetary union”. This mandate is further reinforced in Articles 76 up to 78, which respectively deal with the COMESA Monetary and Fiscal Policy Harmonization (MFHP), establishment of currency convertibility and formation of an exchange rate union. 267. Pursuant to Article 7 of the COMESA Treaty, the COMESA Committee of Governors of Central Banks makes binding decisions regarding the implementation of the COMESA Monetary Integration Programme in general; and the operations of the COMESA Monetary Institute, and the COMESA Clearing House in particular. 268. Pursuant to Article 13(3) of the Treaty, the 19th Meeting of the Committee of Governors of Central Banks was held on 27- 28 November 2013 in Lilongwe, Malawi. The decisions of this CS/CM/XXXII/2 Page 68 meeting are contained in document reference: CS/CMI/CCBG/XIX/7. This meeting was followed by the second Joint Meeting of COMESA Ministers of Finance and Central Bank Governors held on 29-30 November 2013. This report presents the issues considered in the two meetings and the decisions that are submitted to the Council of Ministers for endorsement and subsequent gazzeting as per Article 12 of the Treaty. 269. Council was informed that the 19th Meeting of the COMESA Committee of Governors of Central Banks considered the following issues: a. b. c. d. Progress report on the activities of the COMESA Clearing House and the COMESA Monetary Institute; Progress Report of Member Countries in achieving macroeconomic convergence in 2012; Proposal on Appropriate Monetary Policy Regimes for COMESA Member Countries; and Report on the activities of Monetary and Exchange Rate Policies and Financial System Development and Stability Sub-Committees. 270. Further, Council was informed that the Joint Meeting of COMESA Ministers of Finance and Central Bank Governors considered the following and took appropriate decisions under each agenda item (and their decisions are contained in document reference: CS/CMI/JMCMFCBG/II/9): a. b. c. d. e. f. g. h. i. Guidelines and Templates for the Implementation of the COMESA Multilateral Fiscal Surveillance Framework; Report of the Workshop on Medium Term Macroeconomic Frameworks COMESA’s Strategy for Achieving Inclusive Growth; Progress on COMESA Fund Progress on COMESA Infrastructure Fund (CIF) Proposal for Creation of the COMESA Infrastructure Bond Presentation on Africa 50 Infrastructure Fund COMESA Programme on Domestication and Management of Legal Instruments COMESA e-Initiatives and COMESA Electronic Market Exchange System 271. On the action plan for the Implementation of the COMESA Multilateral Fiscal Surveillance Framework, Council noted that the Second Joint Meetings of Ministers of Finance and Central Bank Governors approved the following: a. b. c. Conversion of the joint meeting of Ministers of Finance and Central Bank Governors to the Convergence Council; Inclusion of Ministers of Trade/Industry in the Convergence Council; and Approved the short, medium and long term action plans for the implementation of the COMESA Multilateral Fiscal Surveillance Framework. 272. Council also noted that the meeting considered the report of the Workshop on Medium Term Macroeconomic Frameworks which was organized by the COMESA Monetary Institute. Council agreed that the workshop served to achieve among others the following main objectives: CS/CM/XXXII/2 Page 69 a. b. To improve the understanding of the participants about the processes and institutions required for successful implementation of the frameworks; and To help COMESA Member States to harmonise their budgeting and financial planning on a multi annual basis, which is likely to be required for a higher degree of regional monetary integration. 273. Based on the presentations, discussions, highlights of the gaps in MTBF, MTFF, and MTEF and the proposed solutions, the meeting recommended as follows: a. b. c. d. e. f. g. h. There is need to ensure strong coordination of the implementation of the Medium Term Fiscal Frameworks, Medium Term Budget Frameworks and Medium Term Expenditure frameworks by the COMESA Member States; Harmonise and strengthen the legal and institutional framework for implementation of medium term macroeconomic frameworks by the member countries; Carry out a benchmark study to establish the status of implementation of medium term frameworks in the various member countries with the purpose of establishing areas of improvement and harmonization; COMESA Member States should carry out capacity assessment programmes to establish the existing capacity gaps and areas of technical assistance as well as developing and implementing a well-coordinated capacity building programme in the areas medium term macroeconomic frameworks; COMESA countries should develop and encourage the use of robust Macroeconomic models that would help improve forecasting of the macro aggregates, priority medium term sector allocations in line with the unique structures of the economies of the Member States; COMESA Members States should seek to find a lasting solution to the perennial low absorption of funds from development partners. COMESA Secretariat should assist in this regard by identifying best practices; The need by member countries to improve on expenditure efficiency through improved governance, better prioritization and culture change; and The Member States that have not implemented the treasury single account to do so to enhance better cash management, and efficient Government banking arrangement. Decisions: 274. Council: i. Urged Member States to undertake a review of their PFM Systems based on PEFA assessment and formulate PFM reform programmes. Member countries which did not have a previous PEFA assessment should undertake that exercise with outside assistance. If this is not possible they may make a self assessment on PEFA model that will form the basis for their PFM reforms; ii. Directed the Secretariat that the proposed two templates one on enumerating, prioritizing and sequencing reforms of PEFA indicators, and other enumerating components of enabling environment to be addressed can be used by member countries to formulate and monitor their respective PFM reform programmes and action plans; and formulate and begin CS/CM/XXXII/2 Page 70 implementation of PFM reform programme to reach at least an average score level of “B”; iii. Urged Member States that do not have Fiscal Responsibility Laws to enact them; iv. Urged Member States that already have FRL or related Acts to review them in order to make them consistent with the proposed COMESA FRL Guidelines; and v. Urged Member States to formulate revolving Medium Fiscal Framework (MTFF); Medium Term Budget Framework (MTBF); Medium term Expenditure Frame work MTEF) and Medium Term Country Convergence Programme (MTCCP). GENDER AND SOCIAL AFFAIRS (Agenda Item 4 (a)(x)) 275. Council noted that the Treaty (Article 154), among other things, states that it is impossible for COMESA to implement effective programmes for rural transformation and improvements in the informal sector without the full participation of women, men and youth. It further affirms that women make significant contribution towards the process of socio-economic transformation and sustainable growth. In order to achieve this mandate, COMESA has accelerated the implementation of awareness-raising and advocacy programmes for the empowerment of women and gender mainstreaming. 276. In this connection, the Secretariat has been working to ensure a speedy implementation of the establishment of the women economic empowerment fund, as an enabling mechanism for women’s access to credit so that they could grow their enterprises (Document reference: CS/CM/XXXI/4). The Ministers responsible for Gender and Women’s affairs adopted a youth programme for COMESA as a mechanism for promoting private sector participation in employment creation for youths. The Ministers also adopted a draft social charter as a framework for programmes and regulations for fostering cooperation between Member States in social and cultural issues, as well as mainstreaming the same in COMESA Programmes. 277. Council also noted the following, which is a summary of the activities, as well as the results of the Gender and Social Affairs Programme. Summary of Activities Undertook studies of existing micro-finance institutions in selected MS in order to work out the base fund for the Women Economic Empowerment Fund (WEEF) and determine further avenues for raising funds. Held 9th Technical Committee Short term Results Expected Medium Term Impact Quantification of the base Appreciation by MS and other fund for the WEEF at US $73 stakeholders of COMESA’s million. efforts in empowering women Identification of a number of and wealth creation. the financing institutions for the administration of the WEEF. Formulation of the Fund structures and identification of sources for leveraging funds. Adoption of a proposal to Active participation of the CS/CM/XXXII/2 Page 71 Meeting on Gender and the Seventh Meeting of Ministers responsible for Gender and Women’s Affairs to consider the proposals to establish a youth programme in COMESA.(Document No. CS/GEN/MIN/VII/7) Held a workshop for the Legal Drafting Sub-committee to review the draft Social Charter, after it was discussed fully by Ministers of Gender and women’s affairs. The draft social charter was also fully discussed by Ministers of Justice and Attorneys General to review the recommendations of the Legal Drafting Sub-Committee. establish a youth programme and two Memorunda of understanding from regional youth institutions, namely, Global Peace Foundation and Restlessness for Development. Endorsement of plan to launch COMESA Youth Programme. The final draft of the Social Charter endorsed by the Ministers of Justice and Attorneys General as a framework for mainstreaming social and cultural issues into COMESA regional integration agenda. youths in COMESA programmes and the private sector would also come on board to support the programmes. Mainstreaming of social and cultural issues in COMESA programmes. 278. Further, Council noted that the Programme was faced with the following challenges in 2013: a. b. Inadequate human and financial resources. The sector needs human and financial resources due to the multifaceted nature of gender, social and cultural issues being addressed; and Lack of dedicated budget allocations to implement COMESA Gender, social and cultural affairs programmes to benefit Member States. Decisions 279. Council: i. Referred the establishment of Women Economic Empowerment Fund to the Committee of Central Bank Governors and Ministers of Finance; and ii. Approved the implementation of a COMESA Youth Programme in partnership with the private sector. COMESA INNOVATIONS AWARDS (Agenda Item 4 (a)(xi)) 280. Council was informed that in 2013 the Organization of African Unity (OAU) marked its 50th Anniversary and in order to celebrate the Year of Pan-Africanism and the African Renaissance, COMESA launched the COMESA Innovation Awards to recognize and celebrate individuals and institutions that have used science, technology and innovation to further the regional integration agenda. This was done to implement the council decision that directed the Innovation Council to launch and run the Innovations Awards. CS/CM/XXXII/2 Page 72 281. A call for nominations for the COMESA Innovation awards was publicized during the period 01 August – 20 October 2013, and many submissions were received by the COMESA secretariat. The judging process was as follows: a. b. c. Review and validation of the evaluation of the criteria Discussion and agreement on the number of Awards – it was decided that top ten best innovations be recommended for the Awards. The ten (10) innovations were then organized according to categories (youth groups, women, institutions, and SMEs) 282. Council however noted that there was only one woman entrant who made it to the top 20 and as such the judges decided to award the top ten, plus one. Based on the above criteria the judges recommended the following eleven (11) innovations for the 2013 COMESA Innovation Awards. The 11th innovation was given special consideration as it was the only woman’s submission that made it to the top 20. Serial Name of Category Member State No. Innovation SME Egypt 003 Rice Bran 057 NURU Energy 037 Remote Weighing Bridge System 036 Mobile Shoe Charger 013 Fuel-less Domestic Electric Generator SME Uganda, Rwanda, Kenya Youth Kenya Youth Kenya Youth Zambia Remarks High scaling potential given global rice production, numerous products derived from rice bran; backed by solid ST&I High scalability; high social and economic impact; environmentally sustainable High creativity; very high economic impact and relevance for COMESA trade facilitation; mitigates corruption within the trade corridor; social impact high by reducing risky behaviors linked to long wait times; reduced pollution and fuel wastage during wait times Very creative; high social impact especially for underserved populations Addresses energy deficiencies in the region in a cheap manner; high social impact; green energy; high scalability with large addressable market; produces enough energy to run basic household apparatus CS/CM/XXXII/2 Page 73 Serial Name of Category Member State No. Innovation Youth Egypt 020 Remarks High public health impact; affordable and highly scalable especially for areas/locations with high population density e.g. schools, hospitals, religious gatherings, hotels etc High scalability especially in regions afflicted by war, including African countries; high social impact by creating safe neighborhoods; Backed by strong ST&I; high economic potential Cutting-edge technology; reduces cost of mapping buildings and locations; high economic potential to be derived from mapped locations Low cost energy solution especially for the rural populations; high social impact; green energy; high scalability with large addressable market High scalability; affordable and accessible due to local manufacturing; high public health impact Hygienic Hand-wash Unit Group Kenya Group Kenya Institution Kenya Institution Kenya 045 Sub-surface Landmine Detection Air Vehicle 024 Automatic Mobilebased indoor GIS 010 Korio Energy Chicken droppings 041 Elisa Kits (Hepatitis B &C) 055 Breadfruit Women Tree (in vitro propagation) Mauritius Social impact due increased food security 283. Council was informed that the following is a summary of submissions received and reviewed: Total number of submissions received Submissions disqualified (Not responsive to the call) Submissions reviewed and evaluated 284. Number 77 20 57 The panelists made the following general observations: a. b. Submissions were only received from nine (9) out of the expected nineteen (19) Member States; Some of the submissions were rather sketchy and omitted some useful information; and CS/CM/XXXII/2 Page 74 c. Submissions were made in two languages (English and French), and this may complicate the judging process as of the details may have been lost in the translation. 285. Since this was the first call for submissions, the Secretariat was commended for the technical support to the Innovation Council. For subsequent calls, however, the Innovations Council recommended the following proposals to improve the process for managing the calls with a view to improving the quality and quantity of submissions: a. Use a standardized, electronic submission form which ensures that all mandatory information is captured for all submissions. This should include information such as age, gender, nationality, nature of innovation and so on; Have a dedicated page on the main COMESA website on the Innovation awards. This should contain information on current as well as past calls and awardees; Run country-level Innovation competitions with the top country winners progressing to be considered for the COMESA innovation awards. This will ensure that as many people as possible participate in the Awards at different levels and each Country will feel that they have participated even if they do not win the regional prize; Given the technical nature of this activity, we recommend that one language be selected for submissions, and country-level translation support be provided for submissions that are not in the selected language. The translation should be done at the country level so as to involve the innovator in ensuring translation accuracy.; and Forge partnerships with like-minded regional initiatives to build synergies and maximize impact from regional innovations. b. c. d. e. 286. Council was informed of the Secretariat’s proposal that the inaugural COMESA Innovations Awards be given out during the Heads of State 17th Summit meeting on 27 February 2014. 287. Council noted that there is need to upscale the sensitization about the submissions to the Innovations Council in order to increase the number of submissions from all Member States. Council also noted that the theme for the Summit should be prioritised so that there is a focus on how MSMEs can benefit from the innovations. Experiences should be shared amongst the Member States so that they can benchmark and benefit from the innovations. Decisions: 288. Council: i. Approved that the COMESA Innovations Awards be presented to the following nominees and that the awards be handed out during the Heads of State 17th Summit meeting on 26 February 2014; Name of Winner Mr Mwangemi Award Project Name Country Joshua The Remote Weighing System- for safety of Kenya cargo and track that can save transit time and road maintenance cost Category Youth CS/CM/XXXII/2 Page 75 Name of Award Country Project Name Winner Anthony Mutua Mobile phone shoe charger- uses the body Kenya weight exerted on shoes to tackle cell phone battery charging challenge that Wilson Musonda Fuel less domestic Electricity Generator –to Zambia Category Youth Youth provide off grid electricity to rural communities International Trade Rice Bran Utilization – from waste material Egypt and Marketing Ltd- Dr to marketable nutraceuticals and functional Amr Mohamed Helal food SME Nuru Energy Ltd Sameer Hajee SME - Kenya, NURU Energy- Simple pedal generator for Uganda, charging ultra-portable light that can satisfy Rwanda over 90% of a rural household’s lighting needs. Ahmed Hassan and Sub-surface Landmine Detection Air Vehicle- Egypt Mohammed Gouda to solve the landmine detection and removal problem which has a large impact on human life Group Prof. Moustafa Automatic Mobile-based indoor GIS Automatic Egypt Alzantot and construction of Indoor Floor plans to leverage Moustafa Youssef standard cell phones and their built-in sensors to automatically and transparently construct the indoor floor plans and collect the semantic information automatically Kenya Medical Elisa Kits (Hepatitis B & C) affordable kits for Kenya Research Institute (Dr screening and diagnosis both of Hepatitis B James Kimotho) and Hepatitis C Viruses Group Kenyatta University Chandaria Business Innovation and Incubation Centre (Alex Kibet) Mrs Indira Boodhram Institution Kenya Institution Korio Energy - Chicken droppings-a Solid Battery Powered by Chicken Droppings to provide off grind energy for rural Africa Breadfruit Breadfruit security Tree (in vitro propagation) Mauritius Women in Vitro propagation for Food ii. Directed the Innovation Council to intensify sensitization about the Innovation Awards in order to increase the number of submissions from all Member States; and iii. Urged Member States to share experiences and bench mark the innovations submitted to the Innovations Council. CS/CM/XXXII/2 Page 76 PARTNERSHIP WITH COOPERATING PARTNERS (Agenda Item 4 (a)(xii) Cooperation with the European Union - Debriefing on the Regional Programming under the 11th EDF 289. Council was informed that the EU provides support to COMESA mainly through the European Development Fund (EDF) cycles in line with the Cotonou Agreement signed between ACP countries and the EU. The EU support to regional integration and cooperation as per Article 28 of the agreement so far is done under the following objectives: a. b. c. Promote peace and stability, as well as conflict prevention and resolution; Enhance economic cooperation and integration through the build-up of larger markets, the free movement of persons, goods, services and capital among ACP countries, the promotion and expansion of trade among ACP countries and with third countries, and the gradual integration of ACP States into the world economy; and Promote the management of sustainable development challenges with a transnational dimension through, inter alia, cooperation, coordination and harmonisation of regional cooperation policies. 290. The 10th EDF currently in use commenced in 2008 and the sunset clause was in December 2013 signifying the closure to adoption of any new projects under the envelope. Total final envelope at 10th EDF sunset was EUR 734,000,000 compared to the initial EUR 645 million. COMESA’s final portfolio amounts to EUR 103,021,412 being 14 percent of the revised final envelope. The focus going forward is on implementation of approved 10th EDF programmes. These include the Regional Integration Support Program (RISP) which contributes to enhance Secretariat capacities and to some extent provide direct capacity building support at national level; and the Regional Integration Support Mechanism (RISM) which contributes to Member States capacity for implementation of regional programmes at the national level. 291. The EU initiated the preparation of the next EDF cycle referred to as 11th EDF with a meeting with the ACP- RECs on 17 – 19 September 2013, in Brussels, to discuss the draft regional programming guidelines and the EU internal analysis8 of the Eastern Africa, Southern Africa and Indian Ocean region. 292. At EA-SA-IO regional level, that meeting was followed by a joint EA-SA-IO and EU consultations meetings in Mauritius (11-14 November 2013) and in Brussels (03-05 December 2013). 293. The main elements of the 11th EDF approach consist of the priority sector, the criteria for definition of regional allocations, the regional configuration and the related architecture of its regional indicative programme. 294. The EU has identified three sectors, based on the principles of subsidiarity, complementarity and cost-effectiveness as follows: a. 8 Peace, Security and Regional Stability; The EU internal analysis constituted a zero draft of the RIP for the EA-AS-IO Region. CS/CM/XXXII/2 Page 77 b. c. 295. Regional Economic Integration Regional Natural Resource Management Regional allocations will be defined using the following five criteria: a. b. c. d. e. Absorption capacity of the region based on 10th EDF commitments; Total budget of ROs and relative weight of ROs’ Member States contributions; ROs’ Member States involvement and participation in the ROs’ core activities; Population; Specific situations of fragility, vulnerability, isolation and insularity. 296. The Eastern Africa, Southern Africa and indian Ocean (EA-SA-IO) region will comprise the COMESA sub-region, the EAC sub-region, the Indian Ocean Commission (IOC) sub-region and the SADC sub-region. The region will be allocated one overall envelope that will be divided in separate indicative envelopes with respective financial allocations: a. b. c. One envelope per ‘sub-region’ including support to each RO secretariat, to NAOs and/or to other regional or international actors (indicative 30-50% of the overall envelope); One envelope for financing infrastructure (indicative 40-50% of the overall envelope); One envelope for cross-regional priorities, for example the stabilisation of the Great Lakes region, the implementation of on-going EPAs, initiatives for the protection of the river basins, a possible inter-ROs coordination mechanism (indicative 10-20% of the overall envelope). 297. The sub-regional envelopes will consist of programmed actions related to the specialised fields of action of the DMROs ('core mandate'); the DMROs and the EU Regional delegations will programme the sub-regional envelopes (sectors, priorities and implementing partners). 298. The programming of actions under the five sub-regional envelopes will be conducted by the five DMROs and the respective five regional EU Delegations, in line with EDF procedures and taking into account the decision making procedures applicable in the respective DMRO. They will identify the relevant implementing actors, either directly during the programming phase, or where this is not possible later on the basis of selection criteria identified in the overall envelope. 299. On the envelope for financing Infrastructure, the preferred options include: a. b. c. The use of existing or new blending facilities Projects concluded at national level with a regional relevance Additional innovative financing mechanisms (equity funds etc) 300. The matching financial resources for leveraging and blending for regional infrastructure financing may be open to the international and continental vehicles such as the Africa 50 Fund, as well as if appropriate to regional development banks and funds and other public and private resources including equity funds. 301. The apex body overseeing the programming of the 11th EDF RIP and monitoring its implementation is the EA-SA-IO High Level Committee which will be dealing with governance matters.The financial regional envelope for the EA-SA-IO region is fixed at Euros 1.332 billion CS/CM/XXXII/2 Page 78 covering for a period of 7 years starting 2014 until 2020 as announced during the EU and EASA-IO regional seminar held in Brussels 03-05 December 2013. 302. With regard to the new concept/approach of leveraging/blending, introduced specifically for resources mobilization needed for infrastructure development, we are proposing that our regional financial institutions such as the COMESA PTA and the regional private sector, be given a key role. On this new approach, COMESA is ready to deploy the necessary capacity building across the region. 303. In order to further facilitate the programming, the EU circulated an indicative financial breakdown of the 11th EDF RIP for the EA-SA-IO region with the view to seek consent of the DMROs in region before submission for endorsement by the Commissioner. The Secretariat noted that the interpretation of the criteria had a negative impact on the allocation the COMESA sub-regional envelope. COMESA comments on the proposed allocation of sub-regional envelopes were communicated to the EU Delegation in writing on 15 January 2014. 304. In response to the EU draft guidelines, the COMESA, EAC, IGAD and IOC have accepted the proposed regional configuration. SADC Secretariat has still to consult with its member States on joining other four RECs in single regional envelope. COMESA has since identified its priority sectors that include in order of importance: a. b. c. d. Large and broad infrastructure programmes; Trade and Investment facilitation; The Industrialisation-Private Sector; Cross cutting sectors: peace and security, conflict prevention and Climate Change. 305. Council was further informed that based on those priorities, COMESA has commenced the preparation of its regional indicative programme (RIP) and is ready to finalise the document and then has it adopted in agreed period of time. The next stepswere agreed as follows: a. b. c. d. e. f. g. h. DMROs and regional EU Delegations start programming of sub-regional envelopes (January – March 2014); EU HQ with Delegations starts programming of cross-regional envelope (January-March 2014); First meeting in High Level Steering Committee (March 2014); Consolidation of the RIP (May/June 2014) - June 2014, draft RIP available; High Level Steering Committee endorses RIP (July 2014); October 2014 RIP is endorsed by the High Level Committee and approved by the EDF Committee, then regional programming completed; Commission Decision on RIP (November 2014); and Starts implementation (January 2015). 306. It is also anticipated that COMESA will continue to use Contribution Agreements for implementation of programmes under the 11th EDF. In this regards, it is important to note that based on a review of the Financial Regulations applicable to the General Budget of the EU, a systems audit is to be undertaken in 2014 to ascertain COMESA’s eligibility. This affects implementation of programmes like RISM and RISP and therefore it will be important that existing COMESA procedures are accordingly acceptable for use under the Contribution Agreement approach. In lieu of this, COMESA may revert to the EDF project approach. CS/CM/XXXII/2 Page 79 307. Council was given the background on the 11th EDF Programming: that the EU’s development cooperation with the ACP countries and regions under the 11th EDF will total 30,506 billion (thirty billion, five hundred and six million) Euros, and will be part of the implementation of the multi-annual financial framework for the period 2014 to 2020 (7 years). The amount represents a 0.2% increase from the 10th EDF. 308. An amount of Euro 29,089 million will be available from the date of entry into force of the Multiannual Financial Framework (2014-2016) and its allocation is as follows: ï‚· ï‚· ï‚· Euros 24,365 million to finance National and Regional Programmes; Euros 3,590 million to finance Intra-ACP Cooperation Programmes; and Euros 1,134 million for the Investment Facility. 309. The programming of the 11th EDF is based on the acquis of the Cotonou Agreement and on new policies and new fundamental as defined in the European Commission’s 2011 Communication on the “Agenda for Change”, which includes human rights, democracy and other governance-related issues, as well as inclusive and sustainable growth. The programming exercise is also proposed to accommodate the use of national (regional) development plans and strategies. 310. The principles guiding this new programming framework are ownership, simplified and more flexible process, coherence, flexibility, differentiation, sectoral concentration, coordination and joint programming. 311. The future challenges linked to this new approach in terms of the new elements introduced into the programming exercise under the 11th EDF and their link with the EU’s new development policy, the programming exercise and ensuring the effective implementation of the Cotonou Agreement will prove rather challenging. The issues will include: a. b. c. Ensuring full ownership of the process by the agents in charge of the EDF in the ACP countries and regions; The levels of arbitration to be determined in the choice of concentration sectors, particularly in the framework of joint, coordinated programming; and Ensuring complementarity between the NIPs, RIPs and intra-ACP programmes. 312. As regards the issue of differentiation, Councilwas informed that the ACP side stressed that in the 2nd Revised Cotonou Partnership Agreement, there is no legal provision for the type of differentiation as been envisaged by the EU. Its application could lead to a sharp reduction in EU bilateral development aid and this would be detrimental to countries which are progressing along their development path and need to be accompanied so as to increase the country’s longrun growth potential; and help generate the necessary political support for continuing to build resilience. 313. It is against this background that guidelines for the 11th EDF programming have been prepared. Discussion: 314. Council sought clarification on the involvement of the Member States in the programming process as well as on the issue of differentiation. The meeting was informed that CS/CM/XXXII/2 Page 80 Member States would be fully involved through their NAOs. With regard to differentiation, the meeting was informed that access to regional resources by Member States for national programmes might undermine regional integration and would not be in line with the Cotonou Agreement. It was further recalled that all programmes with regional dimensions have always been, and would continue to be funded from the regional envelope. The meeting agreed that the 11th EDF programming should be substantively discussed by Council. 315. The Member States that export sugar to the EU expressed concern about the decision taken by the EU to abolish internal sugar quotas in September 2017. An assessment made by the EU Commission indicates that abolition of the quota crowds out imports into the EU and leads to a drastic fall in the price of sugar thus affecting COMESA sugar exporting countries. Decisions: 316. Council: i. Directed Member States to maintain solidarity as they negotiate with the EU; ii. Directed the Secretariat to collaborate with Member States to finalise the 11th EDF regional programming by 30 June 2014; iii. Expressed concern about the impact of the elimination of EU sugar quotas in 2017 on COMESA sugar supplying countries to the EU; and iv. Urged the EU to postpone the elimination of the quotas to September 2020, and put at eth disposal of the sugar exporting countries additional resources to pursue the modernisation of the sugar sector towards becoming globally competitive. USAID 317. Council was informed that USAID financially supported COMESA to the tune USD 3,550,000 (for the period 01 October 2012 - 30 September 2013) for the following programmes: a. b. c. d. e. f. g. COMESA Business Council (CBC) Trade For Peace (TFP) Agriculture (CAADP, SPS and ACTESA) TIFA-AGOA and CCA Conflict Mitigation and Reconciliation Environment, Clean Energy Institutional Support and Capacity Building. The United Kingdom 318. Council was informed that the United Kingdom financially supported COMESA to the tune £160,000 under the programme: COMESA Statistical Development. CS/CM/XXXII/2 Page 81 The Kingdom of Sweden 319. Council was informed that the Kingdom of Sweden is among the largest contributor in Official development Assistance (ODA) (1.02% ODA/GNI as 2011) and five (5) COMESA Member States are among the Top Ten Recipients of Swedish Gross ODA. These are Democratic Republic of Congo, Sudan, Kenya, Uganda and Ethiopia. 320. The Kingdom of Sweden particularly supported COMESA for the HIV and AIDS Multisectoral Programme. Canada 321. Canada, through the Canada International Development Assistance (CIDA) financially supported COMESA to the tune Canadian $20 million for the 3 RECs; ( US $4.3 million for COMESA) for the Programme for the Expansion of Africa’s Capacity to Trade (PACT II). Germany 322. Council was informed that through KfW, Germany financially supported COMESA to the tune Euro 8 million under the “Trading for Peace” Programme over a period of five (5) years. Australia 323. Councilwas informed that Australia, through AUSAID financially supported COMESA to the tune US $543,000 for the ACTESA programmes. African Capacity Building Foundation (ACBF) 324. Council was informed that the African Capacity Building Foundation (ACBF) financially supported COMESA to the tune US $3 million for the following programmes: enhancing COMESA’s institutional capacity to effectively implement planned activities; economic policy research; and trade analysis and negotiation; and generally contributed towards the development of the sub-region, as is more fully reflected in the COMESA Medium Term Strategic Plan 2011- 2015. African Development Bank (AfDB) 325. Council was informed that the African Development Bank (AfDB) financially supported COMESA to the tune US $3,190,010for the following programmes: Statistical Capacity Building Programme Phase III (US $2,290,010); and “Trading for Peace” for two (2) years, US $900,000. The World Bank 326. Council was informed that the World Bank financially supported COMESA to the tune of US $45,373,100 for the following programmes: a. b. c. Comprehensive Africa Agriculture Development Programme (CAADP) (US $4,504,100.00) Project ID: P120581 “Developing COMESA's M&E Capacity to Monitor MTSP Implementation (US $869,000). North- South Corridor (US $40 million). CS/CM/XXXII/2 Page 82 The Rockefeller Foundation 327. The Rockefeller financially supported COMESA to the tune US $1,500,000 for the COMESA Climate Change Initiative. The Commonwealth Secretariat 328. The Commonwealth Secretariat is continuing technically and financially to support COMESA. COMESA-EAC-SADC Tripartite 329. Under the COMESA-EAC-SADC Tripartite, COMESA has benefited from the following programmes: a. b. c. d. 117 million Norwegian Kroner (USD 20million) from the Kingdom of Norway, for the Climate Change Initiative for the Tripartite Arrangement between SADC-COMESAEAC (5 years). UA 5 million (USD 7.5 million) from AfDB for COMESA-EAC-SADC Tripartite Capacity Building Programme (TCBP). (£ 28 Million) from DFID from Trade Mark Southern Africa (TMSA). (£36 Million) from DFID for Climate Change Initiative programme. Decisions: 330. Council directed: i. The Secretariat to prepare a detailed report on the contribution to the Tripartite from DfID through TMSA for submission by the Chairperson of the Council to the appropriate authorities in the United Kingdom; and ii. The Secretary General to take up with DfID the issue of contingent liabilities of all DfID funded programmes managed by the COMESA Secretariat on behalf of the COMESA-EAC-SADC Tripartite. REPORTS OF COMESA INSTITUTIONS ON THEIR OPERATIONS (Agenda Item 4 (b) THE COMESA FUND (Agenda Item 4 (b)(i)) The COMESA Infrastructure Fund (CIF) Interim Board Report (Agenda Item 4 (b) (ii)) 331. Council was informed that the COMESA Infrastructure Fund (CIF) interim board met on 04 December 2013 in Bujumbura to deliberate and take decisions on the CIF. The interim Board Members comprise the following: Burundi, Rwanda, Swaziland, COMESA and PTA Bank. 332. Council was further informed that the Board made the following ordinary resolutions: a. On the recommendation of the PTA Bank, the selection of Harith Fund Managers as Joint Venture partner be and is hereby approved; CS/CM/XXXII/2 Page 83 b. The President of the PTA Bank be and is hereby authorized to enter into a simple Transfer Agreement with the COMESA Secretariat for the transfer of the Fund to the PTA Bank and the transfer of all monies to dedicated CIF accounts in Mauritius; c. The COMESA Secretariat be and is hereby urged to transfer with immediate effect the amount of Three Hundred Thousand US Dollars (US$300,000) as already approved by the Secretary General for the purposes of financing the CIF road shows; d. The PTA Bank management be and is hereby authorized to negotiate the Joint Venture partnership agreement with Harith Fund Managers, including but not limited to the identity of prospective investors and the sources of the capital. e. The PTA Bank management in consultation with Harith Fund Managers be and is hereby mandated to formulate the Terms of Reference (ToR) of the CIF Advisory Board; and f. The COMESA Secretary General and the PTA Bank President conclude all negotiations and documentation relating to the transfer of the CIF to PTA Bank latest by 31 December, 2013. 333. Council noted that after reading the minutes of the CIF Interim Board Meeting, the COMESA Secretariat suggested that the COMESA and PTA Bank legal counsels should liaise with each other and draft an agreement that will capture the interest of both parties. Discussions have been ongoing between the legal counsels and it is expected that a final agreement will be drafted by mid-February 2014 when the PTA Bank legal Director meets the COMESA Legal Director in Lusaka. 334. In the interim, road shows have not resumed, pending the signing of the agreement. Further to that, Council is invited to take note the following: a. b. c. That the legal instruments for the transfer of the CIF from COMESA to the PTA Bank has not been concluded; That as result of the delays in concluding the agreement ,the road shows to mobilize funding for the CIF bankable projects have not been undertaken; and That the PTA Board of Directors for the CIF mandated the PTA Bank to negotiate a joint venture partnership agreement with Harith Fund Managers , including but not limited to the identify of investors and the sources of capital. THE COMEA ADJUSTMENT FACILITY (CAF) AND THE REGIONAL INTEGRATION SUPPORT MECHANISM (RISM)(Agenda Item 4 (b) (iii)) 335. Council was informed that the COMESA Fund protocol was adopted in 2002 and includes two windows, a special facility referred to as the COMESA Adjustment Facility (CAF) founded on Articles 60 and 150 of the COMESA Treaty and the COMESA Infrastructure Fund (CIF). The CAF was operationalized by the Regional Integration Support Mechanism (RISM) through a Contribution Agreement between COMESA and the European Union (EU) in 2007. Funding for the RISM programme is €78 million under the 9th EDF and a next phase for €33 million has been approved for signature in 2014. CS/CM/XXXII/2 Page 84 336. Council was informed that the benefits of CAF include: provision of adjustment support to Member States that progress in the implementation of the regional integration programmes. It was observed that the support provided is distributed among the Member States based on a formula that includes consideration of Member State contributions to the COMESA Fund. An analysis of the contributions made by Member States against the approved and potential support provided shows that the return on CAF to the eligible Member States has been positive. This is reflected in the Tables and Graphs presented below: CS/CM/XXXII/2 Page 85 337. In August 2012, COMESA launched the 3rd Call for submissions to all eligible COMESA Fund Member States for adjustment support under the revised scope of the RISM programme. The Seventh COMESA Fund Ministerial Committee met in December 2012 and approved nine (9) submissions worth a total resource allocation of € 9.6 million to be disbursed to Burundi, Comoros, Kenya, Mauritius, Rwanda, Seychelles, Uganda, Zambia and Zimbabwe in 2013. Document CS/CA/MCF/VII/6 contains the deliberations and decisions of the Seventh Meeting of the COMESA Fund Ministerial Committee. 338. The 4th Call for Submissions was launched in April 2013 and all nine (9) Member States with on-going RISM programmes at the national level applied for continued support and an additional five (5) Member States made applications for first-time support. The new countries are: Djibouti, DR Congo, Malawi, Sudan and Swaziland. The Ninth Meeting of the COMESA Fund Ministerial Committee met in September 2013 and approved a total of about €15.8 million as regional integration support financing to be distributed across Burundi, Djibouti, DR Congo, Comoros, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Swaziland, Uganda, Zambia and Zimbabwe. Document CS/CA/MCF/IX/3 contains the deliberations and decisions of the Ninth Meeting of the COMESA Fund Ministerial Committee. 339. In moving forward with the RISM programme, COMESA has mobilised an additional €33 million under the 10th EDF RISM Consolidation programme to be implemented from 2014 to 2016. The RISM Consolidation is designed to continue and consolidate the system put in place under RISM. The Ninth Meeting of the COMESA Fund Ministerial Committee that met in September 2013 agreed to review and revise the current RISM indicators through consultations with Member States, the East Africa Community Secretariat and the EU Delegation in Lusaka. The Contribution Agreement for the RISM Consolidation programme is expected to be finalised and signed in the first quarter of 2014. In addition, efforts are being made by Secretariat in engaging other donors to diversify the resources for adjustment support in line with the decision of the COMESA Fund Ministers for Secretariat to identify alternative sources of funding. 340. Council noted that the key achievement so far is that the funding incentives to the Member States under RISM are already yielding positive results in bolstering regional integration. For instance, the nine Member States that received support in 2012 achieved an average of 80% of their targets. In addition, RISM has motivated Member States to re-organize and improve their national institutional mechanisms for management, coordination, implementation and monitoring of regional integration programmes through the establishment of National Inter-Ministerial Coordinating Committees. RISM has also been instrumental in communicating challenges in the regional integration process through the strengthened technical ties between Member States and the Secretariat. The robust interactions with the Member States and the European Union that are inherent to the programme have fostered continuous refinement and enhancement of the programme. Challenges 341. The programme has experienced some challenges during implementation. Significant delays have been faced in disbursing resources in a timely manner. This has been partly because disbursements from EU to COMESA are delayed due to multiple level consultations within the EU involving respective EU Delegations at Member States level, EU Delegation charged with COMESA programmes and the Brussels office. Once funds are received by Secretariat, disbursements to Member States are further delayed by protracted processes of finalising Grant Agreements, project documents and Implementation Arrangements for project support countries. CS/CM/XXXII/2 Page 86 342. Additional challenges experienced in relation to the 2013 approvals, has been the limitation by Member States to source and submit the requisite objective sources of verification against baseline information indicated in the Regional Integration Implementation Programmes. Reference to COMESA reports while indicative of status of implementation, was not sufficient to confirm or validate what is actually pertaining at national level. As a result, the EU withheld the disbursement of the approved 2013 resources pending submission of sources of verification. The impact in the delay of disbursement also extends to timely achievement of set targets. However, even where disbursement is delayed, Member States should endeavor to achieve their targets. The delays in disbursements also affect utilisation of funds by those countries receiving project support. 343. Another challenge has been the low level of involvement of the EAC in the implementation of the RISM programme. This made assessing performance of EAC countries very challenging during the review of submissions. 344. In some cases it was noted that there was a centralisation of responsibility for implementation and follow up of progress. This raises the risk that some targets would not be achieved as institutions responsible for implementation only became aware of their required inputs at a very late stage. It has also been noted that there is still need for improved planning of implementation of agreed targets and involvement and sensitisation of other national institutions implementing COMESA Programmes. This will ensure that targets are achieved and sources of verification are provided in line with approved RIIPs. 345. Overall, challenges experienced provided learning lessons for the COMESA Adjustment Facility. Some of this will be reflected in the next phase of RISM and under the next call for submissions and its accompanying guidelines. 346. A video documentary produced by the Republic of Seychelles on the establishment and operations of the National Inter-ministerial Coordinating Committee (NIMCC) in Seychelles was shown. Discussion: 347. Council commended Seychelles for its efforts in producing the video documentary. 348. Council emphasized that as a result of the stated challenges at the Member State level, only €7.02 million (72%) out of total resource allocation of € 9.6 million approved in December 2012 was disbursed, to seven countries, Burundi, Comoros, Kenya, Mauritius, Rwanda, Seychelles, and Zambia, in 2013. 349. It was further emphasized that out of the 13 countries with approved RISM allocations in September 2013 under the 4th Call for Submissions, only five countries – Comoros, Djibouti, DR Congo, Mauritius and Seychelles – satisfied the Ministerial conditional decision for countries to provide all sources of verification. Thus, on behalf of these five countries, the Secretariat would request from the EU the disbursement of a total of €4.3 million (27%) out of the €15.8 million resources for 2013. 350. The fundamental importance of providing the pre-agreed sources of verification as evidence of honoring COMESA regional commitments was reiterated, not only in the context of CS/CM/XXXII/2 Page 87 RISM but given its significance for confirming the achievement of regional integration more broadly. 351. The meeting was informed that Madagascar intends to join the COMESA Fund in 2014, so that the Member State can also enjoy the benefits of the Fund. The Secretariat would liaise with the Member State to further assist it achieve this objective. Decisions: 352. Council: i. Directed NIMCC’s or their equivalents to designate Focal points to coordinate the implementation of COMESA programmes including the achievement of RISM targets and provision of sources of verification; ii. Directed NIMCC’s or their equivalent to assume full responsibility for the development of annual work programmes to plan and monitor domestication and implementation of regional commitments; and iii. Urged Member States to ensure that sufficient resources are allocated to the implementation of COMESA programmes as RISM only complements available funding. THE COMESA BUREAU ON THE THIRD PARTY MOTOR VEHICLE INSURANCE SCHEME (Agenda Item 4 (b)(iii)) 353. Council noted that the Regional Customs Transit Guarantee Scheme, popularly known as the RCTG CARNET was introduced in accordance with the provisions of COMESA Protocol on the Transit Trade and Transit Facilities, Annex I, to the COMESA Treaty and was established by Agreement signed in November 1990, in Mbabane, Swaziland. However, the implementation of the Scheme was delayed and the work on developing the modalities of operations and institutional arrangements was started in 2002 and the implementation of the scheme commenced in 2012. The RCTG Scheme is a self-regulating Institution and the Council of the RCTG Scheme, make decisions whose objective are to facilitate the implementation of the program pursuant to the Agreement provisions and Council decisions. 354. It was further noted that the Seventh Meeting of the Council of RCTG of the Regional Customs Transit Guarantee Scheme (RCTG CARNET) was held from 23 - 25 September 2013, in Lusaka, Zambia at Hotel Intercontinental. Document reference: CS/YCRCTG/CS/VII/16 contains the deliberations and decisions of the Meeting of the Council of RCTG. Taking into account that the Council of Bordeaux makes binding decisions; only those aspects that require interventions by Member States are brought to the attention of the IC for consideration and Council decisions. 355. The objective of the Annual General Meeting was to oversee the implementation and operations of the RCTG CARNET in the COMESA Region and to direct the operations. Key elements of the report include the following: CS/CM/XXXII/2 Page 88 Operations of the RCTG CARNET 356. Council noted that in the Northern Corridor, since the RCTG Scheme became operational in the Northern Corridor countries in 2012, over 194 Regional (RCTG) Bonds with guarantee amount of US $89 million was executed by Clearing and Forwarding Agents to carry out regional transit in Kenya, Uganda and Rwanda. The Council of RCTG further noted that during the same period over 1,129 RCTG Carnet were issued for transit goods from Mombasa, Kenya to Uganda and Rwanda and vice-versa. 357. Following the formation of the EAC Single Customs Territory, decisions were made by Uganda and Rwanda Revenue Authorities to replace the National Bonds with a Regional (RCTG) Bonds and that the process of replacing the bonds was undergoing. Details of RCTG General Bonds executed and RCTG CARNET are shown in the table below: RCTG Bonds Issued in the Northern Corridor Countries: KENYA No. Principal (Clearing Forwarding Agent) SpedagInterfreight(K) Bollore Africa (K) Kuehne & Nagel (K) Spedag Interfreight(K) Multiple Solutions(K) Freight Forwarders(K) Sharis Logistics(K) 1. 2. 3. 4. 5. 6. 7. and Total No of Bonds and Amount Surety Bond Amount (US$) APA Insurance APA Insurance APA Insurance GA Insurance Xplico Insurance Trident Insurance 561,798.00 560,000.00 561,798.00 3,418,000.00 912,866.00 5,770,670.00 114,044.00 Monarch Insurance 7 11,899,176 UGANDA 8. Bollore Africa Logistics Uganda Ltd Statewide Insurance Co. Ltd 20,000,000.00 9. Allport Freight Limited Statewide Insurance Co. Ltd 800,000.00 10. Kenfreight Uganda Ltd I.C.E.A Uganda Ltd 11. Buhinga C & F Ltd Excel Ins Co Ltd 5,560,000.00 400,000.00 12. Spedag Interfreight Uganda Ltd I.C.E.A Uganda Ltd 13. Crane Freighters Ltd 14. Agility Logistics Ltd 15. Ataco Freight Services Ltd Excel Ins Co Ltd 1,200,000.00 Phoenix of Uganda Assurance 800,000.00 Co. Ltd Excel Ins Co Ltd 700,000.00 16. Multi-Bulk Forwarders Ltd Excel Ins Co Ltd 2,000,000 17. Kenfreight Uganda Ltd I.C.E.A Uganda Ltd 5,560,000.00 11. Flitlinks International Ltd Excel Ins Co Ltd 200,000.00 18. Bolax Enterprises Ltd Excel Ins Co Ltd DHL Global Forwarding U:ganda I.C.E.A Uganda Ltd Ltd Kuehne + Nagel Limited I.C.E.A Uganda Ltd 19. 20. Total No of Bonds and Amount 14 8,000,000.00 400,000.00 2,400,000.00 3,200,000.00 51,220,000.00 CS/CM/XXXII/2 Page 89 RWANDA 173. All Clearing & Forwarding Agents 173 Total No of Bonds and Guarantee Amount 194 issued in the Northern Corridor RCTG CARNETS-Northern Corridor: Country RCTG Transit Cargo from–to Carnets Issued Kenya 1069 Kenya Uganda/Rwanda Uganda 23 Uganda Kenya Rwanda 37 Rwanda Kenya TOTALS 1129 - 26,015,037.59 $89,134,213 Transit successfully completed 641 19 25 685 Carnet unacquitted Remark 428 4 12 444 - 358. Council was further informed that progress was made on the following: a. b. The RCTG-MIS system was integrated with the COMESA CVTFS; The RCTG-MIS was interfaced with ASYCUDA World of Rwanda and Uganda Revenue Authorities; The RCTG Carnet was integrated with the Customs Declarations; and The RCTG Carnet was simplified and was available in hard and soft copy for use by stakeholders. c. d. 359. Council noted that in the Central Corridor, the Tanzania Revenue Authority (TRA) and Stakeholders were ready to implement the RCTG CARNET with Central Corridor countries; however implementation was delayed as Burundi Revenue Authority (OBR) was in process of carrying out a pilot test on system called ASSET developed by Trade Mark, which recently was discontinued. The Council of RCTG was informed that the commitment from high level authority of Burundi Revenue Authority was awaited for the commencement of operations between Burundi and Tanzania. 360. Council further noted that Ethiopia has been ready for the Implementation of the RCTG Scheme operations; however there was need to first negotiate and agree with Djibouti on the sharing of premiums that would be generated from the issuance of RCTG Carnet for transit between the two countries. The Council of RCTG was informed that almost all the RCTG bonds for transit between Ethiopia and Djibouti would be issued in Ethiopia. 361. On the North-South Corridor, Council was informed that Malawi and Zimbabwe have been ready since 2012 for the implementation of the RCTG CARNET, however the commencement of operations in the North-South corridor was delayed as Zambia and DR Congo have not ratified the RCTG Agreement. 362. Council also noted the following challenges that are being faced in the implementation of the RCTG CARNET: a. b. c. d. Zambia has not yet ratified the RCTG Agreement; DR Congo has not yet ratified the RCTG Agreement; Burundi: commitment from Revenue Authority being awaited; and Djibouti and Ethiopia: to negotiate and agree on sharing of premiums on bonds issued for transit between the two countries. CS/CM/XXXII/2 Page 90 363. Council was informed that, following its earlier decision, the RCTG Operations Manager, namely: Indigo Logistics & Procurement Ltd was recruited and commenced its operations in June 2013. The Council of Bureaux was further informed that the Operation Manager had made progress on the operations of the RCTG CARNET in the Northern Corridor in increasing the number of RCTG Bonds executed and Carnet issues. 364. The Pool Managers, ZEP-RE has made the necessary Reinsurance protection for the risk underwriting by the Sureties and thereby protect government revenue. The RCTG Reinsurance Pool has been advanced US $500,000 working capital by the Council of Bureaux of the Yellow Card scheme. 365. On the issue of self-financing modalities, Council was reminded of the decision of the Council of Ministers that the RCTG scheme be self-financing. It was noted that the scheme would start generating income with effect from 01 January 2014 to cover the management and administration of the scheme. 366. Council noted the report the report of the COMESA Bureau on the motor vehicle insurance scheme. THE COMESA COURT OF JUSTICE (Agenda Item 4 (b)(iv)) 367. Council was informed that as an Organ for the adjudication of any matter over which it has jurisdiction, the Court of Justice has a vital role to play in the observance of the rule of law within COMESA. The Court is composed of two tier system namely the First Instance Division and the Appellate Division. The First Instance Division of the Court has jurisdiction to hear and determine at First Instance, subject to the right of appeal to the Appellate Division, any matter brought before the COMESA Court of Justice in accordance with the provisions of COMESA Treaty. Appeals lie to the Appellate Division on points of law, grounds of lack of jurisdiction or procedural irregularity. 368. Council was further informed that the COMESA Court has already adjudicated on a number of disputes and its decisions have been received with appreciation in Member States; as it ensures that COMESA remains a Rule based Organisation which contributes effectively towards the process of Economic Integration thereby increasing Stake holders’ confidence in dispute resolution. 369. In the recent past, a Reference was filed by a company incorporated in a Member State against that Member State seeking various remedies from the Court amongst others, declaratory orders that the Member State had infringed the Treaty in particular by failing to give the Treaty the force of law and necessary legal effect within its territory; and by imposing a discriminatory Measure or legislation in the relevant period. 370. The Applicant sought for an order directing the Respondent (the Member State) to take all necessary steps and measures to properly implement the Treaty in its domestic legislation; in particular by giving the Treaty the force of Law and the necessary legal effect. While the Applicant was unsuccessful on some claims, as some of the matters pleaded were reserved by the Treaty to Member States and the Secretary General, the Court found that the Respondent Member State had breached the Treaty. CS/CM/XXXII/2 Page 91 371. There is a tremendous potential for increased litigation with regard to breaches arising out of the establishment of Free Trade Area provisions and the establishment of a Customs Union. Therefore, the Court is obliged to uphold the obligations imposed on it by Member States by ensuring availability of judicial redress. 372. The Court has since dealt with most References and legal issued pending before it. Currently there is one Application seeking for a legal opinion and one appeal pending before the Appellate Division of the Court. The list of cases is attached hereto for information. 373. Further, Council was informed that in its quest to popularize itself, the COMESA Court embarked on conducting Publicity Seminars in Member States and holding circuit Sessions in Member States, ensuring Economic Integration by bringing justice to the Common Market. Mutual information on how this has been applied elsewhere can be obtained from the Registry. The need for better exchange of information is identified as a key element for future cooperation among Regional Courts and Tribunals, in order to raise the capacity of Judges of the COMESA Court to resolve disputes in COMESA. Summary of the Court’s Cases Nature of cases Number Cases and 26 Staff matters between COMESA Institutions Between Governments Between private sector and government Between private sector and private sector COMESA institutions and COMESA COMESA institutions and government Revisions in reference Advisory opinions Appeals filed 3 5 4 4 4 2 1 2 of Status Determined Determined Determined Determined Determined Determined Determined Pending One determined and one appeal pending 374. It is worth noting that unlike the First Instance Division, the Appellate Division is not a trial Court. The Appealate Division is to hear the Appeals of decisions made by the First Instance Division. In addition, it is responsible for delivering advisory legal opinions. Its determination of an Appeal is final. Decisions: 375. Council directed: i. The Registrar of the COMESA Court of Justice to design and implement and outreach programme to publicise the services provided by the Court; and ii. That seminars be organized in conjunction with the national judiciaries, national law offices, law societies, Chambers of Commerce, and similar court users. CS/CM/XXXII/2 Page 92 COMESA LEATHER AND LEATHER PRODUCT INSTITUTE (Agenda Item 4 (b)(v)) 376. Council received the report of the LLPI, which included a summary of the institution’s activities, as well as the expected short term and long term results. The full report of the LLPI is document reference: COM/LLPI/XXXII/1. 377. Council noted that among the long term expected results of LLPI is: improved Member State collaboration and contribution to the institution; increased impact of COMESA/LLPI activities on the ground, feeding into the overall goal of COMESA of regional integration; membership actual contributions expected to reach US$800,000 in the next 3 years, among others. 378. Council noted that all COMESA Member States are eligible for LLPI membership and 17 of these signed the Charter establishing the Institute. At the moment there are only eight active members (Eritrea, Ethiopia, Kenya, Malawi, Rwanda, Sudan, Uganda and Zambia). The Institute is funded from assessed annual contributions of these Member States and other sources, including service charge fees, consultancy, grants and assistance obtained through projects prepared by the Institute to implement its mandated objectives. It is headquartered in Addis Ababa, Ethiopia, with its own office building commissioned in May 2007. 379. Its operations are currently being guided by the mid term strategy, which was launched in 2011 and runs up to 2015. It was reviewed in December 2013 and validated by stakeholders, which were drawn from Member States. In 2013 the Institute implemented activities, which were aimed at achieving tangible results with regard to improving output, profitability, productivity and intra trading of SMEs in the leather value chain. The table below summaries the activities, outputs and results of COMESA/LLPI activities in 2013. Decision: 380. Council directed that the LLPI Charter and Mid-Term strategy be reviewed and validated by the LLPI Board of Directors and implemented to ensure optimum development of the region’s leather sector. PTA RE-INSURANCE COMPANY (ZEP-RE) (Agenda Item 4 (b)(vi)) 381. Council received the annual progress report of the ZEP-RE (PTA Reinsurance Company), highlighting the performance of the Company as at 30 September 2013. A breakdown of the Company’s performance of the Company in key areas is as follows: a. Premium Income Written: For the period ending 30 September 2013 the Company wrote a premium income of US $77,113,087 compared to US $58,177,514 for the same period in 2012. As at 31 December 2013, the premium written was US $100,000,000; b. Investments: Investments as at 30 September 2013 stood at US $131,693,579 compared to US $106,780,666 during the same period in 2012. These investments are placed in bonds and bills issued by the governments of the region, deposits in banks of the region including the PTA Bank and real estate investments which currently comprise 2 commercial buildings in Nairobi Kenya. The Company is also in the process of setting up an office building in Lusaka, Zambia and also purchased property in Harare, Zimbabwe; CS/CM/XXXII/2 Page 93 c. The Company intends to augment its policy of diversifying investments further by putting in more money in other government and corporate bonds of various member states of the region; d. Assets: Total Assets of the Company grew to US $187,168,494 as at 30 September 2013 compared to US $149,381,239 for the same period in 2012. As at 31 December 2013 the assets stood at US $200,000,000; e. Claims: Net claims incurred by the Company as at 30 September 2013 amounted to US $27,420,820 compared to US $17,923,806 in 2012. Net Profit: Net profit realised as at 30 September 2013 was US $11,063,818 compared to US $12,223,297 for the same period in 2012. The drop in profits was mainly as a result of an increase in incurred claims; and 382. Council further learnt that as at 31 December 2013, ZEP-RE was carrying out business in the following COMESA Member States: Burundi, Comoros, Djibouti, Ethiopia, Eritrea, Kenya, Libya, Madagascar, Malawi, Mozambique, Mauritius, Rwanda, Seychelles, Sudan, Uganda, Zambia and Zimbabwe. Business written by ZEP-RE from the COMESA region as at 30 September 2013 amounted to US $51,633,573.24, representing 70% of the Company’s total business. 383. ZEP-RE is currently rated by B+ by AM Best, an investment grade rating. The credit ratings are important in the Company’s marketing strategy and have helped the company grow its business profile. 384. The Company has actively been seeking capital investments from existing and new shareholder as a means of increasing its capital capacity to write more business. In this regard the Company secure one new shareholder in 2013 when a subscription agreement was signed with the German development finance institution DEG an investment injection of US $15 million. 385. Existing shareholders have also supported this drive, notable being the PTA Bank which injected an additional US $6.6 million in the Company and the AfDB which is the processes of injecting an addition US $3.9 million. 386. Total shareholder funds at 31 September 2013 stood at US $89,817,568 compared to US $79,042,511 during the same period in 2012. 387. The following countries have outstanding issues with the Company: a. Ethiopia made an undertaking during the 14th Council of Ministers meeting in 2002 to the effect that it would be acceding to the Agreement establishing the Company and subscribing to shares in ZEP-RE. The Company is still following up with the member state but the issues of accession and share capital subscription are still outstanding; b. Following the admittance of Libya into membership of COMESA, Libya agreed in principle to participate in the activities of ZEP-RE. ZEP-RE proceeded to invite Libya to accede to the Agreement establishing the Company and subscribe to the shares. Despite sustained follow the issues of accession and share capital subscription are still outstanding; CS/CM/XXXII/2 Page 94 c. Malawi undertook to resolve the one outstanding issue of share capital subscription which still remains outstanding; d. The outstanding issues regarding the Kingdom of Swaziland are accession, share capital subscription and business facilitation; and e. The Company has established a regional office in Harare, Zimbabwe and has also a hosting Agreement to formally recognize the Harare office. 388. ZEP-RE wishes to reiterate its earlier appeals to all Member States who are not full participants in its activities to consider doing so in line with the decisions of the Council of Ministers and Authority of Heads of State and Governments. Compliance with these decisions will help the Company may fulfill its objectives. The Company would also like to appeal to existing members to consider augmenting their participation by taking up more shares in the Company. 389. Ethiopia informed the meeting that they are in the process of studying the requirements for joining ZEP-RE in order for the Member State to join the institution. Decisions: 390. Council: i. Urged Member States that are not full participants in the activities of ZEPRE should consider doing so in line with past decisions of the Council of Ministers and the COMESA Authority; and ii. Urge Member States already participating in the activities of ZEP-RE are urged to take up more shares in the company. PTA BANK (Agenda Item 4 (b)(vii) 391. Council received the report of the PTA Band consisting of an overview of the status and developments the Bank for the period up to 31 December 2013; and the financials as at 30 June 2013. 392. PTA Bank’s mandate is to provide financial assistance to Member States by promoting their economic and social development in the region and internationally. The Bank’s Charter also provides for the establishment and administration of special purpose funds in the region, given its role as a specialized and autonomous regional financial institution. The Bank’s Principal Office is Bujumbura, Burundi, and has operations and fund-raising offices in other countries, as do other regional and sub-regional development finance institutions. 393. Its mission is to be at the forefront of extending development capital and services to advance regional growth and integration through customer focused and innovative financing instruments. The Bank implements its mandate by supplementing the activities of national development agencies of Member States and by cooperating with other institutions and organisations, public and private, national and international, which are interested in the economic and social development of the Member States. CS/CM/XXXII/2 Page 95 394. The Bank is similar in structure to other supranational development finance institutions, such as the African Development Bank, the African Export-Import Bank and the East African Development Bank, all of which are treaty based financial institutions with both African and nonAfrican shareholders. The Bank currently has 20 shareholders: 18 African countries comprised of the Member States of COMESA (17), EAC (5) and SADC (7), and then the African Development Bank and the People’s Republic of China. The Bank’s Charter was amended by the Board of Governors in December 2012 to align itself with the COMESA-SADC-EAC Tripartite Agreement, in terms of membership, and the wider regional integration framework around trade and infrastructure. 395. PTA Bank’s Charter, like that of EADB and AFRIEXIMBANK, provides for sovereign and institutional investors, both African and non-African. It is also the case that the African character of the Bank is preserved by providing that the President and majority of staff are nationals of Member States and by requiring a two-thirds vote by African Member States for any amendments to the Charter. 396. Council also noted that the Bank’s vision is to become a world-class African financial institution advancing the economic development, integration and prosperity of Eastern and Southern Africa. This entails the application of international standards and best practices in trade finance and development banking, including corporate governance, risk management, treasury operations, and human resource management. Attainment of excellence in this regard will enable the bank to mobilize far greater financial resources at lower cost to support the high demand for trade and development finance in the region, notably in the areas of infrastructure, industrial development, enterprise development, exports and essential imports. 397. In December 2012, the Board of Governors approved the Bank’s 5th Corporate Plan covering the period 2013 to 2017, together with refinements and amendments of the Charter. The plan is being implemented. 398. Council considered the Bank’s accounts. As at 31 December 2012, the bank’s balance sheet rose annually by 35 percent, reflecting a record increase in the volume of financing to Member States, spread across various sectors and countries as can be seen in Figure 1 below. This was done on commercial principles in line with the Bank’s Charter, and as such, the Bank’s profitability has continued, strengthening the financial position of the Bank and its capacity to increase its financing activities further, as reflected in the Table below: CS/CM/XXXII/2 Page 96 Audited financials from 2009 to as at June 2013 EASTERN AND SOUTHERN AFRICAN TRADE AND DEVELOPMENT (PTA) BANK Operational and Financial Performance Indicators Summary USD ' 000 BALANCE SHEET SUMMARY TOTAL ASSETS TOTAL SHAREHOLDERS EQUITY TOTAL LIABILITIES TOTAL CAPITAL & LIABILITIES 30-Jun-13 31-Dec-12 31-Dec-11 31-Dec-10 31-Dec-09 2,118,269 387,745 1,730,524 1,941,429 1,843,671 344,252 1,499,420 1,693,098 1,370,411 278,366 1,092,044 1,271,066 1,043,439 210,241 833,198 978,360 826,155 178,381 647,773 781,395 45,047 7,553 26,266 89,149 12,334 51,229 63,535 12,133 34,265 46,052 10,578 20,321 43,084 8,239 18,030 INCOME STATEMENT SUMMARY TOTAL INCOME TOTAL OPERATING EXPENSES PROFIT (LOSS) BEFORE TAXATION RATIOS Return on Shareholders' Equity (ROE) Cost to Income Ratio Non-Performing Loans Ratio 90 dpd (Gross) NPL coverage ratio 30-Jun-13 6.77% 41.69% 4.55% 126.24% 31-Dec-12 14.88% 42.54% 5.23% 148.58% 31-Dec-11 12.31% 46.07% 4.58% 143.80% 31-Dec-10 9.67% 55.87% 6.36% 145.98% 31-Dec-09 10.11% 58.15% 11.67% 177.87% 399. The 2013 early estimates indicate that the Bank managed to increase the volume of its financing by a further 36 percent. The balance sheet and profits of the Bank have almost doubled in the past two years, with the former rising to an estimated all-time high of about USD 2.5 billion as at end December 2013, with return on equity up to just over 14 percent. Importantly, the quality of assets of the Bank has continued to improve to the low of 4.55 percent in June 2013, down from 11.6 percent in 2009. The Bank’s portfolio has also diversified further, both by country and sector, as can be seen in the pie charts below. Loan Portfolio geographic exposure (H1 2013) CS/CM/XXXII/2 Page 97 Loan Portfolio by sector (H1 2013) 400. With growing confidence, the Bank’s existing shareholders have paid-in a record level of USD 56 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 current shareholders in September 2013, to be implemented over a three year period. In this regard, the AfDB took the lead with a US $20 million investment in the Bank’s new class B shares, which was introduced with the new corporate plan and amended charter. 401. The Bank has also attracted several new shareholders, the National Pension Fund of Mauritius, the National Bank of the Republic of Belarus and ZEP Reinsurance, which together are subscribing to US $40 million in class A and B shares. With an expanded equity base, increased mix of shareholding and enhanced risk management, the Bank secured its first credit ratings upgrades, by GCR in 2012 and Fitch in 2013, with the ratings up to BB+ and BB respectively. All three of the Bank’s ratings agencies have given the Bank a stable outlook, citing the Bank’s expanding capital base and strong liquidity among the critical strengths taken into consideration. 402. Apart from equity capital, the Bank’s funds mobilisation drive has yielded unprecedented results. As at end of 2013, total resources mobilised are estimated at close to USD 3 billion. The Bank has drawn further funding from existing partners such as the African Development Bank, China Development Bank and OPEC’s OFID, as well as from new funding partners such as KfW of Germany, while new promising funding relations have been initiated with BNDES of Brazil, China EXIM Bank, the European Investment Bank and Agence France de Development. Also, the Bank successfully issued its 2nd Eurobond in November 2013 raising US $300 million in the international capital markets at lower interest rates than previously. 403. Council was informed that the Bank is rapidly advancing into a stronger regional trade and development finance institution. This has been the result of strong support from member states and institutional partners, and increased credibility of the Bank’s capacity, standards, corporate governance framework, and risk management practices. CS/CM/XXXII/2 Page 98 404. The value of Member States’ cumulative investment in the Bank has almost doubled, earning financial returns of over 10 percent over the past five years, and currently 14 percent, while at the same time providing developmental returns through the financing of infrastructure, industry, agribusiness, small and medium enterprises and trade. The Bank is successfully leveraging each Members’ dollar of investment in the Bank about five times, generating expanded development impact for the economies of the region, and a strong value proposition for its shareholders and stakeholders. Discussion: 405. Council noted with concern that the PTA Bank did not send a representative to present its report to IC. The meeting called upon COMESA Institutions to ensure that they attend Policy Organs Meeting. Decisions: 406. Council: i. Urged Member States should continue investing in their regional Bank, and Burundi, Comoros, Democratic Republic of Congo, Eritrea, Somalia, Tanzania and Uganda should settle their capital arrears during the 2014 fiscal year; and ii. Commended Djibouti and Sudan for the full settlement of their accumulated capital arrears during 2013, and Democratic Republic of Congo, Tanzania and Uganda should also be commended for the substantial progress in clearing their arrears in the past year. COMESA CLEARING HOUSE (Agenda Item 4 (b)(viii)) 407. Council received the report of the COMESA Clearing House (CCH), which was established in 1984 (as the PTA Clearing House), under the PTA Treaty signed in 1981, for the facilitation of the settlement of trade and services payments amongst Member States. The CCH has the following objectives: (i) Promotion of the expansion of trade and economic activity between Member States; (ii) Establishment of appropriate systems for the payment and settlement of cross-border payments among Member States; (iii) Saving on the use of foreign exchange by Member States in their inter-state transactions; (iv) Supporting Member States in the liberalisation of trade through appropriate facilitation instruments; (v) Promotion of monetary and financial co-operation among Member States; and (vi) Establishment of closer relations among Central Banks, commercial and merchant banks throughout the COMESA region. 408. The direct participants of the COMESA Clearing House are the Central Banks of Member States. The current membership of the COMESA Clearing House comprises of: Burundi, DR Congo, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. 409. Article 73 of the COMESA Treaty spells out Member States undertaking (until a common Central Bank is established) to settle all payments in respect of all transactions in goods and services conducted within the Common Market through the Clearing House. Article 14 of the CS/CM/XXXII/2 Page 99 Clearing House Charter specifies that all transactions among Member States, including contributions and subscriptions to COMESA Institutions, shall be settled through the Clearing House. 410. In order to achieve the above stated objectives, the Clearing House was mandated, by its Central Bank Governors, the Ministers of Finance, the Council of Ministers and COMESA Heads of State and Government, to design and implement, among other facilities, a Payments System designed to reduce costs of regional transactions in a liberalised foreign exchange regime. The Regional Payment and Settlement System (REPSS), was thus commissioned and subsequently set up with the assistance of COMESA which has the vision of making REPSS the single gateway for Central Banks within the region to effect payment. 411. The meeting was informed that the REPSS has been designed by COMESA Central Banks Payments Experts, with inputs from the IMF, commercial banks and other financial institutions of the region and with financial support from the EU under the Regional Integration Support Programme (RISP). REPSS is a Multilateral Netting System with End-of-Day settlement in a single currency (US$ or Euro) with the system allowing for settlement in a multicurrency environment (US$, Euro or any other specified currency). 412. The main aim of REPSS is to stimulate economic growth through an increase in intraregional trade by enabling importers and exporters to pay and receive payment for goods and services through an efficient and cost effective platform. Local banks access the payment system through their respective Central Banks. Any participating bank is, therefore, able to make payments to and receive payments from any other participating bank. The linkages through Central Banks avoid the complex payment chains that may sometimes occur in correspondent bank arrangements. The system operates through Member States Central Banks and their corresponding banking systems. 413. Under REPSS, importers and exporters deal with their local commercial banks for trade documentation. The importer’s payment to the exporter is channeled through the Central Bank of the importer to the Central Bank of the exporter using the REPSS platform. Central Banks send payment messages to REPSS on a particular day and at the end of the day, REPSS nets the payments and settlements are made to the respective Central Banks accounts. The Central Banks credit the commercial banks accounts with them and the commercial banks then credit the exporters accordingly. The credibility of the Central Bank and pre-funding of account by commercial banks provide guarantee of payment. 414. The key benefits of REPSS are: a. b. c. d. e. It guarantees prompt payment for exports as well as other transfers. This is because T+0 Settlement is possible with the Settlement Bank being within the operating times of all other participants. The settlement period is, therefore, greatly reduced; It eliminates mistrust among traders because of Central Bank involvement. This in turn increases trade within the region; It reduces foreign funding as the amount to be paid at the end of the day by a participant is on a net basis; All payments under REPSS are guaranteed as instructions, once cleared are final and irrevocable; It reduces collateral requirements as Central Banks are directly involved in the System; CS/CM/XXXII/2 Page 100 f. g. 415. There is no need to confirm Letters of Credit under REPSS; and It opens up avenues for trading on Open Account. The following activities have been undertaken in getting REPSS to live operations: a. b. c. d. e. f. g. REPSS hosting was moved from South Africa to the Bank of Mauritius as decided by the COMESA Committee of Governors of Central Banks; Pilot testing was carried out for the Central Banks of Djibouti, D R Congo, Egypt, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Sudan, Swaziland, Tanzania, Uganda and Zambia; REPSS user acceptance tests have been carried out with the Central Banks of Egypt, Kenya, Madagascar, Malawi, Mauritius, Rwanda, Sudan, Swaziland, Uganda, Zambia and Zimbabwe. The test platform runs parallel to the live platform for those Central Banks that still require testing; REPSS Legal Agreements between Central Banks and both the COMESA Clearing House and the Settlement Bank (Bank of Mauritius) have been signed by 11 of the 20 Central Banks namely the Central Banks of DR Congo, Egypt, Kenya, Malawi, Mauritius, Rwanda, Sudan, Swaziland, Uganda, Zambia and Zimbabwe; Settlement Accounts at the Bank of Mauritius for purposes of end of day settlement have been prefunded by 9 Central Banks, namely the Central Banks of DR Congo, Kenya, Malawi, Mauritius, Rwanda, Sudan, Swaziland, Uganda and Zambia; Information Workshops have been conducted for the Central Banks of DR Congo, Egypt, Kenya, Libya, Malawi, Mauritius, Rwanda, Sudan, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe; and Training and Sensitisation Workshops have been held for the Central Banks of Egypt, Kenya, Malawi, Mauritius, Rwanda, Sudan, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. 416. Council further noted that REPSS started live operations on 3rd October 2012 and registered its first transaction between Bramer Bank of Mauritius and Fina Bank of Rwanda, through their respective Central Banks. The Central Bank of Swaziland subsequently joined the live platform during the first half of 2013 and the Reserve Bank of Malawi went live in November 2013. Whilst the Bank of Uganda is scheduled to go live on 28 February 2014, the Central Banks of Kenya and Sudan have planned live operations for March/April 2014. The Central Banks of Burundi, Democratic Republic of Congo, Egypt and Zambia are expected to go live on the system by June 2014. 417. With a view to promoting the utilisation of REPSS, the 18th Meeting of the COMESA Committee of Governors of Central Banks, held in Kigali on 11-12 December 2012, extended the period of transacting on REPSS free of charge (except for SWIFT messaging and other related charges) to 30 September 2013. This period has further been extended to 30 September 2014. 418. A REPSS User Group was set up, with the aim of, among other things, attending to Operational and Policy Issues arising out of REPSS operations. The first meeting was held from 10 to 12 June 2012 and hosted by the Central Bank of Egypt at its Headquarters in Cairo. Membership of the group comprised of the Central Banks of Egypt, Kenya, Mauritius, Sudan and Zambia. The 2nd Meeting of the User Group was held in Kampala on 22 - 23 October 2013 CS/CM/XXXII/2 Page 101 with enlarged membership, comprising of the Central Banks of Burundi, DR Congo, Egypt, Kenya, Malawi, Mauritius, Rwanda, Sudan, Swaziland, Uganda and Zambia; 419. The COMESA Committee of Governors of Central Banks had noted the proposed amendments to the COMESA Certificate of Origin to specify that “Payment will be made through REPSS” as a way to ensure that REPSS is used as intended by the traders. This means that in addition to goods enjoying preferential tariff treatment at borders, traders will also enjoy seamless payment movements and reduced costs. 420. Council was informed that there has been tremendous progress noted in the area of trade within COMESA, with Intra-COMESA trade increasing from US $3.1 billion at the time of the launch of the Free Trade Area in 2000 to US $19.3 billion in 2012. REPSS provides a smooth flow of payments for such trade, and with cross border payments costing around US $600 million per year, the platform allows reduction in such costs with the resulting savings channeled to other economically beneficial projects within COMESA. Such cost savings would induce all users to make REPSS the preferred payment option going forward. Estimates show that the region would save an amount of at least US $112 million in 2014, when channeling intra-COMESA import transactions through the Regional Payment and Settlement System (REPSS), where no confirmation of Letters of Credit is required. 421. REPSS enables the building of trust and confidence amongst traders and commercial banks of the region and facilitates the transacting under documentary collections (ICC Publication no. 522) and ultimately on open accounts where the opening of Letters of Credit would no longer be required. Once the region moves to trading under open account, savings would be as high as US $420 million (estimates for 2014) under documentary collections/open account trading. Further, such trust will in future promote trade among countries in the region, thus increasing trade significantly. With an increase in intra-COMESA imports from US $10 billion in 2012 to a projected amount of US $14.9 billion in 2019, our region would make an estimated savings of US $525 million in 2019 if the totality of the payment for that trade is channelled through REPSS. Discussion: 422. Council commended the central banks and the COMESA Clearing House for reemphasising this facility, which highlights the soft spots where huge amounts of money are lost to other parts of the world. It was pointed out that there was need to put concerted efforts into ensuring that the REPPS succeed, by marketing it aggressively. Decisions: 423. Council: i. Commended the Central Banks of Malawi, Mauritius, Rwanda and Swaziland for being live and transacting on REPPS; ii. Commended the Bank of Uganda for completing its preparations for live operations and scheduling to start transacting on the system by 28 February 2014; Commended the Central Banks of Kenya and Sudan for completing preparations for live operations and scheduling to start transacting on the system by March 2014; iii. CS/CM/XXXII/2 Page 102 3.8 iv. Commended the Central Banks of Burundi, Democratic Republic Of Congo, Egypt and Zambia for scheduling to start live operations by June 2014; v. Urged those Central Banks that have not yet met the prerequisites for joining REPSS to do so by June 2014 at the latest; vi. Urged all Central Banks, with assistance from COMESA Clearing House, to sensitise their stakeholders on the utilisation of the Regional Payment and Settlement System for the benefit of the entire region; vii. Directed Member States, pursuant to Article 73 of the Treaty, to settle all payments in respect of all transactions in goods and services, conducted within COMESA, through the Clearing House Regional Payment and Settlement System (REPSS); and viii. Directed the COMESA Clearing House to aggressively market the use of the REPSS among the Member States. COMESA REGIONAL INVESTMENT AGENCY (RIA) (Agenda Item 4 (b)(ix)) 424. Council was informed that the COMESA Regional Investment Agency (RIA) was established in 2006 to advance efforts in attracting cross-border and foreign direct investment to the COMESA region. Its mission is to transform COMESA into an internationally competitive investment area, which allows free movement of capital, labour, goods, and services across borders of COMESA Member-States, and thereby facilitate sustainable growth of private domestic and foreign investment. 425. The objectives of the agency are: to make COMESA one of the major destinations for regional and international investors while simultaneously enhancing national investment; and to carry out other activities in the area of investment promotion, facilitation and advocacy in conformity with the COMESA Treaty. 426. The functions of the Agency include: gathering and disseminating information including creating and maintaining a database and website on policies affecting the trade and investment environment, cost of transacting business, trade procedures, investment procedures, investment and trade opportunities and other relevant information in Member States; proactively promoting and facilitating investment initiatives, policies and other issues in COMESA in conformity with the COMESA Treaty; identifying and promoting investment opportunities, with special focus on projects with a regional dimension; and training and providing development support for National Investment Promotion Agencies (IPAs). 427. Since its launch, COMESA RIA has been is active in promoting the COMESA region as a Common Investment Area, in building a positive image of the region to a worldwide audience, and in improving Member States’ ability to do the same. 428. 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 activities such as trainings on various topics related to investment promotion, CS/CM/XXXII/2 Page 103 development of websites, organisation of study tours, the development of various publications and the completion of in-depth studies. Together, the latter have been able to strengthen the capacity of IPAs to promote their countries to attract investments, retain investments from their existing investment base, and equip them with teams able to assist investors. Programmes have therefore contributed to improving investment prospects of Member States and of COMESA region as a whole. 429. Council further noted that IPAs have communicated their appreciation of COMESA RIA’s programmes and confirmed increases in investor requests and in some cases in visits, as well as an improvement in their ability to respond to requests. A good example of impact can be found in Burundi, where combined with public sector reforms, and the post-conflict political stability, COMESA RIA programmes targeting their IPA were able to contribute to a clear improvement of their ranking in the World Bank’s Doing Business report and increases in investment levels. 430. Also contributing to these efforts are the various promotional activities which have been organised over this time span. Examples include: the organization high-level International COMESA investment forums and ministerial road shows, the participation to key events and support to Member States’ events, the development of an investor portal now attracting over 200,000 visitors a year, various country-level and regional investors’ guides and other promotional tools, the promotion of specific investment opportunities and projects, as well as the dissemination of positive news and information about facilities, regulatory frameworks, incentives, and procedures. 431. In 2012, COMESA RIA launched an external evaluation and assessment with the objective to establish whether it had met its goals and objectives since its inception, ultimately to provide conclusions and recommendations to enhance COMESA RIA‘s credibility and impact on COMESA Member States and for guidance for future investments and sustainability. 432. In terms of promotion, the report highlights the interest and publicity COMESA RIA has created among regional and international investors. As compared to COMESA RIA’s inaugural COMESA Trade and Investments Conference of 2008 where about 150 participants were gathered, the COMESA region is now enjoying a publicity level which was capable of attracting 3000 high-level attendees from 86 countries at the 2013 Africa Global Business Forum in Dubai. 433. As far as capacity-building is concerned, the report mentions that from the responses received both by way of letters of gratitude and questionnaire, IPAs confirm that their staff are more knowledgeable on how to tackle the investments promotions that attract investors. The IPAs stressed their commitment to COMESA RIA, and see the organization as a central pillar in the efforts to make COMESA a major destination for foreign investment. They recognize the need for some coordination of current national investment promotion efforts and see COMESA RIA as a vehicle for creating greater synergies from these efforts. The IPAs realize that they have a greater chance of attracting investment if they work with COMESA RIA and see RIA as adding value to their existing efforts. 434. Council further received a summary of the activities of the Agency, which included: improvement of investment and business climates of COMESA Member States; promotion of the COMESA region as an attractive investment destination; participation in various events with the objective of promoting the COMESA region as an attractive investment destination; and the organisation of four road shows to Turkey, Gulf Member States, China and South Africa. CS/CM/XXXII/2 Page 104 Foreign Direct Investment (FDI) in the COMESA Region 435. Council noted that FDI into COMESA recovered in 2012 to register an 86.2 percent growth compared to 2011 levels. Key country drivers to this trend were Uganda, Democratic Republic of Congo and Madagascar that recorded growth rates of 93 percent, 96 percent and 85 percent respectively in 2012. Of note is that Egypt moved from a disinvestment of US $483 million in 2011 to an inward FDI of US $3,746 million in 2012. 436. For Uganda in particular, recent oil discoveries in Lake Albert have contributed to the observed levels of FDI inflows. This trend in natural resource driven inward FDI also applied to the Democratic Republic of Congo with the performance in 2012 reflecting steady investment into the mining sector among them the Tenke Fungurume copper-cobalt mines in the south-east of the country. Other countries that experienced growth in inward FDI flows in 2012 were Eritrea (298 percent), Comoros (149 percent), Democratic Republic Congo (96 percent) Madagascar (85 percent) Ethiopia (57 percent), Mauritius (32 percent) and Rwanda (51 percent). 437. Burundi, Kenya, Seychelles, Sudan, Swaziland and Zambia all recorded lower FDI inflows in 2012 compared to 2011. The table shows the full picture of inward foreign direct investment into COMESA Member States. FDI into COMESA countries by value US $ millions: 2008 2009 2010 2011 2012 %growth 20112012 Burundi 3.8 0.3 0.8 3.4 0.6 -8.2 Comoros 4.6 13.8 3.9 6.8 17.0 149 D R Congo 1726.8 243.2 2742.3 1686.9 3312.1 27.1 Djibouti 228.9 99.6 36.3 78.7 100.0 96.3 Egypt 13236.5 8113.4 6758.2 -482.7 3745.7 *** Eritrea -0.2 0.0 55.6 18.5 73.7 298.2 Ethiopia 107.0 226.9 285.7 619.0 970.4 56.8 Kenya 92.5 111.2 171.5 330.3 254.6 -22.9 Libya 3180.0 3310.0 1909.0 - - - Madagascar 499.7 525.9 344.2 438.9 811.9 85 Malawi 195.4 49.1 97.0 128.8 129.5 0.5 Mauritius 372.5 240.5 415.4 263.2 346.8 31.8 Rwanda 103.4 118.7 42.3 106.2 159.8 50.5 Seychelles 129.8 118.4 159.8 144.7 114.0 -21.2 Sudan 2600.5 2662.1 2894.4 2691.7 2466.4 -8.4 CS/CM/XXXII/2 Page 105 Swaziland 105.7 65.6 133.5 92.2 88.6 -3.9 Uganda 728.9 841.6 543.9 894.3 1721.2 92.5 Zambia 938.6 694.8 1729.3 1108.0 1066.0 -3.8 Zimbabwe 51.6 105.0 165.9 387.0 399.5 3.2 COMESA 24306.1 17053.8 18489.0 8515.9 15860.4 86.2 Source: COMSTAT 438. According to the Ernest and Young’s 2012 Africa attractiveness survey report the number of FDI projects into Africa has grown at a compound rate of almost 20% since 2007 and increased 153 percent in absolute terms since 2003. Between 2010 and 2011, the year-on-year growth was 27 percent, and FDI project numbers are now almost back to the peak experienced in 2008 just before the financial crisis. 439. The growth in intra-African investment is being led by the respective regional powerhouses of Kenya, Nigeria and South Africa. All three of these African economies are ranked among the top 20 investors into the rest of the continent between 2003 and 2011. Importantly too, in the last four years, all three of these African countries have been growing their investments in terms of compound growth of new FDI projects. Over this period, investment from Kenya and Nigeria into the rest of the continent has grown at a faster rate than from anywhere else in the world, at 77.8 percent and 73.2 percent respectively, while South African investment has grown at a rate of 64.8 percent. 440. In terms of the sectors into which the investment was directed the table below shows an indication of major companies investing in COMESA and the sectors into which the investment went in the year 2010. FDI into COMESA went into financial services, communications, business services, metals, oil and gas, hotels and tourism as well as real estate, among other sectors. Intra-COMESA FDI inflows 441. The average COMESA originating FDI inflows into Egypt over the period 2007-2012 was US $44 million, representing 95 percent of African originating FDI into Egypt. For Madagascar, the regional average from 2007-2011 was US $78 million. African originating inflows into Mauritius over the same period were a singular source, South Africa and amounted to US $62 million. Uganda inflows from Africa for 2007-2011 amounted to US $177 million from COMESA and US $40 million from South Africa. An average of US $29 million worth of FDI between 2007 and 2011 into Zambia was from COMESA countries. Within the same period, the average South African inflows in Zambia were worth US $8.4 million. 442. The main reason for the FDI inflow is Africa’s attractiveness against the uncertainty particularly in the Euro-zone; and a weak macro-economic environment in advanced economies. The high investment return varying from 20 to 30 percent, the larger regional market through among others the Free Trade Areas, particularly the COMESA FTA, the abundant natural resources and affordable manpower, are among others the main reason of the shift recorded in FDI trend. CS/CM/XXXII/2 Page 106 443. The IC noted that trade facilitation arrangements and market information access facilitated by the ICT is helping African businesses to find new investment opportunities closer within the continent. Innovation in financial and business services has also prompted domestic firms to become regional and even multinational companies. This is the case for Safaricom through M-Pesa which now has expanded its activities in Uganda, DR Congo South Sudan among others. South African MTN has become multinational company as it expanded its activities beyond the continent. 444. In terms of the sectors into which the investment was directed the table below shows an indicative of major companies investing in COMESA and the sectors into which the investment went. FDI into COMESA went into financial services, communications, business services, metals, oil and gas, hotels and tourism as well as real estate, among other sectors. Major investing companies in COMESA countries Companies Investing economy Host economy First Quantum Canada Zambia Coal, Oil, Gas/Extraction(US$ 275 million) Nakumatt Holding Limited Kenya Uganda Food and Tobacco (retail) British Petroleum (BP) UK Egypt Coal, Oil, Gas (Extraction) Qatar Petroleum Int Qatar Egypt Coal, Oil, Gas (Extraction) Samsung Electronics South Korea Kenya Consumer electronics MTN South Africa Zambia Communications Huawei Technologies China Egypt Communications Pick and Pay South Africa Zambia Food and Tobacco (retail) Tata Group India Zambia Energy (US$ 375 million) Dangote Cement Nigeria Zambia Construction WahSeong Malaysia DR Congo Energy UAP Group Kenya DR Congo Financial service (Insurance) MIOT Hospitals India Sudan Healthcare China Machine -Building China Int Uganda Metal sector (Manufacturing) BHARTI Airtel DR Congo, Communications Madagascar India Sector CS/CM/XXXII/2 Page 107 The COMESA Model on Double Taxation Avoidance Agreements (DTAs) 445. Following negotiations held since 2012, Member States have adopted in November 2013, in Lusaka, Zambia, the COMESA Model on Double Taxation Avoidance Agreements. This Model DTAs will help Member to address the transfer pricing, avoid double taxation and cooperate in fiscal matter aiming at fighting fiscal evasion not only among themselves, but also with the third party countries. 446. The meeting noted the report of COMESA Regional Investment Authority. AFRICA TRADE INSURANCE AGENCY (Agenda Item 4 (b)(x)) 447. Council was informed that since inception, the African Trade Insurance Agency (ATI) consistently expanded its range of product offering and increased the volume of investment and trade in its Member States. ATI has evolved from a homegrown institution to a global player that it is providing risk mitigation instruments for its client base from around the world for the benefits of economies in Africa. 448. The African continent is currently among the world’s most rapidly growing economic regions. In this context, ATI continued to support investors and assist countries access financial and technical resources that they may otherwise have not been able to source.The demand for ATI products was driven by the need for infrastructure development (Energy, telecommunications and road construction) and by local, regional and international banks looking to shield themselves against commercial and political risks. 449. In order to enhance investments in the energy sector the European Investment Bank and ATI are at an advanced stage of setting up an African Energy Guarantee Fund (AEGF) that will provide more support to investors and lenders in the energy sector. The AEGF will assist countries and the private sector to bridge the large energy infrastructure gap in all three areas of renewable energy (generation, access and efficiency). 450. During the period under review, ATI continued to offer the following range of products: a. b. c. d. e. f. g. h. Political Risk Insurance for trade & investment (short, medium and long term); Comprehensive Non-payment Cover for Private obligors; Sovereign obligors; and Parastatal obligors; Inter & Intra-regional and Domestic Whole Turnover Credit Insurance with payment terms; Unfair calling of bonds insurance; Mobile assets insurance; Political Violence Excess of Loss Reinsurance; Stand Alone Terrorism & Sabotage, and; Bond insurance products 451. ATI covered projects in a variety of sectors that supported the economies of Member States including agribusiness, energy (power generation and supply of petroleum products), manufacturing, mining, telecommunications, housing finance, health, road construction, and exports of flowers and other fresh produce. 452. Council was informed that the business performance of the ATI is as follows: CS/CM/XXXII/2 Page 108 a. b. c. d. e. f. 453. It was further noted that the Agency’s membership expanded as follows: a. b. c. d. e. 454. The Agency generated a Gross Written Premium9 of US$12 Million in FY2013. The Net Earned Premium10 of US $6 million for FY2013 represented a 50% increase above FY2012’s US $4 million; ATI’s Gross Exposure reached US $886 million in FY2013 which is an improvement compared to FY2012’s US $706 million, being an increase of 25.5%; Net Exposure grew by 29.49% from US $373 million in FY 2012 to US $483 million in FY2013; Investment Income amounted to US $2.1 million in FY2013 compared to an investment income of US $2.0 million in FY2012; and To date the Agency has supported trade and investment flows for its Member States in excess of US $13 billion. The Republic of Benin fulfilled all its membership requirements and became a fully-fledged member of the Agency with a capital contribution of US $7.2 million; The African Development Bank paid up its capital contribution in the amount of US $15 million; The Federal Democratic Republic of Ethiopia was admitted into ATI membership on 15 May, 2013 by the Agency’s Thirteenth Annual Meeting of Shareholders. Ethiopia was invited to fulfill the remaining membership requirements, and; The Republic of Sierra Leone was admitted into ATI membership on 15 May, 2013 by the Agency’s Thirteenth Annual Meeting of Shareholders. Sierra Leone was invited to fulfill the remaining membership requirements. Kenya Re-Insurance Corporation was admitted into ATI on 27 November 2013 subject to fulfilling the remaining membership conditions. The Agency’s capital stock as 31 December 2013 was as follows: Member Burundi Benin Democratic Congo Kenya Madagascar Malawi Rwanda Tanzania Uganda Zambia Republic Share Premium 90,634 9,643 Number Shares 153 72 19,200,000 28,300,000 100,000 17,200,000 8,700,000 16,900,000 22,900,000 44,972 14,777 75,042 79,015 70,558 37,360 192 283 1 172 87 169 229 16,900,000 152, 700,000 59,556 169 481,557 1,527 of Sub/Total Class A Members 9 Share Capital 15,300,000 7, 200,000 The gross amount of insurance underwritten Earned premium net of reinsurance 10 of CS/CM/XXXII/2 Page 109 The African Development Bank Africa Re Atradius COMESA SACE SpA PTA Bank ZEP Re Sub/Total Class C, D & E Members Total 15,000,000 100,000 100,000 100,000 10,000,000 100,000 100,000 - 25,500,000 178,200,000 481,557 150 1 1 1 100 1 1 255 1,782 455. Council noted that the share capital premium calculations depend on the share capital available to that Member State, as seen in the table above, and that each share capital amounts to 100,000. 456. Council noted that for the last six years, the African Trade Insurance 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. On 26 July 2013, 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 is a confirmation that ATI’s capital base and business model remain robust. There is no doubt that the rating will encourage more utilization of ATI products and services by banks, importers, exporters and investors worldwide. 457. Council was informed that the 71st ECOWAS Council of Ministers and the ECOWAS Summit of Heads of State held on 17 November 2013 in Abidjan resolved to recommend ECOWAS Member states to join ATI. Further, the Council also endorsed a recommendation by the ECOWAS ministers of finance for the establishment of an implementation Committee comprising representatives of Nigeria, Cote d’Ivoire, ECOWAS Commission, ECOWAS Bank for Investment and Development, West Africa Insurance Companies Association (WAICA) and ATI, to commence procedures for effective partnership between ECOWAS and the ATI. 458. Countries that have been admitted into membership and are in the process of fulfilling remaining membership requirements include: Djibouti, Eritrea, Ethiopia, Gabon, Ghana, Ivory Coast, Liberia, Sierra Leone, Sudan, South Sudan, Togo, and Zimbabwe. 459. The Agency has also initiated a membership dialogue with a number of countries including Angola, Cameroon, Gambia, Mozambique, Nigeria and Senegal. 460. ATI and the European Investment Bank have concluded a grant agreement that will provide ATI a grant in the amount of €2 million to enable ATI to build up its capabilities in power sector to originate and underwrite energy projects. CS/CM/XXXII/2 Page 110 Decisions: 461. Council: i. Commended the Republic of Benin and the African Development Bank for fulfilling all membership requirements and becoming fully-fledged members of the ATI; ii. Commended ECOWAS Council of Ministers for requesting all ECOWAS Member States to become members of ATI; and iii. Directed that all COMESA Member States that are not yet members of ATI to join the institution. COMESA BUSINESS COUNCIL (Agenda Item 4 b) (xi)) 462. Council was informed that the COMESA Business Council is the private sector institution of COMESA. It was established in 2005; with the objective of providing a platform for business services and linkages, policy advocacy and trade information and business intelligence; addressing the pertinent constraints to business and competitiveness in the region, and increasing private sector participation in the regional integration agenda. 463. Chapters 23 and 24 of the COMESA Treaty recognize the private sector as the backbone of a vibrant economy, the engine of steady and consistent growth. The strength in advocacy of the CBC solidified through the constitutional and policy obligations to take part in meetings of the Technical Committees and make recommendations on behalf of businesses and industry to the Intergovernmental Committee. 464. The overall goal of CBC as announced in its mission statement is: “To promote collective engagement of the COMESA private sector for effective regional integration, competitiveness, trade and investment”. CBC also has the mandate to represent, promote and defend the interests of the private sector in regional and international matters. It must also ensure that these interests are taken into consideration by the COMESA organs when designing regional trade policies and strategies. 465. The objectives of CBC are the promotion of the inclusiveness of the private sector in regional integration; articulating the key interests of the private sector in issues directly affecting their businesses to the highest levels of decision making; strengthening the technical and productive capacity of private sector to compete in regional and global markets; strengthening the capacity of trade support institutions to directly support private sector interests in partnerships, linkages and trade development and promotion; enforcing strategic advocacy platforms for the private sector in at least 70 percent of the priority sectors within COMESA region by 2015; ensuring effective representation of private sector interests in COMESA decision making processes in at least three priority sectors per year; providing timely and strategic business services to regional and international stakeholders on the business environment in the region; ensuring 90 percent of private sector inclusiveness in the regional integration agenda by 2015; and ensuring that the CBC is a fully membership led and driven Institution by 2016. CS/CM/XXXII/2 Page 111 466. Council noted that the December 2013 CBC financial report adopted by the CBC board of directors and vetted by COMESA Secretariat indicated that the Secretariat has mobilized US $131,360. The CBC has also built a membership of 38 associations and companies from the region. In terms of operations, CBC has a staff-base of thee persons - two of whom are technical support and two general support staff. The newly elected CBC Board is as follows: a. b. c. d. e. f. g. h. i. Chairperson, Dr Amany Asfour, President, Egyptian Business Women Association; First Vice-Chairperson, Ms Mulu Solomon, President, Ethiopia Chamber of Commerce; Second Vice-Chairman, Mr Benjamin Gasamagera, President, Rwanda Private Sector Federation; Board Director, Mr Polycarp K. Igathe, Chairman, Kenya Association of Manufacturers; Board Director, Mr Govindaswami Ramalingum, President, Mauritius Chamber of Commerce and Industry; Board Director, Mr Bright Chunga, Chairman, Zambia Association of Manufacturers; Board Director, Ms Amna Mohamed Ibrahim El Nour, Director General, Sudan Trade Point; Board Director, Mr Menghis Samuel, President, Eritrean Chamber of Commerce; and Immediate Past Chairman, Mr Mathews Chikankheni, Chairman, Malawi Chamber of Commerce and Industry. 467. Council was informed about the key achievements, the challenges, the solutions to the challenges, as well as the work plan for 2014 of the CBC. 468. Council further noted that the following recommendations have been submitted as common positions of the private sector, to the Member States, presented through the business workgroups, under the CBC Trade and Industry Committee: a. On Addressing the regional and policy framework of SME Manufacturers: Member States are requested to facilitate and develop and a dedicated legislative, regulatory and institutional policy frameworks that support and are dedicated to the development and growth of the SME Sector as we look at regional common approaches on the same. This should include technical capacity, SME infrastructure and address issues of affordable finance through the development of COMESA SME Fund. The Kenyan SME Act is a regional best practice that can be tailored and adopted by the other Member states. b. On Regional Integration, Trade Facilitation and Market Access: The Member States are called upon to put in place robust institutional governance and enforcement systems, establishing a regional institutional governance framework on illicit trade and adherence to COMESA obligations. c. On Standards development: CS/CM/XXXII/2 Page 112 d. i. Government and the private sector should increase information awareness on the importance of standards as a key to industrialization and competitiveness. Private sector participation in standards development should be increased at a national and regional level. ii. Member states are requested to consider the Made in COMESA Label for COMESA origin products as a voluntary standard, to encourage consumer preference of indigenous products in the region and promote easier cross border trading of said goods. iii. Preferential Procurement in public procurement procedures; Member States are requested to facilitate a regulatory framework that mandates preferential public procurement in favor of SME’s, local and regional companies. This should mandate that for government global contracts a certain percentage should be procured from locally recognized SMEs or the local manufacturers. On Business and regulatory framework i. Member States and the COMESA Secretariat are requested to establish an Institutional framework and resources dedicated to support the manufacturing sector in implementing the industrial policy at a national level. ii. Secondly, where there are no industrial policies, Member States in consultation with the Private Sector through Public Private Partnerships should develop Sectoral strategies, policies and Institutional frameworks to support the manufacturing sectors. This involves; Identification of key priority sectors and programmes of support to facilitate the growth of that industry. Member States should involve the private sector in the policy formulation processes iii. Thirdly, Member States should ease regulation and high tax regime to promote the growth of the manufacturing industry, and also to encourage SMEs to become more formal. e. On the Adoption and Implementation of COMESA Business Visa i. Member States are called to note and to support the consultative processes that will be carried out in 2014 by the private sector in partnership with the Ministries in charge of Immigration; and the programme for promoting the implementation of the business visa. ii. Member States are requested to follow flexible and non-burdensome immigration policies to promote the movement of business persons in COMESA region. This includes signing and implementing the Protocol on the Movement of Business Persons and working towards the elimination of visa fees for business travelers. CS/CM/XXXII/2 Page 113 f. Institutional Strengthening and Technical capacity building of national private sector apex bodies Cognizant of the need to increase the voice of the private sector through national private sector apex bodies which are the key members of the COMESA Business Council. National private sector apex bodies lack the technical and financial capacity to participate and effectively contribute to private sector development agendas at national and regional level. Member states are therefore requested to support and facilitate the technical capacity constraints of the national business member apex bodies and to support the participation of the private sector in contributing to the policies and negotiations at both a national and regional level. Discussion: 469. Council noted the low participation of MSMEs in the CBC and its activities due to the high cost of registration; and exhibitions fees. Decision: 470. Council urged the CBC to consider reducing the participation and exhibition fees for the MSMEs. FEDERATION OF NATIONAL ASSOCIATIONS OF WOMEN IN BUSINESS IN EASTERN AND SOUTHERN AFRICA (Agenda Item 4(b)(xii)) 471. Council received the report of FEMCOM, a COMESA institution established in July 1993 under Article 155 of the COMESA Treaty, in line with the decision of the Authority made in January 1992 as well as the FEMCOM Charter. The main objective of FEMCOM is to promote programmes that integrate women into trade and development activities in the COMESA region, in line with the FEMCOM Medium Term Strategic Plan (MTSP) for 2009 – 2014. Implementation of FEMCOM activities are being supported by COMESA Member States, EU and USAID. 472. Council noted the status of implementation and the impact of FEMCOM programmes for the period January – December 2013. The activities included: strengthening FEMCOM and its chapters to ensure sustainability; resource mobilization and strategic partnerships; enhancing women entrepreneurship by up-scaling the capacity of SME cassava, textile/garment clusters; enhancing the Business Incubator for African Women Entrepreneurs (BIAWE) Project; improving access to credit and capital; and advocacy and representation. 473. Council also noted that in 2014 the focus for FEMCOM will be: a. Launch of FEMCOM Secretariat in Lilongwe, Malawi: The launch of FEMCOM has been planned for the first week of April 2014. It will coincide with FEMCOM’s Board Meeting and Annual General Meeting; Launching of FEMCOM National Chapters in Comoros and Eritrea; Development of FEMCOM Complex: A committee comprising of representatives from the Ministry of Industry and Trade in Malawi, the private sector and FEMCOM has been constituted to follow up on the subject matter; SME cluster development activities: Resources are being mobilized to support the cluster activities; Implementation of the BIAWE project: Finalize the feasibility study and implement Phase II of the project; and b. c. d. e. CS/CM/XXXII/2 Page 114 f. Implement climate change initiatives for women in business in COMESA - innovative green business options for women entrepreneurs. Decision: 474. Council urged Member States to encourage MSME to increase the percentage of representation of women on the boards, especially in the predominant sectors of agriculture and hospitality industry. COMESA COMPETITION COMMISSION (Agenda Item 4 (lb)(xiii)) 475. Council was informed that the COMESA Competition law is contained in Chapter VI, Article 55 of the COMESA Treaty. The Council of Ministers in December 2004, invoked the provisions of Article 55(3) of the Treaty which led to the formulation and adoption of the COMESA Competition Regulations for the region. This was in realization that enforcement of competition and consumer policies in the Common Market can help to facilitate the achievement of regional economic integration. 476. The Commission is the first regional competition authority in Africa and the second in the world, after the European Competition Authority. The COMESA Competition Commission is charged with the enforcement of the regulations. The introduction of the regulations created a ‘One Stop Shop’ for the assessment of cross border transactions thereby reducing the burden and cost of doing business in the COMESA region, given that such transactions no longer need to be examined in each Member State. The COMESA regime also provides the only and most extensive network of national competition authorities in Africa. The Commission, in its enforcement of the regulations, enjoys international legal personality in the territory of each Member State and the legal capacity required for the performance of its functions under the Treaty. 477. With the commencement of the enforcement of the regulations on 14 January 2013, there are now two separate legal regimes, which govern the enforcement of competition law and policy in the Member States, namely: a. b. The National Competition laws: these are the national legal orders comprising the respective bodies of competition rules within each of the COMESA Member States; and The Regional Legal Framework: these comprise the body of legal rules created at COMESA level such as the current COMESA Competition Regulations and Rules. 478. Given the two legal orders, the national order applies to the prohibition of anticompetitive practices emanating at national level hence, enforced by the national competition authorities in their respective Member States. Whereas the regional framework shall be invoked generally where there is a cross border impact. The impact of cross-border trade is implicit prerequisite in light of the scope of application of the regulations which mandates the Commission to intervene only when the agreement or conduct has an appreciable effect on trade between Member States. 479. Council noted that since the commencement of operations on 14 January 2013, the Commission has made great strides in advancing its mandate, both in terms of the breadth and CS/CM/XXXII/2 Page 115 depth of its work products as well as the use and implementation of this work product by the Member States. The Commission’s informal working methods consisting of open discussion and mutual trust that has led to broad based consensus has proved highly effective in creating work products that have been well received by the Member States. 480. The Commission has a vision, strategy and values, which set out its ambition to be one of the leading regional competition and consumer protection agencies in the world, with reference to five goals: Enhanced Member States engagement; Improved hand-on assistance to Member States; Greater visibility for competition policy and principles; extending "competition frontiers" (a reference to increasing competition in markets, rather than extending the scope of competition law); and achieving professional excellence. 481. Council further noted that the Commission has continued to play an advocacy role in handling complaints relating to anti-competitive business practices and other unfair business practices. In response to requests or where public comments are sought, the Commission has issued advocacy letters, comments, and amicus briefs. Further, to promote transparency and encourage compliance with the law, the Commission has issued guidelines to provide guidance regarding the application of the Regulations. In this regard, the Commission has also established a ‘Fast-Track’ platform to deal with day to day complaints. 482. Since the commencement of operations of the COMESA Competition Commission on 13th January, 2013, it has processed 22 notifications relating to mergers and other forms of acquisitions affecting all the COMESA Member States, of which ten (10) have been approved. The rate of mergers and acquisitions taking place in all the COMESA Member States is an indication of the attractiveness of investing in the Common Market. This is so because mergers now represent the most favoured rule for investing in Africa. 483. The Council of Ministers at its sitting in Kampala, Uganda in November, 2012 approved the Rule on Revenue Sharing of Merger Filing Fees collected by the Commission. Under the Rule, the Commission shall retain fifty percent of the Common Market merger filing fees and distribute the remaining fifty percent among the relevant Competition Authorities affected by the transactions. The Rule also stipulates that the share of the Common Market Merger filing fees for each Competition Authority shall be proportional to the value of the combined turnover in each Member State. The turnover represents the total amount of business derived by merging parties in the respective markets of the Member States. 484. A total amount of US$ 7,482,810.00 was collected from merger filing fees from January, 2013 to date. The total share accruing to the Competition Authorities of the Member States stands at US$ 3,741,405.00 representing 50 percent of the total filing fees. The share allocated to the designated Competition Authorities of each Member State in accordance with the above cited rule is presented in the table below: SHARE OF REVENUE WITH MEMBER STATES COMBINED TURNOVER AMOUNT DUE TO MEMBER STATES Burundi 218,359.00 419.16 Comoros 243,197.00 449.41 667,824,464.00 210,196.78 COUNTRY Democratic Republic of CS/CM/XXXII/2 Page 116 Congo Djibouti 311,288,732.00 13,279.56 Egypt 1,228,627,223.00 324,974.32 Eritrea 1,632,996,684.00 99,779.53 Ethiopia 1,633,417,026.00 94,307.85 Kenya 2,657,028,536.00 302,825.95 15,858,165.00 44,964.64 Madagascar 504,333,209.00 22,329.92 Malawi 395,308,055.00 301,605.04 Mauritius 711,399,483.00 39,114.90 Rwanda 19,629,169.62 48,337.53 91,355.00 261.92 1,378,931.00 3,519.84 1,077,812,521.00 130,641.35 Uganda 44,119,092.00 82,388.75 Zambia 904,697,585.00 208,815.57 Zimbabwe 734,344,099.00 241,709.81 12,540,615,885.62 2,169,921.82 Libya Seychelles Sudan Swaziland TOTAL 485. Upon commencement of its operations, the Commission engaged the World Bank and the USA Federal Trade Commission (through a technical assistance programme) to explore, in greater detail, the issues raised by the stakeholders relating to the shortcomings in the principal regulations and rules. The Commission, through consultations with stakeholders, has identified areas which require amendments/revision to the Regulations based on the international best practices on merger notification and review procedures. Under this important programme, the Commission shall rely on the recommended practices in designing reforms to merger thresholds, review periods and the scope of application of the Regulations. These amendments are designed to bring about greater consistency, efficiency, and effectiveness to the multijurisdiction merger review process, benefiting national competition agencies, merging parties, and consumers across the Common Market. 486. Despite the enforcement challenges faced by the Commission since its announcement of the commencement of its operations, the business community has continued to respond positively to the advocacy work carried out by the Commission. This is evidenced by the increase in the number of mergers notified with the Commission which now stand at thirteen (13) notifications, nine of which have already been approved by the Committee of Initial Determination (CID) as per the table below. These transactions geographically cover almost all the Member States of COMESA. In financial terms, the estimated total cost of these CS/CM/XXXII/2 Page 117 transactions represents an estimated total investment in the Common Market of over US $1 billion. 487. The meeting noted the merger notifications summary below: Nature of Transaction Sector Merger between Electronics Koninklijke Philips Electronics N.V. (Philips) and Funai Electric Company Limited (Funai) Takeover of CiplaMedpro Pharmaceuticals South Africa (Proprietary) Limited by Cipla India Countries Involved Status Egypt, Ethiopia, Kenya, Approved on 22 Libya, Madagascar, July 2013 Mauritius, Seychelles, Uganda, Zambia Burundi, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, Zimbabwe Merger between Apollo Copper and Djibouti, Egypt, Eritrea, Tyres Limited and Cooper Rubber Ethiopia, Kenya, Libya, Tire & Rubber Company Products Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, Zimbabwe. Merger between Aspen Pharmaceuticals Egypt, Kenya,, Uganda Pharmacare Holdings Limited (Aspen) and Merck Sharp and Dohme B.V Merger between PPC Cement Burundi, Democratic International Proprietary Republic of Congo, Ethiopia, Limited and Cimerwa Rwanda, Uganda, Zambia Limited and Zimbabwe Acquisition of Eurasian Mining, Democratic Republic of Natural Resources Transportation, Congo, Malawi, Zambia Corporation PLC (ENRC financial Zimbabwe by Eurasian Resources Group B.V Acquisition of Oceanic Insurance Kenya, Malawi, Swaziland Insurance Company Services Limited (“Oceanic”) by Old Mutual (Africa) Holdings Proprietary Limited (“OMAH”) Acquisition of Provident Insurance Kenya, Malawi, Swaziland Life Assurance Company services Limited (“Provident”) by Old Mutual (Africa) Approved on 23 July 2013 Approved 17 December 2013 Under consideration Approved on 08 October 2013 Approved on 18 December 2013 Approved on 17 December 2013 Approved on 17 December 2013 CS/CM/XXXII/2 Page 118 Holdings Proprietary Limited (“OMAH”) Acquisition by Total Petroleum OutreMer S.A of the Entire Issued Share Capital of Chevron Egypt Merger between Roots Group Arabia and Ideal Standard Mena Acquisition of Tractor and Grader Supplies Proprietary Limited and Tractor and Grader Supplies (Swaziland) by Torre Industrial Holdings Merger between AgriGroupe Holdings Proprietary Limited and AFGRI Limited Acquisition of Supaswift (Proprietary) Limited Subsidiaries by FedEx Corporation Construction Construction Agribusiness Democratic Republic of Congo, Djibouti, Eritrea, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Swaziland, Uganda, Zambia and Zimbabwe Egypt, Kenya, Libya, Mauritius, Rwanda, Sudan, Uganda Swaziland, Zambia and Zimbabwe Swaziland, Zimbabwe Zambia Approved 18 December 2013 Approved on 18 December 2013 Under consideration and Under consideration Courier Services Malawi, Swaziland, Zambia Under consideration 488. It was further noted that to explore in greater depth the issues of conflict raised by the Member States in the enforcement of the Regulations, the Commission has continued to send its officers to specialised training workshops aimed at sharpening their investigation skills and other need areas of enforcement. This was done in collaboration with institutions such as the International Competition Network (ICN), the United States Federal Trade Commission (FTC), and the World Intellectual Property Organization (WIPO). 489. Following the globalisation of businesses and economies and the increase in the number of national jurisdictions with merger control legislations, there has been a continuous rise of the number of multijurisdictional merger filings. This has led Member States to call for the establishment of a framework for merger review cooperation among interested member agencies. The voluntary framework is intended to facilitate effective and efficient cooperation between and among the national competition authorities reviewing the same merger. The Commission has, in this regard, developed a Draft Model Cooperation Framework for consideration by Member States which provides contact details of the national agencies liaison officers, and facilitates exchange of relevant vital information and avoids duplication of investigation efforts. The draft shall further provide a positive step towards the harmonisation of national competition laws in the Common Market. 490. Cognisant of the enormous amount of enquiries about the regulations coming from the lawyers in various Member States and indeed the critical role that lawyers play in ensuring compliance with the competition laws, the Commission embarked on the process of sensitizing CS/CM/XXXII/2 Page 119 the lawyers, through public debates, aimed at clarifying on the provisions of the Regulations and the enforcement mechanism of the same. Such public discussions have been conducted in form of seminars with the Law Societies of Zambia; Kenya; Mauritius; Ethiopia; Zimbabwe; Swaziland and Uganda. 491. In order to ensure an enhanced working relationship between the Commission and the Competition Authorities of Member States, the Commission organized Regional Workshops on the Working Relationship between the Commission and Competition Authorities of Member States which were held in Zambia and Swaziland. Among the key issues deliberated at the workshops include compliance obligations under the Treaty by the Member States and ensuring that the Regulations are enforceable in the respective national territories through the domestication of the Treaty and the Regulations. 492. The Commission recognises that it cannot limit its activities or vision to its own borders; hence it has devoted significant efforts to international activities. These efforts include engagement on policy initiatives and practices as well as enforcement cooperation. The Commission has to this effect made key-note addresses at Chatham House (London); the London Competition Forum 2013 (London); the ICN (Warsaw); the IGE (Geneva); the Africa Mergers & Acquisition Forum (London); SADC Lawyers Association. The Commission also made special visits to Competition Law Firms namely Clifford Chance (London); Webber Wentzel (Johannesburg) and Bowman Gilfilan (Johannesburg). 493. The Commission has also continued to engage Member States on the issue surrounding the domestication of the Treaty and the Regulations. To this effect, working sessions were held with the authorities of Mauritius and Malawi to deliberate on ways of speeding up the domestication process. In Mauritius this resulted in the establishment of a Task Force at the level of the Competition Commission in consultation with relevant Ministries and other stakeholders from the public and private sectors with regard to domestication of the COMESA Competition Regulations. In Malawi, the Ministry of Industry and Trade initiated the process of harmonizing the national competition law with the Regulations and also sought the legal advice of the Ministry of Justice on how the Regulations can be given legal effect in Malawi given their extra-territorial application. This process will be extended to other Member States whose constitutions require the domestication of treaties. 494. Further, Council noted that the Commission has produced the Strategic Plan; Staff Rules and Regulations and the Board Charter. 495. In 2014 the Commission will intensify its advocacy role in Member States with particular focus on the sensitization of the national competition authorities and national governments on the provisions of the Regulations and the need for domestication of the Treaty and Regulations. 496. The Commission will also work to conclude negotiations on the voluntary Enforcement Cooperation Agreement with Member States. 497. Council noted that since commencement of its operations, most Member States have not fully supported the enforcement activities of the Commission citing the non domestication of the COMESA Treaty and the regulations at national level. This is in violation of Articles 5(2) and 10(2) of the COMESA Treaty. CS/CM/XXXII/2 Page 120 Decisions: 498. Council: i. Urged Member States to give the Treaty and regulations the force of law in their respective jurisdictions; ii. Urged Member States to comply with the provisions of Articles 5(2) and 10 (2) of the Treaty by enacting appropriate legislation at national level to give effect to the COMESA Treaty and confer upon the COMESA Competition Regulations the force of law and the necessary legal effect in their territories by the end of 2014; and iii. Directed the Commission to intensify sensitization and advocacy work in Member States to enhance the enforcement of the COMESA Competition regulations. THE ALLIANCE FOR COMMODITY TRADE IN EASTERN AND SOUTHERN AFRICA (Agenda Item 4 (b)(xiv)) 499. Council was informed that the establishment of the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) was a response to the 2003 Maputo Declaration by African Union which called for coordinated and comprehensive public and private investments in the agricultural sector commonly known as Comprehensive Africa Agricultural Development Programme (CAADP). 500. ACTESA was launched on 24 September 2008 by COMESA stakeholders and officially endorsed on 09 June 2009 by COMESA Heads of State and Governments as a specialized Agency under Chapter 182 of the COMESA Treaty. The strategic position of ACTESA in the COMESA region includes the following: a. b. c. A channel through which the alliance members (farmer organisations, implementing partners, development partners and private sector) receive policy directions and channel their inputs for considerations by COMESA Policy Organ meetings; A regional hub that brings together information, knowledge, and best practices on the developing of staple food markets in Eastern and Southern Africa and disseminates to enable national and regional partners implement programmes/activities in a consistent and sustainable manner; and Regional coordination and facilitation of activities identified by both public and private sectors for implementation at Member State level. 501. Council was informed that ACTESA has initiated efforts to develop and harmonise regional policies and, through training support delivered with partners, helped build capacity of smallholder producers. It has also been the conduit for a number of substantial donor-funded programmes. These notably included the EU-funded COMESA Regional Agricultural Inputs Program (COMRAP), and the African Agricultural Markets Programme (AAMP – funded by DFID and other donors through a World Bank managed Trust Fund mechanism). Both of these programmes are now completed. CS/CM/XXXII/2 Page 121 502. ACTESA developed its Five-Year Strategic and detailed Operational Plans, which were adopted by COMESA Policy Organs. The Strategic Focus Areas include: (i) Policy research, outreach and advocacy, (ii) Market facilities and trade expansion; and (iii) Capacity building for commercialization. A new CEO was appointed in March 2013, and the Director of Trade and Markets position was filled in June 2013. 503. Currently, the main focus areas in ACTESA’s operational activities include; seed system development, biotechnology and bio-safety, regional food balance sheet, capacity building to implementing the operational plan and install a knowledge management system. In addition, ACTESA is making good progress to finalize its Governance structures. 504. Institutional development: ACTESA has developed its Charter. This followed wide consultations with regional stakeholders including farmers, private sector organizations and Member States. The Charter lays out the governance structure of ACTESA wherein the need for a Board of Directors, a Technical Advisory Committee and a Secretariat are given priority. The Charter further highlights fiducially functions of the Board and roles and responsibilities of the Technical Advisory Committee and the ACTESA Secretariat. Once the Board is put in place, the Charter will guide the ACTESA Secretariat to put in place appropriate staffing levels, procurement and financial management procedures, building on the ones currently being used from COMESA. 505. Seed system development: The ACTESA Seed Programme was initiated in response to COMESA Ministers of Agriculture’s directive in Seychelles in March, 2008 for COMESA Secretariat to expedite the harmonisation of seed trade regulations and standards in order to facilitate regional seed trade. ACTESA partnered with the African Seed Trade Association (AFSTA) in facilitating extensive public-private consultations from October 2010 to October 2012 and drafted the COMESA Seed Trade Harmonized Regulations. The programme is focusing on development of a detailed implementation programme/roadmap of the draft COMESA Seed Trade Harmonisation Regulations that includes the description of multiple activities to be implemented by stakeholders to advance implementation of the Roadmap. 506. Biotechnology and Bio-safety: The drafting of the COMESA biotechnology and bio-safety policy was concluded in a regional validation workshop held in May 2012, in Lusaka, Zambia. The regional workshop was preceded by national consultation in all member States except Libya. The fundamental provisions of the draft policy include; recognition to both the benefits and potential risks of genetically modified crop varieties, establishment of a regional-level risk assessment mechanism but a national-level decision, and capacity building both at national and regional levels. 507. Regional Food Balance Sheet: Eastern and Southern Africa Regional Food Balance Sheet (ESA-RFBS) was designed in 2010/11 to provide accurate and reliable information on the region’s food supply and demand status. Implementation of the RFBS commenced from February 2012 following the signing of a new Grant Agreement with AGRA. Project staffing and procurement of essential equipment was done in July 2012. An MOU was signed between Famine Early Warning System Network (FEWSNET) and COMESA on the transfer of the informal cross border trade monitoring system from FEWS NET to ACTESA. Trainings were given in the pilot countries (Malawi, Mozambique, Zambia and Zimbabwe) in order to harmonize data collection and reporting systems. 508. COMESA Joint Fertiliser Procurement Initiative (JFPI): With funding from FAO, ACTESA/COMESA collaborated with the International Food Policy Research Institute (IFPRI) to CS/CM/XXXII/2 Page 122 undertake the detailed JFPI study. The study report which comprised desk research and key informant interviews focused on 6 countries in Eastern and Southern Africa was completed in November 2012. 509. Strategic Commodity Value-Chains in COMESA: The overall goal is to enable effective Public-private partnerships to play a significant role in the development of a vibrant agribusiness sector capable of capturing untapped opportunities such as economies of scale, intra-regional complementarities, trade and economies of transactions in cross-border investment. The completed baseline studies on maize and livestock value chains have identified several valuechain constraints and have suggested solutions to help enhance productivity in the commodity value chains. 510. Council noted that the Joint Meeting of the COMESA Ministers of Agriculture, Environment and Natural Resources has adopted the draft COMESA Seed Trade Harmonisation Regulations, the COMESA biotechnology and bio-safety policy and the ACTESA Charter during its 5th meeting, September 19-20, in Addis Ababa, Ethiopia. The Joint Ministerial meeting also adopted the JFPI study report. 511. Council was requested to note the decisions adopted during the Fifth Joint Meeting of the COMESA Ministers for Agriculture, Environment and Natural Resources, in September 2013, Addis Ababa, Ethiopia. The full report is document reference: CS/IPPSD/AGCMAENR/V/2. The particular issues in that report that relate to ACTESA include the COMESA Seed Trade Harmonisation Regulations, the biotechnology and bio-safety policy, and the Charter establishing ACTESA. ACTESA believes that the endorsement of these documents by Council will be a huge step forward to showcase its relevance towards fulfilling its unique mandates in integrating smallholder farmers in national, regional and international markets through increased productivity. 512. Council further noted that there are key challenges in order for ACTESA to implement its operational plan and deliver results on its core activities. These include institutional capacity, resource base, and infrastructural means of communication. In order to address these issues/challenges ACTESA has developed a two-year transitional plan (October 2013 – December 2015). The key milestones for the transitional plan would be; (i) putting in place of ACTESA’s governance structure, (ii) strengthening and expanding working partnerships, (iii) development of new program/projects, (iv) involvement in commercialization of business for agri-inputs in the region, and (v) diversification of the resource base. 513. With regard to the development of programmes/projects, ACTESA would focus on those in the pipeline (Joint Fertilizer Procurement Initiative, Maize and Livestock Value Chain Development, Commodity exchange/warehouse Receipt System and Regional Informal CrossBorder Monitoring), as well as new ones (competitiveness analysis of key staple commodities, post-harvest technology, and agricultural diversification). 514. A capacity assistance project entitled “Strengthening ACTESA’s Program Development and Implementation (SAPDI)’, has been developed with a budget of Australian Dollars (AUD) 720,000 through the assistance of the Australia-Africa Partnerships Facility (AAFP). The specific objective of SAPDI is to improve ACTESA’s capacity as a facilitator of policy dialogue and as knowledge hub on staple food markets in the region and beyond. Implementation of SAPDI would contribute a great deal towards addressing the institutional capacity challenges. CS/CM/XXXII/2 Page 123 Decision: 515. Council directed ACTESA to support the Member States to implement the biotechnology and bio-safety policy through communications and outreach, development of operational guidelines and establishment of regional bio-safety risk assessment structures. COMESA MONETARY INSTITUTE (Agenda Item 4 (b)(xvi)) 516. Council was informed that the Committee of Governors of Central Banks set up the COMESA Monetary Institute (CMI) in March 2011, in order to undertake all activities related with making the region zone of macroeconomic and financial stability and to ultimately achieve monetary union. 517. Council noted that the mandate to set up a Monetary Union in COMESA is derived from Article 4 (4) of the COMESA Treaty signed in Kampala, Uganda on 05 November 1993, which states that the COMESA Member States shall: “in the field of monetary affairs and finance, cooperate in monetary and financial matters and gradually establish convertibility of their currencies and a payments union as a basis for the eventual establishment of a monetary union”. This mandate is further reinforced in Articles 76-78 which respectively deal with the COMESA Monetary and Fiscal Policy Harmonization (MFHP), establishment of currency convertibility and formation of an exchange rate union. 518. Council noted that pursuant to Article 7 of the COMESA Treaty, the COMESA Committee of Governors of Central Banks make binding decisions regarding the implementation of the COMESA Monetary Integration Programme in General and the operations of the COMESA Monetary Institute, and the COMESA Clearing House in particular. 519. The meeting further noted that the Charter of the Institute had been signed by Central Banks of 12 Member States, namely: Burundi, Congo (DR), Egypt, Kenya, Malawi, Mauritius, Rwanda Sudan, Swaziland, Uganda, Zambia and Zimbabwe. CMI is soliciting membership of the remaining Member States’ Central Banks. 520. The specific policy oriented mandate of the CMI are to: a. b. c. d. e. f. g. h. i. Design of a monetary policy framework for the region; Design of an exchange rate mechanism for the region; Guide the implementation of the COMESA Financial System Development and Stability Plan; Assess the stability of financial systems in member countries; Harmonize concepts, methodologies and statistical frameworks; Undertake sensitization programmes; Undertake multilateral macroeconomic and prudential surveillance of the COMESA Monetary Cooperation Programme (CMCP) thus paving the way for COMESA Monetary Union Oversee the setting up of a COMESA Central Bank, responsible for the printing and distribution of a single currency; and Provide technical assistance and capacity building support to national central banks. CS/CM/XXXII/2 Page 124 521. Council noted that the CMI undertook the following research and capacity building activities in 2013: a. Training on Advanced Panel Econometrics for experts in Central Banks and Ministries of Finance; in collaboration with Central Bank of Egypt; b. Knowledge sharing workshop for experts from central Banks and Ministries of Finance on the preparations of Medium Term Macroeconomic; Fiscal Budget and Expenditure Frame Works; c. Symposium for the COMESA Committee of Governors of Central Banks on Challenges posed by Financial Innovation for Monetary Policy and Financial Stability in collaboration with Bank of Uganda; d. Hands on training on the following: i) Macro stress testing approaches with hypothetical data; ii) Econometric modeling of financial stability; e. Prepared the operational Manual for the implementation of the COMESA Assessment Framework on Financial Stability and for preparation of Forward Looking Financial Stability Reports; f. Prepared Appropriate Monetary Policy Regimes for COMEESA region; g. Prepared a Guidelines for Partial Credit Guarantee for SME’s; h. Prepared Report on Achieving Macroeconomic Convergence in the COMESA region in the year 2012; and i. Published a book on Challenges for implementation of the COMESA Monetary Integration Programme. Decision: 522. Council urged the Central Banks that are yet to join the CMI to do so by June 2014. STATEMENTS BY CO-OPERATING PARTNERS (Agenda Item 3 (c) 523. Council received statements from DfID, Japan, IOM, ACBF and the EU as follows: Statement by the Representative of the United Kingdom 524. His Excellency James Thornton, British High Commissioner to Zambia and Special Representative to COMESA reiterated the United Kingdom’s support for free trade and regional integration which makes a contribution to economic growth and poverty alleviation He further reiterated UK government’s support to the COMESA-AEC-SADC Tripartite TFTA negotiations and commended the role played by COMESA Member States. CS/CM/XXXII/2 Page 125 Statement by the Representative of Japan 525. His Excellency Kiyoshi Koinuma, Ambassador of Japan to Zambia and Special Representative to COMESA informed Council that the fifth Conference for African Development (TICAD V) was held in 2013 in Japan where the Japanese Government committed about US $ 32 billion to assist Africa over five years. He informed the meeting of the government of Japan’s support to the regional economic community with special focus on Infrastructure development and trade facilitation. Statement by International Organisation of Migration (IOM) 526. Mr Bernardo Mariano, Regional Director of the International Organisation of Migration (IOM) highlighted collaboration between IOM and COMESA with the framework of MOU signed between the two organizations. In this regard he assured Council that IOM will work with COMESA Members and the Secretariat to support implementation of the COMESA Protocol on free movement of persons, labour, right of establishment, and residence. Statement by the Representative of the African Capacity Building Foundation 527. Mr Emmanuel Nandozie, Executive Secretary of the African Capacity Building Foundation (ACBF), informed Council that the ACBF has provided financial support to the tune of US $3 million towards the strengthening of COMESA Secretariat and that a study was undertaken to identify RECs’ needs in capacity building regarding formulation of trade policies and development programmes. He added that COMESA is one of the RECs that will benefit from the findings of the study, after which a roadmap will be drafted for the framework of cooperation between COMESA and ACBF. Statement by the Representative of the European Union 528. Mr D. Hurtado, First Secretary, Head of regional Co-operation, of the European Union Delegation in Lusaka expressed happiness that the 11th EDF will support regional integration in Eastern and Southern Africa and the Indian Ocean with more than 1.3 billion Euros. He added that support is on top of substantially bigger amounts allocated to the EU co-operation programmes with COMESA countries and the new EU Pan African programme. 529. Mr Dominguez informed Council that COMESA Member States need to better manage the time and resources available to them in implementing regional integration programmes and respect of their commitments with the co-operating partners. 530. He concluded by saying that the EU is committed to strengthening its cooperation with COMESA and to attracting more investors to the region, thus creating jobs and wealth. CLOSED SESSION OF INTERGOVERNMENTAL COMMITTEE ON ADMINISTRATIVE AND BUDGETARY MATTERS (Agenda Item 5) 531. The report of the Closed Session of the Council on Administrative and Budgetary Matters is circulated as a separate document reference: CS/IC/XXXII/5(a). CS/CM/XXXII/2 Page 126 ADOPTION OF THE REPORT AND CLOSING OF THE MEETING (Agenda Item 6) 532. The meeting adopted the report with amendments. 533. In his closing remarks, the Chairperson, His Excellency Raymond Tshibanda N’Tungamulongo, Minister of Foreign Affairs, International Cooperation and Francophonie, (DRC), thanked the Honourable Ministers for their contributions which facilitated the work of the Bureau in leading the discussions of the 32nd Session of the Council of Ministers Meeting. He stated that the decisions taken at the meeting would facilitate the work of the Heads of State and Governments in their endeavour to advance the COMESA integration agenda. 534. He emphasized that the adoption of the MSME strategy combined with the outcomes of the CBC would help the region to profit from the work of the SMEs as they are the main sources of wealth and job creation and reduction of poverty. 535. He also stated that the discussion on the use of natural resources as the vectors for transformation in our region will continue in order to ensure that the region derives full benefits from its natural resources. 536. He wished the Ministers, their delegations, and the Secretariat staff and wished them safe journeys to their respective and declared the 32nd Meeting of Council officially closed. CS/CM/XXXII/2 Page 127 LIST OF PARTICIPANTS LISTE DES PARTICIPANTS BURUNDI M. Jeremie BANIGWANINZIGO, Directeur General du Commerce, Ministère du Commerce, Industrie, Postes et Tourisme, B.P. 492 Bujumbura, Tel : +257 22242833, Fax : 257 22225595, Email : jbanigwaninzigo@yahoo.com Hon. Pierre Claver KAYANZARI, Conseiller Technique du Ministre des Finances, Ministère des Finances et de la Planification du Development Economique, Tel : +257 79 910 496, Email : kayanpicl@yahoo.fr M. Joseph NDARISHIKANYE, Commissioner of Corporate Services, Burundi Revenue Authority, B.P. 3645, Bujumbura II, Tel: 257 79 095 015, Email: ndarishikanye joseph@obr.gov.bi; ndarishikanyejoseph@yahoo.fr COMOROS M. Said Ben Ousseni, Ministre Délègue, Ministère de L’Economie de Commerce Extérieur et des Privaysations, B.P. 474, Moroni, Tel : +269 337 1644, Email : sbousseni64@yahoo.fr M. Abdou Raouf AFRAITANE, Directeur du Bureau de l’Origine, Ministère des Finances, B.P. 95, Moroni, Tel : +269 332 92 01, Email : ARALIA22001@yahoo.fr M. Salime Said ABDOU, Conseiller, Ministère de l’Economie et du Commerce, B.P. 474, Moroni, Tel : +269 342 9363, Email : milzat2000@yahoo.fr DEMOCRATIQUE REPUBLIQUE DU CONGO Son Excellence Nemoyato Bagebole, Ministre de I’économie et commerce, Kinshasa, Tel : +243 810 758337, Email : jeanpaulnemoyato@gmail.com Son Excellence Musungayi Bampale Remi, Ministre de I’industrie et PME, Ministère de I’industrie, Petites et Moyennes entreprises, Kinshasa, Tel : +243 0820 126882, Email : remymusungayi@yahoo.fr Son Excellence Magbengu swa na Emina Monzia Dismas, Vice ministre de la Coopération International et Régionale, Ministère des Affaires Etrangères, Coopération Internationale et Francophonie, Kinshasa, Tel : +243 85 82 06034/+243 812 246949, Email : dmagbengu@yahoo.fr M. Joseph Nkoy BAUMBU, Secrétaire Général/Coop. Régionale, Ministère des Affaires Etrangères, Coopération Internationale et Francophonie, B.P. 10670, Kinshasa 1, Tel : +243 9999 28706/ +243 814 358532, Email : josephnkoybaumbu@yahoo.fr Maitre Manjoho Guillaume, Conseiller du Ministre des Etrangères, Tel : +243 812 12997, Email : manjologuillaume@yahoo.fr CS/CM/XXXII/2 Page 128 DEMOCRATIQUE REPUBLIQUE DU CONGO (cont’d) M. Songhu KAYUMBA, Directeur, Ministère des Affaires Etrangéres Coopération Internationale et Francophonie, Kinshasa, Tel : +243 814 929134, Email : dsonghu@yahoo.com Mme Jacky Nzomini MASEBE, Directeur, INSS, c/o INSS, 95 Boulevard du 30 Juin, B.P. 8933, Kinshasa 1, Tel: +243 9999 11551, Email: jackynzo@yahoo.fr M. Tati Xavier-Honore, Directeur Afrique et Moyen-Orient, Ministère des Affaires Etrangères, Coopération Internationale et Francophonie, Kinshasa, Tel : +243 999 946843, Email : tatixaho@yahoo.fr M. Raphael Wuhu LOKOMBO, Directeur, Ministère de Société Congolaise des Poste et Télécommunication, Kinshasa, Tel: +243 81 503 5764/+243 992 095838, Email: raphaellokombo@gmail.com M. Francis BEDY-MAKHUBU-MABELE, Directeur des Facilitations et Assistance aux Chargeurs, Office de Gestion du Fret Multimodal (OGEFREM), Kinshasa, Tel: +243 998 505738, Email: bedyfrancis@yahoo.fr M. Pierre Akala MANIANG, Directeur des Etudes/DRC, Ministère des Affaires, Kinshasa, Tel : +243 810 355 710, Email : peteramen46@yahoo.fr Mme Yvette B. Shani MWANGU, Directeur des Etudes/SG ai/Finance, Ministère des Finances, Kinshasa, Tel : +243 0825 812880, Email : makeryvet@msm.com Mme Monique Kapuwa KANDE, Directeur Général, Institut Panafricain de Droits de la Femme et de Bonne Gouvernance, Kinshasa, Email : moniquekande@yahoo.com M. Félix Nyembo SIMAUNDU, Directeur Chef de Service/Cooperation Culturelle, Ministère en Charge de la Culture et des Arts, Kinshasa, Tel : +243 999 924508/+243 815 721563, Email : felixnyembo@gmail.com: cooperationcult@gmail.com M. Pierre Djunga UMINU, Chef de Division, Ministère des Affaires Etrangéres Coopération Internationale et Francophonie, Av. de la Justice No. 238, Commune de la Gombe, Kinshasa, Tel: +243 998 145750/+243 816053788, Email: pierredjunga@yahoo.fr M. Roger Te-Biasu, Conseiller du Ministre (DRC)¸ Ministère des Transports et Vies de Communication, Building ONATRA, Kinshasa/Gombe, Tel : +243 082 315 5850, Email : mogerbiasu2011@live.ca M. Georges SUMAILI-SHINDANI, Conseiller/Primature, Ministère du Primature, Kinshasa, Tel : +243 825 005022, Email : sumailigeorges@yahoo.fr M. Pierre Masandi KITA, Conseiller, Cabinet du Premier Ministre, Kinshasa, Tel: +243 810583838, Email: kitamasandi@premature.cd CS/CM/XXXII/2 Page 129 M. Gabriel Luimbu KABANANGI, Inspecteur General des Finances, Inspection Générale des Finances, B.P. 3683, Kinshasa/Gombe, Tel : +243 818 101008, Email : gkabanangi@gmail.com DEMOCRATIQUE REPUBLIQUE DU CONGO (cont’d) M. David Bugeme MUGISHO, Advisor, Office of the Prime Minister, Kinshasa, Tel: +243 825 000194, Email: davidbugeme@yahoo.fr; bugememugisho@primature.cd M Masidi Mansi, Chef de Division, Ministère des Affaires Etrangéres Coopération Internationale et Francophonie, Kinshasa, Tel: +243 994 469108, Email: masidimansi@yahoo.fr M. Faustin Lumpungu NSAKA, Conseiller du Chief de I’Etat, Presidence de la Republique, Palais de la Nation, Kinshasa, Tel: +243 816 642 7559, Email: faustinnsaka@bluewim.ch M. Barthelemy Ntumba MULOHWE, Conseiller du Chef de I’Etat, Presidence de la Republique, Palais de la Nation, Kinshasa, Tel: +243 (0) 991 397831, Email: bmulohwe@ymail.com M. Prosper MUGANGUZI, Conseiller du Chef de L’Etat, Presidence de la Republique, Palais de la Nation, Kinshasa, Tel: +243 (0) 971 533975, Email: karhakubwa@yahoo.fr M. Billy TSHITUMBI, Conseiller-Juridique (OCC), Ministère du Commerce, Av. Port No. 98, Kinshasa-Gombe, Tel : +243 812 819907027, Email : BillTshitumbi@yahoo.fr M. Eddy MUNTUMOSI-MBINGA, Conseiller Juridique, Lignes Maritimes Congolaises, B.P. 9496, Kinshasa 1, Tel : +243 0844 300 567/+243 0812 677281, Email : muntumosieddy@yahoo.com M. Jeef Maloba Mutombo, Conseiller du Ministre, Primature/Cabinet, Tel: +243 0825 005046/0998 141484, Email : malobamutombo@primature.cd M. Patrick Khonde NSITU, Chef du Division, Ministère du Transports, 536 Av. de I’Aerodrome Com Barumbu, B.P. 6514, Kinshasa, Tel : +243 0815 115795 ; 243 0997 659208, Email : patricknsitu12@gmail.com M. Gilbert BIONGO-NTIKALA, Chef de Division, Ministère de l’Agriculture et du Developement Rural, Kinshasa, Tel : +243 811 484250, Email : gilbiongo@yahoo.fr Mme Rachel Kayeye MWAMUNOGOLO, Chef de Division, Ministère du Hydroconsure, Kinshasa, Tel : +243 810 892676/+243 998 137793, Email : rachelkayeye@hotmail.fr M. Antoine Kinyamba DENDE, Chef de Bureau, Direction Afrique au Ministère des Affaires Entrangeres, Ministère des Affaires Entrangeres, Kinshasa, Tel : +243 998 271839, Email : dendekinyamba@yahoo.com Mme Françoise Semeli MATONDA, Chef de Service, OGEFREM, TSF No. 9, Gombe/Kinshasa, Tel : +243 0990 586317/+243 0822 023838, Email : frmatondasemeli@yahoo.fr M. Kelemwanga MUKULUBOY, OGEFREM, Av. TSF No. 9, Kinshasa – Gombe, Tel : +243 0998 177766, Email : jmukuluboy@yahoo.fr CS/CM/XXXII/2 Page 130 DEMOCRATIQUE REPUBLIQUE DU CONGO (cont’d) M. Bibiane Kabantu WANKAMBA, Chef de Bureau Suivi des Activites des Organisations Regionales et sous regionales (OGEFREM), Office de Gestion du Fret Multimodal, 8038 Kinshasa, Tel : +243 0818 108683/+243 0992 882655, Fax : +243 815 563480, Email : bianekabantu@yahoo.fr M. Olivier Tayeye TALEBUYI, Chef de Service, Banque Central du Congo, Kinshasa, Tel: +243 819 950516, Email: tallystayeye@yahoo.com; tallystayeye@gmail.com M. Ngila EYONKOGI, Chef de Bureau Organisations Regionale Africa, Ministère de Plan, Jfaga No. 229, Lingurela, Kinshasa, Tel : +243 989 98046 M. Jean Pierre Kamkwende KAMBILA, Presidence de la Republique, 23 Audu Commerce, Kinshasa – Gombe, Tel: +243 81 501 5003, Email: JPKambila@hotmail.com M. Joseph Daniel Yango KITUTU, Chef de Division des Accords Internationaux, Secretariat General au Tourisme, Ministère de I’Environement et Tourisme, Immeuble la Rwindi, Boulevard 30 Juin, Kinshasa, Tel : +243 818 119611, Email : joyakis1@yahoo.fr M. Jerome Mabiala IZIBA, Chef de Division, Ministère de Resources Hydrauliques et Electricité, Kinshasa, Tel : +243 815 900377, Email : izibom@yahoo.fr M. Michel Mbungu NGOMA, Chef de Division a la Cellule Techniques, Ministère de I’Euseigucment Sup. Universitaire et Recherdre Scientifique, Kinshasa, Tel : +243 811 917117, Email : ngomami2004@yahoo.fr M. Mbala Ndombasi, Charge d’Etudes et Coopération, Inspection Générale des Finance, Kinshasa, Tel : +243 999 957846, Email : norbertmbala@yahoo.fr M. Yves Makanda MATONGO, Charge d’Etudes, Ministère des Finances, Immeuble Fonction Buiblique 2eme Nivea au le Gouche, Kinshasa, Tel: +243 810 655899, Email: yvesmafongo@gmail.com M. Emmanuel Nyongolo MUKAMBILWA, Fondé de Pouvoir en charge du Pool de la Carte Jaune COMESA, Société Nationale d’assurances, Sari (SONAS), Kinshasa, Tel : +243 816 566585/+243 897 823697, Email : emmukambilwa@yahoo.fr M. Roger Safari BASINYIZE, Conseiler du Premier Ministre/Cabinet du Premier Ministre, Kinshasa, Tel: +243 825 000231/+243 998 506243, Email: rsafari@live.fr; safaribasinyize@primature.cd M. Robert Emene BAKILI, Directeur du Commerce des Services, Ministère de l’Economie et Commerce, Kinshasa, Tel : +243 815 101046, Email : robertemene@yahoo.fr M. Mukoka TSHIBAKA, Directeur, Ministère de I’Economie et Commerce RDC, Kinshasa, Tel : 243 0818 130403, Email : alois.tshibaka@yahoo.fr CS/CM/XXXII/2 Page 131 Mme Esther Biayi KAMWANYA, Directeur Chef des Services, Ministère du Genre, de la Famille et de I‘Enfant, Kinshasa, Tel : +243 0999 945061, Email : estherkamwanya@yahoo.fr DEMOCRATIQUE REPUBLIQUE DU CONGO (cont’d) M. Singa Maximilien KUSA, Directeur, Agence Nationale Promotion Investment, Kinshasa, Tel: +243 0818 140088, Email: maxsinga92@gmail.com M. Assumani MASUDI, Directeur, SNEL, B.P. 500 KNI, Kinshasa, Tel : +243 999 908073, Email : asumanimasudi@yahoo.fr M. Joseph Abeli KAMANGO, Chef de Bureau, Ministère des Affaires Etrangéres, Coopération Internationale et Francophonie, Kinshasa, Tel : +243 81 530 9301, Email : joseph.kamango@yahoo.fr M. Trudon Nzembela KALALA, Chef de Bureau et Délégué Expert, Ministère de I’Economie et Commerce, Kinshasa, Tel : 243 0815 251419, Email : nzembelatrudon@gmail.com M. Jean-Fidele Kuzoma KUFUYS, Chef de Division Unique/Secrétariat General a I’Industrie, Ministère de l’Industrie, Petites et Moyennes Entreprises/RDC, Kinshasa, Tel : +243 818 146756, Email : jfkukf@yahoo.fr; jeanfidelekufuys@gmail.com M. Wankan Ba Babantu Bibiane, Chef de Bureau Suin des Activites des Organisaitons Regionales et Sous-Regionale, OGEFREM, TSF No. 9, Kinshasa/Gombe, Tel: +243 0818 08683/099 2882655, Email: bianekabantu@hahoo.fr M. Muzyumba-Tangi, Conseiller en charge de Coopérations, Ministère des Finance, Boulevard de 30 Juin, Kinshasa, Tel : +243 991 364162, Email : TANGIYVES@YAHOO.FR M. Valere Shabani Djuma, Conseiller, Primature, Kinshasa, Tel : +243 0825 000238, Email : valshab@yahoo.fr; shabanidujuma@primature.cd M. Placide Basadilua NKALA, Conseiller Primature, 5 Avenue ROI Baudoin, Kinshasa/Gombe, Tel: +243 825 005040, Email: nkalabasadihia@primature.cd M. Sylvestre Kabwika NTAMBUKA, Chef de Division Postes Frontières et Frontagers de la Den/RDC, Ministère de I ‘Intérieur, Kinshasa, Tel: +243 099 8018310, 085138958, Email : ntakabsyl@gmail.com M. François Mpuila MUKENDI, Fondé de Pouvoir au Fonds De Promotion de l’Industrie, Ministère de I‘Industrie, 11196, Kinshasa/Gombe, Tel: +243 815 078181, Email : mpuila@yahoo.fr M. Emile Okoto Welo Wa KENEMO, Conseiller Diplomatique, Ministère des Affaires Etrangéres Coopération Internationale et Francophonie, Kinshasa, Tel: +23 999 929416, Email: wokot@hotmail.com M. Olivier NGABUBURA, Charge d’Etudes Cooperations, Ministère des Finances, Kinshasa, Tel: +243 81 502 2810, Email: olingabura@yahoo.fr CS/CM/XXXII/2 Page 132 Mme Caroline Marie IFEMO-BASELE, Charge d’etude du Ministre, Ministère de I’Economie et Commerce, Kinshasa, Tel : +243 822 158000, Email : basele1@live.com DEMOCRATIQUE REPUBLIQUE DU CONGO (cont’d) M. Joseph DITUNGA, Expert, Ministère Interieur, Decentralisation et Securite, Kinshasa, Tel : +243 0998 491339, Email : jeefiditunga@yahoo.fr M. Adrien KALONJI-MBUYI, Expert/Prof. Université, 090909, Email : adrienkalonji@yahoo.fr ESU/RS, Kinshasa, Tel : +243 0814 Mme. Lepira Muyulu Laetitia, Assistante, Présidence de la République, Kinshasa, Tel : +243 992 900042, Email : laetitialepira@hotmail.fr M. Mukendi NGANDUKENS, Sous-Directeur OCC/Kasumbalesa, Ministère du Commerce, 98 Av du Port, Kinshasa, Tel : +243 819 712801, Email : ngandukens1@yahoo.fr M. TSHITENGE-LWENDU, Sous-Directeur, Douanes, Kinshasa, Tel : +243 810 577194, Email : ben_dada_save@yahoo.fr M. Philippine Kissimba KABWE, Sous-Directeur, Direction Générale des Douanes et Accises, Kinshasa, Tel: +243 9999 18566, Email: pykiss@yahoo.fr M. Baswe Tshiwala, Chef du Division, Ministère du Plan et SMRM, Tel : +243 998 278263, Email : baswetshiwala@yahoo.fr M. Mayindu Kimfuita, Chef de Division, Ministère des Finances/GDA, Kinshasa, Tel : +243 898 241213, Email : tmayindu@yahoo.fr M. Alexandre MIRINDI MONGANE, Charge d’Affaires, Ambassade de la RDC a Lusaka, Zambia Mpuekela Kasende, Inspecteur des Douanes, Min/Finances Duda, Tel : +243 810643331, Email : mpuekelakasende@jmail.com DJIBOUTI Son Excellence Hassan Ahmed Boulaleh, Ministre Délègue Chargé du Commerce des PME, du Tourisme et de Formalisation, Djibouti, Tel : +253 213 25441, Fax : +253 213 54909, Email : ahmboulaleh@yahoo.fr M. Simon MIBRATHU, Secrétaire Général, Ministère du Budget, Djibouti, Tel : +253 21 325 121, Fax : +253 21 35 44 09, Email : smibrathu@intnet.dj M. Mohamed TABAREK, Chef de service Bpsc, Ministère de Agriculture, Djibouti, Tel : +253 77 83 58 18/+253 21 35 1297, Fax : +253 21 35 58 79, Email : tabacham600@hotmail.com M. Feycal Kaireh CHIRDON, Chef de Service de la Réglementation des TIC, Ministère de la Communication, des Postes et de Telecom, B.P. 32, Djibouti, Tel : +253 778 42292, Fax : +253 213 53957, Email : feycal.kaireh@gmail.com CS/CM/XXXII/2 Page 133 Mme. Nasro Habib IBRAHIM, Inspectrice d’Etat, Inspection Generale d’Etat) (IGE), Djibouti, Tel : 253 0850 632 391/+253 7781 17 66, Fax : +253 2135 55 06, Email : nasrohabib@yahoo.fr DJIBOUTI (cont’d) M. Ali Daoud Abdou, Directeur du Commerce Extérieur et de I ‘Intégration Régionale, Email: ali.d.abdou@gmail.com M. Guelleh Idriss Omar, Directeur des Relations Multilatéral, Ministère des Affaires Etrangères et de la Coopération Internationale, Tel : +253 21 350686, Fax : +253 21 35 8721, Email : guellelhiomar@yahoo.com EGYPT/EGYPTE Mr. Sayed M. Elbous, Minister Plenipotentiary/Commercial Affairs and Senior Advisor to the Minister of Trade and Industry, Ministry of Trade and Industry, 2, Latin America St., Cairo, Email: selbous@yahoo.com Honourable Sabry M. Sabry, Assistant Minister of Foreign Affairs, Cairo, Tel: +202 2 574 99 31, Fax: +202 2 574 99 32 His Excellency Ragai Tawfik Nasr, Ambassador and Permanent Representative to COMESA, Embassy of Egypt, Lusaka, Zambia, Tel: +260 977 770301, Email: ragainasr@gmail.com His Excellency Achraf Ibrahim, Ambassador, Egyptian Ambassador to DRC, Kinshasa-Gombe, Democratic Republic of Congo, Tel: +243 8222825036, Email: achraf.ibrahim@GFA.GOV.Eg Mr. Mohamed Al Hawary, Minister Plenipoteniary, M.F.A. Egypt, Tel: +20 11 434 44496, Email: malhawary19@gmail.comm Mr. Essam Aly Hussein, Commercial First Secretary, Ministry of Trade and Industry, Egyptian Commercial Services, Towers of the Ministry of Finance, Tower No. 5 – 3rd Floor, Tel: +20 10 687 90298, Email: brekaa@hotmail.com; comesa@tamseel-ecs.gov.eg Dr. Sherif Mahmoud Fahmy, Head of Africa Department, Trade Agreements Sector, Ministry of Trade and Industry, Ministry of Finance, Towers, Towers 6, 9th Floor, Emtidad Ramsis St, Nasr City, Cairo, Tel: +202 23 422347/+20 100 3414526, Fax: +202 234 20496, Email: s.elsayed@tas.gov.eg ERITREA/ERYTHÉE Honourable Stifanos Habte, Minister of Trade & Industry, P. O. Box 1844, Asmara, Tel: +291 1 120080, Fax: +291 1 124175 Mrs. Zeferework Fessahaye Desta, Director, International Trade Relations Division, Ministry of Trade and Industry, P.O. Box 1844, Asmara, Tel: +291 1 117103, Fax: +291 1 124175, Email: zeferfd@gmail.com; ane_zefer@yahoo.com CS/CM/XXXII/2 Page 134 Mr. Abdurahman Ibrahim Saleh, Head, Africa Unit, Ministry of Trade and Industry, P.O. Box 1844, Asmara,Tel: +291 712 76 70, Fax: +291 1 124 175, Email: abdulrah78@gmail.com CS/CM/XXXII/2 Page 135 ETHIOPIA/ETHIOPIE His Excellency Ahmed Shide Mohamed, State Minister, Ministry of Finance and Economic Development, P.O. Box 1037, Addis Ababa, Tel: +251 911 511687, Email: ahmedshide@yahoo.com Mr. Yishak Tekaligne Taye, Director, Ministry of Trade, Addis Ababa, Tel: 251 9 11 625473, Email: nsaacisak@gmail.com Mr. Mekbib Tilahun Sahile, Senior Expert, Ministry of Finance and Economic Development, P.O. Box 1037, Tel: +251 1 58 089, Email: mtilahun@mofed.gov.et Mr. Semere Tesfaye Denere, Ministry of Finance and Economic Development, P.O. Box 1037, Addis Ababa, Email: dsemtes@gmail.com KENYA Dr. (Eng) Karanja Kibicho, Principal Secretary, Ministry of Foreign Affairs and International Trade, P.O. Box 30551-00100, Nairobi, Tel: +254 20 318888, Fax: +254 20 316316, Email: ps@mfa.go.ke Ambassador Nelson Ndirangu, Director, Ministry of Foreign Affairs and International Trade, P.O. Box 30551-00100, Nairobi, Tel: +254 722 631958, Email: nndirangu@mfa.go.ke Her Excellency Prof. Ruthie C. Rono, High Commissioner and Permanent Representative to COMESA, Kenya High Commission, P.O. Box 50298, Lusaka, Zambia, Tel: +260 211 250 722, Fax: +260 211 253829, Email: rcrono@gmail.com Mr. Abdishakur Hussein, Charge d’Affaires, a.i, Kenya Embassy, 4002 Avenue de l’Ouganda, Kinshasa, Democratic Republic of Congo, Tel: +243 995 000 006; Email: ahussein@mfa.go.ke; shakuril@yahoo.com Ms. Christine K. Ileli, Senior State Counsel, Office of Attorney General, P.O. Box 40112-00100, Nairobi, Email: kristinekanini@yahoo.com Mr. Charles Gachahi, Ag. Managing Director, Kenya Bureau of Standards, P.O. Box 5497400200, Nairobi, Tel: +254 722 308 743, Email: gachahic@kebs.org Mr. Erastus Wanjohi Wahome, Chief Economist, The National Treasury, P.O. Box 3000700100, Nairobi, +254 0722 760298, Email wahomeerastus2002@yahoo.co.uk Mr. Dennis G. Mburu, Senior Economist, Ministry of Foreign Affairs and International Trade, P.O. Box 30551-00100, Nairobi, Tel: +254 0715 676525, Email: dmburu@mfa.go.ke Ms. Beatrice Muthigani, Assistant Director, Ministry of Foreign Affairs and International Trade, P.O. Box 30551-00100, Nairobi, Tel: +254 20 318888, Email: bmuthigani@mfa.go.ke Mr. Paul Kimeto, Manager, EAC/COMESA Desk, Kenya Bureau of Standards, P.O. Box 54974 00200, Nairobi, Tel: +254 6948411, Email: kimetop@kebs.org CS/CM/XXXII/2 Page 136 KENYA (cont’d) Mr. John Kamau Gatare, Chief Trade Development Officer, Ministry of East African Affairs, Commerce and Tourism, P.O. Box 30430, Nairobi, Tel: +254 723 023115, Email: kgatarem@gmail.com Mr. Robert Onduu Okoth, Chief Trade Development Officer, Ministry of East African Affairs, Commerce and Tourism, P.O. Box 30430-00100, Nairobi, Tel: +254 20 315001-4 Ext. 2164/+254 0720 076647, Email: rokothbob2002@yahoo.co.uk; rokothbob2002@gmail.com Mr. Tobias Odongo Ogondi, Senior Trade Development Officer, Ministry of East African Affairs, Commerce and Tourism, Nairobi P.O. Box 30430-00100, Nairobi, Tel: +254 722 582875, Email: tobiasodongo@yahoo.com Mr. Anthony Njeru, Economist, Ministry of East African Affairs, Commerce and Tourism, P.O. Box 30430-00100, Nairobi, Tel: +254 020 305001, Email: njeru.anto@gmail.com Mr. Vincent E. Omuse, Senior Foreign Service Officer, Ministry of Foreign Affairs and International Trade, P.O. Box 43137, 00100, GPO, Nairobi, Tel: 254 020 318888, Email: veomuse@yahoo.com; vomuse@mfa.gov.ke Mr. James Otsuila Nyongesa, Second Secretary, Ministry of Foreign Affairs and International Trade, P.O. Box 30551-00100, Nairobi, Tel: +254 20 31888, Fax: +254 20 316316, Email: jnyongesa@mfa.go.ke Mr. Samwel Barchok Keter, Deputy Director of Industries, P.O. Box 30418-00100, Nairobi, Tel: +254 20 315001, Email: kbarchok@gmail.com Mr. Simon J. Nganga, Private Sector/Footwear/Chair SMEs Committee, Kenya Leather Development Council, P.O. Box 7637-00300, Nairobi, Tel: +254 0722 506883, Email: sjnganga@hotmail.com Mrs. Lydiah Olesi Ojiambo, First Counsellor, Kenya High Commission, P.O. Box 50298, Lusaka, Zambia, Tel: +260 976 723410, Email: lydiaolesi@yahoo.com Mr. Samuel Kiptum Lagat, Surveillance Officer, Kenya Sugar Board, P.O. Box 51500-00200, Nairobi, Tel: +254 713 262641, Email: silemboi@kenyasugar.co.ke MADAGASCAR Son Excellence Syivain MAMORLKY, Ministre de la Peche, Ministère de la Peche et des Dessources Halieutiques, Antananarivo, Tel : +261 34 05 57909, Email : jeanrobilahy@yahoo.fr Son Excellence Ulrich ANDRIATIANA, Ministre des Affaires Etrangères, Ministère des Affaires Etrangères, Antananarivo, Tel : +261 32 07 590 86 M. Roger RAKOTONDRAZAKA, Directeur du Douanes, Ministère du Finance et du Budget, MFB-Antananarivo, Tel : +261 340 501982, Email : roger5112@yahoo.fr CS/CM/XXXII/2 Page 137 MADAGASCAR (cont’d) Mme Henriette RASOAMAMPIONONA, Directeur du Commerce, Ministère du Commerce, B.P. 454, Antananarivo, Tel : +261 340 551393, Email : mampiononah@yahoo.fr; driie2@commerce.gov.mg Raoilisoa, Directeur de la Programmation et du Cadrage Budgetaire, Ministère des Finances et du Budget, Immeuble des Finances – 2eme Etage P.252, Antananarivo, Tel : +261 22 11 06513, Fax : 261 22 62909, Email : onintsraoilisoa@yahoo.fr Mme Aly Marana TSIMBAZAFY TSIMOAZAEY, Chef du Service des Organisations Régionales, Ministère des Affaires Etrangères, Antananarivo, Tel : +261 34 66 63601, Email : alymirana@gmail.com Mme Clarisse R. MAHARAVO, Négociateur sur les questions SPS pour AFOA/ALE, Ministère de l’Agriculture – Unité de Politique de Développement Rural, B.P.301, Antananarivo 101, Tel : +261 32 42 919 46, Email : maharavoclarisse@gmail.com; updr.cla@blueline.mg MALAWI Mr. Randson Mwadiwa, Principal Secretary, Ministry of Industry and Trade, P.O. Box 30366, Lilongwe 3, Tel: +265 881 516937/+265 1 770244/+265 888 822140, Fax: +265 1 770680, Email: rpmwadiwa@yahoo.com His Excellency David Bandawe, High Commissioner & Permanent Representative to COMESA, Malawi High Commission, P.O. Box 50425, Lusaka, Zambia, Tel: +260 978 998115, Fax: +260 211 265765, Email: davidbandawe@yahoo.com Mr. Hudson J. Mankhwala, Chief Immigration Officer, Department of Immigration, P.O. Box 331, Blantyre, Tel: +265 1 823777; +265 999 945678, Email: hjmankhwala@ymail.com Ms. Charity Musonzo, Deputy Director of Trade, Ministry of Industry and Trade, P.O. Box 30366, Lilongwe, Tel: +3036, Lilongwe, Tel: +265 1770244/+265 888 367533, Email: charitylonje@yahoo.com Ms. Emily Heather Khamula, Deputy Director ICT Development, Malawi Communications Regulatory Authority (MACRA), P/B 261, Blantyre, Tel: +265 9999 30806, Fax: 265 1883890, Email: elungu@macra.org.mw Mr. Ali Kamanga, Assistant Director of Trade, P.O. Box 30366, Lilongwe, Tel: +265 999 566075/+265 1770244, Fax: +265 1770680, Email: kamangaal@gmail.com Mr. Patrick J. Kachingwe, Manager HQ and Border Operations – Exports, Malawi Revenue Authority, P/Bag 247, Blantyre, Tel: +265 1 827028/+265 884 810000, Fax: +265 1 827029, Email: pkachingwe@mra.mw CS/CM/XXXII/2 Page 138 MAURITIUS/MAURICE Mr. N. Boodhoo. Deputy Director, Ministry of Foreign Affairs, Regional Integration and International Trade, 3rd Floor, Fooks House, Port Louis, Email: sumlboodhoo@hotmail.com Mr. Ramesh Ghunsam, Principal Analyst (Cooperation), Ministry of Foreign Affairs, Regional Integration and International Trade, 9th Floor, Newton Tower, Port Louis, Tel: +230 4052625, Fax: 230 2137672, Email: rghunsam@mail.gov.mu RWANDA Honourable Françios Kanimba, Minister of Trade and Industry, P.O. Box 73, Kigali, Tel: +250 788 300572, Fax: +250 252 580523, Email: fkanimba@gov.rw His Excellency Amandin Rugira, Ambassador of Rwanda to DRC, Embassy of Rwanda, Av. Unina No. 8oA/B, Gombe, Kinshasa, Democratic Republic of Congo, Tel: +243 99 222 1280, Email: arugira@yahoo.fr Mr. John Mwesige, Trade Negotiator, Ministry of Trade and Industry, P.O. Box 73, Kigali, Tel: +250 788 440617, Email: mwesigejohn10@yahoo.co.uk Dr. Emmanuel Munyangabe, Coordinator, COMESA Projects, Ministry of Infrastructure, P.O. Box 24, Kigali, Tel: +250 787 114719, Email: munyangabe11@gmail.com SEYCHELLES Mr. Kenneth Racombo, Director General of Development and Regional Integration, Ministry of Foreign Affairs, Maison Quéau de Quincy, Mahe, Tel: +248 428 3532, Fax: +248 4225374, Email : kracombo@mfa.gov.sc Ms. Cilia Mangroo, Director General for Trade, Ministry of Finance, Trade and Investment, Liberty House, Mahe, Tel: +248 438 2000, Email: cillia@finance.gov.sc Ms. Nan Sarah Constant, Economist, Ministry of Foreign Affairs, P.O. Box 656, Mahe, Tel: +248 428 35 48, Fax: +248 422 5374, Email: nconstant@mfa.gov.sc Ms. Astride Maryam Tamatave, Senior Finance Analyst, Ministry of Finance Trade Investment, c/o Ministry of Finance, Liberty House, Mahe, Tel: +248 438 2049, Fax: +248 432 2782, Email: astride.tamatave@finance.gov.sc Ms. Shirley Low-Meng, Development Programme Officer, Ministry of Foreign Affairs, Maison Queau de Quinssy, Mont Fleuri, Mahe, P.O. Box 656, Tel: +248 428 3582/+248 428 3500, Fax: +248 422 5374, Email: splow-meng@mfa.gov.sc; slow-meng@mfa,gov.sc Ms. Sherlyn Furneau, Protocol Assistant, Ministry of Foreign Affairs, P.O. Box 656, Mahe, Tel: +248 428 3551/+248 272 9888, Fax: +248 422 5852, Email: sfurneau@mfa.gov.sc CS/CM/XXXII/2 Page 139 SUDAN/SOUDAN Honourable Osman Omer Ali, Minister of Trade, P.O. Box 194, Khartoum, Tel: +249 96 45 85 282, Fax: +249 183 775963, Email: osmanomer35@gmail.com His Excellency, Mohamed Isa Edam, Ambassador & Special Representative to COMESA, Sudan Embassy, Lusaka, Zambia, Tel: 260 979 080922, Email: edamz@yahoo.com Mr. Isam Abdelgadir, Ministry of Justice, Under Secretary Office, Khartoum, Tel: +249 123 96497, Email: isam-justice@hotmail.com Mr. Nafisa Mohamed Ahmed, General Director for International Relations, Ministry of Trade, P.O. Box 194, Khartoum, Tel: +249 912 368553, Fax: +249 183 775963, Email: nafisamoh@yahoo.com M. Mohamed Osman Ahmed, Director General, Central Bank of Sudan, P.O. Box 313, Tel: +249 912 315891, Fax: +249 183 781341, Email: osman49@hotmail.com Dr. Osmana Mahmoud Humeida Masoud, Director of Department of International Labour and Treaties, Ministry of Justice, P.O. Box 302, Khartoum, Tel: +249 912 253073, Fax: +249 983 787910, Email: drosmanahumida@yahooc.om Mr. Mohamed Osman Ahmed, Director General, Central Bank of Sudan, P.O. Box 313, Khartoum, Tel: +249 912 315891, Fax: +249 183 781341, Email: osman49@hotmail.com Mr. Mohy Al deen Abdulkreem Moj Albahar, Ministry of Trade, Khartoum, Tel: +249 123 988995, Email: mogAlBahar66@gmail.com Mr. Kamal Yousif Abdella, Economist, Central Bank of Sudan, Jamaa Avenue, P.O. Box 313, Khartoum, Tel: +249 912 236310, Fax: +249 183 781341, Email: kamalyo1@hotmail.com Mr. Ebtisam Ali Mohamed Osman, Economist, Ministry of Finance and National Economy, P.O. Box 298, Khartoum, Tel: +249 991 158553, Fax: +249 183 771970, Email: smile58553@hotmail.com Mr. Nadir Elrayah Awad, Head of COMESA Unit, Ministry of Trade, Khartoum, Tel: +249 183 775963/+249 919 68360844, Email: nadirelray@yahoo.com Mrs. El Ham El Tayib AbdelHameed, EPA Desk, Ministry of Trade, Khartoum, Tel: +249 183 775963, Email: elhamea0004@gmail.com SWAZILAND Honourable Gideon C.M. Dlamini, MP, Minister of Commerce, Trade and Industry, P.O. Box 451, Mbabane, Tel: +268 2404 4779, Fax: +268 2404, 3055, Email: Gideon@realnet.co.sz Mr. Jinno Nkhambule, Principal Secretary, Ministry of Commerce, Industry and Trade, Mbabane, Tel: (+268) 404 3201, Fax: (+268) 404 3055, Email: jinnohn2001@yahoo.co.uk; itd@realnet.co.sz CS/CM/XXXII/2 Page 140 SWAZILAND (cont’d) Mrs. Joyce Tibobo Dlamini, Deputy Principal Secretary, Ministry of Economic Planning and Development, P.O. Box 602, Mbabane, Tel: +268 2404 8156, Fax: +268 2404 2157, Email: dlaminijo@gov.sz Ms. Portia Dlamini, Trade Policy Analyst, Ministry of Commerce, Industry and Trade, P.O. Box 451, Mbabane, Tel: +268 404 1808/9, Fax: +268 404 3833, Email: portiasukati@hotmail.com Mr. Dorrington Matiwane, Chief Executive Officer, Commerce/Small Enterprise Development Company, P.O. Box A186 Swazi Plaza, Mbabane, Tel: +268 2404 2811/2, Fax: +268 2404 0723, Email: matiwaned@sedco.co.sz Mr. Nathaniel Cibi Phila Dlamini, Director of Road Transportation, Ministry of Public Works and Transportation, P.O. Box 58, Mbabane, Tel: +268 2409 9154, Email: dlamininp@gov.sw Mr. Michael Zwane, Director SMMEs, Ministry of Commerce, Trade and Industry, P.O. Box 451, Mbabane, Tel: +268 2404 3202/6; Fax: +268 2404 0954, Email: mswane@realnet.co.sz Mr. Freddy Magagula, Senior Agricultural Officer-Fisheries, P.O. Box 162, Mbabane, Tel: +268 2404 2731/9, Fax: +268 2404 7430, Email: fredmagagula@yahoo.co.uk UGANDA/OUGANDA Honourable Amelia Anne Kyambadde, Minister of Trade, Industry and Cooperatives and Chairperson of the Bureau of Council. P. O. Box 7103, Kampala, Tel: +256 414 231104/314200/230916; Fax: +256 41 341247/347286; Email: annekyambadde@gmail.com; akyambadde@mtic.go.ug Honourable Abraham James Byandala, Minister of Works and Transport, P.O. Box 10, Entebbe, Tel: +256 414 255028, Fax: +256 414 320315, Email: mowtc@works.go.ug; teddykisa@yahoo.com Ambassador Julius B. Onen, Permanent Secretary, Ministry of Trade, Industry and Cooperatives, P.O. Box 7103, Kampala, Tel: +256 414 314230, Email: ps@mtic.go.ug Ambassador Johnny Muthahi Muhindo, Ministry of Foreign Affairs, Plot 24-B, Kagwa Road, P.O. Box 7048, Kampala, Uganda, Tel: +256 414 258370, Email: muthahi@yahoo,.com Ambassador Najuna-Njuneki, Ministry of Foreign Affairs, Plot 2/4B Kaggwa Road, P.O 7048, Kampala, Tel: +256 712 347777, Email: njuneki@diplomats.com His Excellency James William Kinobe, Ambassador, Uganda Embassy, No. 12 Av. Ouganda, Kinshasa, Democratic Republic of Congo, Tel: +243 990 067972, Email: jwkinobe@gmail.com Mr. Silver Ojakol, Commissioner, External Trade, Ministry of Trade, Industry and Cooperatives, P.O. Box 7103, Kampala, Tel: +256 414 348154/230916, Email: sojakol@hotmail.com; sojakol@mtic.go.ug CS/CM/XXXII/2 Page 141 UGANDA/OUGANDA (cont’d) Mr. Patrick O. Okilangole, Assistant Commissioner, Ministry of Trade, Industry & Cooperatives, P.O. Box 7103, Kampala, Tel: +256 782 480 752, Email: okilangole@gmail.com Mr. Jocob Opolot, Director, Research, Bank of Uganda, P.O. Box 7120, Kampala, Tel: +256 414 230791, Fax: +256 414 230791, Email: jopolot@bou.or.ug Mr. Emmanuel Katwe, Principal Economist, MOICT, P.O. Box 7817, Kampala, Tel: 0772 492572, Email: emmanuel.katwe@ict.go.ug Mr. Cleopas Ndorere Kachetero, Principal Commercial Officer, Ministry of Trade, Industry and Cooperatives, P.O. Box 7103, Kampala, Tel: +256 775 958300, Email: cndorere@mtic.go.ug Mr. Deo Kamweya, Principal Commercial Officer, Ministry of Trade, Industry and Cooperatives, P.O. Box 7103, Kampala, Tel: 256 772 632854, Email: dkamwex@yahoo.com Mr. John Mayende, Principal Statistician, Uganda Bureau of Statistics, P.O. Box 7186, Kampala, Tel: +256 414 706022/+256 772 629309, Email: john.mayende@ubos.org Ms. Rose Kuteesa, Head – External Sector Policies Section, Central Bank of Uganda, P.O. Box 7120, Kampala, Tel: +256 417 302875, Fax: +256 414 230791, Email: rkuteesa@bou.or.ug Mr. Godrey Obbuki Wandera, Ag. Direcor of Transport, Ministry of Works and Transport, P.O. Box 10, Entebbe, Tel: +256 772 506740, Fax: +256 441 320135, Email: gowandera@gmail.com Mr. Benon Kayemba, First Secretary for Commercial Affairs, Uganda Embassy, Kinshasa/Uganda, Democratic Republic of Congo, Tel: +243 817 118524, Email: kitigoma@gmail.com Mr. Mulijo Wasike Shadraque, Second Secretary, Uganda High Commission, P.O. Box 6239, Dar es Salaam, Tanzania, Tel: +255 689 323 335, Fax: +255 22 266 7224, Email: muhadraque@yahoo.co.uk Ms. Aisha Kyamanywa, Office of the President, P.O. Box 7164, Kampala, Tel: +256 0772 66 371, Email: aishakyamanywa@yahoo.com Mr. Nyeko George Latim, Personal Assistant to the Minister, Ministry of Trade, Industry and Cooperatives, Kampala, Tel: +256 (0) 414 314 233/071 6666 111, Email nlatim@yahoo.com ZAMBIA/ZAMBIE Honourable Emmanuel T. Chenda, MP, Minister of Commerce, Trade and Industry, P.O. Box 31968, Lusaka, Tel: +260 211 226727, Fax: +260 211 226673, Email: siazongo@gmail.com Honourable Esther Banda, MP, Deputy Minister of Gender and Child Development, P.O. Box 30719, Lusaka, Tel: +260 211 223749, Fax: +260 211 223749, Email: bupekaonga@gmail.com CS/CM/XXXII/2 Page 142 Mr. Siazongo D. Siakalenge, Permanent Secretary, Ministry of Commerce, Trade and Industry, P.O. Box 31968, Lusaka, Tel: +260 211 226727, Email: ssiakalenge@mcti.gov.zm ZAMBIA/ZAMBIE (cont’d) Mrs. Yvonne Chileshe, Director, Ministry of Commerce, Trade and Industry, P.O. Box 31968, Lusaka, Tel: +260 211 224115, Email: ychileshe@mcti.gov.zm Mr. Namabanda Mundia Mubukwanu, Principal Economist, Ministry of Commerce, Trade and Industry, P.O. Box 31968, Lusaka, Tel: +260 211 224115, Email: NMubukwanu@mcti.gov.zm Mr. Billy Kunda Malijani, Principal Economist, Ministry of Commerce, Trade and Industry, P.O. Box 31968, Lusaka, Tel: +260 211 226954, Email: BMalijani@mcti.gov.zm Sauka Chinji, Principal Economist, Ministry of Foreign Affairs, P.O. Box 50069, Lusaka, Tel: +260 950 494395, Fax: +260 211 250240, Email: saukachinji@yahoo.com Mr. Anayawa Mutemwa, Principal Agricultural Economist, Ministry of Agriculture and Livestock, P.O. Box 50595, Lusaka, Tel: +260 979 257495/250308, Fax: 260 211 250308, Email: anayawamutemwa@yahoo.co.uk Mr. Reuben Kunda, Deputy Commissioner - Customs, Zambia Revenue Authority, P.O. Box 35710, Lusaka, Tel: +260 211 382800, Email: kundar@zra.org.zm Mr. Swithan Kalobwe, Senior Collector, Zambia Revenue Authority, P.O. Box 35710, Lusaka, Tel: +260 211 229214/8, Fax: +260 211 222704, Email: kalobwes@zra.org.zm Ms. Lydia Matapo, Principal Counsel-International Law, Ministry of Justice, P.O. Box 50106, Lusaka, Tel/Fax: +260 211 254199, Email: Lydia.matapo@yahoo.co.uk Mr. Stanley Lupiya, Protocol Officer, Ministry of Commerce, Trade and Industry, P.O. Box 31968, Lusaka, Tel: +260 975 810033, Email: slupiya@gmail.com Ms. Bupe Kaonga, Director, Ministry of Gender and Child Development, P.O. Box 30719, Lusaka, Tel: +260 211 223749, Email: bupekaonga@gmail.com Mr. Joseph Silavwe, Market Development Specialist, Zambia Development Agency, P.O. Box 30819, Lusaka, Tel: +260 973 251330, Email: jsilavwe@zda.org.zm Ms. Isabelle M.M. Lemba, Assistant Director, Ministry of Foreign Affairs, P.O. Box 50069, Lusaka, Tel: +260 211 254003, Email: immlemba@hotmail.com ZIMBABWE Honourable Mike C. Bimha, Minister of Industry and Commerce, P/Bag 7708, Causeway, Harare, Tel: +263 4 795152, Fax: 263 4 25 488, Email: mikebimha@yahoo.com Honourable Simbarashe S. Mumbengegwi, Minister of Foreign Affairs, P.O. Box 4240, Harare, Tel: +263 4 794681, Fax: +263 4 795161, Email: sadczim@yahoo.com CS/CM/XXXII/2 Page 143 ZIMBABWE (cont’d) Mrs. Abigail Shonhiwa, Permanent Secretary, Ministry of Industry and Commerce, P/Bag 7708, Causeway, Harare, Tel: +263 4 795152, Fax: +263 4 251488, Email: abigailshonhiwa@yahoo.com/ashonhiwa@miit.gov.zw His Excellency Lovemore Mazemo, Ambassador & Permanent Representative to COMESA, Zimbabwe Embassy, Lusaka, Zambia, Tel: +260 977 762647, Email: lmazemo@hotmail.com Mr. Kindon Gandanga, Deputy Director, Ministry of Industry and Commerce, 13th Floor Mukwati Bldg, Cnr Livingstone/Fourth St, Harare. Tel: +263 4 798425, Email: kgandanga@yahoo.com Mr. Batiraishe Mukonoweshuro, Deputy Director, Ministry of Foreign Affairs, P.O. Box 4240, Harare, Tel: +263 4 791048, Email: henrymukonoweshuro@yahoo.com Ms. Ellen Ruparanganda, Assistant Director (Tariffs), Competition and Tariff Commission, 1 Kwame Nkuruma Avenue, Harare, Tel: +263 4 773554, Email: elnruparanganda@gmail.com Mr. Fambaoga L. Myambo, Commissioner, Competition and Tariff Commission, P/Bag 7708, Causeway, Harare, Tel: +263 712 885216, Email: corestrategy@hotmail.com Mr. Amon Nyahada, Senior Economist, Ministry of Industry and Commerce, P. Bag 7708, Causeway, Harare, Tel: + 263 772 839 290/+263 4 793 461, Fax: +263 4 251488 Email: amon.nyahada@yahoo.com/ amonnyahada@indandcom.co.zw Mrs. Cleopatra Mafuba, Economist, Ministry of Industry and Commerce, P. Bag 7708, Causeway, Harare, Tel: +263 773 448044, Fax: +263 4 251488, Email: sukupatra@yahoo.com Mr. Emmanuel Sithole, Economist, Ministry of Finance, Bag 7705 Causeway, Harare, Tel: +263 773 616 301, Email: sithole04@gmail.com Mr. Allen Mukurazhizha, Economist, Ministry of Finance and Economic Development, P/Bag 7705, Causeway, Harare, Tel: 263 4 796624/794571/78, Fax: +263 4 2504614/5, Email: amzhizha@yahoo.co.uk Mrs. Stella Nyagweta, Trade Attaché, Embassy of Zimbabwe, Lusaka, Zambia, Tel: +260 979 900412, Email: stellamnyagweta@hotmail.com Mr. Billiat Chaderopa, Chief Business Development Officer, Ministry of Small and Medium Enterprises and Cooperative Development, P/Bag 7704, Causeway, Harare, Tel: +263 773 654; +263 4 701 457, Email: bmchaderopa@yahoo.com Mr. Kingstone Ziyera, Senior Administrative Officer, Ministry of Foreign Affairs, P.O. Box 4240, Harare, Tel: +263 4 794681, Fax: +263 4 756151, Email: kingstonziyera@yahoo.com Mr. Peter Mobwani, Ministry of Foreign Affairs/Zimbabwe Embassy, Tel: 0822 844 501, Email: hobwani@yahoo.com CS/CM/XXXII/2 Page 144 Mrs. Chiwenga Tapiwa, S.O., Ministry of Justice, Legal and Parliamentary Affairs, Harare, Tel: +263 4 774260, Fax: 263 4 772999, Email: tapychiwenga@yahoo.com COMESA INSTITUTIONS ALLIANCE FOR COMMODITY TRADE IN EASTERN AND SOUTHERN AFRICA (ACTESA) Mr Argent Chuula, Chief Executive Officer, ACTESA, c/o COMESA Secretariat, P.O. Box 30051, Lusaka, Zambia, Tel: +260 211 229725-32, Fax: +260 211 225107, Email: achuula@comesa.int Dr. Gatchew Belay, Senior Biotechnology Policy Adviser, Email: gbelay@comesa.int AFRICAN TRADE INSURANCE AGENCY (ATI) Mr. Cyprien Sakubu, Ag. General Counsel, CIRM & Board Secretary, African Trade Insurance Agency (ATI), P.O. Box 10620-00100, GPO, Nairobi, Kenya, Tel: +254 20 2719727; Fax: +254 20 2719701, Email: cyprien.sakubu@ati-aca.org COMESA BRUSSELS LIAISON OFFICE (BLO) Ambassador Dr. Gervais Nkanagu, COMESA Representative to EU & ACP, Brussels Liaison Office, 72.74 Avenue Gustave Demey 1160, Brussels, Belgium, Tel: +32 2 3438410, Fax: +32 2 3438657, Email: gnkanagu@comesa.int COMESA BUSINESS COUNCIL (CBC) Ms. Sandra Uwera, Coordinator, COMESA Business Council, P.O. Box 30051, Lusaka, Zambia, Tel: +260 211 229725/32, Fax: +260 211 225107, Email: suwera@comesa.int COMESA CLEARING HOUSE Mr. Mahmood Mansoor, Executive Secretary, COMESA Clearing House, P.O. Box 2940, Harare, Zimbabwe, Tel: +263 4 495189, Fax: +263 4 498497, Email: mmansoor@comesach.org COMESA COMPETITION COMMISSION (CCC) Mr. George K. Lipimile, Executive Director, COMESA Competition Commission, P.O. Box 30742, Lilongwe 3, Malawi, Tel: +265 1 772466, Email: glipimile@comesa.int Mr. Lloyds Vincent Nkhoma, Manager – Enforcement, COMESA Competition Commission, P.O. Box 30742, Lilongwe 3, Malawi, Tel: +265 1772466, Email: vnkhoma@comesa.int Ms. Mary Gurure, Manager, Legal Services and Compliance, Competition Commission, P.O. Box 30742, Lilongwe 3, Malawi, Tel: +265 997 405 158, Email: mgurure@comesa.int Mrs. Lucy Dziko, Senior Finance Assistant, COMESA Competition Commission, P.O. Box 30742, Lilongwe, Malawi, +265 999 953068, Email: ldziko@comesa.int CS/CM/XXXII/2 Page 145 COMESA COURT OF JUSTICE (CCJ) Honourable Justice Nzamba Kitonga (S.C.), Judge President, COMESA Court of Justice, P.O. Box 60102 – 00200, 5th Floor, Jubilee Insurance Exchange, Kaunda Street, Nairobi, Kenya, Tel: +254-20-224887, Cell: +254-0722-728-792, Fax: +254-20-210133, Email: law@iconnect.co.ke Honourable Justice James Ogoola, Judge, COMESA Court of Justice, P.O. Box 7085, Kampala, Uganda, Cell : +256 – 772587256 or 00256-414-341-257, Fax :00 256-0414-343-423,Email: ckisubi@gmail.com Ms. Lucy Nyambura Mbatia, Registrar, COMESA Court of Justice, COMESA Centre, P.O. Box 30051, Lusaka, Zambia, Tel: +260 971 234158, Fax: +260 211 225107, Email: Lmbatia@comesa.int Mr. Habben Nkonkesha, Clerk of Court, COMESA Court of Justice, COMESA Centre, P.O. Box 30051, Lusaka, Zambia, Tel: +260 977 459911/+260 978 220019, Fax: +260 211 225107, Email: hnkonkesha@comesa.int Mr. Simukuka Kayama, Administrative and Finance Officer, COMESA Court of Justice, COMESA Centre, P.O. Box 30051, Lusaka, Tel: +260 977 846710, Fax: +260 211 225107, Email: skayama@comesa.int Mrs. Ruth M. Limbambala, Administrative Assistant, COMESA Court of Justice, COMESA Centre, P.O. Box 30051, Lusaka, Tel: +260 978 017015, Fax: +260 211 229725, Email: rlimbambala@comesa.int COMESA FEDERATION OF NATIONAL ASSOCIATIONS OF WOMEN IN BUSINESS IN EASTERN AND SOUTHERN AFRICA (FEMCOM) Mrs. Katherine Nyangui Ichoya, Chief Executive Office, FEMCOM Secretariat, Zimbabwe, House, Ground Floor, P.O. Box 1499, Lilongwe 3, Malawi, Tel: +265 1 774651/656/ +265 999 449 096, Email: kichoya@comesa.int; kichoya@femcomcomesa.org Mr. Mackson Phiri, Senior Finance and Administrative Assistant, FEMCOM Secretariat, P.O. Box 1499, Lilongwe 3, Malawi, Tel: +265 1 774 656/651/ +265 999 336093, Email: mphiri@femcomcomesa.org COMESA LEATHER AND LEATHER PRODUCTS INSTITUTE (COMESA LLPI) Dr. Mwinyikione Mwinyihija, Executive Director, COMESA/LLPI, P.O. Box 2358, Code 1110, Addis Ababa, Ethiopia, Tel: +251 11 4390928, Email: m_mwinyi@hotmail.co.uk; comesa.llpi@ethionet.et Mr. Zewdu Kebede, Programmes Co-ordinator, COMESA/LLPI, P.O. Box 2358, Code 1110, Tel: +251 11 4391319, Email: comesa.llpi@ethionet.et COMESA MONETARY INSTITUTE (CMI) CS/CM/XXXII/2 Page 146 Mr. Ibrahim A. Zeidy, Director, COMESA Monetary Institute, Kenya School of Monetary Studies, P.O. Box 65041-00618, Nairobi, Kenya, Tel: +254 787 408269; Email: izeidy@comesa.int COMESA REGIONAL INVESTMENT AGENCY (COMESARIA) Mr. Chalimba Phiri, Chairman, COMESA-RIA, P.O. Box 37211, Lusaka, Zambia, Tel: +260 977799101/+260 966 748686, Email: chalimba@email.com Ms. Heba Salama, Manager, COMESA RIA, 3A Salah Salem St., Ministry of Investment, Nasr City, Cairo, Egypt, Tel: +203 240 55428, Fax: +202 24055 421, Email: hsalama@comesaria.org Mr. Mohamed Aref, Research Analyst, COMESA Regional Investment Agency, 3A Salah Salem, Nasir City, Cairo, Egypt, Tel: +202 24055428, Fax: +202 24055421, Email: maref@comesaria.org EASTERN AND SOUTHERN AFRICAN TRADE AND DEVELOPMENT BANK (PTA BANK) Mr. Admassu Yilma Tadesse, President, PTA Bank, P.O. Box 48596, Nairobi, Kenya, Tel : +254 732 192 000, Fax: +254 20 271 1510, Email : Judith.Mongala@ptabank.org Ms. Judith Mongala, Marketing Coordinator, Corporate Affairs – Presidency, PTA Bank, P.O. Box 48596, Nairobi, Kenya, Tel : +254 732 192 000, Fax: +254 20 271 1510, Email : Judith.Mongala@ptabank.org PTA RE-INSURANCE COMPANY (ZEP-RE) Mr. Jerry Evans Sogoli, Company Secretary, ZEP-RE, P.O. Box 42769 – 00100, Nairobi, Kenya, Tel: +254 20 4973000, Fax: +254 20 2738444, Email: jsogoli@zep-re.com INTERNATIONAL ORGANISATIONS AFRICAN CAPACITY BUILDING FOUNDATION (ACBF) Mr. Coffi Noumon, Regional Director, African Capacity Building Foundation, P.O. Box 1562, Harare, Zimbabwe, Tel: +233 268 186729, Email: c.noumon@acnf-pact.org AFRICAN UNION COMMISSION Mr. Treasure Thembisile Maphanga, Director, Trade and Industry, African Union Commission, Addis Ababa, Ethiopia, Tel: +251 911 5034 25, Email: maphangaT@africa-union.org Mr. Frank Dixon Mugyenyi, Senior Industry Advisor, African Union Commission, P.O. Box 3243, Addis Ababa, Ethiopia, Tel: +251 11 551 7700, Email: mugyenyif@africa-union.org Mr. Batanai Clemence Chikwene, Trade Officer, African Union Commission, P.O. 3243, Addis Ababa, Ethiopia, Tel: +251 912 601 024, Email: chikweneb@africa-union.org EUROPEAN UNION CS/CM/XXXII/2 Page 147 Mr. Daniel Hurtado-Dominguez, Head of Regional Cooperation Section, European Union Delegation to Zambia and COMESA, Lusaka, Zambia, Tel: +260 211 250 711, Fax: +260 211 252 336, Email: DANIEL.HURTADO-DOMINGUEZ@EEAS.EUROPA.EU CS/CM/XXXII/2 Page 148 INTERNATIONAL CONFERENCE OF THE GREAT LAKES REGION (ICGLR) Ambassador Bandouin Hamuli Kabarhuz, ICGLR, Kinshasa, Tel: +243 999 82097, Email: hamulik@hotmail.com INTERNATIONAL ORGANIZATION FOR MIGRATION (IOM) Mr. Bernardo Mariano, Regional Director, International Organization for Migration, 353 Festival Street, Pretoria, South Africa, Tel: +27 82 0699888, Fax: +27 12 3422789, Email: bmariano@iom.int UNITED NATIONS ECONOMIC COMMISSION FOR AFRICA (UNECA) Mr. Youssouf Camara, Economic Affairs Officer, UNECA, P.O. Box 3544, Addis Ababa, Ethiopia, Tel: +251 11 5443349, Email: ycamara@uneca.org OBSERVERS JAPAN His Excellency Kiyoshi Koinuma, Ambassador and Special Representative to COMESA, Embassy of Japan, P.O. Box 34190, Lusaka, Zambia, Tel: +260 211 251555, Fax: +260 211 253 488, Email: Kiyoshi.Koinuma@mofa.go.jp Ms. Keiko Yamanaka, First Secretary, Embassy of Japan, P.O. Box 34190, Lusaka, Zambia, Tel: +260 211 251555, Fax: +260 211 253 488, Email: keiko.yamanaka@mofa.go.jp NIGERIA Ms. Esther Otukoya, Nigeria High Commission, P.O. Box 32598, Lusaka, Zambia, Tel: +260 211 253 177/+260 965 476940, Fax: +260 211 252 535, Email: funmilolaotukoya@rocket.com SWEDEN Mr. Protase Echessah, Program Manager, Embassy of Sweden, P.O. Box 30600-00100, Nairobi, Kenya, Tel: +254 20 423 4000/33, Fax: +254 20 423 4339, Email: protease.echessah@gov.se COMESA SECRETARIAT, P.O. BOX 30051, BEN BELLA ROAD, LUSAKA, ZAMBIA, TEL: +260 211 229725/32 Mr. Sindiso Ngwenya, Secretary General, Email: sngwenya@comesa.int Ambassador Nagla El-Hussainy, Assistant Secretary General (A&F), Email: nelhussainy@comesa.int Ambassador Dr. Kipyego Cheluget, Assistant Secretary General (P), Email: kcheluget@comesa.int Mr. Dev Haman, Director of Budget and Finance, Email: dhaman@comesa.int Mrs. Victoria M. Mwewa, Director of Administration, Email: vmwewa@comesa.int CS/CM/XXXII/2 Page 149 Dr. Francis Mangeni, Director of fmangeni@comesa.int COMESA SECRETARIAT (cont’d) Trade, Customs and Monetary Affairs, Email: Mr. Sherin Shoukry, Director of Information and Technology, Email: shoukry@comesa.int Mr. Brian Chigawa, Director, Legal and Institutional Affairs, Email: bchigawa@comesa.int Mrs. Emiliana Tembo, Director of Gender and Social Affairs, Email: etembo@comesa.int Mr. Thierry Mutombo Kalonji, Acting Director, Investment Promotion and Private Sector Development Email: tkalonji@comesa.int Dr. Abu Sufian E. Dafalla, Ag. Director Infrastructure Development, Email: adafalla@comesa.int Mrs. Aurelia Olunga, Chief Internal Auditor, Email: aolunga@comesa.int Mrs. Hope K. Situmbeko, COMAID/RISM Coordinator, Email: hsitumbeko@comesa.int Dr. Mclay Kanyangarara, Coordinator, Climate Change, Email: mkanyangarara@comesa.int Mr. Eloi Kwete, RISP Coordinator, Email: ekwete@comesa.int Ms. Elizabeth Mutunga, Head, Governance, Peace and Security, Email: emutunga@comesa.int Mr. Mwansa James Musonda, Senior Trade Advisor, Email: mmwansa@comesa.int Mr. Julien E. Razafintsalama, Ag. Coordinator, Technical Cooperation and Resource Mobilisation, Email: jrazafintsalama@comesa.int Mrs. Ann Mugunga, Chief Editor, Email: amugunga@comesa.int Ms. Hloniphile Dlamini, Chief Conference Services, Email: hdlamini@comesa.int Mr. Josephat Kinyele, Procurement & General Services Officer, Email: jkinyele@comesa.int Mr. César Badogomba, Reviser, Email: cbadogomba@comesa.int Dr. Martha Mutesayire, Translator, Email: mmutesayire@comesa.int Mrs. Beatrice Matururu, Translator, Email: bmatururu@comesa.int Mr. Paul Kabasu, Translator, Email: pkabasu@comesa.int Mr. Alhadi Daleel, Arabic Reviser, Email: adaleel@comesa.int Mr. Yasser Taha Amer, Arabic Translator, Email: yamer@comesa.int Ms. Nihal Iskandar, Arabic Translator, Email: niskandar@comesa.int Mr. Caesar Cheelo, Macro-Economic Adjustment Expert, Email: ccheelo@comesa.int Mr. Mwangi Gakunga, Public Relations Officer, Email: mgakunga@comesa.int Mrs. Munshya Zoya Masocha, Financial Accountant, Email: zmasocha@comesa.int Mrs. Muzinge Chomba-Nampito, PR Assistant, Email: mnampito@comesa.int Mrs. Agnes C. Chalabesa, Senior Administrative Assistant, Email: achalabesa@comesa.int Mrs. Christine P. Mwanza, Senior Administrative Assistant, Email: cmwanza@comesa.int Mrs. Suzan Zulu, Senior Administrative Assistant, Email: szulu@comesa.int Ms. Maria Kafwariman, Administrative Assistant, Email: mkafwariman@comesa.int Mrs. Mwadi T. Chanda, Administrative Assistant, Email: mchanda@comesa.int Ms. Valerie Masengu, Administrative Assistant, Email: vmasengu@comesa.int Ms. Georgina M. Banda, Administrative Assistant, Email: gbanda@comesa.int Miss. Lydia Mulenga, Administrative Assistant, Email: lmulenga@comesa.int Mrs. Maha Ahmed, Arabic Administrative Assistant, Email: mahmed@comesa.int Ms. Rose Kabangu-Kapembwa, Senior Bilingual Administrative Secretary, Email: rkabangu@comesa.int Ms. Astrid Binda, Senior Bilingual Secretary, Email: abinda@comesa.int Ms. Mary Ndoti, Senior Secretary, Email: mndoti@comesa.int Ms. Catherine Mwaba, French Secretary, Email: cmwaba@comesa.int Mr. Levy Mkandawire, Technician, Email: lmkandawire@comesa.int Mr. John Nkhata, Senior Documentation Assistant, Email: jnkhata@comesa.int Mr. Terence Saisha, Procurement Assistant, E-mail: tsaisha@comesa.int Mr. Philip Kambafwile, Graphics Designer, Email: pkambafwile@comesa.int Mr. Daniel Banda, Cameraman, Email: dbanda@comesa.int CS/CM/XXXII/2 Page 150 Mr. Arthur Zulu, IT Officer, Email: azulu@comesa.int Mr. Brian Sampa, ICT Support Officer, Email: bsampa@comesa.int Ms. Chewe S. Mfula, Project Assistant, cmfula@comesa.int PROJECT PREPARATION IMPLEMENTATION UNIT (PPIU) Mr. Amos Marawa, Director, Project Preparation Implementation Unit, Lusaka, Zambia, Email: amarawa@ppiu.org TRADEMARK SOUTHERN AFRICA (TMSA) Mr. Mark Pearson, Programme Director, Trademark Southern Africa, Box 317, Persequor Park, Pretoria, South Africa, Email: mpearson@trademarksa.org INTERPRETERS Dr. Hassan Ali Eissa, Trilingual Conference Interpreter, University of Khartoum, Translation Unit, P.O. Box 321, Khartoum, Sudan, Tel: +249 912 352897/+249 999 249929, Email: hassaneissa52@hotmail.com: hassaneissa2004@yahoo.com Mr. Ali El-Shahir, Freelance Arabic Interpreter, P.O. Box 14699 Hatfield 0028, South Africa, Tel: +27 82 461 3773/+27 12 362 8123, Email: a.shahir5@gmail.com/shahir@icon.co.za Dr. Keguro Joe Muhindi, Interpreter, P.O. Box 56061, Nairobi 00200, Kenya, Tel: +254 722 522301, Email: muhindi.k@gmail.com Ms. Odette Skander Interpreter, Cabinet of the Egyptian Government, 8, Ibrahim Salama, Mohandessein, Cairo, Egypt, Tel: +20 100 606 3039, Email: ode_999@yahoo.com Ms. Esther Attallah Rafla, Arabic Interpreter, 115, El Manyal St. Fl 71 Cairo, Egypt, Tel: 202 0111 8469454, Home (02) 236 81904, Email: astoraata@yahoo.com Mr. C.K. Sokpor-Dufe, Conference Interpreter, Lingua Verbus Consultants, P.O. Box 258100200, Nairobi, Kenya, Tel: +254 -722-707-165, Email: klemdufe@yahoo.com Mr. Kansongo Mukalay, Interpreter, P.O. Box 231-00606, Nairobi, Kenya, Tel: +254 722 705848, Email: kasongomukalay@yahoo.com Mr. Gaafar Mudawi El Bushra, Interpreter, 6010 beid Khatim St. Al-Sata Tower - 2nd Floor, Tel: +249 920 676414, Email: GMBUSHRA@GMAIL.COM Dr. Esmat Oremsa, Trilingual Interpreter Freelance, Aiic Member, Tel: +20 100 142 20 72/+20 100 11 11 901, Email: onensae@yahoo.fr; khammamy@yahoo.com Mr. Benoit Mugenzi, Interpreter, Interlingua, P.O. Box 61544-00-200, Nairobi, Kenya, Tel: +254 715 936397, Email: mugenzi.ben@gmail.com Mr. Canisius Muganza, pcmuganza@yahoo.com Conference Interpreter, Tel: 250 788503798, Email: CS/CM/XXXII/2 Page 151 Mr. Louis Buras, Interpreter, Tel: +254 79 984 777, Email: louisburas@yahoo.fr CS/CM/XXXII/2 Page 152 TRANSLATORS Mr. Chris Harahagazwe, Conference Translator, P O Box 34 Bujumbura, Burundi, Tel: 257 79 478 763, Email: chrishara2000@yahoo.co.uk Dr. Ahmad Abdelmoniem, Arabic Translator, The American University, Heliopolis, Egypt, Tel: +2 0100 2288846 Email: ahmoniem@aucegypt.edu Cairo, Ms. Wafaa A. Mohamed wafaa.engineer@gmail.com Email: Ahmed, Translator, +Tel: 249 124 885537,