SADC, COMESA, EAC to merge into single market

LEADERS of 26 African countries, who
met in Kampala on Wednesday in the first COMESA, EAC, and SADC Tripartite Summit, have resolved
to merge the three regional blocs in East and Southern Africa into
a single market. The merger will lead to the creation of the largest free trade area in Africa, which has a population of over 527 million people and a combined GDP of USD624 billion.
Speaking at the end of the summit AU Chairman, President
Jakaya Kikwete of Tanzania said that African leaders have
directed the tripartite task force to develop a roadmap for the
implementation of this merger within six months, and noted that
the merger would be another step towards the attainment of the
African Economic Community. The summit, which was
opened by Ugandaʼs President Yoweri Museveni, brought
together leaders of the Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC), and the Southern African Development Community (SADC), also
resolved to work towards the establishment of a single customs
union. SADC Chairman, the newly appointed South African
President, Kgalema Motlanthe, told the summit: “The process
we have embarked on today marks an important step towards
the realization of building an economic bloc in todayʼs
challenging world that will increase the levels of intra-Africa
trade. By coming together, the member states will have a strong
voice in advancing our interests on the international scene.”
Besides President Jakaya Kikwete of Tanzania who is also
Chairman of African Union, the summit was also attended by
Kenyan President Mwai Kibaki, the current chairman of Comesa;
Rwandaʼs Paul Kagame, who is chairman of the EAC; and
Zimbabweʼs Robert Mugabe. President Kikwete
described the summit as “a historic meeting that we
see as long over due”. He said: “It is my hope that
the summit will come to a decision where we have
a strong and united bloc” Echoing AU Chairmanʼs
sentiments, President Kibaki said the summit
heralded the start of “an unprecedented process of
great significance for both our region and the entire
African continent”. The Kenyan president
said the summit provided the three economic blocs with
an opportunity to establish a cooperation framework
and create an environment in which millions of people
can be lifted out of poverty. The formation of the
free trade area by the three blocs will, however, has
to overcome a number of hurdles, especially the
multiple memberships of some countries to various
trade blocs and fear by the weaker economies of being
flooded by goods from their stronger counterparts like
South Africa and Egypt. Ugandaʼs President
Yoweri Museveni told the summit that regional
integration is a strategic tool for the group since it can use
the huge market to ensure the future prosperity of its
people. Museveni added that the member countries should
also look beyond having an economic bloc. “Apart from
the economic injustice by the developed world, their
overwhelming military superiority is a threat to the
future of Africa.” “Some people are saying
they want to build their superiority on water, air
and land. Where does this leave us?” he asked the
participants, and queried, “Why should Africans insure
cars and bicycles but do not insure Africa?
The summit also addressed the current global
financial crisis undermining economic stability across
the world, which it observed is posing a serious threat to
the growth of the African economies particularly in
terms of demand for African exports.
“While Africa and other developing countries had
marginal influence over the decisions that have
brought the international finance systems to the brink
of collapse, unjustifiably African countries will bear
the brunt,” Motlanthe told the summit. “Developing
countries must be included in the governance of all
international financing institutions to mitigate
adverse effects on them,” he added.
In a communiqué read by the EAC Secretary
General, Ambassador Juma Mwapachu, at the end of
the summit, the Regional Economic Summit called
for collective action to help African developing and
least developing countries to address the adverse impact
of the financial crisis and the global economic melt down.
(Times reporter and Agencies)