President William Ruto has urged the Member States of the Common Market for Eastern and Southern Africa (COMESA) to ratify the Pan-African Payments and Settlement System, which aims to facilitate and enhance trade among the nations.
Ruto emphasized that the implementation of this African payment system could result in annual savings of over $5 billion in payment and foreign exchange transaction expenses for the continent.
“Instead of our traders chasing currency exchanges, they can be comfortably chasing trade initiatives,” he said.
Ruto emphasized the necessity of lowering transaction costs for goods and services to enhance trade among COMESA member states.
He delivered these comments during the 23rd COMESA Summit, which took place in Bujumbura, Burundi, on Thursday.
Ruto extended his congratulations to COMESA for the implementation of the Tripartite Free Trade Area (TFTA) that commenced last July, highlighting it as a significant advancement towards realizing the vast potential of the African Continental Free Trade Area.
He also praised Madagascar for being the most recent COMESA member to ratify the TFTA.
Concurrently, the President called upon COMESA nations to adopt reforms within the African Union, asserting that the AU must exhibit a commitment to serving the over 1.4 billion individuals residing on the continent.
“We must reform the AU to make it fit for purpose to serve the 1.4 billion citizens of the continent,” President Ruto said.
Ruto seized the opportunity to advocate for Kenya’s candidate for the position of AU Commission Chairperson, Raila Odinga. He characterized the former Prime Minister as the most suitable candidate for the role.
“I want to take this opportunity to ask for your support on the position of the AU Commission chairperson. Mr Odinga is the best man for the job,” he said.
Simultaneously, Ruto urged COMESA Member States to intensify their efforts towards achieving regional integration and tackling the existing challenges.
Over the past three decades, he noted that COMESA has developed into a pivotal institution for regional integration, mobility, and economic transformation.
“We have liberalised trade, significantly increased exports and improved trade facilitation within the bloc. We have also cooperated on vital issues of peace, security and sustainable development,” he said.
Ruto stated that the finalization of initiatives like the Northern Corridor and LAPSSET would improve connectivity and foster efficiency across various value chains in multiple sectors within their respective catchment areas.
“Our progress notwithstanding, we live in a world that is constantly changing, and with it new opportunities and challenges,” he said.
Ruto stated that the changes in global supply chains, driven by the negative effects of climate change, are challenges that members of COMESA must confront.
“The theme of this summit, therefore, ‘Accelerating Regional Integration Through Development of Value Chains in Climate-Resilient Agriculture, Mining and Tourism,’ speaks to our most strategic priorities in the pursuit of rapid growth and inclusive development,” he said.
Ruto emphasized that COMESA, with a population of 640 million and a GDP of $1 trillion, stands as Africa’s largest economic bloc, presenting substantial prospects for employment growth and wealth generation through industrialization and innovation.
“However, significant opportunities exist to increase our share of intra-COMESA trade and further create opportunities for our farmers, traders and manufacturers,” he said.
Ruto emphasized the critical role of agriculture in the economies of the region, while acknowledging the various challenges it encounters, including climate change and insufficient investment in value addition.
He stated that Kenya is dedicated to executing the Climate-Smart Agriculture Strategy for 2017–2026, aimed at enhancing resilience, lowering emissions, and improving food security.
Moreover, Ruto highlighted the significance of establishing County Aggregation and Industrial Parks across all 47 counties in Kenya, which is expected to significantly reduce post-harvest losses, improve operational efficiencies, and foster agro-processing, ultimately leading to job creation and increased exports.
In addition, Ruto identified tourism as a crucial sector that necessitates immediate sustainable strategic measures.
He affirmed Kenya’s commitment to attracting both local and international investments in eco-tourism, conservation, and infrastructure development to enhance accessibility and elevate the overall attractiveness of the country’s tourism offerings.
“We believe that the tourism sector is one excellent opportunity where our region can perform exceptionally well through collaboration and integration. We strongly advocate a COMESA-wide visa regime to encourage intra-regional tourism,” he said.
Ruto asserted that it is evident the mineral resources in the region are significantly underutilized and inadequately exploited.
“Mining still holds great potential to support industrialisation, employment and stronger export performance in our region,” he said.
Ruto stated that Kenya is advocating for responsible practices by implementing initiatives such as the IMKA Gold Project, which seeks to eradicate the use of mercury in artisanal mining and to formalize the sub-sector, thereby fostering sustainable growth.
“Regional collaboration and integration of mining policies will enable COMESA attract investments while developing more robust environmental safeguards,” he said.
President Hakainde Hichilema of Zambia, the current outgoing chairman of COMESA, announced that the trading bloc’s exports have risen from $100 billion in 2020 to $219 billion in 2024.
He emphasized the importance of adopting technology to enhance agricultural production among farmers.
“It’s through technology that our farmers can increase production and make our region food secure,” President Hichilema said.
Burundi’s President Evariste Ndayishimiye, who is set to assume the role of chairman of COMESA, emphasized that the tourism industry and the utilization of mineral resources would strengthen the economies of the region.
He noted that the opening of regional markets would facilitate the unrestricted movement of goods and services.
“Integration of our region is no longer an option but a necessity if we are to empower our people economically,” he said.
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