Pilot project to attract informal traders into formal sector

INFORMAL CROSS border trading in Africa is being brought into the formal system through a series of moves aimed at easing regulations. Through a pilot project starting in November, the Common Market for Eastern and Southern Africa (Comesa) Simplified Trade Regime (STR) will help assimilate informal cross border trading into Comesa trading. Through the STR system, commodities from consignments of a certain value will be allowed duty and quota free entry across borders, according to Comesa. The STR will also help encourage trade at border posts instead of the usual commercial city centres, and ensure that all products meet the necessary health requirements. By the end of 2007, an Economic Partnership Agreement is due to be signed between the Eastern and Southern Africa region and the European Union. However this will be only one step in what are expected to be protracted negotiations. Erastus Mwencha, secretary general of Comesa, said that trade in goods, agriculture and fisheries, as well as dispute settlement, were some of the areas that were ready to be signed. The EPA and ESA agreement has been given a December deadline when a World Trade Organisation’s exemption on preferential EU markets in African, Pacific and Caribbean countries ends. By August next year, the Eastern and Southern Africa Community should reach a decision on propelling the development of a Common Market and the Monetary Unit. This was one of the major discussions that was put forward at the sixth Summits of Heads of State and Governments in Tanzania recently. It was also decided that Burundi and Rwanda should integrate fully into the EAC Customs Union.