The Common Market for Eastern and Southern Africa (COMESA) ended its 10th summit in Rwandan capital Kigali Friday, with concrete achievements that will go a long way to consolidate its position as a major economic grouping on the African continent.

MEMBERS' COMMITMENT

The presence of eight heads of state and government from COMESA member countries such as Uganda, Zambia and Kenya, is a clear indication of member countries' commitment to regional integration.

Mauritius and the Democratic Republic of the Congo both sent their vice presidents.

Nigerian President and Chairman of the African Union Olusegun Obasanjo also graced the summit as a gesture of solidarity.

President of Cote d'Ivoire, Laurent Gbagbo took part in the summit as an observer.

The presence of US Deputy Secretary of State Robert Zoellick and the European Union Commissioner for Development and Humanitarian Aid Louis Michel is interpreted by local observers that the international community recognizes COMESA's role as a major trade bloc and development partner.

LIBYA'S PARTICIPATION

The summit approved the admission of Libya as a full COMESA member, a development that will certainly increase COMESA's appeal and strengthen its bargaining position.

Over the last decade, the regional body has been weakened by the withdrawal of several members including Namibia, Lesotho, Tanzania and Mozambique, casting a bleak shadow on its future.

COMESA Secretary General Erastus Mwencha described Libya's new membership as a great news.

"This is great, because we are all part of Africa. The bigger we expand, the stronger we are. It's good for Africa," he told Xinhua.

More good news might be in store. Media reports said Tanzania and Mozambique are both considering of coming back.

Joseph Mutaboba, secretary general of the Rwandan Ministry of Home Affairs attributed COMESA's sudden found appeal to the solid benefits arising from the COMESA free trade area (FTA) and the incoming customs union.

"They have to, because if they want to export to the region, they will face high duties," he said.

Eleven of COMESA's 20 member countries have joined the FTA, which allows them to trade on tariff and duty-free basis.

SHARED DESTINATION

The establishment of the customs union is an important stage of COMESA's integration process before it eventually become an economic community. The customs union had been planned to take off in December 2004 when COMESA marked its 10th anniversary.

The plan, however, has been delayed due to concern by member countries over decreased revenue, as many COMESA economies are small and heavily dependent on import duties. The Kigali summit decided that the customs union will be set up by December 2008.

It also urged member countries that have not joined the FTA to do so as soon as possible.

According to informed COMESA sources, Seychelles, Comoros and Uganda will soon join the FTA, and Libya, the new member, is likely to join in 2006.

CHALLENGES AHEAD

Despite its tangible results over recent years such as increased intra-COMESA trade, macro-economic stability and higher growth rates, the COMESA region as a whole still face tough challenges ahead.

Intra-COMESA trade now stands at nearly six billion US dollars, almost six times of the figure in 2000. COMESA leaders, however, said the trade volume is still too small because the countries don 't have many products to trade with.

The leaders of Uganda, Malawi and Rwanda all urged COMESA countries to add value to their products instead of importing only raw materials.

According to Uganda President Yoweri Museveni, African countries could fetch only 23 dollars for each ounce of gold they produce, while the same ounce of gold could sell for 400 dollars in the international market after being processed in South Africa.

The leaders also bemoaned the poor infrastructure in member countries that have drastically increased the costs of business.

COMESA countries enjoyed relative macro-economic stability in recent years and a moderate economic growth. The region as a whole recorded aggregate growth of 3-4 percent in recent years.

Many, however, agree that the growth is still too low for the region to climb out of poverty. It is estimated that member countries need at least to double their growth rate to reach the Millennium Development Goals.

Source: Xinhua