Comesa tackles small scale trade bottlenecks
THE Common Market for Eastern and Southern Africa (Comesa) has conducted two studies to address bottlenecks that impede small-scale trade flows within the region.
The first study aims at determining the best approach towards smooth implementation of the Simplified Trade Regime (STR) while the second relates to the sustainability of trade information desks presently established at border points.
In a statement, Comesa said: “The studies were inspired by the need to increase formal small-scale cross-border trade, to enhance revenue collection for governments at the borders, generate higher incomes for small-scale cross-border traders and increase security, among others.”
The STR is a Comesa initiative whose implementation started in 2010 and has since been adopted in other regions.
The STR formalises cross-border transactions enabling small-scale cross border traders to benefit from the tariff preferences available under regional integration.
“It makes it easier to collect information and data and ultimately improve domestic and regional policy making on trade and trade-related activities in the region.
“Small-scale traders also have ease of access across borders if their goods fall within the Common List of products agreed upon between neighbouring States,” said Comesa.
While Comesa has adopted the bilateral form of Common Lists for the STR (between two neighbouring States), the East African Community has adopted the regional approach.
Given the overlapping membership to the regional blocs, it has become imperative to
determine which of the two approaches works best.
“The implementation of the STR is usually accompanied by the deployment of the Trade
Information Desk Officers (TIDOs). They serve as clearing agents for the traders;
providing information on border procedures and assisting them to fill the forms needed
to clear goods.
“Given that their remuneration and tools come from resources provided by cooperating
partners, it is crucial that options for the sustainability of TIDOs after closure of the
programme are identified, hence the study,” said Comesa, which is a regional bloc
comprising 21-member States, among them Zimbabwe, Eswatini, Zambia, Malawi,
Kenya, Rwanda, Egypt and Uganda.
The trading bloc said through two consultancies supported under the 11th European
Development Fund: Cross Border Trade Initiative Project, a technical paper on Bilateral
vs Regional Common List for the STR has been developed.
This paper, together with the one on Sustainability of TIDOs were presented to member
States last week for validation.
“The findings of the study on Common Lists for the STR will provide insights as
to which of the two approaches yields better results.
“The recommendations of the study on TIDOs sustainability will help identify options of
how to keep the staff in post when the programme expires.
Delegates that attended the virtual validation workshop comprised senior government
officials from ministries, border agency officials, the private sector and representatives
of the small-scale trading communities.
In his address, Comesa assistant secretary general in charge of programmes, Dr Kipyego
Cheluget commended member States that have already initiated bilateral discussions
aimed at strengthening the STR regime, including review of common lists of products
and applicable customs documentation.
“As we move forward let us all endeavour to make the STR work for our region rather
than being seen as a source of discontent and barrier to cross-border trade,” he said. — The Chronicle
