African countries form single market

The summit, bringing together leaders of the Common Market for Eastern and Southern Africa (Comesa), the East African Community (EAC), and the Southern African Development Community (SADC), have agreed to establish a free trade bloc and a single customs union, stretching from South Africa to Egypt and from the Democratic Republic of Congo to Kenya.

Strengthening position

South African President Kgalema Motlanthe who joined the leaders as SADC chairperson said the launch of the free trade bloc will place the African continent in a stronger position to respond effectively to intensifying global economic competition.

The merger, he said, would lead to the creation of the largest free trade area in Africa, with a population of over 248 million people and a combined GDP of $650 billion.

The three blocs will have a single airspace within a year and an inter-regional broadband network for Internet.

He said it would also help the continent to overcome the challenges posed by multiple memberships of regional organisations.

Building unity

"Our convening here today [Wednesday] reflects a profound recognition that sustainable integration into the global economy requires a commitment to an irreversible process of building economic, political and social unity," the president told the summit.

"The process we have embarked on today marks an important step towards the realisation of building an economic bloc in today's challenging world that will increase the levels of intra-Africa trade."

The three communities also resolved to co-ordinate their master plans for regional transport and energy within 12 months.

Active roles

Developing countries and Africa should be allowed to take an active role in the governance of international financial institutions, said President Motlanthe.

"It is imperative that effective remedial measures are developed to mitigate the negative impact of the crises, and developing countries must now be included in the governance of international financial institutions," he said.

The president also stressed the significance of social unity in Africa.

"Our strength lies in our unity and constitutes a formidable force for the achievement of our collective objectives," he said, calling on the leaders to take the necessary decisions to work systematically and with determination to establish a single free trade area that will weld together the three regions into one.

Article published courtesy of BuaNews