African leaders create giant trade bloc
Nov 17 2008
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The leaders of 26 African countries agreed last month to form a unified free trade bloc that would create the largest free trade area in Africa with an estimated combined GDP of US$650 billion. The merger was finalised during the first ever tripartite summit between three existing regional trading blocs. The summit was held in Kampala, Uganda and brought together the leaders of the Common Market for Eastern and Southern Africa (Comesa), the East African Community (EAC) and the Southern African Development Community (SADC). 

The new Africa free trade zone is expected to ease access to markets in the area, boost intra-regional trade and strengthen Africa's bargaining power when negotiating on international platforms.

South Africa's President Kgalema Motlanthe, representing the SADC region as its chairperson, said that the launch of the free trade bloc would place the African continent in a stronger position to respond effectively to intensifying global economic competition.

The three communities also resolved to co operate in areas such as infrastructure development and energy generation. 

The trade zone includes Angola, Botswana, Burundi, Comoros, Djibouti, the Democratic Republic of Congo, Egypt, Eritrea, Ethiopia, Kenya, Lesotho, Libya, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Swaziland, South Africa, Sudan, Tanzania, Uganda, Zambia and Zimbabwe. 

Some of the challenges that the free-trade agreement is expected to face include the multiple memberships of some countries to various other trade blocs and fear of the weaker economies of being flooded by goods from their stronger counterparts like South Africa and Egypt.

Adapted from Source: www.sagoodnews.co.za, 28 October 2008