BUJUMBURA, December 26th (ABP) – Burundi is among the 21 member countries of the Common Market for Eastern and Southern Africa (COMESA).
That organization took inception in 1994 to replace the preferential free trade zone (ZEP) which existed since 1981. Its vision is to be a fully integrated regional economic community; internationally competitive and characterized by economic prosperity, according to the COMESA Newsletter.
COMESA has five objectives. The first consists of the establishment of a free trade zone. This guarantees the free movement of goods and services produced within the Community. It is interested in the removal of all tariff and non-tariff barriers. The second objective is related to the constitution of a customs union for the member countries. Goods and services imported from non-COMESA countries are subject to a single agreed tariff (common external tariff). The third objective concerns the free movement of capital and investments, which is supported by the adoption of a common investment area.
The fourth objective emphasizes the establishment of a progressive Customs Payments Union centered on the COMESA Clearing House and the eventual establishment of a Monetary Union with a single currency. The fifth objective concerns the gradual relaxation and elimination of visa requirements; which will result in the free movement of people, service labor and the right of establishment.
COMESA programs mainly concern the development of infrastructure, trade, customs; gender; monetary affairs; transportation; Information and Communication Technologies (ICT); environment and natural resources, agriculture, industry and private sector development.
According to the spokesperson for the Burundian Ministry of Commerce, Transport, Industry and Tourism, Mr. Onesime Niyukuri, Burundi has joined COMESA since 1981. It benefits from the community’s common external tariff, i.e., 25% for finished products, 10% for intermediate goods and 0% for raw materials and capital goods. In its capacity as a member of COMESA, he said, it benefits from funding from the World Bank and the European Union for the implementation of flagship projects at the level of COMESA and the Community.
With the aim of promoting the development of the leather industry in the COMESA region and the development of the leather sector in member States, Mr. Niyukuri said, Burundi has already benefited from a Leather Incubation Center. This center is equipped with machines for manufacturing shoes, belts, purses, and handbags via COMESA funding of 400 thousand US dollars. He noted that the activities of the center are going well, specifying that there are good quality leather products which are manufactured in Burundi. The staff of the Center benefit from capacity building from the COMESA Leather Institute (LLPI) based in Addis Ababa, Ethiopia, which is a developed country in the processing of leather products.
The Great Lakes Trade Facilitation Program (GLPTF) with funding from the World Bank via COMESA was established. For the first phase, it facilitated cross-border trade between the Democratic Republic of Congo (DRC), Rwanda and Uganda. For the second phase, the project extends across Burundi and the DRC while increasing trade capacity, reducing costs borne by traders and women traders, at selected border zone locations.
According to Onesime Niyukuri, that project will be very beneficial for the citizens of the two countries because the simplified trade regime between Burundi and the DRC will be an asset for those who trade, the majority of whom are women. In terms of goods and foreign trade within the framework of COMESA, Burundi benefits from the advantages offered by the said organization and the member countries. Indeed, Burundian goods circulate on the COMESA market while benefiting from the advantages within the framework of eliminating tariff or non-tariff barriers, but also from the preferential treatment offered by that trade regime.
According to the bulletin published by the Burundi Revenue Authority (OBR) during the first quarter of 2023, the market for Burundian products held by COMESA member countries represents 37.0% of total exports during that period. Furthermore, the DRC alone holds 58.0% of the total value of exports to this Community. It is followed by Sudan, Uganda and Egypt which have 13.7%, 12.5% and 10.5% respectively. According to the same bulletin, Burundi’s imports from COMESA represent 15.7% of the total value of imports for the first quarter of 2023.
To increase the benefits of cross-border investments, prices of goods produced in the region and faster clearance of goods, a COMESA Customs Union was established. According to Jean Berchmans Dundaguza who is a business analyst at the customs office, there is a regional customs regime called Regional Customs Transit Guarantee (RGTD/COMESA) which facilitates customs clearance and free movement of goods in transit between member countries of the LIKE THIS. This regime, he specified, facilitates the movement of goods under customs seal in the COMESA area. It also reduces the cost of bonds charged by guarantors and agents.
The digitalization of customs payment procedures has ruled out attempts at fraud, which are often well thought out and organized in this area. “The service provided to taxpayers has been improved; the collection of customs revenue has been increased. This allows the government of Burundi to implement more development projects for the benefit of the citizens and inhabitants of that country,” added Mr. Dundaguza.
In the field of ICT, the Director General in charge of that sector at the Burundian Ministry of Communication, Information Technologies and Media, Mr. Francis Olivier Cubahiro, indicates that there is a Program on improving governance and Enabling Environment in the ICT Sector (EGEE-ICT) in the Eastern, Southern Africa and Indian Ocean region.
This program, he said, is funded to the tune of 8 million euros. It supports the review and drawing up of regional policy and regulatory frameworks in a harmonized manner, thereby contributing to increased competition and better access to cost-effective and secure ICT services. Mr. Cubahiro also indicated that the said program creates an exceptional opportunity to bring together several stakeholders to work on solving some critical ICT problems with the aim of creating an enabling environment that will promote the growth of ICT.
According to that official, this program will be beneficial for Burundians since it will make ICT affordable and profitable, thus stimulating innovation and economic growth in the country. He also commended the COMESA initiative on the digital free trade area which has the potential to change the lives of citizens of COMESA member countries including Burundi, by using ICT to stimulate intra-regional trade and accelerate regional integration.
At the 22nd Summit of the Conference of Heads of State and Government of COMESA held in Lusaka, Zambia on June 8, 2023, it was noted that green investment in achieving a carbon-free industrial order, harnessing trade potential aligned with Sustainable Development Goals, responding to growing demand for value-added products and liberalizing trade, are some of the challenges that COMESA member countries need to address to truly benefit from that market.
In few words, it is worthy to note that the Member States of COMESA are Burundi, Comoros, Djibouti, Egypt, Eswatini, Ethiopia, Eritrea, Kenya, Uganda, Libya, Madagascar, Malawi, Mauritius, DRC, Rwanda, Seychelles, Somalia, Sudan, Tunisia, Zambia, and Zimbabwe. The leadership of COMESA for the year 2023/2024 is held by the President of the Republic of Zambia Mr. Hakainde Hichilema and the vice president is the President of the Republic of Burundi, Evariste Ndayishimiye.
At the level of the decision-making structure there is the conference of Heads of State and Government; the Council of Ministers; Technical Committees; the Committee of Central Bank Governors; the Intergovernmental Committee and the Secretary. The COMESA headquarters is based in Lusaka, Zambia.