Reports Leo Odera Omolo
THREE existing regional African economic blocs would be merged within the next twenty four months to establish the largest economic unit in Africa.
The proposed new economic unit would comprise 26 countries to create the largest free trade area stretching from Egypt to South Africa.
The three major economic groups expected to be merged include the Common Market for East ad Southern Africa {COMESA}, Southern African Development Community {SADC} AND THE East African Community {EAC}.
The chairman o the Task force fast tracking he merger agenda Sindiso Ngwenya disclosed this when he addressed newsmen after the conclusion of the three days investment conference held in Nairobi. Ngwenya is also the Secretary General of the COMESA.
Ngwenya said there is a strong political will for the three institutions to conclude the talks that will merge the trading blocs into h economic market.
”Most of the member states are already part of the three blocs so what have taken ten years could take as little as two years. Multiple memberships by most of the African states is an opportunity.” Said Ngwenya at the end of the two days economic conference
SADC has 15 member countries in Southern Africa, Comesa has 19 states in the North, East and Southern Africa while the East African Community has five countries in East Africa.
Only few countries including Egypt, Libya and South Africa are not members of either of these economic blocs
The two remaining sticking points are harmonization of the rules of origin as well as agreement on the reduction of tariffs for imported goods from partner states, ”said Ngwenya.
“South Africa, which accounts for about 60 per cent of the region’s Gross Domestic Product {GDP} has requested that tariffs be gradually phased out to protect its local industries,” said Ngwenya.
Two major multi-country transmission projects are under discussion at the two days conference. The Kenya-Ethiopia connection is envisioned to link the power to the two countries, allowing up to 1,000 megawatts of hydropower to flow from Ethiopia{currently with surplus capacity} to Kenya and the East African Community.
Also in the review will be Zambia-Tanzania-Kenya link that will connect the East African power pool bringing up to 4000 megawatts in the EAC grid.
Ngwenya said that other option available countries include bonds, donor funds and development credits to raise money for key regional infrastructure projects.
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