The 18th Summit of the Authority of the Common Market for Eastern and Southern Africa (COMESA) was held at the African Union Complex, in Addis Ababa, Ethiopia from 30 to 31 March 2015 under the theme “Inclusive and Sustainable Industrialization”.

The new Chairman of the COMESA Authority Prime Minister Hailemariam Desalegn of Ethiopia officially closed the Summit on Tuesday with a call to Member States to rededicate their commitments to regional integration.

The highlight of the closing ceremony was the Final Communiqué issued by the leaders.

The next COMESA Summit will take place in Madagascar in 2016.

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Extracts from the Final Communiqué of the Eighteenth Summit of the COMESA Authority of Heads of State and Government

WELCOME STATEMENT

In his welcome address, His Excellency Hailemariam Desalegn, the Prime Minister of the Federal Democratic Republic of Ethiopia welcomed their Excellencies and distinguished delegates to the Federal Democratic Republic of Ethiopia. He reminded them that the city of Addis Ababa had recently hosted the dignitaries who attended the 24th AU Summit that had adopted Agenda 2063; and in that same spirit of Pan-Africanism, they were meeting under the COMESA umbrella to advance regional and continental integration. He invited the guests to explore the various tourist attractions that Ethiopia has to offer, such as the Danakil Depression, Lake Tana; the Blue Nile Falls, Simien Mountains National Park, among others.

He said that the Summit theme of: “Inclusive and Sustainable industrialization” could not have come at a better time because inclusive industrialization is the pillar to sustained economic growth, food security and poverty eradication in Africa. He added that inclusivity prioritizes shared prosperity, increased employment opportunities, particularly in the industrial and agro-industrial sectors, and social cohesion. He emphasised the need for COMESA to promote the use of clean technologies in industrial production; greater resource and energy efficiency. He reiterated the need for the speedy implementation of COMESA’s regional integration programmes, particularly the establishment of a Common Market for Eastern and Southern Africa. He concluded by welcoming the business community to the Summit deliberations; and thanked their Excellencies for choosing Ethiopia as the host for the 18th COMESA Summit of Heads of State and Government.

KEYNOTE ADDRESS

The outgoing Chairperson, His Excellency Joseph Kabila Kabange, President of the Democratic Republic of Congo and outgoing Chairman of the COMESA Authority said that the Summit theme: “Sustainable and Inclusive Industrialization” is timely and appropriate. He said that there should be structural diversification of the economies, to enable the production and export of high value commodities. He said that COMESA provides a vehicle for the region’s collective might to bring about structural changes and make the region an equal partner in the global economy. He said that the slowdown in the growth of emerging economies affected the performance of African economies in general and COMESA economies; and so the average GDP growth for 2014 in COMESA was 5.5 percent which is still below the 7 percent growth that is required to make a dent on poverty.

He noted however, that intra-COMESA trade rose from US $19.2 billion in 2013 to US $22 billion in 2014. With the participation of D R Congo, Ethiopia and Uganda in the COMESA FTA, the region will likely see intra-COMESA trade increase to US $25 billion in 2016. The COMESA-EAC-SADC Tripartite Free Trade Area, supported by the infrastructure and industrial pillars will further mark a turning point in the region’s collective quest to structurally transform its economies through the beneficiation of minerals, and industrialization.

He said that during his term of office COMESA has been able to reduce the cost of doing business through the Regional Payment System, and the harmonization of transport regulations and standards which has facilitated the movement of goods and services. The implementation of the COMESA Virtual Trade Facilitation System (CVFTS), the Yellow Card insurance scheme and the Regional Customs Bond Guarantee System also made it possible for goods and means of transport to move seamlessly among Member States. Further, 14 Member States have so far signed the National CAADAP Compacts and six have accessed funding from the Global Food Security Programme (GFSP) amounting to US $254 million for improved agriculture production. He paid tribute to the COMESA institutions for their continued support to both governments and the private sector. He concluded by saying that in 2014, COMESA Member States issued infrastructure bonds with a total value of US $12.4 billion and this was the right step forward in facilitating the critically needed infrastructure in the region. He extended best wished to His Excellency Ato Hailemariam Desalgn, Prime Minister of the Federal Democratic Republic of Ethiopia and pledged his full country’s support to the Chairmanship of Ethiopia.

AFTER THE FORMAL OPENING OF THE SUMMIT, THE AUTHORITY:

ON THE COMESA FREE TRADE AREA (FTA)

NOTED WITH SATISFACTION that intra-COMESA trade had increased to US $ 22.4 billion by the end of 2014, signifying a recovery from 2009 when intra-COMESA trade was US $12.7 billion due to the global financial crisis and economic recession;

COMMENDED Uganda for beginning to implement the COMESA FTA and depositing its Accession Instrument to the COMESA Secretariat and URGED Uganda to prepare and present its proposed schedule for the phasing out of the sensitive products;

COMMENDED the Democratic Republic of Congo on the Commitment to join the COMESA FTA and NOTED with appreciation the progress being made in the ongoing legislative process to pass the necessary legal instruments for accession to the COMESA FTA;

URGED the Democratic Republic of Congo (DRC) to finalize the ongoing legislative process on accession to the COMESA FTA and deposit accession instruments with the COMESA Secretariat;

COMMENDED the Federal Democratic Republic of Ethiopia on its commitment to join the COMESA Free Trade Area and URGED the Federal Democratic Republic of Ethiopia to expedite ongoing internal consultations and finalize instruments of accession to the COMESA Free Trade Area and deposit them with the COMESA Secretariat;

NOTED with appreciation the State of Eritrea’s commitment to joining the COMESA Free Trade Area and URGED the State of Eritrea to expedite its process of joining the COMESA Free Trade Area

NOTED with appreciation progress in the application of the Tripartite online reporting and monitoring mechanism in the elimination of all Non-Tariff Barriers constraining intra-regional trade and CALLED upon COMESA Member States to continue using the online mechanism in the expeditious elimination of outstanding Non-Tariff Barriers;

URGED COMESA Member States to continue Consolidating the COMESA Free Trade Area by removing all Non-Tariff Barriers (NTBs) using the Tripartite Online Reporting and Monitoring Mechanism.

ON THE APPLICATION OF SAFEGUARDS FOR THE KENYA SUGAR INDUSTRY

ENDORSED the Council decision for the Kenya sugar sector to be given a one year extension of the existing safeguard subject to review and renewal for another one year;

Further ENDORSED the Council decision on establishing an Ad Hoc Technical Working Committee to be convened not later than 30 June 2015 to consider the draft formula for proposed allocation of export sugar quotas into the Kenya sugar market; and the draft criteria for determining that an industry to be infant in COMESA.

ON THE COMESA CUSTOMS UNION

RE-AFFIRMED the application of the principle of variable geometry to the implementation of the Customs Union in line with previous decisions; and

NOTED with appreciation the inauguration of the Heads of Customs Sub-committee to address issues in relation to the implementation of the Customs Union.

ON THE TRIPARTITE FREE TRADE AREA (FTA)

WELCOMED with appreciation the progress made towards the finalization and launching of the COMESA-EAC-SADC-Tripartite Free Trade Area Agreement;

COMMENDED the Arab Republic of Egypt for accepting to host the Tripartite Summit on 10 June 2015.

ON TRADE IN SERVICES

URGED Member States that have not submitted their revised schedules of specific commitments in the four priority sectors of transport, communications, financial and tourism should do so by 30 June 2015; and ensure that the commitments add value and are therefore WTO plus;

URGED the Secretariat should circulate the submitted finalised Schedules to all Member States by 30 April 2015.

ON MICRO SMALL AND MEDIUM ENTERPRISES

RECOGNISED the progress made under the 2013/14 theme of: “Consolidating Intra-COMESA trade through MSME development”, and CALLED upon the Secretariat to facilitate Small and Medium Enterprises from the region to access existing regional and continental financial arrangements;

URGED COMESA Member States that do not have updated Medium and Small Enterprises (MSME) policies and strategies to domesticate the COMESA MSME Policy.

ON INDUSTRIALIZATION OF THE COMESA REGION

RECOGNISED the importance of the 2015 theme of “Inclusive and Sustainable Industrialisation,” and UNDERSCORED the importance of the COMESA Industrialization Policy for the economic transformation and sustainable development of the region;

ENDORSED the Council Decision on the adoption of the COMESA Industrialization Policy and urged Member States to domesticate the Policy;

DIRECTED the Secretariat to prepare the implementation strategic plan of the COMESA Industrialization Policy for consideration by Member states by 30 September 2015;

WELCOMED the offer by UNIDO to work with COMESA in the implementation of the COMESA Industrialisation Policy.

ON AGRICULTURE DEVELOPMENT

NOTED that agriculture is the mainstay of the region’s industrial development, and DIRECTED the Secretariat to implement the CAADP Regional Compact and related investment Framework, and to complete the design of the Regional Livestock Policy;

URGED Member States to mainstream the Malabo Declaration (2014) Implementation Strategy and Roadmap in their existing National Agriculture Policies, Strategies and Programmes;

DIRECTED the Secretariat through its specialized institution ACTESA, to speed up the implementation of the Fertilizer Marketing and Distribution Programme in the Member States;

FURTHER DIRECTED the Secretariat to mobilize resources to support the establishment of the Centre of Excellence for Dry Lands by 2016, in Djibouti.

ON CO-OPERATION WITH OTHER REGIONAL ECONOMIC COMMUNITIES

NOTED WITH APPRECIATION the continued collaboration between COMESA and the other regional economic communities in Africa, particularly, within the frameworks of the ESA-IOC made up of COMESA, EAC, IGAD, IOC and SADC and the COMESA-EAC-SADC Tripartite arrangement;

URGED for the strengthening of this co-operation with a focus on harmonization and coordination of programmes for the mutual benefit of Member States.

ON MULTILATERAL AND OTHER TRADE NEGOTIATIONS

NOTED the importance of co-operation among Member States in the manufacturing of essential drugs as well as the entry of force on the Amendment of TRIPS Agreement on compulsory licencing for medicine;

FURTHER noted with concern the low number of COMESA Member States that have accepted the Protocol amending the WTO TRIPS Agreement and notified the same to the WTO;

URGED COMESA Member States that have not yet accepted the Protocol amending the WTO TRIPS Agreement to do so as soon as possible and notify the WTO Secretariat by December 2015 after which date the acceptance shall be invalid;

CALLED UPON COMESA Member States to promote and invest in strategic programmes aimed at improving access, manufacture and distribution of anti-retroviral and other drugs and medical commodities as a sustainable step towards ending major epidemics (AIDS, TB and Malaria) and as an untapped economic opportunity in the region and continent.

ON ECONOMIC PARTNERSHIP AGREEMENT NEGOTIATIONS BETWEEN ESA-EPA GROUP AND EU

REITERATED the commitment of ESA-EPA Group of countries to conclude a development friendly and inclusive EPA with EU that enhances their competitiveness, economic transformation and supports regional integration;

EXPRESSED concern over the lack of progress made in the full ESA-EU EPA negotiations over the past four years and specifically the conditions set by the EU Party for resumption of the full EPA negotiations;

URGED all ESA-EPA countries to prepare market access offers based on their collective national and regional development objectives and directed the ESA Council to engage the EU to revive full and inclusive EPA negotiations that adequately respond to key development and regional integration needs of ESA countries.

ON COMESA AID FOR TRADE

APPRECIATED the substantial support from the European Union for the COMESA Adjustment Facility (CAF) of the COMESA Fund; and

DIRECTED the Secretariat to finalize the CAF sustainability strategy and present it to the next meeting of the COMESA Fund Ministerial Committee for consideration.

ON INFRASTRUCTURE DEVELOPMENT

APPRECIATED the US $15 million contribution by the PTA Bank towards the capitalisation of the COMESA Infrastructure Fund;

COMMENDED Member States that have used innovative means of financing infrastructure and energy projects, among others through infrastructure bonds and Diaspora bonds;

COMMENDED the European Union and the German Development Bank (KFW) for the financial support towards the development of cross-border infrastructure projects;

NOTED with appreciation the implementation of the cross border infrastructure projects along the corridors and ENDORSED the Council decisions on establishing the Djibouti Corridor Authority and the implementation of One Stop Border Post along the corridor;

URGED Member States to implement the transport transit instruments such as axle loads, carrier license and harmonized road user charges;

UNDERSCORED the importance of having safe and secure cyber space and URGED Member States to implement the cyber security policy and legal framework, and participate in the COMESA High Level Cyber Security Forum;

ENDORSED the adoption of the renewable energy guidelines on Feed-in-Tariffs, Power Purchase Agreement, Public-Private Partnership and project joint developments to stimulate investment and increase power generation;

COMMENDED the Central Banks of Burundi, Egypt and Sudan for scheduling to start live operations by 30 June 2015;

URGED Central Banks that have not yet signed the various agreements pertaining to REPSS and its operations and met the prerequisites for joining the system to do so by December 2015;

URGED Member States and their respective Central Banks to sensitise their stakeholders on the utilisation of the Regional Payment and Settlement System for the benefit of the entire region, particularly through their respective Commercial Banks Associations/Unions, Chambers of Commerce and Industry, Exporters & Importers Associations;

URGED Member States, pursuant to Article 73 of the Treaty, to use the COMESA Clearing House in order to generate resources for the COMESA Fund which will be used to leverage funding from cooperating partners for the sustainable funding of COMESA programmes.

ON INNOVATIVE MEANS OF FINANCING

URGED the Secretariat in collaboration with COMESA Institutions to come up with proposals for innovative means of financing for COMESA institutions and Member States.

DONE Addis Ababa, Ethiopia ON THE THIRTY FIRST DAY OF MARCH, 2015 in the Arabic, English and French languages, and all texts being equally authentic.