Kenya will use its position as the chair of the Common Market for Eastern and Southern Africa (COMESA) to advance technological solutions in order to address persistent non-tariff barriers which are stifling intra-African trade.
Speaking during the 24th COMESA Summit in Nairobi, Deputy President Prof Kithure Kindiki said digitalization in the 21-member trade bloc could help lift intra-trade which has stagnated at 15pc over the year.
“Kenya will leverage this role to champion a new era of regional integration that uses digitalization to deepen value chains for sustainable and inclusive growth, to actualize the theme of this Forum,” said Prof Kindiki.
According to Prof Kindiki, digitalization is also a key enabler to innovation and competitiveness and is critical in promoting certification and smart borders to facilitate movement of goods and services.
“Digitalization catalyzes reduction of non-tariff barriers to trade by introducing digital solutions to trade facilitation and modernizing customs and border procedures for seamless trade within COMESA member states,” he added.
Data by COMESA indicate that Intra-COMESA trade has continued to face headwinds which have led to decline in trade within the bloc.
Last year, COMESA intra-trade declined by 3.6pc to $14.2b from $13.7b on account of lower output from key sectors.
“This contraction was driven by sharp export reductions in key sectors such as ores and metals, fuels, and agricultural raw materials. Nonetheless, the relative stability of intra-regional trade amidst all uncertainty underscores the continued importance of accelerating integration efforts,” said Chileshe Mpundu Kapwpwe, COMESA Secretary General.
Amid rising competition that is eroding exports from the boc, high transport costs and emerging geopolitical tensions, leaders at the summit called for increased integration within the trade bloc to sustain job creation and boost exports.
“We are not just building digital infrastructure. We are creating an ecosystem where technology serves as a catalyst for trade, efficiency, and job creation. We are not just modernizing agriculture, we are transforming it into a resilient, high-value sector that feeds our people and fuels our industries,” added Lee Kinyanjui, Cabinet Secretary for Investment, Trade and Industry.
Member states have been further urged to increase investments in the agriculture value chain in a bid to drive value addition and improve COMESA trade which currently stands at $14 billion.
