Providing transportation facilities may prove to be a good start in promoting trade among COMESA members Smoother transportation connecting member states of the Common Market for the Eastern and Southern African countries (COMESA) is desperately needed to facilitate more effective trade among them. Sherine Nasr reports. The group is comprised of 21 countries, including Egypt, with a total population of over 385 million. It is considered quite a major marketplace given its annual growth rate of 2.5 per cent and an annual import bill of approximately $32 billion. Yet, COMESA can only grow into a more strategic conglomeration when better transportation facilities are available. The good news, however, is that delegates from 14 member states met in Sharm El-Sheikh last week to discuss plans for the establishment of a number of strategic transportation routes that will connect Egypt with its neighbours via land, sea and air. According to Egyptian Minister of Transportation Essam Sharaf, the first-phase-104km-road to connect Toshki on Egypt's southern border with northern Sudan will begin shortly at a cost of LE50 million. The second phase will involve the construction of a 432km-road reaching Donkola at a cost of LE300. "The road will give a boost to trade between Egypt and its neighbouring countries," said Sharaf. Recommendations were also made to build a road linking northern Egypt to Lusaka, Zambia in Central Africa. Discussions also included the development of more secure river transportation. During the meeting, COMESA member states agreed to unify the technical specifications for ships as well as river transportation safety procedures. "It is hard to ignore the fact that the ships used to transport commodities and the safety measures applied to African rivers, including the Nile, are below acceptable safety standards. We are trying to change that," said Mustafa El-Ahwal, the newly-elected president of the COMESA Business Council and chairman of Transmar Shipping Company, the first shipping business to connect the COMESA member states. Further suggestions were made to establish a river route to connect member states at a cost of $100 million, with Egypt paying for the feasibility studies. Members also agreed to acquire a number of first-rate ships and containers, thus giving a boost to river transportation. In the meantime, a memorandum of understanding was signed among Egyptian, Kenyan, Sudanese and Ethiopian partners to establish the COMESA Company for Maritime Transportation, a joint- venture company that will ultimately be the primary company in charge of maritime transportation among member states. The ministers convening in Sharm also discussed the possibility of proceeding with the major COMESA railway project that, once completed, would connect Egypt, Sudan and Uganda at one point and Zambia, Rwanda, Burundi and the Democratic Republic of the Congo at another point. "Once completed, the railway would play a most important role in connecting countries and transporting commodities inside and outside the region," said El-Ahwal. Although hopes are high, none of these plans are really new. Many of the suggested projects were fully discussed if not agreed upon several times before. Yet, the projects lacked the necessary momentum to get underway. Furthermore, transportation fees among COMESA member states are triple the transportation fees with Europe and other countries. This is one sad fact that member states must address time and time again. Even more disappointing is that economic experts have underlined the COMESA market as the lost haven for both Egyptian imports and exports. Unfortunately, previous efforts to encourage increased trade between Egypt and its African partners have yet to yield concrete results. For example, of the top 10 importers of Egyptian products, not one is a COMESA member. The fact that most African imports come from Europe and Asia is equally discrepant. More so is the fact that none of the COMESA countries are included among the main 10 exporters to Egypt. Instead, the USA, Germany, Italy and China lead the pack. "This is a market that could literally buy anything and everything," commented El-Ahwal. Lack of adequate transportation routes is but one reason for the minimal exchange of goods between member countries. The near absence of sound banking services and credit facilities, the lack of security and the recurrence of political upheavals have all been detrimental to fruitful trade relations. The appointment of an Egyptian businessman to take over the COMESA Business Council may be a good start toward boosting business and trade between member states. "I have an agenda full of delayed projects, lost opportunities and hardships to overcome. But we are going to rearrange the house from the inside first, and this is what I am working on at present," commented El-Ahwal who was referring to the small and medium-sized enterprises that can greatly benefit through increased intra-African trade, especially if they can formulate strong marketing strategies for the region. Al-Ahwal noted that market studies are extremely useful to Egyptian businessmen wishing to trade with other COMESA countries. "Rwanda and Burundi, for example, are devastated due to the civil war. They import everything they can. Small investors can build their own factories there and enjoy a high probability of success," explained El-Ahwal. Egypt joined COMESA in August 1994, with the express purpose of promoting intra-African trade, regional investment and export competitiveness. Ultimately the goal was to establish a free trade area by 2008. "At present, customs treatment and tariff cuts are decided according to bilateral agreements among member states," said Moharram Sadik, who added that the mission will soon become more difficult thanks to the South African Development Community (SADC) which will declare its 13 member states as a free trade zone in 2008. "Unless the COMESA members have a unified trade agreement amongst themselves, SADC will easily capture the market and will make things really difficult for us," commented Sadik. The recently-discussed transportation facilities will hopefully provide the COMESA member states with a solid foundation to build upon in the future.
