Common Market for Eastern and Southern Africa (COMESA) will in early 2006 launch a Regional Customs Bond Guarantee (RCBG) scheme which is expected to usher in a trade facilitation instrument to provide security for the goods in transit within the region.

The scheme, which is designed to enhance the speedy movement, clearance and release of goods, is of great importance to traders and to national economies to reduce the various costs associated with cargo transport.

The insurance industry from the region has decided to invest 500,000 US dollars in the scheme.

This was disclosed in the organization's weekly newsletter, E- COMESA, on Friday.

Seven COMESA member states, Ethiopia, Kenya, Malawi, Rwanda, Sudan, Uganda and Zimbabwe, have so far ratified the RCBG agreement. Burundi, the Democratic Republic of the Congo and Zambia are expected to follow suit soon.

COMESA's senior insurance expert Berhane Giday, cited by the newsletter, said the challenge was now before the technical committee of RCBG to review preparations being made towards implementing the scheme and make recommendations to consolidate efforts made so far.

The committee was also tasked to thoroughly review the legal and technical instrument carefully and put final touches to be presented at the meeting of national sureties, scheduled for December, for adoption and signing of the instruments, he said.

The meeting will be held against a backdrop of significant global and regional developments.

COMESA's Free Trade Area (FTA) has continued to register encouraging results, with intra-COMESA trade increasing by 10 percent to reach 5.4 billion dollars in 2004 and intra-FTA growing to 2.5 billion dollars. This progress has created an enabling environment that is likely to benefit consumers as well as to encourage manufacturers to be innovative.

Based in Lusaka, Zambia, Africa's largest economic bloc with its 20 members boasts a total population of 385 million. It is scheduled to launch a customs union in 2008.

Source: Xinhua