A committee of ministers from three trade blocs covering East and Southern Africa has agreed on a common free trade area, which will be officially announced in mid-December.

The tripartite FTA will bring together the East African Community, Common Market for Eastern and Southern Africa and the Southern African Development Community, forming the largest trade bloc in the continent.

In a statement yesterday, the Lusaka-based Comesa Secretariat said the ministers arrived at the decision on Saturday and heads of states from the member countries will endorse the move at a summit in Egypt.

“The decision to launch the tripartite FTA took into account the fact that the majority of the member states have made ambitious tariff offers and were agreed on Rules of Origin to be applied in the interim whilst further work continues on product specific rules of origin,” said Sindiso Ngwenya, the Comesa Secretariat secretary-general, who also chairs the tripartite task force.

The tripartite FTA – to be known as the Grand Free trade Area – will bring together 26 countries with a combined population of 625 million people and an estimated Gross Domestic Product of $1.2 trillion (Sh107.21 trillion).

The trade area also brings together more than half of the 54 African countries. A continental free trade area is eyed in 2017.

“The Tripartite FTA offers significant opportunities for business and investment … and will act as a magnet for attracting foreign direct investment,” Ngwenya said.

He said businesses will benefit from improved and harmonised trade regimes, which will reduce the cost of doing business by eliminating overlapping regulations and multiple memberships.

Source:: The Star

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