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THE Common Market for Eastern and Southern Africa (Comesa) has called upon member states to cushion the services sector from the impact of Covid-19 pandemic as it contributes significantly to the Gross Domestic Product (GDP).
The African continent like the rest of the world, has not been sparred from the adverse effects of the Covid-19 pandemic.
In a statement, Comesa said there was need for countries in the region to cushion the services sector, which accounts for more than half of the trading bloc’s Gross Domestic Product and more than a third of employment.
“Given the critical role trade in services plays in the Comesa region, governments should ensure smooth and continued operation of the logistics networks that serve as the backbone of regional supply chains, improve digital infrastructural foundations to improve internet, and enhance investments in internet infrastructure and penetration to promote online supply of services, while embracing e-commerce in trade in services,” it said.
Comesa said the transport and travel services, which constitute the bulk of regional trade, have been the worst hit.
“On the other hand, those that rely on digital technologies such as financial services, have shown greater resilience.”
The trading bloc said the Covid-19 crisis has shifted the focus of member states from the traditional services sectors of transport and travel-related services.
Transport and travel services account for 83 percent of the total exports and 66 percent of the total imports.
“This implies that they are the major traded services in the Comesa region with the other major sector in imports being other business services, accounting for 18 percent,” said Comesa.
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