Push for new African free trade area
Bathandwa Mbola
27 October 2008
The heads of state from 26 African countries belonging to three regional economic blocs in east and southern Africa have resolved to merge the three into a single regional market.
The summit, which took place in Kampala, Uganda last week, brought together leaders from the Common Market for Eastern and Southern Africa (Comesa), the East African Community (EAC), and the Southern African Development Community (SADC).
They called for a council of ministers to be convened within 12 months time, to determine the timeframe for the establishment of a single regional economic community.
Their resolution will see the creation of a free trade bloc and a single customs union stretching from South Africa in the south to Egypt in the north and from the Democratic Republic of Congo in the west to Kenya in the east.
South African President Kgalema Motlanthe, who joined the leaders as SADC chairperson, said the launch of the free trade bloc would place the African continent in a stronger position to respond effectively to intensifying global economic competition.
Largest African free trade area
Motlanthe said the merger between the three regional blocs would lead to the creation of the largest free trade area in Africa, with a population of over 248-million people and a combined GDP of US$650-billion (about R7.6-trillion).
The countries that will benefit from the envisaged free trade area include Rwanda, Burundi, Kenya, Uganda, Tanzania, Egypt, Libya, Ethiopia, Eritrea, Djibouti, the Comoros, Zambia, Zimbabwe, Angola, Madagascar, Seychelles, Mauritius, Malawi, Sudan, Swaziland, South Africa, Mozambique, Lesotho, Namibia and Botswana.
The three blocs will have a single airspace within a year and an inter-regional broadband network for internet.
Motlanthe said it would also help the continent to overcome the challenges posed by multiple memberships of regional organisations.
"Our convening here today reflects a profound recognition that sustainable integration into the global economy requires a commitment to an irreversible process of building economic, political and social unity," Motlanthe told summit delegates.
"The process we have embarked on today marks an important step towards the realisation of building an economic bloc in today's challenging world that will increase the levels of intra-Africa trade."
The three blocs also resolved to coordinate their master plans for regional transport and energy within 12 months.
International finance institutions
Motlanthe added that Africa nations and other developing nations should be allowed to take an active role in the governance of international financial institutions.
"It is imperative that effective remedial measures are developed to mitigate the negative impact of the crises, and developing countries must now be included in the governance of international financial institutions," he said.
He also stressed the significance of social unity in Africa, calling on the various leaders to take the necessary decisions to work with determination to see the amalgamation of the three blocs into a single free trade area.
"Our strength lies in our unity and constitutes a formidable force for the achievement of our collective objectives."
Source: BuaNews
