| The ECA Hub and COMESA jointly held the kick-off workshop
for an activity on Trade Flow Analysis (TFA) in Lusaka over October
26-28.
The first step in the analysis has already been conducted at the
sectoral level using data for 2005. Across the member States, the
six-digit sectors in which exports outside COMESA from a given member
State are significant and similar in size to total COMESA imports
from outside COMESA have been identified. At the sectoral level,
a number of targets of opportunity for increases in intra-COMESA
trade have come to light; these include, for example, Zambian electric
conductors and steatite/talc, Zimbabwean wooden furniture and door
frames, cotton from both of these countries, and a number of apparel
items from Madagascar and Malawi.
The next step is to identify the firms that export such products
outside COMESA and survey them as to why they do not sell their production
within COMESA. In addition, the firms that import these same products
from outside COMESA will be surveyed to ascertain why they have not
been sourcing these products within COMESA. The outcomes of the study
will include a major policy study containing concrete steps at national
and regional levels to facilitate an increase in intra-COMESA trade,
as well as a directory of the leading firms engaging in extra-COMESA
trade. Both deliverables will be ready for presentation to the next
meeting of the Trade and Customs Committee in Bujumbura in March
or April 2007.
The workshop brought together consultants from ten COMESA member
States - namely, Egypt, Ethiopia, Kenya, Madagascar, Malawi, Mauritius,
Rwanda, Uganda, Zambia, and Zimbabwe - to discuss and refine the
methodology and to jointly agree with them on the exporting sectors
to be covered from their countries. Since the workshop, the relevant
importing sectors for each country have also been selected and provided
to the consultants.
COMESA Senior Management, appreciating the innovative nature of
the study and its potential to increase intra-COMESA trade, has decided
to use funding from other donors to include the remaining nine member
States in the study. Of particular importance in this context is
Libya, a new member of COMESA and its Free Trade Area. The relatively
large and prosperous Libyan market remains terra incognita for most
COMESA exporters and the inclusion of Libya in the study (from the
import side) is especially promising with respect to increasing intra-COMESA
trade.
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