Business people in the East African Committee, the Common Market for Eastern and Southern Africa (COMESA) and the South Africa Development (SADC) Countries who had challenges in transacting businesses with others in the Republic of South Africa due to high tariffs, had a reason to smile. South Africa opened its market to other regional blocs by joining the Free Trade Area of the East African Community COMESA and SADC. “You recall that nearly eight years ago, the tripartite heads of state met here in Kampala to expeditiously establish a single Free Trade Area of the three lakes, building on the free and consolidate tariff liberalization. That was eight years ago.” Said, Amelia Kyambadde, Uganda’s Trade Minister.
South Africa’s Minister of Trade and Industry Dr. Rob Davies signed the agreements with EAC, COMESA and SADC Countries at a tripartite meeting in Kampala Uganda. “There will be access for produces in East Africa, there will be access to the SADC customs union markets including for South Africa will be part of that, of the tea, coffee, flowers products that are produced in this part of the world also will be given better access and presences in the South African market as part of the SADC market.” Said, Dr. Rob Davies, South Africa Minister of Trade. The Minister of Trade and Cooperatives, Amelia Kyambadde signed on behalf of Uganda. “This integration will provide a much-needed source of Export diversification derived from the commodities, minerals and hydro-carbon that African countries are so disproportionately reliant upon.” Said, Amelia Kyambadde. The Secretary-General of the East African Committee Liberat Mufmukeko chaired the Kampala meeting. “This trade market will lead to low prices and diversified goods thus improving the well-being of the people of the region and creation of jobs for our youths.” Said, Liberat Mufmukeko Secretary General of EAC.
After ratification of the agreements, business was expected to increase in the regional bloc due to slightly favorable tariffs. “The business people are looking to you with a hope sooner rather than later, they will be having an open market of over 632 million people with a little obstacle to the movement of goods and business persons in their region.” Amelia Kyambadde.
The Tripartite Free Trade Area will create a large and integrated market of 26 countries with a combined population of 650 million people and a GDP of 1.5 US trillion dollars. “I believe that a functioning free trade area should be in place before the end of this year but it cannot happen unless the tripartite liberalization regime is in place. Only Egypt has rectified the agreement but you know that at least 14 countries must rectify the agreement before it comes into force.” Said, the Secretary General of EAC. Out the 26 countries, only 18 have so far signed the pact pending the ratification.
