Presented by; Tasara Muzorori, Senior Trade Officer; Sandra Uwera, CBC Coordinator; US- AFRICA TRADE AND

INVESTMENT FORUM May 16-18, 2012

Membership : 19 countries- Burundi, Comoros, Congo, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan, Swaziland, Uganda, Zambia, Zimbabwe.

Launched FTA in 2000, which allows for duty free and quota free trade for goods that comply with COMESA RoO to take place. Info on COMESA- www.comesa.int Total Area : 12.2 million sq. Km GDP : US $ 450 billion (2011) Increase in Average Annual GDP growth : 5.08% from 3.51%(2010) Global trade for COMESA countries : Over US$ 244 BN (2010) Intra-COMESA Trade: US 17.4 BN(2010) Investment flows : US $ 21,6 BN (2010) Total Imports Volumes : US $ 137 BN(2010) at 16% Total Exports Volumes : US $ 107 BN(2010) at 26%

Of the recorded 26% Export growth in the region, countries that have greatly contributed to Export growth in the region; Ethiopia(132%); DRC(88%); Zambia(67%); Zimbabwe(56%). Of the recorded 16% Imports, all countries registered positive growth.

REGION EU CHINA COMESA USA SOUTH AFRICA JAPAN INDIA Rest of World

VOLUMES(2010) 40% (43 BN) 16% (17BN) 8% 5% 4% 1% 2% 24%

REGION EU CHINA SOUTH AFRICA COMESA USA INDIA JAPAN RoW

IMPORT VOLUMES 27%(37BN $) 12% 7% 6% 6% 4% 3% 35%

Has grown by 37% in 2010, from US$ 12.7BN in 2009, to US$17.4 BN in 2010. Attributed to registered growth between major players for intra-trade in the region- Kenya, Egypt, Zambia, Malawi and Sudan.

For more data on COMESA Trade and investment flows visit; http://comstat.comesa.int

Exports of Commercial services have registered an 11% increase in 2010, of which Commercial imports register an increase of 6% in 2010. Travel services accounts for 44% of all commercial service exports; Transportation services accounts from 30% of all commercial service exports;

Registered at an 18% in 2010; Major Investing companies in Africa (2010)are; Elsewedy Electric , Arab Swiss Engineering Company, Diamond Trust Bank, Cooperative Bank, Gulf African Bank, Kennol Kobil(Energy sector), Key players in the Financial Services Sector; United Bank of Africa, Standard Bank Group, Sanlam, Exim Bank; Telecommunications; MTN Group, Dimension Data Holdings, Altech Group. Food sector; Pick n Pay- in Zambia and Mauritius.

COMESA region remains the largest recipient sub-region of FDIs- source- World Investment Report-2010. Share of Africas FDI flows in 2008, was 25% of total FDIEgypt, Libya and Sudan having a bulk of the shares economies. Why? Open economies: COMESA countries have already adopted the market liberalization at different levels, opening their markets to free movement of goods across the borders of 19 COMESA countries.

Size of the market: With its 19 Member States and 430 million inhabitants (potential consumers), COMESA is the biggest regional trade bloc in Africa. COMESA Free Trade Area : increasing of the intra-regional trade within the region through trade liberalization and facilitation: Rules of Origin, transit traffic facilitation, Single Customs Document, One-Stop-Border Posts. Wider Free Trade Area with the implementation of the First Tripartite Summit Decisions towards the merger of 3 RECs into a single REC (COMESA-EAC-SADC)

Comprised of EAC, SADC and COMESA; Covers 26 countries of the 54 member states of Africa; Agreement signed in 2011.Negotiations begin in 2012 Benefits; Movements of goods across the three regions; market access; Harmonization and simplification of Rules of Origin, Simplification of Customs Procedures, Coordination of Competition Policies and Institutional frameworks, Elaboration of mechanisms addressing non-tarrif barriers. Harmonization and coordination of trade standards, Relaxations of restrictions of business persons, taking into account sensitivities, Promotion of value addition and transformation of the region into a knowledge based economy The Result? A more competitive Business Environment- Gateway to the rest of
Africa!

COMESA BUSINESS ENVIRONMENT;

According to the WB Doing Business Survey, 2011;

Rwanda ranks among the top 10 fastest countries in terms of registration of businesses(30 days); Mauritius- top 10 in terms of least procedures required to obtain electicity connection(2 formalities) Top 10 most improved economies; Rwanda, Mauritius, and Zambia. 16 countries out of 10 have made at least One(1)policy reform. In COMESA Ranking, Top 6 Mauritius, Rwanda, Zambia, Egypt, Seychelles, Kenya.

Advocacy and strengthening political support on harmonisation of legal and regulatory frameworks for company start ups; registrationetc; Establishment/ Strengthening of appropriate institutional structures to support business start ups- One Stop Shops, IPAs and COMESA specialised agency for Investment Promotion- Regional Investment Authority- RIA; Relevant information on legislation procedures are made accessible online at a regional and national level; Private sector engagement on policy agendas and Business development agendas that are pertaining to reducing business costs, and creating a more competitive business environment in the region- through COMESA Business Council.

A policy that encourages and promotes a more liberal and transparent investment environment;

Increase free flows of investments into COMESA from both COMESA and Non-COMESA sourcesFacilitate reforms for creating an enabling business environment Promote COMESA as an attractive, competitive and best investment destination area Gradually eliminate investment restrictions which may impede investment flows.

Principles.

Extend national treatment to COMESA investors and promote cross border investment Ensure all economic activities are opened for investment to COMESA investors Protection of investors and investment Co-operation on investment

Each COMESA country has national policies on the Agricultural sector. The Regional Strategy is being enforced through the The Comprehensive African Agriculture Development ProgrammeCAADP- an approach that obliges member states to sign national compact committing 10% of their national budgets to Agricultural development. So far, 10 of the COMESA member states have signed. Zambia is among the countries that have now developed their National Investment Plans in accordance to CAADP. Under CAADP, various programmes are underway; Guiding Investments in Agricultural markets in Africa; Improving Access to Agricultural Inputs- etc.

The Alliance for Commodity Trade in Eastern and Southern Africa, a specialised agency on agricultural trade and value addition. The goal; Increase farmers productivity and incomes in the COMESA region, hence responding to existing challenges like trade related constraints, low productivity, technological and policy related contraints. Also addresses improvement of trade relaed capacities to improve rural infrastructure and increase market access; Increases the commercial integration of staple food producers into national and regional markets;

African Trade Insurance Agency; Provides investment and credit risk insurance to the financial institutions/ lenders, investors, manufacturers, importers and exporters, to enable accessibility of affordable financial resources for their economic activities. PTA Bank; provides trade finance to SMEs and Cross Border Traders in the region; contributes significantly to PSD.

Infrastructure; a planned strategy on development of all the energy resources is in place utilisation of renewable and non renewable energy, nuclear and solar. Physical infrastructure- development of multi-model systems of transport(roads, rail, inland waterways, ports). PPP incentives Agriculture and agro-processing; existing strategies on value addition and production of agricultural inputs for exports,as well as, key sectoral industrial clusters;-hides and skins. Real Estate Development; the lack of low level of affordable/low cost housing development in the region- a huge demand for domestic and commercial infrastructure within the region. New Technology that promotes Climate Change mitigation; innovative ways of doing business in the manufacturing sector using solar energy. Tourism; Countries that boost the tourism sector with a vast potential , such as , Kenya, Rwanda, Southern Africa-Malawi, Zambia. Potential areas of establishing tourism marketing in the region.

Industrial Cluster program;

Three clusters formed- Leather and Leather Products, Cotton and Textiles, Agro-processingCassava; Objective; creating value added products that meet regional and global market demands; and identify key markets for the products at a regional and larger global market; Stakeholders- Producers, Processors, Manufacturers, Wholesalers, Retailers- the entire value chain.

HOW DO YOU ENGAGE WITH THE COMESA REGION?

www.comesaria.org

A COMESA Specialized agency which is a principal interlocutor on promoting investments in the region; RIA is an information hub on investment news and investment opportunities. ; The Regional Investment Agency (RIA) is at the core of the implementation of the COMESA Common Investment Area with its role in building capacity of National Investment Promotion Agencies (NIPAs); Establishment of investment database, and Investment promotion through dissemination of information related to investment opportunities- the Annual COMESA Investment Forum.

CBC is a member based private sector institution of the Common Market of Eastern and Southern Africa (COMESA). It was established in 2005, to play the key role of a platform for business development and policy, while supporting private sector development in their respective economies. Today, the CBC positions itself as the singular regional apex body of the private sector in the COMESA region- The VOICE of the private sector.

www.comesabusinesscouncil.org

The mandate of Chapter Twenty three and Twenty four of the COMESA Treaty;

The treaty recognizes that the private sector is the backbone of a vibrant economy, the engine of steady and consistent growth. It is the driver of Regional Wealth.

BUSINESS DEVELOPMENT; Regional Capacity building programmes(PACT II);

Market Linkages, Business linkages- Annual COMESA Business Forum and COMESA Smart parnerships Conferences. Trade Information and Business Intelligence(in the pipeline), Business to Business meetings-Buyer-Seller meetings, Private Private Dialogues and Public-Private Dialogue Currently kick-starting a programme on the drafting of Regional SME Strategy, Capacity building on sectoral clusters, to the level of export readiness, Key collaborating partner with the Regional Investment Agency key activities of mutual interests.

Business and Policy Advocacy;

Active and strategic policy advocacy on pertinent issues affecting private sector businesses. One should note that as an Institution of COMESA, we have the unique advantage of having a strong voice within the inter-governmental Commitees on various issues affecting private sector; To date we have had deliberations on key policy issues from ;

Research and Information CBC provides first hand information on the very progress of regional integration in COMESA. The CBC is an medium platform for information between COMESA and member states on business requirements, and other information relative to the private sector. Online- Biz-Info Directory; A regional database of all business sectors in the region, and key operators within the sector.

Membership Development; CBC is a member based organization. All services rendered by the institution is primarily targeted towards its members- the private sector. Become a member? COMESA Business Forum; Our Annual PublicPrivate Dialogue. The recommendations met in this meeting are presented by the CBC Chairman to the Highest Authorities of the COMESA Region, the Summit of the Heads of State.

Regional and International Business Linkages; Objective; Improving multilateral and bilateral trade as well as nurturing relationships with the business community that shares common interests with the COMESA countries, and within the Tripartite- EAC, COMESA and ECOWAS. We have signed MOUs with;

Riyadh Chamber of Commerce, Bahrain and CBC ; Jeddah Chamber of Commerce and CBC; Confederation of Indian Industries and CBC, COMESA and Economic Commission of West African States, China Chamber for the Promotion of International Trade(CCPIT)and CBC Corporate Council for Africa

The historic ties of friendship and solidarity between the American Business Community and Africa; Exploiting the potential of opening both our markets to joint partnerships, technology transfer, trade and investment flows, SME development, Our shared commitment to promote partnership based on areas of common interest; AGOA; Cooperative partnerships with Corporate Council of Africa;

Establishing Business Linkages between existing markets in COMESA and COMESA region, Creating joint partnerships in projects of mutual benefits to both COMESA and American Business Using this platform as a skills and technology transfer between respective business communities, linking like sectors for business partnerships; Encouraging innovation within the region. Creating a win-win situation- for COMESA and US- increased trade and investments.

Thank you for your Kind Attention www.comesa.int www.comesabusinesscouncil.org COMESA Senior Trade Advisor- Mr. Tasara Muzororitmuzorori@comesa.int COMESA Business Council Coordinator- Ms. Sandra Uwerasuwera@comesa.int