BuaNews (Tshwane)
12 June 2011
Johannesburg — African leaders are locked in a meeting trying to find a way of realising Africa’s biggest free trade bloc aimed at enhancing cooperation between 26 nations to boost economies.
Leaders from the Southern African Development Community (SADC), East African Community (EAC) and Common Market for Eastern and Southern Africa (Comesa) are at a summit at the Sandton Convention Centre, Johannesburg, looking at how to work as a joint bloc through the establishment of a Free Trade Area (FTA).
The Tripartite FTA would span the continent from Cape Town to Cairo, and will encompass 26 countries with a combined Gross Domestic Product of US $875 billion and a combined population of 700 million people.
The establishment of the FTA is expected to unleash the enormous economic potential of three regional economies, while marking a milestone in the integration of the continent.
President Jacob Zuma said at the opening of the summit that the FTA will help to accelerate regional integration efforts aimed at ensuring that African countries trade with each other on better terms, and that no country can operate alone.
He told African leaders, such as Zimbabwe’s Robert Mugabe, Comesa chair King Mswati III of Swaziland, SADC chair President Hifikepunye Pohamba of Namibia and President Pierre Nkurunziza of Burundi, the chair of EAC, that the proposal would require better transport infrastructure and strategies to reduce poverty.
Long lines of trucks at African border crossings signal the need for easier movement of goods between countries. These trucks are are at Kenya’s Malaba control point at the Ugandan border.
“We need to align developmental strategies and programmes aimed at poverty alleviation, under-development, food security and the like across national, regional and continental boundaries.”
The idea to unite these blocs was endorsed at a 2008 summit. The three existing free trade areas – of which the EAC is the most advanced – have failed to meet intra-trade targets, despite removing the bulk of trade tariffs.
The establishment of the FTA also faces immense hurdles, such as tariff barriers, poor infrastructure, weak supply chains, and economies often largely reliant on natural resources rather than manufactured products.
The bloc includes countries hit by conflicts, coups and political turmoil, such as Libya, Madagascar, Sudan and Zimbabwe.
Zuma said removing barriers to intra-African trade would not in itself lead to the realisation of full potential for growth and development of the continent, adding that leaders must simultaneously design interventions that willfully take advantage of more open regional markets.
“We must therefore act purposefully to strengthen and identify competitive advantages in value added production and trade, including through the development of complementary cross-border value chains.”
He called for better transport infrastructure, documentation, and the overall administrative procedures associated with cross-border trade.
The alliance countries also had to develop and grow their regional production bases and diversify the products they traded.
The leaders are expected to brief the media on the outcomes of the meeting later today.
AllAfrica – All the Time
See more here:
African Leaders in Free Trade Area Talks