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THE Common Market for Eastern and Southern Africa (Comesa) has expressed concern over lack of buy-in from member countries regarding implementation of the regional common investment area agreement, which has not been ratified by any of the 21 countries under the bloc.
The Comesa Secretariat is now considering rolling out a regional campaign after three years have passed without adoption of the pact. Zimbabwe, Swaziland, Zambia, Malawi, Madagascar, Rwanda, Kenya, Djibouti and Egypt are part of the 21-member trading bloc.
Since its adoption in 2017, no member State has ratified or domesticated the Comesa Common Investment Area Agreement (CCIA). The CCIA is a promotional tool meant to guide member States in harmonising best practices in investment and facilitating private sector development. Among the major programmes envisaged is granting of national treatment equally to Comesa investors and citizens of all member States.
“The Comesa secretariat intends to mount a public awareness campaign on the benefits of the regional common investment area agreement in an effort to encourage countries to ratify and domesticate the regional document,” said Comesa in a statement.
The bloc’s senior investment officer, Mr Joseph Mpunga, was quoted as saying the pact ensures investment and investor protection while encouraging member States to carry out reforms and liberalisation by opening of economic sectors for growth to all investors, particularly the ones originating from the region.
“We plan to conduct the public awareness campaign in the region so that we can sensitise the stakeholders on the importance of this document and the need for its ratification,” he said, adding that campaigns would be conducted in conformity with the health guidelines in the face of the Covid-19 global pandemic.
The CCIA was adopted by the Comesa Authority during the 2007 Summit held in Nairobi, Kenya. It went through reviews to take into consideration the emerging issues in the area of international investment regimes and specific standards regarding investor protection.
It also covers the rights and obligations of investors and those of the host countries. Comesa has said that the International Institute for Sustainable Development and United Nations Conference on Trade and Development, worked with the secretariat in the review, which was finally adopted by the Council of Ministers in November 2017.
The revised CCIA is aligned to the Pan African Investment Code championed by the African Union.
“This Framework will provide a platform for the investment chapter that is the integral part of the Continental Free Trade Area.
“In addition, the framework has in its provisions dispute settlement mechanisms privileging national and regional conflicts resolution. The instrument comprises 45 articles and four schedules,” it said.
Upon implementation, the CCIA is expected to improve the overall ease of doing business environment in the region, cooperation in investment promotion among member states through Double Taxation Avoidance Agreements and other investment agreements.
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