Africain general and COMESA Zone in particular are rich in minerals. The zone has a third of the mineral reserves in the world and two-thirds of the global deposits of diamond. Trade in gold, oil, diamonds, copper and other minerals is a key pillar of many African economies.
The Common Market for East and Southern Africa (COMESA) crafted a mineral policy to regulate and standardise the mining sector in the region to reduce leakages and exportation of raw minerals. COMIPRO was designed to take care of the poor pricing framework and policy formulation in Minerals Exportation.
Here is a preview of what COMESA is and how it came to the light:
COMESA’S PRIORITIES AND OBJECTIVES
The history of COMESA began in December 1994 when it was formed to replace the former Preferential Trade Area (PTA) which had existed from the earlier days of 1981. COMESA (as defined by its Treaty) was established ‘as an organisation of free independent sovereign states which have agreed to co-operate in developing their natural and human resources for the good of all their people’ and as such it has a wide-ranging series of objectives which necessarily include in its priorities the promotion of peace and security in the region.
However, due to COMESA’s economic history and background its main focus is on the formation of a large economic and trading unit that is capable of overcoming some of the barriers that are faced by individual states.
COMESA’s current strategy can thus be summed up in the phrase ‘economic prosperity through regional integration’. With its 19 member states, population of over 389 million and annual import bill of around US$32 billion with an export bill of US$82 billion COMESA forms a major market place for both internal and external trading. Its area is impressive on the map of the African Continent covering a geographical area of 12 Million (sq km). Its achievements to date have been significant.
A FREE TRADE AREA
The FTA was achieved on 31st October, 2000 when nine of the member States namely Djibouti, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia and Zimbabwe eliminated their tariffs on COMESA originating products, in accordance with the tariff reduction schedule adopted in 1992.This followed a trade liberalisation programme that commenced in 1984 on reduction and eventual elimination of tariff and non-tariff barriers to intra- regional trade. Burundi and Rwanda joined the FTA on 1st January 2004. These eleven FTA members have not only eliminated customs tariffs but are working on the eventual elimination of quantitative restrictions and other non-tariff barriers.
CUSTOMS UNION
A Customs Union maybe defined as a merger of two or more customs territories into a single customs territory, in which customs duties and other measures that restrict trade are eliminated for substantially all trade between the merged territories. The territories, in turn apply the same duties and measures in their trade with third parties. In preparation for a Customs Union the Eleventh Meeting of the Council of Ministers held in Cairo, Egypt adopted a Road Map that outlined programmes and activities whose implementation was necessary before the launching of the Union. It is expected that the launch will be achieved by the year 2008
TRADE PROMOTION
Other objectives which will be met to assist in the achievement of trade promotion include:
COMESA INSTITUTIONS
Several institutions have been created to promote sub-regional co-operation and development. These include:
In addition a Court of Justice was also established under the COMESA Treaty and became formally operational in 1998.
Further initiatives exist to promote cross border initiatives, form a common industrial policy and introduce a monetary harmonisation programme.
WHAT COMESA OFFERS
COMESA offers its members and partners a wide range of benefits which include:
THE DECISION MAKING PROCESS
COMESA has evolved a comprehensive decision making structure at the top of which are the Heads of State of the 20 member countries. There is then a Council of Ministers responsible for policy making, 12 technical committees and a series of other advisory bodies (including specific relations with partner countries and the business community). In addition each member state appoints liaison persons in their appropriate ministries who form part of the day-to-day communication process.
Overall co-ordination is achieved through the Secretariat, based in Lusaka, Zambia, who will be happy to deal with all initial communication.
COMESA’s Vision is to “be a fully integrated, internationally competitive regional economic community with high standards of living for all its people ready to merge into an African Economic Community”.
MISSIONIts Mission to “Endeavour to achieve sustainable economic and social progress in all Member States through increased co-operation and integration in all fields of development particularly in trade, customs and monetary affairs, transport, communication and information, technology, industry and energy, gender, agriculture, environment and natural resources”, the Secretariat was guided to develop its specific Mission Statement as follows:“To provide excellent technical services to COMESA in order to facilitate the region’s sustained development through economic integration”.
CORE VALUESCOMESA’s core values were defined as follows:
The Mission and Values Statements on their own are not sufficient to ensure an efficient and effective service delivery. They have to be linked to the strategy of the Secretariat which is building excellence into every process of the organisation through: