The Many Challenges Facing Eastern And Southern Africa

Eastern and Southern Africa has faced many challenges over the past two years but has, as a region, learnt to face them, Vice-President Danny Faure said yesterday. 

He listed the main challenges as the world economic downturn, the food crisis, climate change, and piracy in the Indian Ocean.

Mr Faure, who is also Minister for Finance, was opening the trade agreements workshop jointly organised by the World Trade Organisation (WTO) and the Common Market for Eastern and Southern Africa (Comesa), being held at Le Méridien Barbarons Hotel.

The four-day meeting is being attended by representatives of some 20 countries from Eastern and Southern Africa.

Mr Faure said the workshop offers a great opportunity for spreading knowledge and sharing experiences among Comesa member states.

"Comesa understands that while its member states all have common features, we also have our specificities and vulnerablities," he said.

He added that we have faced these challenges through listening to and understanding each other, and sharing a vision for a region that focuses on its strengths and advantages.

Mr Faure also warned, however, that transport links between Comesa states are still lacking, and trade between Seychelles and the region is more limited than with other regions.

This is caused mainly by limited shipping links and Seychelles' geographic isolation from the African mainland, as well as the new threat of piracy.

 

On the WTO, Mr Faure said while many accept that it is not an organisation to police world trade, it undoubtedly has a very real role to play.

According to WTO statistics, there are 474 regional trade agreements in force.

He noted that some experts have suggested regional trade agreements have the potential to cause more harm than good. The suggestion is that by providing preferential market access to one party, a country is depriving itself of exports from a more efficient producer and this, in turn, creates welfare loss.

However, he said, other opinions suggest that if regional integration is carried out correctly, it can be welfare-enhancing.

"Regional integration, particularly within the context of Comesa, can act as a stepping stone towards development and ultimately integration into the global economy," he said.

The Comesa secretary-general said that after the launch of the bloc's Customs Union in June 2009, progress has been seen. To date, 11 countries have submitted their tentative lists of sensitive products, and the region has agreed on the threshold in the overall Comesa tariff.

He also noted that after the adoption of the Comesa regulations on trade and services by the Council of Ministers in June 2009, four priority service sectors have been  identified for liberalisation within the region. These are transport, communications, finance and tourism.

The WTO representative said it is important for Comesa members to be aware of the rights and obligations, in relation to other WTO members, that have arisen from this Customs Union.