Comesa cuts down red tape to boost tripartite trade

DN COAST TRUCKS CORRIDOR 30

Trucks queue as they get to the Mariakani Weighbridge in Mombasa, Kenya. 

Photo credit: File | Nation Media Group

The regional bloc Comesa has begun streamlining multiple business processes to simplify trade among member states in East and Southern Africa, aiming to expand the market within the tripartite region, which also includes the East African Community (EAC) and the Southern Africa Development Community (SADC).

The Common Market for Eastern and Southern Africa (Comesa) is a distinctive bloc comprising member states from the EAC and SADC, as well as countries beyond the region, stretching as far north as Egypt and Tunisia, and bringing together 21 members.

As part of a programme to reduce bureaucratic hurdles between blocs, Comesa, SADC, and the EAC agreed on a tripartite market governed by common rules to facilitate free trade among member states.

The Comesa-EAC-SADC Tripartite Free Trade Area (TFTA) agreement, signed in 2015, came into force in July 2024. However, technical experts are still working to establish a platform that ensures a fully unified market.

Since November 2024, three Comesa member states - Eswatini, Malawi, and Zambia - have been using an electronic certificate of origin (e-CO), a digital version of the rules of origin that is set to revolutionise trade facilitation.

The launch of the Comesa e-CO marks significant progress in implementing the Comesa Simplified Trade Regime (STR), which includes small-scale cross-border traders.

“The Comesa e-CO is expected to simplify processes for exporters and reduce the time and costs associated with obtaining traditional certificates,” said Chileshe Mpundu Kapwepwe, Comesa Secretary-General.

“The e-CO will unlock new economic opportunities including increasing efficiency and transparency through the real-time tracking and monitoring of processes and certificates, enhancing security through the digital signature and secure data exchange, and improved compliance with national and regional legal requirements.”

Eswatini became the first Comesa member state to launch a pilot e-CO on November 7, 2024, followed by Malawi on December 17, 2024, and Zambia on January 2, 2025.

“The e-CO is expected to provide simpler and fully online processes thereby offering numerous benefits to stakeholders including the exporters, importers, customs authorities, and the national treasuries,” Ms Kapwepwe said, adding, “There will also be increased government revenue by reducing the forgery of certificates and improving volume of trade.”

The Comesa boss said further innovations on electronic exchange of documents related to the import and export function would be rolled out to strengthen the digital FTA.

“Implementation of Simplified Trade Regime (STR), trade facilitation and human mobility border form other key initiatives undertaken to increase formal small-scale cross border trade and ensure increased income for small scale traders, most of whom are women,” Ms Kapwepwe said.

The e-CO will speed up the determination of customs duties, enabling faster clearance of goods based on compliance with trade and tax regulations, helping to establish whether goods qualify for preferential treatment in partner states as the TFTA kicks off.

“Each of the regional blocs has an e-CO. But, specifically, the Comesa e-CO is flexible. The way it is structured you can use any e-CO, whether it is the TFTA or the Comesa one. It is operated from the secretariat. The design part of it allows it to be used by all members, unlike the SADC one, which has to be bilateral,” said Chris Onyango, Director Trade and Customs at Comesa.

Dr Onyango said instruments for trading will be made available beginning January 2025.

“There are transport instruments such as axle load, all these will be harmonised and used across the members,” said Dr Onyango told The EastAfrican.