Zambian Company Formation and Management Consultants

ZAMBIA and Zimbabwe are expected to launch the Common Market for Eastern and Southern Africa (COMESA) simplified trade regime (STR) next week to enhance small-scale border trade.

The STR is an agreement that allows small-scale cross border traders with business products of not more than US$500 to be exempted from paying any border charges.

According to e-COMESA Newsletter, the event is scheduled for July 29 in Livingstone.
This means that the two countries have agreed on the common list of products to be traded using the STR. The COMESA initiative is one of the important programmes aimed at poverty reduction.

COMESA notes that since the launch of the free trade area in 2000, the small-scale cross border traders have not significantly benefitted from COMESA tariff preferences.

The regional economic bloc says this is so because, to benefit from the preferences, goods traded in the region, which meets the COMESA originating criteria, have to be accompanied by a COMESA certificate of origin.

It says the process of getting the certificate of origin is rather involving and in many cases the certificate issuing offices are situated very far.
The statement says cross border trading is an important source of employment and income generating activity that sustains many families in the COMESA region.

Studies have shown that cross-border informal trade accounts for 35 percent of the intra-COMESA trade.
Recently, Cross Border Traders Association of Zambia chairman general Eliot Kabinda told the Mail that through the regime many small-scale traders will be encouraged to engage in cross border business thence uplifting their living standards and also make significant contributions to the economic development of their country.

Meanwhile, COMESA partnership with the United States Agency for International Development (USAID) and Trade Mark South Africa launched two trade information desks at Goma and Gisenyi borders between Rwanda and the Democratic Republic of Congo.

The launch is in response to the recommendations by traders during the cross-border fora organised under the trading-for-peace initiative.

Source: LUSE Website