Mugabe launches new African trade pact

Zimbabwe's President Robert Mugabe is pictured at the two-day African trade summit Common Market …

VICTORIA FALLS, Zimbabwe (AFP) – 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 chairman 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 dollars (255 billion euros), 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."
"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.
Officials say COMESA has already increased trade within Africa five-fold since 2000 from three billion dollars to 15 billion dollars.
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."