A drive to establish white farmers from SA throughout the African continent has commenced.
Trade or raid?
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Mon, 08 Jun 2009 12:05
Robert Mugabe on Sunday launched a new pact aimed at tearing
down trade barriers across 19 African nations with appeals for
external investors and an end to domestic conflicts.
The veteran leader took over as chairperson of the continent's
largest trade bloc — home to 400 million people stretching from
the southern Mediterranean to the Indian Ocean — and opened the
customs union within their borders.
"Our message to investors worldwide and to those of our region
is clear: we have a regional market for you, come to Comesa," said
the 85-year-old Zimbabwe president, referring to the Common Market
for Eastern and Southern Africa.
"To the whole world, we want to say... that we are serious as a
region."
With a combined gross domestic product of $360-billion, Comesa's members range from oil or tourist hotspots to some of the world's poorest and most conflict-torn
nations.
The bloc comprises: Burundi, Comoros, Djibouti, the
Democratic
Republic of Congo, Egypt, Eritrea, Ethiopia, Kenya, Libya,
Madagascar, Malawi, Mauritius, Rwanda, Seychelles, Sudan,
Swaziland, Uganda, Zambia and Zimbabwe.
Most have lifted visa restrictions on travel within the bloc.
Speaking as once-prosperous Zimbabwe seeks to emerge from
economic meltdown and political turmoil, Mugabe earlier urged
leaders to stamp out violence and "make Africa a continent of
opportunity for all its people."
Conflict is a serious cancer
"You certainly agree with me that conflict is a serious cancer
in our region and indeed many parts of Africa," Mugabe told a
summit of members in a Zimbabwe resort.
"Strife has made us lose valuable manpower through death and
displacement of people. It has also adversely affected our
economies in regard to productivity and prosperity."
Sudan's President Omar al-Beshir, who faces an international
arrest warrant for war crimes in Darfur,
was among the audience.
Just 10 years ago, nearly half of Comesa members were embroiled
in the Democratic Republic of Congo's conflict.
Sudan remains in civil war, while Madagascar' elected leader,
Marc Ravalomanana who is at the summit, was toppled in March.
As well as simplifying trade, Comesa hopes the customs union —
which sees all 19 countries impose the same tariffs on goods from
outside the region — will strengthen integration and eventually
lead to a single currency.
"The Comesa fund is critical as it is the only way out of our
current dependence on support from external partners who in most
cases attach strings to any support they give to our development
programmes," Mugabe said.
Under the deal to be outlined in detail on Monday, there will a
range of tariffs from zero to 25 percent applying to different
categories of goods and services.
Raw materials and capital goods — such as machinery —
will
travel across borders without tariffs, while intermediate products
will be taxed at 10 percent and finished goods at 25 percent.
The launch of the union had been set for last May, but was twice
delayed because of Zimbabwe's political turmoil and to allow more
time for negotiations on harmonisation of tariffs.
Increasing trade
Officials say Comesa has already increased trade within Africa
five-fold since 2000 from three-billion dollars to $15-billion.
Kenyan Trade Minister Amos Kimunya said last week that the
market is now the number one export market for several members
states, ahead of traditional export markets such as the European
Union.
But some economists doubt Africa's traditional trade patterns
will change.
"African states don't trade among themselves," said Bongani
Motsa, an economist at the Pan African Advisory Service financial
consultancy.
"If you look at the trading account,
African states trade in
primary products which they mostly export to the European Union,
and then they import high value products from other international
countries."