President Yoweri Museveni is concerned that despite 30 years of dedicated sweat to boost regional trade under COMESA, the Intra-COMESA trade among member countries stands at only 7 percent.
This figure he says is far below that of the intra-European Union trade which stands at 65%.
“There are some figures we sometimes take pride in, but when in real sense we should feel very uncomfortable with them. For example, the 21 countries of COMESA cover an area of 11.8 million square kilometers, have a population of 560 million people and a combined GDP of USD768 Billion, compared to the 27 European Union Member States that occupy 4.233 million square kilometers with a population of 448 million people and a combined GDP of USD19.35 Trillion” he noted.
The President made the remarks through the Vice President Maj. Jessica Alupo who represented him at the COMESA Summit which took place today in Burundian capital-Bujumbura.
The theme of the summit was “Accelerating regional integration through the development of regional value chains in climate resilient agriculture, mining and tourism”.
Museveni wondered why after 30 years of tireless efforts to boost trade under COMESA, plus 13 years of Preferential Trade Area (PTA), trade among member countries continue to be at its lowest compared to other regional blocs like the European Union and ASEAN.
Borrowing the words of Prebish-Singer in his hypothesis of the 1950s and 1960s, Museveni blamed it on over dependence on export of raw materials whose prices he said tend to decline than those of manufactured goods.
“Therefore, as we try to take our theme for today forward, we must deliberately move away from dependence on primary commodities. Regional value chains that are dealing in primary commodities are not a solution to Africa’s or COMESA’s problems” he noted.
The Head of State thus challenged member countries to individually and collectively put in place requisite regulatory and physical infrastructure and human resources to drive the industrialization of Africa in general and COMESA in particular.
Museveni observed the need to integrate on land (roads, railways), water, air, digitally and regulatory-wise.
“We must desist from institutionalizing Non-Tariff Barriers to Trade by concluding protocols on how to manage them rather than completely outlawing them! COMESA countries must work together to improve the size of the market rather than each country fighting to protect its small market” he advised.
The President also reminded the Summit of his key note address on the sidelines of the recently concluded United Nations General Assembly, where he addressed members on the Third Industrial Development Decade for Africa.
“My first question was how much did we achieve during the First and Second Industrial Development Decades for Africa and what have we achieved so far in the Third one given that it runs from 2016–2025? Now, from my engagement with you today, it is crystal clear that we can only usefully talk about accelerating regional integration through development of regional value chains in climate resilient agriculture, mining and tourism” he said
He however, noted that for this to happen, COMESA members must concentrate on value addition and manufactured products in addition to deliberately solving societal problems and address human needs.
Museveni added that basing on studies and reports from institutions such as COMESA, World Bank, AFREXIM Bank and UN Trade and Development, it is indicated that by processing only 20% of the copper produced within COMESA, the bloc would add an estimated USD15 billion annually to its collective GDP.
In addition, he said; by removing trade barriers, improving regional infrastructure and developing agricultural value chains, this could increase the volume of trade between member countries by at least 30% over the next decade;
Another area to address is elimination of Non-Tariff Barriers to Trade and improving market access with respect to intra-COMESA trade.
He said if this is done especially on staple foods of maize, rice and beans, it could generate an additional USD20 Billion annually.
Museveni said is it important to accelerate regional integration and development of regional value chains.
“Our usefulness to each other as COMESA Members does not lie in our geographical closeness to each other, but rather, in our ability to solve each other’s problems. Business prospers by finding out what people want and providing it” he said.
The President advised that as individual COMESA countries pursue national interests, it is of strategic importance that members aim at identifying what other countries in the region and beyond need and provide it and also ensure that fulfilment of national interests results in wider societal benefits beyond just a particular country.
“How can we be able to do that? By acting in unison and synchronization. This process must be driven by Governments and propelled by the Private Sector. But for us to do this, there are some underlying factors we must address decisively” he said.
He commended Zambian President Haikande Hichilema for steering COMESA and also congratulated Burundian President Everiste Ndayishimiye upon assuming leadership of the bloc.
