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Al-Ahram Weekly 2 - 8 March 2000 Issue No. 471 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 2 - 8 March 2000 Issue No. 471
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Interview Features Focus Heritage Travel Living Sports Profile People Time Out Chronicles Cartoons Letters The quest for integration
By Nevine Khalil and Dina EzzatThe two-day Common Market for Eastern and Southern Africa (COMESA) conference, which convened in Cairo on Monday and Tuesday, brought together four heads of state, 1,700 officials and businessmen from 21 member states as well as potential COMESA trading partners from some 40 countries.
While the participants inevitably "talked shop", promoting COMESA as a springboard for attracting investments to Africa, political leaders poignantly highlighted the concerns of the continent's debt-burdened and often war-torn countries.
At the opening session, President Hosni Mubarak and Zambian President Frederick Chiluba referred to globalisation as both a challenge and a threat. Countries must "fully exploit globalisation," Mubarak affirmed. "We have no choice but to try and catch up by taking steady steps towards globalisation [and working together to] limit its damages and maximise its benefits." Chiluba was less optimistic, however, warning that a new global order could leave African countries out in the cold."The global economic and political setting is tilted against us," he said.
Kenyan President Daniel Arap-Moi highlighted the "vital" role of the African private sector but again stressed the need for a sound political environment. "The free movement of goods is impossible when nations are at war, or when there are political conflicts and violence."
COMESA member states hope to set up a free trade zone by next October, establish common tariffs by 2004 and, ultimately, effect a monetary union by the year 2025. Egypt, which joined COMESA in June 1998, hosted the gathering because of Cairo's emphasis on forging regional economic links through several groupings, in a bid to improve export performance.
Some 380 million people inhabit the COMESA region, with a combined GDP of around $170 billion. The potential for trade is high, although inter-member trade was only $4.2 billion in 1998, out of an overall trade volume of $62 billion.
COMESA's organisers certainly did their homework in planning the meeting as a business networking forum that charts out the prospects of economic cooperation among African countries. Four sessions and10 workshops addressed an array of issues, from general subjects such as the impact of globalisation on COMESA economies, to the specifics of cooperation in sectors like textiles, telecommunications and agriculture. The private sector, which was strongly represented, discussed blueprints for the all-important question of inter-COMESA transport -- vital for the mobility of goods among the 21 member states and beyond.
International financial institutions, such as the New York Stock Exchange, Italy's Andula UMTS SpA, the Coca-Cola company, Merrill Lynch, and the African Development Bank, also made a good showing.
"As the representative of the world business community, I believe COMESA really stands for an Africa that is more integrated, forward looking and democracy related," said World Economic Forum Chairman Klaus Schwab, a main panel member.
As a result of the positive feedback, the Egyptian Foreign Ministry, in concert with Egyptian private sector members, is now planning to organise another COMESA business forum in Cairo in 2001, possibly at the same time of year.
"This conference was a big promotion of COMESA from a big African capital: Cairo," said Foreign Minister Amr Moussa. For Egypt in particular, COMESA is a market which can attract trade from Europe, the US and Asia.
Prime Minister Atef Ebeid also offered a set of proposals at the conference's closing session: the establishment of a corporation for joint trading companies, a technical assistance fund and a trade information network.
But for the grouping to attain its ultimate objectives of enhancing growth, alleviating poverty and reducing unemployment, African governments must work hard on the domestic economic front. Nor is the road to economic integration smooth. Some countries remain apprehensive about the consequences of lifting trade barriers on their economies, a measure now required by COMESA to effect a 90 per cent reduction of their tariffs.
For more coverage and interview with COMESA secretary-general see Economy page
