This archive report was first published on 27 October 2021.
Comesa's intra-regional trade has declined by 11% due to non-trade barriers, resulting in a $1.2 billion drop in exports from 2019 to 2020.
According to a survey by the Comesa Secretariat, led by consultant Dr Evarist Mugisa, the increasing non-trade barriers (NTBs) are to blame for the proliferation of informal trade and the decline in value of exports.
The 37th Meeting of the Comesa Trade and Customs Committee, held on October 15, 2021, heard that the low intra-regional trade was also a result of existing gaps in information on trading opportunities, regulatory requirements, and factors that inform business decisions on production of goods and trade.
Comesa Assistant Secretary General in charge of Programmes, Dr Kipyego Cheluget, emphasized the importance of addressing NTBs, stating, “If well implemented, these measures could significantly increase intra-Comesa trade, reduce time and cost, increase regional competitiveness, create jobs, and positively impact on living standards of our people.”
The study, part of the implementation of the Small-Scale Cross Border Trade Initiative funded under the 11th European Development Fund, identified policies that member States have instituted to address informality and recommended that governments consider reducing the cost of trading formally and enhance the efficiency of border controls to improve compliance with existing trade-related regulations.
