Sep 13, 1985

WORKSHOP DISCUSSES INTRA-AFRICA TRADE.

AN INTER PRESS SERVICE FEATURE. BY HORACE AWORI. NAIROBI, SEPTEMBER 11 (IPS) – A ten-point resolution aimed at speeding up trade and economic integration in eastern and southern Africa has been adopted by the Region's Federation of Chambers of Commerce and Industry.

The Federation draws members from the region's Preferential Trade Area (PTA) launched in 1984, and which has been joined by 15 of a possible 20 member states.

The resolution drawn at a three-day workshop in Nairobi, Kenya, last week attended by representatives of Commerce and Industry in PTA member states sets 1992 as the target for a fully fledged Economic Community.

But whether the objectives will be met by then remains to be seen.

At present intra-Africa trade accounts for only five percent of the continent's total trade.

If Kenya is taken as an example, the European Economic Community (EEC) is the major trading partner, taking 45 percent of total exports and contributing 36 percent of imports.

Britain, the former colonising country, continues to be the main exporter to Kenya, accounting for 38 percent of all imports from the EEC.

This is what the PTA secretary-general, Bax Momvete, referred to when he told the workshop that "even if all the administrative bottlenecks are removed, intra-PTA trade will still be pulled back by the existing trade patterns and those of development".

"Mere liberalisation of trade", he declared, "will sooner or later lead to a frustrating dead end".

He suggested that for as long as African countries continue to sell cheap raw materials to developed countries and import expensive manufactured products, their dependence on external economies would be perpetuated.

The trade fair will certainly help make PTA members aware of one another products. It should also help create the contacts in the business community that are necessary if intra-PTA trade is to flourish.

The overall mood of the workshop was one of quiet determination to see the PTA succeed.

The major practical recommendations in the 10 point resolution are:

-- That a mission of the PTA bureau be sent to all member states to discuss with competent authorities the problems that have arisen in implementing the PTA treaty,

-- That members submit reports to the regular meetings of the PTA’s Federation of Chambers of Commerce and Industry,

-- That a thorough survey be conducted on commercial banks that have already opened reciprocal PTA bank accounts with a view to advising businessmen to utilise such facilities,

-- That the PTA clearing house submit to all member states the weekly exchange rates of members' currencies for dissemination to the business community, and that

-- Where appropriate, member organisations designate an officer to specialise in PTA matters pertaining to central banks, and the Commercial and Economic Ministries.

But even thought the workshop achieved many practical results, it is still a question of so little done so much to do. And delegates stressed that what remains to be done requires considerable political and economic will.