The Common Market for Eastern and Southern Africa (COMESA) is a regional economic community established to promote regional integration through trade liberalization and investment development across the continent. With 21 member states spanning sub-Saharan Africa, COMESA forms a vital pillar driving Africa’s prosperity agenda.
History
COMESA traces its roots to early 1980s cooperation efforts among regional countries:
- 1981 – Preferential Trade Area established for Eastern and Southern African states
- 1993 – Transformed into Common Market for Eastern & Southern Africa
- 1994 – COMESA treaty ratified; cooperation expanded beyond trade
The transition to an integrated common market is still underway amid challenges.
Objectives
COMESA advances regional ties focused economic goals like:
- Form wide economic development cooperation
- Create large common market expanding trade
- Increase foreign investment and competitiveness
- Jointly build transport, communication links
- Progress Africa’s broader integration
It occupies strategic position furthering peace and stability in the continent.
Membership
Headquartered in Zambia, COMESA members represent diverse economy types:
- Joined by 21 countries from sub-Saharan region
- Includes major economies like Egypt, Kenya, Uganda
- Members account for over 50% of Africa’s GDP
- Total population around 580 million
- Seychelles exited in 2016 citing loss of policy space
Talks are ongoing with Tunisia, Somalia and Libya to expand reach.
Scope & Pillars
COMESA cooperation spans across key economic pillars:
Trade Integration
- Duty free access for 65% goods in regional market
- Steps to further eliminate tariffs, quotas
- Trade facilitation initiatives – customs transparency etc
Monetary Harmonization
- Policy alignment for currency and fiscal stability
- Standards for tackling high inflation, debts
Infrastructure Links
- Transport networks connecting member states
- Energy infrastructure enhancing access
The incremental approach factors vastly different member sizes and income.
Benefits & Opportunities
An integrated COMESA common market confers tangible gains:
For Member Governments
- Platform addressing common challenges
- United bargaining voice in global forums
For Businesses & Workers
- Access regional markets tariff free
- Step towards continental free trade area
For Citizens
- Cheaper products through import competition
- More employment avenues opening across borders
A unified economic zone can be an engine uplifting millions from poverty.
Challenges
However, skeptics point to major hurdles in operationalizing COMESA:
- Varying economic strengths and priorities
- Loss of tariff revenue hampering budgets
- Reluctance to open sensitive sectors under Reform programs
- Poor infrastructure hampering connectivity
- Historic political tensions between members
The path to common market is long and complex necessitating delicate compromises.
COMESA Member Country Details
| Country | Population | GDP Per Capita | Key Exports |
| Egypt | 110 million | $3700 | Oil & gas, gold |
| Kenya | 55 million | $1900 | Tea, horticulture |
| Libya | 7 million | $7700* | Oil, plastics |
*Figure prior to 2011 regime change
A vibrant mix of economies and demographies make up the bloc.
Recent Developments
In line with ambitions for an integrated pan-Africa market under the African Continental Free Trade Area (AfCFTA), COMESA is furthering key initiatives:
Digital Payment Systems
- Push towards a regional digital currency furthering trade and financial inclusion
Infrastructure Development Fund
- Mobilized billions of dollars funding for transport and energy links
Covid Support Programs
- Efforts enhancing healthcare capacities and cushioning economies
Boosting Intra-Regional Trade
Steps underway to enhance trade flows between COMESA members:
- Removing lingering non-tariff barriers like import quotas, strict rules of origin requirements etc. hampering regional commerce
- Common digital customs platform integrating cargo tracking, clearance payments, documentation across member states to ease border trade
- COMESA trade information portal providing details on product regulations, taxes, requirements for exporters
- Fast tracking mutual recognition agreements between national standards bodies for goods and services approval
Dispute Resolution System
To build trust and address trade disputes hindering integration:
- COMESA Court of Justice extended mandate over trade disputes between member governments and companies
- Mediation mechanisms like COMESA Business Council to reconcile company level issues avoiding formal litigation
- Awards over $5 million in settlements; 80% resolution rate in recent judgments
Boosting SME Participation
- SME Fund created under COMESA monetary institution offers trade finance, market exploration grants
- Business incubators nurturing innovative early-stage enterprises enhancing their regional supply and distribution capacities
As a fulcrum organization uplifting over 580 million people towards prosperity, COMESA hosts immense potential as well as formidable challenges. Managing diversity alongside common interests will determine its success delivering economic development dividends. With growing calls to accelerate Africa’s integration, COMESA remains a trailblazer arrangement lighting the path ahead.
