Digital trade facilitation: COMESA to implement electronic certificates of origin for enhanced commerce
In a bid to facilitate smoother trade among its member states and address tariffs imposed by external partners like the U.S., the Common Market for Eastern and Southern Africa (COMESA) is taking proactive steps to enhance intra-regional trade.
The 41st COMESA Trade and Customs Committee meeting, held in Nairobi on Tuesday, aimed to prepare the country for the upcoming COMESA Summit in October. The gathering discussed strategies to shield businesses in the COMESA region from global economic disruptions, including trade tariffs recently imposed by U.S. President Donald Trump.
One of the key strategies being implemented by COMESA is the acceleration of the adoption of digital trade facilitation tools. The organisation is rolling out an electronic Certificate of Origin (e-CO) to simplify cross-border trade and reduce delays at customs. This initiative is expected to streamline trade and make it more efficient.
Another strategy is the Simplified Trade Regime (STR), which aims to promote inclusivity by supporting the formation of trade associations and enhancing participation by women and youth, who make up the majority of cross-border traders. The STR programme also has Trade Information Officers stationed at border points to help clear goods as they conduct trade.
COMESA is also actively addressing Non-Tariff Barriers (NTBs), which significantly hinder intra-regional trade. Practical initiatives include deploying SMS or app-based NTB reporting tools across member states to quickly identify and resolve trade bottlenecks.
To further streamline goods movement, COMESA is implementing the "Lean Corridors" Pilot Projects, such as the Nairobi to Kigali corridor, which aims to achieve a 48-hour customs clearance benchmark.
In addition, COMESA is working on Mutual Recognition Agreements for seeds, fertilizers, and sanitary and phytosanitary (SPS) certifications and the digitization of trade documents like SPS certificates and Rules of Origin to harmonize regulations among member countries.
COMESA is also aligning its regional trade strategy with the African Continental Free Trade Area to leverage broader continental integration and improve trade flow.
Christopher Onyango, Director of the COMESA Trade and Customs Secretariat, highlighted the implementation of digital systems, particularly the Simplified Trade Regime (STR), as a means to significantly enhance trade facilitation across the bloc. Onyango stated that these measures, along with emerging global challenges, necessitate extraordinary measures to save economies and maintain the foundations already laid.
Despite these efforts, intra-COMESA trade currently ranks fourth after the EU, China, and India. Onyango expressed concerns over the stagnation of below 10% intra-regional trade, as outlined in the 2021-2025 Medium-Term Strategic Plan (MTSP). He aims to increase intra-regional exports to at least 25% of total exports within the region by 2026.
The COMESA Summit is expected to include a business forum with exhibitions to build the capacity of traders. The deputy director State Department of Trade, Alex Tomerang, urged swift action in addressing persistent non-tariff barriers to achieve this goal.
The committee is also exploring the use of digital technologies and innovative solutions to enhance the resilience of supply chains, particularly in the face of global disruptions and climate change impacts.
In conclusion, COMESA's approach combines digital innovation, regulatory harmonization, capacity building for informal traders, and strategic responses to external tariff challenges to strengthen intra-regional trade and mitigate the impact of tariffs by external partners like the U.S.
- The implementation of the Simplified Trade Regime (STR) by COMESA, as mentioned by Christopher Onyango, Director of the COMESA Trade and Customs Secretariat, is aimed at significantly enhancing trade facilitation across the bloc, particularly by supporting the formation of trade associations and promoting inclusivity for women and youth.
- Recognizing the global challenges such as trade disruptions and climate change impacts, COMESA is exploring the use of digital technologies and innovative solutions to enhance the resilience of supply chains within the region.
- The planned business forum at the upcoming COMESA Summit, as suggested by the deputy director State Department of Trade, Alex Tomerang, aims to build the capacity of traders and facilitate a more robust intra-regional trade, addressing issues like persistent non-tariff barriers that hinder growth.
