Highlights:- DRC Government Ready to fully participate in COMESA programmes ACTESA Holds Consultations with Ethiopia African Trade Insurance Board of Directors Meet Uganda supports COMESA’s Simplified Trade Regime Infrastructure Partnerships for African Development (IPAD)-East African Power Industry Convention (EAPIC) COMESA has commenced the Design of the Carbon Facility

1. newsletter
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Issue #214 -14th August 2009
Issue #126 Friday 19 October 2007 newsletter
DRC Government Ready to fully participate in
COMESA programmes Chirundu with a view of duplicating
the One Stop Border Post initiative
at the Zambia/
DRC border at
Kasumbalesa.
The Congolese
delegation led by
the Finance Deputy
Minister composed of
experts from Customs
administration, senior
officers from the co-
coordinating Ministry
and the Ministry of
Finance of the DRC.
Secretary General
Ngwenya encouraged
T
he Government of the in Lusaka this week when he met
the DRC to participate in the COMESA
Democratic Republic of Congo Secretary General Sindiso Ngwenya
Regional Customs Transit Guarantee
(DRC) says it is ready to fully and Assistant Secretary General
(RCTG) scheme to reduce the cost
participate in regional integration Ambassador Nagla El Hussainy.
of doing business the Congolese
using instruments made available business community. Minister
by the Common Market for Eastern As a sign of this renewed
Lubamba Ngimbi revealed that
and Southern Africa (COMESA). This commitment, the DRC has paid all
the process of finalization of the
includes joining the recently launched the 2009 budget contribution to the
ratification of the RCTG instrument
COMESA Customs Union. COMESA Secretariat and has starting
has commenced. Mr. Ngwenya also
settling its arrears.
highlighted the benefits of joining the
Deputy Minister of Finance in the PTA Bank adding that it could benefit
DRC Government Honourable Cesar Honourable Lubamba Ngimbi also
both the public and private sector
Lubamba Ngimbi reiterated that used his presence in Zambia to visit
through direct financing of some
country’s commitment to COMESA the Zambia/Zimbabwe border at
important projects in the DRC.
to page 2
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2. from page 1
Peace Commended Asycuda project, COMESA is ready to Minister Lubamba Ngimbi revealed
Meanwhile, Secretary General expand the project in all the eleven that the World Bank and other
2 Ngwenya commended His Excellency provinces of the DRC. The Asycuda multilateral donors are discussing how
President Joseph Kabila for the efforts Project aims at computerizing to waive the US$9 billion government
made to bring peace and security in customs administration leading to an debt owed by the DRC. This will be a
the country. He pointed out that the increase in revenue collection while positive move towards reconstructing
recent visit to the DRC by US Secretary helping to fight fraud and corruption. that country and improve the welfare
of State, Hillary Clinton, is a great signal of its people.
of confidence that the government is Earlier, the Congolese Deputy Minister
on the right track to full recovery. paid a courtesy call on his counterpart He also met the Zambian Minister
at the Zambian Ministry of Finance of Commerce, Trade and Industry
Mr. Ngwenya expressed COMESA’s and National Planning. He met Hon. Hon. Felix Mutati who assured that
commitment to help the DRC Chileshe Kapwepwe and the two funding for a One Stop Border Post at
duplicate One Stop Border initiative discussed areas of cooperation mainly Kasumbalesa could be sourced.
at the Kasumbalesa border post. He the need for the DRC to learn the best COMESA will attend the forthcoming
also assured the Minister of Finance practices on how the Zambia Revenue SADC summit to be held in September
that given the benefit of the COMESA Authority efficiently collects revenue. in the DRC.
ACTESA UPDATE
ACTESA Holds Consultations with Ethiopia
Discussions with the World Bank’s
AAMP Team Leader focused on
how current World Bank supported
agricultural activities in Eastern and
Southern Africa can be folded into
ACTESA. Dr. Muyunda’s discussions
with USAID’s agricultural policy
officials agreed modalities for
providing strategic institutional
support to ACTESA. Meetings with
US Foundations identified key private
sector agribusinesses that will work
Cris Muyunda (ACTESA) and Thom Hobgood (USAID) taking a break during meetings at the World Bank
with ACTESA to partner African farmer
Alliance for Commodity Trade in follows his visit to the USA where groups.
Eastern and Southern Africa (ACTESA) he held consultations with the
Regional Coordinator and CEO, World Bank, USAID and US private In the MDTF discussions, the World
Cris Muyunda, is in Addis Ababa, foundations. ACTESA is preparing to Bank confirmed support to the
Ethiopia to hold consultations with deliver practical support to farming Burundi compact and requested
the government of that country. communities in countries that immediate forwarding of the
Dr. Muyunda will meet with the prioritize CAADP. Dr. Muyunda also Burundi compact signing budget to
Government of Ethiopia regarding joined African partners, NEPAD and the Bank. The MDTF has provided
the signing of the CAADP Compact the Conference of Ministers of West guidelines on levels of support to
and the type of support ACTESA Africa in the Multi Donor Trust Fund Regional Economic Communities
will deliver to Ethiopia following (MDTF) Steering Committee meeting for participating in compact signing
the signing of the Compact. Dr. at the World Bank. ceremonies. .
Muyunda’s arrival in Ethiopia
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3. African Trade Insurance Board of Directors Meet
Meeting of the Board of Directors that 3
was held in Naivasha, Kenya on 11th
August 2009. The Board Meeting was
preceded by a one day workshop on
Enterprise Risk Management (ERM)
and Strategy Planning Session for the
institution.
The ATI continues to provide Trade
Credit Insurance, Political Risk
Insurance and Terrorism Cover. As a
result of the services provided by ATI,
ATI Board of Directors and Alternate Directors participating member States have
The Secretary General of COMESA, as the Vice Chairman of ATI Board been able to attract investments from
Mr. Sindiso Ngwenya, in his capacity of Directors attended the 33rd ATI within the region and outside Africa.
Uganda supports COMESA’s Simplified Trade Regime
T
he first Katuna/Gatuna COMESA solve the problems faced by small- and over time large volumes are being
Cross Border Trade Forum was scale cross-border traders. It enables traded. You are the people on the
held on Monday 10th August them to enjoy duty and quota free ground who know where the deficits
to Friday 14th August 2009 in Kabale entry of their goods in the COMESA and the surpluses are and thus from
District in the Republic of Uganda. region. The STR is also looking at ways the surplus the deficits are fed,” added
The occasion was an opportunity for to transform informal cross-border the Director.
Uganda through the vice Chairperson trade into formal trade.
of the Kabale District, Mr Silver The forum included a visit to the
Baguma, to re-affirm the country’s Speaking at the same meeting, border to witness the challenges
commitment to COMESA’s regional COMESA Director of Gender, Women firsthand and discuss with the various
integration agenda. At the forum, in Business and Social Affairs, Mrs stakeholders on the implementation
Uganda extended its support on the Emiliana Tembo, pointed out that the of the COMESA STR and the
uptake of the Simplified Trade Regime informal sector constitutes thousands elaboration of an action plan to ensure
in the COMESA region which aims to of un-captured data each year and its implementation.
increase recorded and legitimate small of course millions of revenue lost by
scale cross-border trade and remove governments. The main stakeholders targeted
the opportunistic forms of corruption by the programme included cross-
that have been found to inhibit trade She revealed that the STR has been border traders, local government
and lead to traders conducting trade strongly backed by the COMESA officials, national government
outside official channels. Council of Ministers for a long time officials, parliamentarians, civil society
as it was realized that big businesses organizations and private sector
The forum was also an opportunity have benefitted relatively more from organizations. This first activity which
for COMESA to meet the traders who COMESA programmes. took place on the Uganda-Rwanda
cross the borders on a regular basis border at Katuna, will serve as a pilot
and to find out how to enhance “Though small quantities may be for conducting similar activities along
their trade in a sustainable manner. carried across the border at a time, other borders in the region.
COMESA introduced the STR to help many of you are engaged in this trade
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4. Infrastructure Partnerships for African Development
4 (IPAD)-East African Power Industry Convention (EAPIC)
Below is an edited version of the Fortunately, this is being addressed road user charges, including fuel
welcome address delivered by the through the elimination of these levies, for road users. Whereas it is
Secretary General of COMESA Mr. artificial barriers through regional true that the levies collected may
Sindiso Ngwenya at the above meeting integration. be inadequate, given the financing
in Dar es Salaam Tanzania on 12th requirements, the constraint is not
August 2009 The second challenge is that most the amounts collected but rather
of our countries do not have the the lack of innovative approaches.
“Allow me to begin with the financial resources for investment I therefore submit that what is
challenges on infrastructure in infrastructure projects, which required is to securitize the annual
development in our region. The require large capital outlays and amounts collected and leverage it
first is what I would describe as the are characterized by long gestation four to five times. For example, an
“tyranny of geography”, which is periods. The traditional approach annual collection of US$250 million
compounded by the “dispersion” of has been to obtain funding from would generate finances of US$900
populations. A cursory look at the multilateral development banks and million. This form of infrastructure
map of East Africa in particular and development partners. This type of financing would be akin to a non-
Africa in general, shows that most funding increases the debt stock debt financing instrument.
of the countries have vast tracts of and burden of countries, hence,
land with low population densities the need for public/private sector For the railway sector, it is not
per square kilometre. The exceptions partnerships. It is gratifying to note enough to concession existing
are the small countries like Burundi, that this is happening in power and railways. To bring about inter-railway
Malawi and Rwanda. The low telecommunications projects. competition, investors for green field
population densities mean that the railway projects should be invited.
cost of building infrastructure per The third challenge is the inadequate It is also advisable for the region
capita/person is very high. A typical capacity, both technical and financial, to consider the implementation
case is the provision of electricity to of companies within the region of rail/road systems that bring
dispersed populations by our power to participate in tenders for big about integrated and seamless
companies. infrastructure projects. It would be transportation systems. This is
advisable for regional companies to because technology is available for
The low population densities that pool their capacities. trailers that can move on both road
prevail in most of our countries and rail, thus eliminating railway
are both a blessing and a curse. DISTINGUISHED PARTICIPANTS shunting and associated costs. This
The “tyranny of geography” is I wish to highlight the opportunities would mean that road transport
also manifested by the number that are going begging and need to would be confined to door to door
of “landlocked” countries that be harnessed. With regard the road short haul deliveries of freight thus
the region has, thanks to the sector, the institutional and policy taking off more than 95% of traffic
balkanization of Africa in the reforms that have been implemented volume from the road network and
Nineteenth Century. Due to under the World Bank, sub-Saharan reduce both periodic and routine
institutional and administrative Africa transport programme need to maintenance costs as well as extend
interventions, the cost of doing be advanced. Countries in East Africa the life of the roads.
business is increased multifold. and the region have introduced
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5. CLIMATE CHANGE UPDATE
COMESA has commenced the Design of the Carbon Facility
COMESA Secretariat with the support Africa. Burdened by the heavy weight of Sub-Saharan Africa depends on
of the Government of Norway has of the relevant standards and rules agriculture, it is thus the agriculture, 5
commenced the process of setting and wary of the risks associated with forestry, and land use sector that
up the carbon facility. COMESA has investments in community carbon holds the most promising potential
engaged Mr. Kurt van Duyn to assist projects in rural Africa, a carbon for carbon finance for most African
in the designing of the regional market driven by buyers’ preferences countries. However, the carbon
carbon facility hosted at the PTA has drawn little interest and support market has largely bypassed Africa.
Bank in Nairobi Kenya. The Global of African communities on their The member States have agreed
mechanism of the United Nations way to more sustainable agricultural that the carbon facility should reflect
Convention on Climate and D will practices. Africa’s needs and priorities. “ To
also provide support to COMESA make the carbon market work in
during the design of the Carbon The emergence of the carbon COMESA region, a new approach to
Facility. market has the potential to support carbon financing will be developed
the introduction of perennials and which will ensure local stakeholders
Of the more than 1,100 CLEAN agro-forestry, sustainable land rather than carbon credit buyers
DEVELOPMENT MECHANISM (CDM) management techniques, and are the primary beneficiaries of
projects registered by June 2008, conservation agriculture. Cultivation carbon finance, it is coupled with
only 17 are located Sub-Saharan of Jatropha or other seed oil technical and financial support, and
Africa. Uganda, Tanzania and Nigeria producing plants, afforestation, and it is supported by international and
have one registered CDM project the use of bio-energy also have the national policy ‘’ noted Mr. C. Miti,
each and the remaining 14 projects potential to contribute to a new Climate Change Coordinator .
are located in South Africa. This development paradigm for Africa The dedicated COMESA CARBON
lack of African CDM projects is due and reduction of Green House Gases. Facility will invest in offsets from
in part to the rules of the carbon By sequestering carbon, the rural agricultural, agro-forestry, forestry
market which discriminate against poor could produce a new type of and land-use (AFOLU) and other
the agricultural and forestry sector in international commodity. As much Carbon projects in countries in East
and Southern Africa.
For additional information contact Climate Change
Unit : cmiti@comesa.int
her at COMESA Secretariat while in
Lusaka attending the Summit of the
Great Lakes Region. Ambassador
Nagla briefed the French envoy on
the background to COMESA as an
organisation and the structure of its
organs and institutions. She briefed
him also on the establishment of the
free trade area and the customs union
as well as the process for building the
tripartite free trade area. She assured
the envoy that COMESA Secretariat
maintains cordial and friendly
relations with the French Government
and has benefited from various
French envoy visits COMESA technical cooperation activities. On
his part, the French envoy briefed
Ambassador Nagla on his functions
The COMESA Acting Secretary General, Ambassador Nagla El-Hussainy, and on his impressions of the Great
this week met the French Special Representative for Cooperation in the Great Lakes Summit just concluded.
Lakes Region, Ambassador Christiane Connan, who paid a courtesy call on
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