REGIONAL INTEGRATION

1.0 Introduction

The majority of African countries are members of one or more regional or sub-regional arrangements that seek to promote economic coordination, cooperation or integration among the member countries concerned. The majority of these groupings are found in the Sub-African countries. The various African regional economic blocs, and indeed the individual countries that comprise their membership, are at varying stages of development and implementation of their regional arrangements. The blocs’ scope covers various socio-economic, developmental and political considerations, including the promotion of intra-regional trade, socio-economic policy coordination, and management or development of shared physical infrastructure and environment. Some of the African regional arrangements also cover issues of common interest in the areas of public governance, defense and security, among other socio-economic and political dimensions.

It is the intention of this paper to examine the “Economic Benefits of Regional Economic Integration” (EAC, SADCC, ECOWAS, etc.
In the course of the discussion the paper will explore the historical background of Economic integration, benefits, challenges, recommendations and conclusion to see whether, the economic integration resulted in poverty-reducing in poor African countries.
2.0 Background of economic integration
Although regional integration is not a very new concept, it has gained more popularity in the last two decades. Neighboring countries in different parts of the world have converged in joint pursuit of all macroeconomic functions to promote intra-regional trade of goods and services.
By so doing, the countries anticipate a more efficient use of resources, faster transformation of their economies, and reduction/eradication of poverty as well as creating prosperity for their people.
In Africa, the idea of regional integration was conceptualized in the 1960s and took shape at the Lagos Plan of Action of 1980 and its update, the Abuja Agreement of 1991. Today there are four major regional groupings in the continent and these are the Southern African Development Community (SADC); the Economic Community of West African States (ECOWAS), the East African Community (EAC) and the Common Market for Eastern and Southern Africa (COMESA).
Some of the many African sub-regional arrangements have a long history of existence, dating back to the pre-independence era, which has been punctuated by occasional stagnations or reversals in a few cases, and only modest achievements at best in others. Some African countries have only recently rekindled their interests in economic integration, but for different reasons from initial decolonization agenda and the desire to overcome the colonially imposed artificial boundaries. They have been inspired by the success of integration efforts in Europe and the Americas. They also need post-independence economic integration to gain power and survive economically against the threat of marginalization in the globalization process.
Countries in the region have also pursued regional integration in the context of South-South cooperation, which was necessitated partly by the declining terms of trade and disappointment with the rejection of the New International Economic Order (NIEO) proposal in the 1970-80s

3.0 Theoretical review of Integration
In its everyday usage the word “integration” denotes the bringing together of parts into a whole. Integration in the sense of the transfer of authority and legitimacy to a new-supranational set of institutions, is one response to the condition of inter-dependence- a condition in which actors in the international system are sensitive and vulnerable to the acts of other entities, whether these be governments or trans-national actors such as multinational corporations or terrorist groups.
There are different approaches to integration. According to Belassa there are five ideal types of integration:
First, at the lowest level is the free trade area in which tariffs and quotas (quantitative restrictions) are eliminated between the participating countries, but each country retains its own tariffs against non-members.
The second level involves the establishment of a customs union in which besides the suppression of discrimination in the field of commodity movements within the union, there is the equalization of tariffs in trade with non member states.
The third level involves attaining a common market, where not only trade restrictions but also restrictions on the movement of factors of production are eliminated.
The fourth level combines the suppression of restrictions on commodity and factors of production movement with some degree of harmonization of national economic policies, in order to remove discrimination that was due to disparities in these policies.
Finally is the Political Union, which is the highest form of integration involving unified structures and political institutions.
Mukandala draws a distinction between political union, political federation, political integration and political cooperation. According to him a political union is the ultimate goal of cooperating parties and entails a shared political jurisdiction in which the parties to the union agree to surrender either all or part of their sovereignty to a central political unit.
A political federation is a union of groups, united by one or more common objectives, but retaining their distinct group character for other purposes. In a political federation, each member state is sovereign in its own sphere. Nevertheless, even in their loosest form, federations require a certain degree of direct surrender of political jurisdiction to the federal authority.
Political integration is the process whereby political actors in several distinct national settings are persuaded to shift their loyalties, expectations and political activities toward a new centre, whose institutions possess or demand jurisdiction over the pre-existing nation states.
Political integration permits member states to retain their identity and yet join the organization that transcends nationality. Political cooperation involves mutual policy arrangements among member states aimed at attaining common interests and objectives. Unlike political union or federation, political cooperation does not necessarily require surrendering one’s jurisdiction to the central unit.
In the final analysis, whilst political cooperation among states may set out to ensure peaceful co-existence, friendship and solidarity as well as mutual respect for national sovereignty, political integration towards federation, may involve issues like establishment of collective institutions, development and implementation of common defense/foreign policy etc. Suffice it to note that political cooperation among member states is a pre-requisite for a federation or union.
For Nkwame Nkrumah, integration was to take the form of a political union first as a necessary prelude to the creation of an extended field for which integrated economic and social development could be worked out.
4.0 The meaning of Regional Economic Integration
Regional Integration is the unification of neighboring states working within a framework to promote free movement of goods, services and factors of production and co-ordinate and harmonize the policies. This might involve convergence of trade, fiscal and monetary policies as a prelude to integration.
It can also be defined as a process and a means by which a group of countries strive to increase their levels of welfare-reduction of poverty, indebtedness and economic malaise. It recognizes that partnership between countries can achieve this goal in a more efficient way than unilateral or independent pursuance of policy in each country.
In Africa, it can be postulated that regional unification through meaningful co-operation will help arrest poverty and Debt levels in these nations.
It can also be defined as the economic convergence of neighboring states working jointly in pursuit of all macroeconomic functions to promote intra-regional trade of goods and services. Common goals are usually economic transformation, development and eradication of poverty.
The rationale behind regional integration is that partnership between countries can achieve these goals in a more efficient way than unilaterally.
Sometimes is called Regional cooperation which can be defined as the move to establish linkages between and among a group of countries within a given geographical space, motivated by common and shared interests to cooperate in the areas of trade and other economic sectors, with a view to achieve a Free Trade Area and subsequently to establish a Customs Union.
Economic Integration follows the underlined main processes:
Ø Establishment of a Free Trade Area involving the removal of tariff and non-tariff barriers to trade;
Ø Establishment of a Customs Union whereby all restrictions to trade and factor movements within the area are completely eliminated, and of a common external tariff;
Ø Achievement of an Economic Union among the member States, which implies the harmonization, to some extent, of economic, monetary, fiscal, social and other sectoral policies;
Ø Attainment of a supra-national union where the respective governments completely subordinate their sovereignty over policies to a supra-national authority, and which may ultimately lead to the alignment of the countries involved into a single state.
The underlying motivations may also include the desire for the member countries to promote a common defense and security front or strengthen their economic independence and empowerment vis a vis the rest of the world.
5.0 History and Background of EAC:
The East African Community (EAC) is an intergovernmental organization comprising five east African countries. Currently, members of EAC are Kenya, Tanzania, Uganda, Burundi, and Rwanda
The East African region covers an area of 1.8 million square kilometers with a combined population of about 100 million (July 2005 est.) and has a vast potential in mineral, water, energy, and forestry and wildlife resources. It also has agricultural, livestock, industry and tourism development. Its people have a common history, language (Kiswahili), culture and infrastructure.
The Permanent Tripartite Commission for East African Co-operation was first formed in 1967 as the East African Community. It collapsed in 1977 due to political differences. Following the dissolution of the organisation, former Member States negotiated a Mediation Agreement for the Division of Assets and Liabilities, which they signed in 1984.
However, as one of the provisions of the Mediation Agreement, the three States agreed to explore areas of future co-operation and to make concrete arrangements forsuch co-operation.
Subsequent meetings of the three Heads of State led to the signing of the Agreement for the Establishment of the Permanent Tripartite Commission for East African Co-operation on November 30, 1993.
Full East African Co-operation efforts began on March 14, 1996 when the Secretariat of the Permanent Tripartite Commission was launched at the Headquarters of the EAC in Arusha, Tanzania.
Considering the need to consolidate regional co-operation, the East African Heads of State, at their second Summit in Arusha on 29 April 1997, directed the Permanent Tripartite Commission to start the process of upgrading the Agreement establishing the Permanent Tripartite Commission for East African Co-operation into a Treaty.
During a one-day summit in Arusha, Tanzania on 22 January 1999, the Heads of State of Tanzania, Kenya and Uganda resolved to sign the Treaty re-establishing the East African Community (EAC) by the end of July 1999.
The community was to take over from the Permanent Tripartite Commission for East African Co-operation.
In addition to a decision to re-establish the East African Community by the end of 1999, other issues raised at the EAC Summit of January 1999 included the signing of a Memorandum of Understanding on Foreign Policy Co-ordination; Zero tariff rates to be adopted by 1 July 1999 and the implementation of COMESA's 80% tariff reduction objective at the same time; setting up of a mechanism to deal with terrorism in the region; and postponement in admitting Rwanda and Burundi to the EAC.
{Apparently, the inclusion in the agenda on the question whether Rwanda should be admitted to the EAC caused a heated debate during a preparatory meeting attended by the three Foreign Ministers on 21 January 1999. The Ugandan delegation wanted Rwanda to be admitted, but Tanzania disagreed arguing that it was not possible to admit new members at this stage, as the procedure for doing so was still being debated. The proposal by Uganda was defeated when the Tanzanian and Kenyan delegates voted against it.}
The Memorandum on Foreign Policy Co-ordination, signed by Foreign Ministers from the three countries, involves the three member states taking a common stand at international fora in assisting each other in countries where they do not have Missions. This entails that any of the three member states can appoint one Mission to represent their interests abroad. Nationals from the three countries will also be able to have visa applications processed in any of the Missions representing the region.
President Moi suggested that the countries of the region might even form a political federation and suggested in this regard the creation of a regional assembly with limited powers.
The East African passport was officially launched on 1 April 1999. At the same time, it was confirmed that the EAC planned to establish a free trade area in July 1999 and a common external tariff by the year 2000. In May 1999 a high level EAC task force met in Arusha and recommended a delay in the elimination of tariffs (to 1 July

Dates to the Establishment of East Africa Federation

April 2005 - Appointment of an additional Deputy Secretary General (in charge of fast tracking federation

July 2005 - The Constitutional Commission appointed

December 2005 - Appointment of the east African Federation Advisory Council

June 2006 - Protocol on the Free Movement of Persons, Labor, Services and Right of Establishment and Residence concluded

December 2006 - The East African Identity Cards identifying the citizens of partner States of the EAC issued

July 2007 - Protocol on the Common Market concluded

December 2007 - Preliminary Draft of the Constitution of the Federation of East Africa finalized

2008 - Debates, consultations and sensitization on the Preliminary Draft Constitution for the east African Federation
- Constitutional Forum consisting of the members of the National Assemblies of the Partner States of EAC and the Members of the EALA approves the Preliminary Draft with or without amendments
- Arising out of the Constitutional Forum, the Commission of the Federation of East Africa finalized

January 2009 - The Constitution approved by the Summit of East African Community

May/June 2009 - Approval of the Constitution of the east African Federation by the National Parliaments of the Partner States

September 2009 - Referendum

Oct. /Dec. 2009- President of the Transitional Federation elected or identified in accordance with the procedure set out in the Constitution
- Election of the Federal Parliament in accordance with the procedure set out in the Constitution

January 2010 - President sworn in and the Federation of East Africa launched

2010-2012 - Transitional Federal Parliament sworn in
- Judges of the East Africa Supreme Court sworn in
- Constituencies delineated
- Election laws enacted
- Defense put in place
- Federal Police put in place
- Other Federal Institutions as provided for under the Constitution put in place

January 2013 - Election of the President and Federal Parliament held and sworn into office

Comparison with other regional blocs
African Economic Community
Pillarsregionalblocs (REC)
Area (km²)
Population
GDP (PPP) ($US)
Memberstates
in millions
per capita
AEC
29,910,442
853,520,010
2,053,706
2,406
53
ECOWAS
5,112,903
251,646,263
342,519
1,361
15
ECCAS
6,667,421
121,245,958
175,928
1,451
11
SADC
9,882,959
233,944,179
737,335
3,152
15
EAC
1,817,945
124,858,568
104,239
1,065
5
COMESA
12,873,957
406,102,471
735,599
1,811
20
IGAD
5,233,604
187,969,775
225,049
1,197
7
WesternSahara 1
266,000
273,008
?
?
N/A 2
OtherAfricanblocs
Area (km²)
Population
GDP (PPP) ($US)
Memberstates
in millions
per capita
CEMAC 3
3,020,142
34,970,529
85,136
2,435
6
SACU 3
2,693,418
51,055,878
541,433
10,605
5
UEMOA 3
3,505,375
80,865,222
101,640
1,257
8
UMA 4
5,782,140
84,185,073
491,276
5,836
5
GAFTA 5
5,876,960
166,259,603
635,450
3,822
5

Source; http://en.wikipedia.org (cited on 7/10/08)
6.0 Economic benefits of regional integration
Before looking into the economic benefits of regional integration it is prudent to quote the following:
“We have everything to gain in the East African Federation in terms of political stability, greater feeling in safety in numbers and as an economic entity better able to fight poverty,” Former Tanzania President Benjamin Mkapa.

“I firmly believe that regional integration is not a choice but a necessary strategy for sustainable development … On a cultural level, regional integration solidifies the unity of communities with personal ties and common history, language and culture,” President Mwai Kibaki.

Among the problems facing the less developed countries (LDCs) is heavy financial, technical and entrepreneurial dependence on the industrialized world. These exploitative dependency relationships are deepened by the LDC’s limited internal market, coupled with low effective demand, both of which partly account for slow, if any industrialization. This somewhat “vicious circle” is exacerbated by non-revolutionized economic structures, whereby nations produce what they do not consume and consume what they do not produce. In 1974, Thomas argued for a reversal of this situation in which case Africa economies would produce what they consume.
One of the options out of this predicament has been regional economic integration. This is what hoped, would facilitate the attainment of economies of scale, rationalize location and relocation of production units, encourage specialization in production and enhance industrial efficiency.
For developing countries in general, economic considerations appear to loom high on the integration agenda. Through this process, the countries aim at establishing a wider economic and market space which allows them to: diversify production and reduce or minimize their dependence on the export of a few primary commodities which is overwhelming for countries; improve economic growth rates, and thereby raise employment and living standards; modernize the production sector; and fully exploit natural resource endowments
The following are the economic benefits of regional integration:
Ø Liberalizing intra-regional trade in goods on the basis of mutual beneficial trade arrangements among the Partner States.
Ø Promoting efficiency in production.
Ø Enhancing domestic, cross border trade and foreign investment.
Ø Promoting economic development and diversification as well as industrialization.
Ø Liberalizing intra-regional trade in goods on the basis of mutually beneficial trade arrangements among the Partner States.
Ø Promoting efficiency in production.
Ø Enhancing domestic, cross border trade and foreign investment.
Ø Promoting economic development and diversification as well as industrialization2.
On the other hand, the economic development needs to be strengthened between EAC countries on mutual foundation based on their indigenous social and economic environment. EAC trade promotion under Article 6 mentions that the Partner States shall initiate trade facilitation by:
Ø Reducing the number and volume of documentation required in respect of trade among the Partner States.
Ø Adopting common standards of trade documentation and procedures within the community where international requirements do not suit the conditions prevailing among the Partner States.
Ø Ensuring adequate co-ordination and facilitation of trade and transport activities within the Community.
Ø Regularly reviewing the procedures adopted in international trade and transport facilitation with a view to simplifying and adopting them for use by the Partner States.
Ø Collecting and disseminating information on trade and trade documentation.
Ø Promoting the development and adoption of common solutions to problems in trade facilitation among the Partner States and
Ø Establishing joint training programmes on trade.

7.0 Positive sign of EAC economic Integration
The issue of East African Federation has firmly been put on the agenda of East African countries. In fact, this one of the positive signs itself. Whilst the Treaty of EAC had broadly spelt out the desire of the Partner States to politically federate, the process to bring the federation about had not been spelled out. The process of fast tracking the federation has corrected this anomaly. At least there is now a timetable (roadmap) to achieve the federation.
A Customs Union has been put in place; this is another positive sign of the integration of East Africa. Whilst it continues to encounter difficulties, for example the traders strike in Uganda against the new customs taxes, the signing of the Customs Union Protocol was a step in the positive direction of the integration of the region.
The establishment of the East African Court of Justice (EACJ), East African Legislative Assembly (EALA), East African Business Council (EABC) and the introduction of the East African Passport are all remarkable event as we march towards the federation.
I have raised a number of questions above. Some of these questions have immediate answers while others do not. For example, I have failed to answer the question whether the date of 2013 for the ultimate establishment of the Federation is a realistic date! The other issue that I have not discussed is the exclusion in Uganda, of the opposition members of the EALA from the National Committee on Fast Tracking the East African Federation and the entire consultation exercise. The Wako Committee Report was supposed to be debated in the national parliaments, a thing that was done in Kenya and Tanzania, but not Uganda. In case of the latter, it is reported that the Wako report was discussed by the NRM party! In Uganda it appears the issue of the federation is a one party affair, which does not augur well for the process.
8.0 Challenges of economic Integration (EAC)
Financing the EAC has been an endemic problem. There has been a reliance on donor funding for its activities. In fact the donor community has become like the ‘Fourth Partner’ in the integration process. Donor funding of the integration processes in Africa is unsustainable. For example, in the financial year 2003/2004 the Partner States were only able to raise a paltry 41.2% of the EAC budget. The rest came from donors. In the same financial year, from the figures available, Uganda was the most indebted Partner State to the tune of over one million dollars. Thus, serious thinking must be done on how to finance the process leading to the federation and the federation itself.
Africa’s integration cannot be funded solely by the traditionally unreliable financial contributions of Partner States or outside support. Relying principally on assessed contributions has proven unsustainable for regional economic communities. They require more innovative and sustainable approaches to achieve and autonomous and self-dependent integration process.

The issue of democracy is also alarming, as pointed out at the time when the debate on changing the Uganda constitution to allow for open ended presidential term limits was raging; the issue also came on the floor of Tanzania’s parliament. Moshi Urban Member of Parliament (MP) Philemon Ndesamburo, had argued that Tanzania should withdraw from the EAC to protect its credibility. Ndesamburo argued that, “Tanzania should not cooperate with an undemocratic country that wants to have a president for life.” He added, “we (Tanzanians) are respected the world over as a democratic country that upholds the principles of democracy and good governance. We should protect this honor at all costs even if it means quitting the EAC.” The MP was dismissed as a lonely voice. Nevertheless, his arguments were echoed by other people
President Museveni is a fervent supporter of an East African Federation, to some he could be one of its biggest impeder. His changing the constitution to run for a third term did not go down well in some partner states.
It is difficulty to have a federation where one of constituents has a life-presidency while others have term limits. Either we have a timeless presidency in Uganda and a dictatorship that is implied, or the people of East Africa will through a referendum, reject the dictatorship, which is now being put in place in Uganda.
Connected to the above point is the issue of the internal political processes within the Partner States. Despite their shared history, the Partner States not only have constitutional arrangements that are unique to each of them, but also, have in recent years, been engaged in a review of their constitutions based on their separate internal concerns. The possibility that a Political Federation might be established in the near future has not been part of the discourses leading to those processes. Indeed this was the case in the Constitutional review process in Uganda and the Constitutional Referendum in Kenya.
As we observed above, one of the arguments were for introducing a federation is that it will promote political stability and eliminate tribalism in the region. At this juncture Uganda is the only partner state of EAC where there is an open conflict with ethnic undertones in Northern Uganda.
As Rwanda and Burundi joined the federation, then partner states having ethnicity problems will increase. But we need to interrogate the view that the federation will eliminate conflict in the partner states.
An interesting debate on the EAC and political federation has been taking place on the internet involving Tanzanians. As it has been reported, “most Tanzanians are afraid that their country risks being infected with ethnicity problems that characterize politics in Kenya, Uganda, Rwanda and Burundi.” Many of those participating in the debate have argued that “people from the four enemy countries who they deride to be “nincompoops” should be kept out of the Tanzanian territory at whatever cost”! Although the numbers of people involved in the debate is not big, it is nevertheless instructive to note that there are these fears/sentiments expressed.
Further, there are the challenges of sovereignty and nationalism. One of the fundamental principles of EAC is sovereign equality. The issue of sovereignty has generally handicapped the integration processes in Africa. It handicapped the Organization of African Unity (OAU) and now the African Union. How the Partner states are going to overcome this issue, no one knows. In fact, this is the biggest the concerns. The fear is that as a Federation, the nation states would cease to have any meaningful powers and would be relegated to mere provinces within the Federation. The fear is manifested in a number of ways including; loss of power at political level, loss of decision making, and loss of flexibility in exercising powers at the national level. The Zanzibar saga can be cited as an example.
Attempts by the colonial administration to establish a political federation in East Africa was vociferously opposed by Buganda Kingdom in the mid 1950’s. Even today, the Kingdom of Buganda has been demanding for Federal. No one knows how this federal will fit in the East Africa Political Federation enterprise.
There is another issue of land; any form of integration that would undermine the unique form of land tenure system in EAC
The is a need to put Tanzanians’ fears that the envisaged Common Market and eventual Federation, particularly provisions relating to Right of Property and Residence, will not open the floodgates to Kenyans who might be more advantaged to migrate to Tanzania and take up legal rights. Many Tanzanians were of the view that Kenya and Uganda should first reform their land laws to enable people in lower income bracket to acquire land before they join the regional federation.
There is the issue of multiple memberships to different regional integration groups. Whilst Uganda and Kenya belong to the Common Market of East and Southern Africa (COMESA), Tanzania is not a member. Uganda and Kenya are not members of the Southern Africa Development Community (SADC) while Tanzania is a member.
There is likelihood that the Partner States may commit themselves differently with the possibility of creating tension within the Customs Union and other economic and political commitments binding the EAC Partner States. The issue of creating tension within the Customs Union is very germane for Tanzania.
The SADC countries recently resolved to establish their customs union by 2010. The COMESA countries will establish theirs in 2008. The EAC established its own Customs Union in 2004, which prohibits member states from acceding or joining Unions with conflicting objectives. As a member of SADC, Tanzania will also be covered under the SADC Customs Union.
According to Tanzania’s Deputy Minister for EAC, Diodorus Kamara, Tanzania will stay in both Customs Unions. However, the Executive Secretary of SADC Tomaz Augusto has stated that, “legally, no country can belong to more than one Customs Union.” In fact, even under the World Trade Organization (WTO) rules, countries are prohibited from joining multiple Customs Unions. This issue was presented to the EALA, which in turn gave the governments of the EAC up to December 2006 to come out with a resolution. The EALA suggested that if member states of the EAC want to join other customs unions, they should do it as EAC and not individual member states. The governments are yet to come out with their decision on the matter.
The question that needs to be asked is: what if the people reject the Federation project, what next? The recent rejection of the European Constitution (The Treaty of Nice) by the people of France and Netherlands should be an eye opener. The rejection has resulted in the death of the Treaty of Nice despite the fact that 15 countries of the EU had already ratified it. Are the East African leaders ready to be defeated in the mooted referendum? Or will they manipulate the referendum results (just as they do in their national elections) in favor of the Federation? What will this manipulation portend for the yet to be established/established Federation? All these questions need answers, which as of now are not forthcoming
Recommendations
One of the reasons advanced for the collapse of the EAC in 1977, is that it was not people centered. According to Simba, civil society has several roles to play in the integration process. First, for any stage of regional integration to be successful, it must incorporate full ownership and participation of the people, especially through their institutions of choice. Secondly, civil society organizations have a role in order to ensure that the previous mistakes of the community are not repeated. Lastly, the active participation of civil society in the activities of the community will provide the necessary impetus in the development of the community.

Conclusion
Perceptions by some member States, that they are not reaping equal benefits or balanced development from the integration arrangements is a causative factor. For instance, the groups of less developed countries involved in the integration process may feel that others are benefiting more from trade liberalization programmes by virtue of their relatively developed industrial capacities. Therefore, the need for a balanced development and a fair share of the benefits of integration among the member countries becomes an important consideration, especially if the integration process involves countries with significant disparities in their levels of development. In this context, appropriate mechanisms need to be put in place to ensure that, to a large extent, the lesser-developed members are given special considerations.
Despite enormous trade impediments facing Africa, there is growing evidence that interregional trade in most of these regional groupings is rising. It is however disturbing to note that poverty levels in the continent continue to grow, a major problem which regional Integration is expected to address. Critiques to regional integration in Africa highlight the non-involvement of non-state actors as a major factor contributing to non-achievement of goals. The process is limited to state - state co-operation and this severely curtails proper identification of peoples’ needs.

THE MERGER OF 26 NATIONS INEAC,SADC AND COMESA.
This was agreed in the summit of heads of states and Governments in EAC,SADC and COMESA which conducted in October 22/2008.
The merger of the East African Community ( EAC ),Southern African Development Community ( SADC) and Common Market for Eastern and Southern Africa ( COMESA) could create one regional bloc with a market of over 757 million people.
The proposal was floated by president Jakaya Mrisho Kikwete when he addressed the first summit at Munyonyo common wealth resort in the environs of kampala. He said that a new bloc will be stronger and larger community replacing weaker, separate regional communities. The proposal was seconded by Mauritius and the Host, Uganda.
The summit directed secretariats of the three communities to prepare joint proposals on how to achieve the merger. The Proposals will be presented before the next summit two years from now.
The leaders agreed to establish a free trade area in the 26 countries and jointly to look for funds to finance infrastructure in the proposed bloc. The meeting also endorsed the idea of granting greater freedom to citizens of the countries within the bloc to conduct their activities.
President kikwete said the proposal merger would be an important step towards the formation of the African union government step by step.
He said ,he personally saw yesterday’s summit as the first important step towards merging the three communities.
The President also called on the 26 nations to negotiate as asingle bloc with the European Union issues relating to Economic partnership Agreements ( EPA)

Kenya’s president Mwai Kibaki current chairman of COMESA and south Africas president Kgalema Montlanthe,the chairman of the SADC also addressed the Summit.
THE ADVANTAGES OF INTEGRATION
1.By permitting the free movement of goods produced within the area of the cooperating countries, a customs union permits specialization along the lines of comparative advantages, implying in turn more effective use of resources, this is referred to as the trade creation’ effect of the customs union, since the absence of internal tariffs permits additional specialization and trade.
2. From a larger market, even if the national market is large enough to sustain one plant at full capacity. This is the benefit from increased competition in an enlarged market in which there are two or more competitive plants, assuming that these do actually compete with each other. There are thus three types of potential benefit within the industrial sector: ( 1)advantages from specialization on the basis of comparative costs; Advantages derived from economies of scale, including fuller utilization of existing plant and increased incentive to invest in new plants which require a market larger than the current national one;and












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