Honourable Chairman and Members of the Bureau of Council;

Honourable Ministers;

My colleagues, the Assistant Secretaries Generals;

My colleagues, Chief Executives of COMESA Institutions;

Ambassador Juma Mwapachu, Secretary General of the East African Community and Chairman of the COMESA-EAC-SADC Tripartite Task Force;

Distinguished Permanent Secretaries and Distinguished Delegates;

Your Excellencies High Commissioners and Ambassadors Accredited to the Republic of Zambia and Permanent Representatives to COMESA;

Your Excellencies Ambassadors accredited to the Republic of Zimbabwe and Special Representatives to COMESA;

Representatives of AU Commission and other regional organizations;

Representatives of International Organisations;

Representatives of co-operating partners;

Ladies and Gentlemen;

It is with humility that I welcome you to this 26th meeting of Council of Ministers. On your behalf and indeed on my own behalf, I thank the Government and the people of Zimbabwe for hosting the preceding meetings and this Council of Minister’s Meeting that will be crowned by the COMESA Summit of Heads of State and Government to be held in this breathe-taking Victoria Falls Town, which with the sister Town of Livingstone in Zambia hosts the spectacular Victoria Falls which is one of the seven wonders of the world. Indeed, the holding of this year’s Policy Organ meetings on the foot steps of one of the wonders of the world should inspire Council to move a step closer through decisive leadership to claim the 21st century which should be the Africa’s century.

I would also like to take this opportunity to express my profound appreciation to all Honourable Ministers for the far-sighted leadership that you have and continue to provide to the process of deepening regional cooperation and integration. Honourable Ministers today we stand on the threshold of COMESA yet again being an important catalyst to the realization of the African Economic Community under the auspices of African Union Commission. I would be remiss in my responsibility if I did not specifically acknowledge with appreciation and thanks the contribution of the Bureau of Council under the leadership of Kenya who have demonstrated consummate interpersonal skills, tact and diplomacy in fostering a unity of purpose and consensus among COMESA Member states on the basis of COMESA shared values and vision. Hence, this year’s Policy Organs’ meeting culminating in the Summit, will move the region a step further to the cherished Vision and strategy of COMESA to build a :

‘A fully integrated internationally competitive regional economic community; a community within which there is economic prosperity demonstrated by high living standards of its people with political and social stability; a community within which goods, services, capital and labour move freely across national geographical borders’

Last but by no means least, allow me to the thank the Republic of Kenya through Honourable Amos Kimunya, the outgoing Chairman of Council of Minister’s and His predecessor Honourable Uhuru Kenyatta, Deputy Prime Minister and Minister of Finance of the Republic of Kenya, our previous Chairman for the effective leadership they have provided and the personal support they have given to me as your Secretary General.

Honourable Ministers, you will agree me that the leadership provided by Kenya is not accidental as demonstrated by the illustrious contribution of my predecessor His Excellency Erastus J.O Mwencha, MBS, Deputy Chairperson of AU Commission. I am happy to inform Council that in fulfilment of your decision, we have prepared the plaque of distinguished service to COMESA to be conferred to Mr. Mwencha by the COMESA Authority.

Mr. Chairman;

Honourable Ministers;

You will recall that when you last met in December, 2008 in Lusaka, Zambia the effect of global economic recession were beginning to unfold. Today we have a clear picture and evidence of the impact on COMESA economies of what started as a ‘credit crunch’ due to, put it plainly, to the recklessness and personal greed of those who suffered from what the economist describe as ‘money illusion’ by creating ‘paper wealth’ that is not backed by real assets. The fact that the global economy could be turned into a ‘global casino’ by those who marketed and branded themselves ‘masters of the universe’ is a severe indictment of the regulatory failure by the Central Banks in developed countries. Paradoxically, these are the same Central Banks that determine without consulting developing countries, how the international financial system should operate. And what they decide over lunch or dinner becomes universal law.

There is now consensus that developing countries in particular should not just accept without critical interrogation the policy and business policies of developed economies. I should hasten to add that what is on trial is not the capitalist system per-se, but flawed policies that are based on the predominant philosophical and intellectual justifications that have nothing to do with the reality.

Permit me to give one example that is pertinent to COMESA Countries who depend on agriculture for both the livelihoods of the majority of the citizens and export earnings. The dramatic rise in prices for agriculture commodities that crashed in July, 2008 has often been attributed to demand exceeding supply, whilst there maybe an element of truth in this threadbare explanation by economist, it is not the full truth. This is because the causes for the volality of prices of agriculture commodities is to be found in the inclusion of disciplines of WTO agriculture in the Uruguay Round.

This means that agriculture products can now be traded in global market like any commodity. From the time in the mid 1990s when agriculture was included, commodity traders were trying to figure out how they could make money from trading in agriculture products. They found the solution of 2002 by developing financial non-traditional instruments for future markets. This evidenced by the fact that in 2002 the equity markets had USD800-billion invested in the future markets in agriculture products, particularly wheat, corn, rice and soya beans. By 2008, this market had expanded to USD8-trillion. The effect of this development was to create and artificial increase in prices of agriculture that did not reflect the laws of demand-and-supply. By the of 2008 the value of the US$ 8 trillion had been reduced to US$ 13 billion.

The lesson to be learnt from this and related factors that have thrown world economy in a worst recession is that it is absolutely necessary for COMESA countries to understand the causes rather than the symptoms in order for the region to craft strategies and policies than can lead to a virtuous cycle of growth and equitable development.

Honourable Chairman;

Honourable Ministers;

The analysis I have just given should serve as a background to need for appropriate policies and strategies that the COMESA region should passionately and decisively implement.

A brief overview of where we are in respect of trade and investment would suffice. Since the launch of the COMESA Free Trade Area on 31st October 2008 intra-COMESA trade has grown from US$3.2-billion to US$15.2-billion in 2008. Although this growth is commendable a lot remains to be done because the intra-COMESA trade is still less that 10% of global trade. The region has also witnessed increased cross border investments by firms with benefits to the firms and employment generation. Hence the conclusion to be drawn is that the COMESA market integration strategy needs to be supported by Governments through reducing the cost of doing business and macro and micro economic policies that target the firm.

Mr. Chairman;

Honourable Ministers;

This brings me to the point of what are the implications for the deepening of regional integration from the Customs Union that our heads of State will launch on 7th of June, 2009.

Firstly, by launching the Customs Union COMESA countries are sending out a strong political message that there will be no policy reversal on trade liberalisation and the creation of a single market for goods, labour and capital.

Secondly, there will be a strong message to the market that the COMESA region with 400 million people and a gross domestic product of US$350-billion constitutes an emerging market for trade and investment. Through the establishment of a COMESA Common External Tariff (CET) and harmonisation of the CET with the East African Community (EAC) the COMESA and EAC region become a single market. This will attract both domestic and foreign investors to set up production plants to produce for the COMESA market.

Thirdly, as result of the harmonised CET’s COMESA and EAC can now negotiate bilateral trade deals as one block. For example, there is no reason why the Economic Partnership Agreements (EPA’s) with the EU cannot be negotiated together. At the multilateral level, the region can also negotiate as one block by virtue of the fact that the region is one customs territory with a common trade policy. Essentially, the region can now have a common negotiating position on trade and trade related issues in international fora.

Fourth, the Customs Union will make it possible in the not too distant future for COMESA countries to pool their resources together. This is already being done through the COMESA Fund. The COMESA Fund, and COMESA established Financial institutions that are poised in the Customs Union to become catalysts for regional integration. Hence the need to expedite the consultations on reaching agreement COMESA Common Market Levy.

Fifth, the COMESA Customs Union will facilitate the planning, programming and joint execution of infrastructure projects, including co-financing. This process has already commenced for inter-connectivity projects in the COMESA Region.

Sixth, the Customs Union will facilitate the speedy realisation of the COMESA macro-economic convergence programme and exchange rate convertibility and ultimately the establishment of a single currency.

Mr. Chairman;

Honourable Ministers;

The far reaching implications that will arise from launching the Customs Union require fundamental paradigm shifts, institutionally and intellectually on how a COMESA will do business. The globalisation process requires that COMESA countries operate like a pride of lions. As we all know a pride of lions work as a collective and COMESA is about addressing the challenges of development as a collective. Fortunately, working as a collective is part of our African culture.

The paradigm shift, will therefore require that it cannot and should not be business as usual as the region embarks on deeper integration. The implications are clear that there will be need for COMESA to do business unusual by reforming and restructuring the institutional structure in member countries and at the Secretariat to ensure that the business processes that are deployed to create a viable single market are result and value oriented.

This will entail that the implementation of industry programmes on value addition will have to be spearheaded by the COMESA Industry Association, such as the East African Fine Coffee Association; African Cotton and Textile Association; and Agro-processing Association to mention but a few.

For Member States and the Secretariat to play an effective facilitation role there will be a need for the utilisation of different skills and expertise. For example, there should be a ‘revolving door’ which facilitates movement of personnel from the private sector to the public sector and vice versa.

Mr. Chairman;

Honourable Ministers;

I would like to take this opportunity to thank the Inter-Governmental Committee and other technical meetings for a job well done. By coming up with the Common External Tariff Structure (CET) and the Modus Operandi of how to progress the integration. The Inter-Governmental Committee of Permanent Secretaries has demonstrated yet again that it is composed of men and women with excellent technical skills and managerial acumen. I have no doubt that the COMESA ship is in capable hands which will make all of us benefit from the rich harvest of regional integration through collective efforts.

Mr. Chairman;

The achievements of COMESA would not have been possible without the solid contribution of COMESA institutions, namely the PTA Bank, African Trade Insurance Agency, the COMESA Clearing House, the Leather and Leather Product Institute, COMESA Federation of Women in Business. It is thanks to the shared vision and commitment of my colleagues, the Chief Executives of these institutions and their officers that COMESA is delivering demand and tailor made services to the Business community in the COMESA region.

Mr. Chairman;

Honourable Ministers;

I am happy to report that the regional economic communities in the region namely: COMESA, EAC, IGAD and IOC continue to jointly programme and implement the regional programmes and projects under the 10th European Development Fund which is providing Euros645-million. The report of the Inter-Governmental Committee provides details of the programme; suffice at this point to request Council to note that the four Secretariats are committed to fast-tracking the region integration agenda; including harmonising policies.

Regarding the COMESA, EAC and SADC Tripartite programmes, I am happy to inform Council that the three organizations have made remarkable progress in implementing the programmes decided by the COMESA-EAC and SADC Tripartite Summit. My colleague Chairman of the COMESA-EAC-SADC Tripartite Forum at the Secretariat level, Ambassador Juma Mwapachu will be invited to brief the Council with my support on progress made in implementing our Joint Programmes, particularly the status of the Study on the creation of a single Free Trade Area for the three organizations.

Mr. Chairman;

Honourable Ministers;

Allow me to thank most sincerely the co-operating partners, who are numerous to mention, for accompanying and providing technical and financial support to COMESA countries on the challenging journey of regional economic integration. It is through your encouragement and sharing of knowledge and best practices that COMESA has succeeded in implementing its programmes.

On the eve of launching of the COMESA Customs Union, I would like to thank USAID for providing resources for publicizing the launch of the Customs Union. My eternal thanks goes to the European Union which by far, is the largest donor to COMESA through the European Development Fund and other facilities for supporting the COMESA integration agenda. Indeed, COMESA-EC partnership should be emulated by other cooperating partners to ensure ownership and aid effectiveness.

It is against this background that I am happy this morning to announce that from the Euro78-million funding provided by the European Union to the COMESA Fund Adjustment Facility Window, we are now in a position to disburse the first tranche of Euro 10.3 Million to Rwanda and Euro 4.4 million to Burundi to provide compensation for revenue losses that will arise from the implementation of the COMESA and EAC Customs Union. I would like to place on record our thanks to Ambassador Derek Fee, Head of EU Delegation in Zambia and my counterpart on Regional Authorising Officer for Regional EDF programmes for his support and advice.

Mr. Chairman;

Honourable Ministers;

Distinguished Delegates;

Invited Guests;

As I conclude my remarks, I wish to take this opportunity to thank all of you for your individual and collective efforts which have moved us a step further in our quest for social and economic emancipation.

I thank you for your kind attention.