1. newsletter
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newsletter
Issue #193 27th February 2009 2007
Issue #126 - Friday 19 October
Opportunities for Investment still exist
despite Economic Melt down - Ngwenya
of Investment Dr George Buaring,
Uganda’s Minister of State for
Tourism, Trade and Industry
Gagawala Nelson Wambuzi,
Malawi’s Deputy Minister of Trade
and industry Ellock Noatcha Banda,
and Zambia’s Deputy Minister of
Commerce Trade and Industry
Richard Taima, The PTA bank
President Dr Michael Gondwe also
attended. Other COMESA institutions
that were reprented are The Africa
from left: Mahmoud Mohieldin, Sindiso Ngwenya, Gagawala Nelson Wambuzi, Dr George Buaring and Richard Taima answering
Trade Insurance agency (ATI) and the
questions from the audience
T
he COMESA Secretary COMESA Clearing House
markets, I would like to strongly
General Mr Sindiso Ngwenya believe that there are still numerous
has declared that the Mr Ngwenya pointed out that what
opportunities for attracting
COMESA region still has a lot of is needed by individual countries and
investment within the current
investment opportunities, Economic collectively, the COMESA region is
economic climate” Mr Ngwenya told
Melt down not withstanding. He to ensure that the right policies are
the 400 hundred delegates.
announced this at the just ended in place so as to attract investment
2nd COMESA Investment held at “ we need to put in place sound
The Conference was organized by
the Fairmont Hotel, Cairo, Egypt macro-economic policies that would
the COMESA Regional Investment
Wednesday ( 25th March 2009) not scare investors away. This
Agency, under the patronage of
“Even though the world’s major to page 2
Egyptian Ministry of Investment.
economies like the United States, The COMESA’s
Europe and Japan may have Secretary General
entered into a recession ( variously Mr. Sindiso Ngwenya
referred to as the “economic melt- also addressed the
down”, “the great crush”, etc), as meetings. It was
exemplified by factory closures, job attended by over
losses, the credit crunch and the 400 delegates
general financial crisis besetting from the region
the rich nations, with its spiral including The
effect on developing and emerging Sudanese Minister
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2. from page 1
of December 2008, intra-regional
Opportunities for Investment still exist trade amounted to well-over 7.6
billion USD. This is a market which
despite Economic Melt down - Ngwenya is still growing, especially as we
2
move closer to the declaration of a
means that we have to have the right where we have seen that quite a
COMESA Customs Union later in the
foreign exchange policies, the right sizable number of Kenyan firms
year” said Mr Ngwenya. “The regional
fiscal and monetary policies and an have moved into Uganda, Tanzania
market will be further consolidated
overall economic environment that and Rwanda to invest in light
once even a larger trading block is
is competitive enough to be able manufacturing plants, agriculture
established based on the Tripartite
to attract investment to our region” and tourism. The same can be
Summit decision of Kampala
said Mr Ngwenya. said of Mauritius whose companies
October 2008, which envisions the
have a presence in Madagascar
establishment of one regional trading
He noted that the region is endowed and the Seychelles, as well as in
block comprising COMESA, the
with rich natural resources which Mozambique.
East African Community (EAC) and
remain largely unexploited. These
the Southern African Development
include rich virgin land, soils, Mr Ngwenya further pointed out
Community (SADC)” he added, noting
underground and surface water, that Egypt in particular has been
that over time this will lead to: speed
minerals and energy resources, to a big investor in a number of
up the regional integration agenda;
mention only but a few. “ Hence, in COMESA countries “In the case of
create a larger regional market ;open
spite of the current global recession, Egypt, we have also seen a number
up the investment space; harmonise
there are still great opportunities of Egyptian firms taking a keen
investment policies; and improve
for investing in the COMESA interest in countries south of the
business environment in the region
region. There ample opportunities Sahara, including countries such
still for investing in such areas as as Sudan, Ethiopia, Kenya and
Secretary General Ngwenya
infrastructure projects in roads, Zambia. “A classical example is
concluded by giving his interpretation
ports, rail and mass transit, that of El Sweedy, cable and motor
of the Theme of the conference and
sustainable energy (wind, solar, manufacturing company, which
the expected results .
geothermal, carbon-capture and has set up a manufacturing plant
sequestration, and long-distance in Zambia to take advantage of the
“The theme for this Conference is:
power transmission grids), pollution abundant copper resources as its
“Paving the road to COMESA.” I
control, and water and sanitation. raw material” he pointed out.
would like to understand this to mean
Other areas include the agriculture,
that we should as a region, acting
mining and tourism sectors, as well Secretary General Ngwenya
collectively, to create conditions
as the telecommunication sector” reminded the gathering of some
that are conducive to attracting
Secretary General Ngwenya pointed achievements by COMESA including
investment, both domestic and
out. the COMESA established a Free
foreign, to the COMESA region.
Trade Area in the year 200 that
Literally speaking, we should be able
He informed the gathering that has provided investors with a huge
to pave or construct a road that is
already, there is an increasing regional market. “Currently, there
visible to potential investors that they
trend for companies based in are 15 member States who belong
don’t have to go elsewhere. This no
one COMESA country to invest in to the FTA offering a market of over
doubt is a major challenge that out
another COMESA country or other 400 million people and a combined
region faces up to the present time”
neighbours. Adding that this is regional GDP in excess of 18billion
he concluded.
particularly the case in East Africa United States Dollars. By the end
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3. In order to realize a growth rate of 7%, COMESA
states must attract investments of not less than 3
25% of GDP, Mahmoud Mohieldin
General Mr. Sindiso Ngwenya also stated Mohieldin.
addressed the meetings. It was
attended by over 400 delegates Mohieldin noted that these
from the region including The challenges stress the importance
Sudanese Minister of Investment of regional cooperation among
Dr George Buaring, Uganda’s COMESA countries and Africa
Minister of State for Tourism, in general in order to overcome
Trade and Industry Gagawala their negative effects, saying that
Nelson Wambuzi, Malawi’s COMESA states can participate
Deputy Minister of Trade and in luring big investments through
industry Ellock Noatcha Banda, which higher rates of growth and
and Zambia’s Deputy Minister of employment would be realized.
Commerce Trade and Industry Minister of Investment reviewed
Richard Taima, The PTA bank major fields through which the
Mahmoud Mohieldin
President Dr Michael Gondwe COMESA states can achieve
E
gyptian Minister of also attended. Other COMESA joint cooperation by liberating
Investment Mahmoud institutions that were reprented trade, developing infrastructure
Mohieldin has stressed are The Africa Trade Iinsurance and promoting investment based
the importance of COMESA agency (ATI) and the COMESA on technology thus stabilizing
Countries working together to Clearing House. A number economic growth.
jointly attract investment, noting heads of investment authorities
that in order to realize a growth in COMESA states, prominent The Minister affirmed that in
rate of 7%, COMESA states must investors, businessmen, order to implement this vision,
attract investments of not less leading investment companies, an agenda must be put in
than 25% of domestic product banks and representatives to place for the COMESA states
through luring more foreign direct ministries and government bodies based on a number of axes
investment (FDI). He stressed participated at the Conference.. such as, development of trade,
the importance of investing in In his remarks Minister Mohieldin investment, infrastructure,
ICT, and human resources in reviewed the major challenges dependence on science and
view to increase the region’s r facing international economy technology. “Integration and
productivity skills. in light of repercussions and cooperation must be realized
Minister Mohieldin said this impacts of the global financial in all political, economic and
while inaugurated the Second crisis on COMESA states. “This commercial fields in order to
COMESA Investor Conference, crisis was of serious impact on implement this agenda,” revealed
held at the Fairmont Hotel, Cairo, economies, minimized investment Mohieldin.
Egypt Wednesday ( 25th March opportunities and growth and
2009) decreased shares in the world The Minister said that Egypt
trade volume, particularly in supports the attraction of
The Conference was organized by view of the increasing changes investments to COMESA states,
the COMESA Regional Investment of international market towards as a result he instructed the
Agency, under the patronage of eliminating barriers and obstacles Egyptian General Authority
Egyptian Ministry of Investment. hindering movement of trading, for Investment and Free Zones
The COMESA’s Secretary services and share capital,” (GAFI) to urge COMESA states
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4. COMESA to launch
In order to realize a growth rate of 7%, COMESA states....
REPSS very soon
from page 3
African countries,
4
to participate in its foreign
C
including COMESA
promotion missions and make OMESA will launch the single Regional
states, enjoy promising Payment and Settlement System
coordination among COMESA
opportunities in all (REPSS) in the coming 2 moths. This was
states for the sake of collective
fields of investment, announced by the Executive Secretary of the
promotion for investment across
particularly agricultural COMESA Clearing house Dr Kombo Moyana at the
the world countries.
investment. In just ended 2nd COMESA Investment conference
addition, they stressed that too place in Cairo Egypt . He explained to
Before inauguration of the
the meeting that the money transfer system will
the importance of
conference, Investment Minister
reduces the time, and taxation that were being
benefiting from Egypt’s
held a separate meeting with all
incurred as a result of routing money transfers
great potentials and
the Ministers that attended the within the region through the US and Western
experience in this
Conference, COMESA Secretary European banks. It will also reduce interest
sector.
General and Representative of that accrue to transactions such as those on
COMESA specialized institutions. overdrafts.
Furthermore, COMESA
During the meeting, Ministers It will see the business of clearing money
ministers and officials
of Investment stressed the conducted between 24-48 hours and will carry
expressed gratitude to
importance of cooperation charges of between 1% - 4% of the total amount
President Mubarak and transferred as opposed to the international
between COMESA states in
Egyptian government charges that go up to 10%.
the fields of investment and
for backing all initiatives In addition the money transacted will remain
trade, noting that attraction of
calling for increasing within the COMESA countries since the
investments to them is important
investments in Africa transaction will go through the National Central
in order to withstand the global
and achieving the banks. The Central Banks will be linked to a
financial crisis and realize the
central REPSS clearing house headquartered
inter-African economic
necessary growth for their
at the Central Bank of Mauritius with back ups in
cooperation, referring
economies.
South Africa, and Harare in Zimbabwe.
to Egypt’s historical
Dr. Kambo J. Moyana said money transfers
and constant role in
At the same meeting Minister will be through SWIFT and XML standards.
supporting Africa on all
Mohieldin announced that Egypt ferring to the current economic meltdown that
political and economic
will host the second Africa-China has come about as aresult of western banks
levels.
Summit “Egypt will host the that mismanaged savings, Dr Moyana told the
In addition, ministers
second summit of African-Chinese gathering that the COMESA REPSS system will
and representatives of
relations, as it represents an be much secure since it is guaranteed by Central
COMESA states held banks, “ you cannot get any more security than
opportunity for showing various
separate meetings that provided by the Central bank” he assured the
fields of investment in Africa,”
with Egyptian investors audience.
announced Mohieldin. The
and companies “ the current system where we have to go though
Minister added that it was agreed
operating in the fields the US central banks is affected by among other
with China, during the previous
of construction, food thing geographical factors such as time zones.
conference, to establish five
industries, tourism Whereas the farthest distance in the COMESA
investment zones in Africa.
region is a difference of about 3 hours, the
and financial services
On their turn, COMESA ministers
difference between us and the US is at time
to discus available
and officials noted that Egypt minus seven hours. So when you are open they
investment fields
plays a key role in Africa as closed and when you are closed they are open,
in their respective
it is the gate of Africa for the this effects transaction time at time taking
countries and the
foreign world in the investment as long as a week to receive your payment,
COMESA region as a
and trade fields. They said that therefore increasing transaction cost, interest
whole
rates etc” said Dr Moyane
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