His Excellency President Daniel Arap Moi,
of the Sisterly Republic of Kenya,
Chairman of COMESA Summit,
His Excellency President Fredrick Chluba,
of the Sisterly Republic of Zambia,
President of the Headquarter State,
His Majesty King Mswati III,
of the Sisterly Kingdom of Swaziland,
Mr. Erasmus Mwencha,
Secretary-General of COMESA,
Mr. Klaus Schwap,
Chairman of World Economic Forum,
Ladies and Gentlemen,
At the outset, it gives me great pleasure to welcome you in Egypt and convey to you
greetings and best wishes for you to enjoy your stay in our country and for your
significant conference to succeed for the sake of pushing forward socio-economic
development and contributing constructively to bring about prosperity and well-being of
our sisterly peoples.
The convening of this first regional economic conference of the Common Market for
Eastern and Southern Africa, is a highly significant occurrence in the history of this
promising grouping, which is one of Africa's most important regional economic blocs. It is
even the most ambitious and determined to attain regional economic integration, as the
cornerstone of our pursuit for ultimately creating an African Economic Community and a
free-trade zone in our continent.
Immediately upon the ratification of its admission to the COMESA, Egypt has
promptly taken up all its responsibilities including serious commitment to the application
of the established customs reduction rates. This was coupled with active contribution to
the completion of the organization's structures and construction participation in its
activities, with the object of maximizing returns and realizing the common interest of
member-states.
In line with this policy, there emerged this Egyptian initiative, the first of its kind
within this vital group, to call for the first regional economic conference of our common
market, with three main objectives in view:
First: To enhance economic relations, boost inter-COMESA trade, create a nucleus of
a far-reaching network of communications between business sectors on the one hand and
decision-making centres in our countries on the other.
Second: To boost regional and international awareness of this grouping, such with
resources and capabilities, being the largest free-trade zone in Africa, with a wide
market, a population of 380 million and a foreign trade volume of more than US Dollar 62
billion a year, according to posted figures of 1998.
Third: To apprise of the huge potential and outstanding opportunities made available
within the COMESA region to investors and businessmen, African and non-African, in
view of the God-bestowed natural wealth, raw materials,and massive manpower, looking
forward to growth and prosperity through hard and innovative work.
Undoubtedly, the availability of vast expanses of arable land and sufficient water
resources can allow lucrative agricultural projects to rise in our region. Moreover,
available water falls cater for a sizable portion of the region's electric and energy
requirements. This would contribute to the utilization of our profuose mining resources,
implementing ambitious industrialization programmes in our countries and reinforcing the
drive towards the use of modern technologies, and bring about a total scientific revival
in
the service of socio-economic development goals.
Ladies and Gentlemen,
Our meeting today comes at a most crucial juncture; a few months ahead of the
scheduled declaration of COMESA free-trade zone at Lusaka extraordinary summit next
October. This would underscore our common determination to seek to maximize the
volume of our inter-trade that is so far below expectations.
Our success in attaining such ambitious goal, undoubtedly reflects our full commitment
to the goals of the agreement initiating COMESA as well as our determination to
achieve economic integration within the framework of a common market that opens the
road to an economic community for East and Southern African countries. This would
positively reflect on the climate of peace, stability and security in both regions,
outreaching to the whole continent of Africa.
While referring to the modest levels of inter-COMESA trade, that showed, in terms of
1998 figures, no more than US Dollar 4.2 billion, I would like to point out here that the
volume of such inter-trade has shown, over the past five years high growth rates of more
than 15% a year. I am confident that the total abolition of custom duties on imports and
exports among COMESA countries with the declaration of the free-trade zone as
scheduled will lead to a wide leap in the volume of trade exchanges among our countries,
thus boosting our export capabilities in such a way as will overshoot any temporary
regression in custom receipts.
As we talk today of this emerging market, we have to recall that our success in raising
this edifice is a culmination of long decades of unceasing effort. All through, all our
countries have experienced many difficulties, starting the decade of national struggle for
independence and sovereignity, through the stage of emphasizing African identity and
ensuing security and stability at home up to the stage of building and realizing
socio-economic development for our peoples within a world based on grouping and
competition, where developing nations suffer from a dwindling share of international
trade and gross burdens and consequences of foreign debt.
However, these impediments have never undermined our firm will and determination
errors and adopt policies geared to rally all energies and joint efforts of both the
government and the private sector, with a framework of freedom and integration to
achieve development goals. We have already succeeded in proceeding steadily towards
many of our ambitions, through serious and well-studied economic reform and
restructuring programmes. This has culminated in an improvement in our macroeconomic
indicators, opening up a new era of economic growth in our countries.
Here, I would like to refer to the Egyptian experiment, rightly viewed by many as a
unique example of what can be done by developing nations, under a balanced policy that
combines realization of development goals on the one hand and due consideration of the
social dimension and all alleviation of burdens to the working classes on the other.
To this end, we have adopted an ambitious structural reform programme for the
Egyptian economy. Within a short span of time, we successfully managed to set it on the
right path. As a result, per capita income has lept, over the period 1991 up till now, by
88%. Almost two third of debt owed by Egyptian economy has been slashed out, while
average growth rate rose to about 6% per annum. Such achievements will have never
been possible without the pioneering role of the private sector and its serious
participation in leading the economic development process in our country.
Nor could such achievements have been realized had it not been for the truthful
interest by all categories of the Egyptian people to promote the national economy, so
that Egypt could step into Seventh Millennium, firmly grounded on economic stability,
diversified production structure and a modern infrastructure capable of accommodating
domestic as well as foreign investment, all under a secure climate and
investment-supportive legal framework.
While talking about exemplary success stories in our countries, multiple as they are,
we should not forget that we have a long and tough way to go in order to create a
favourable economic climate to augment volume of domestic investments, attract more
foreign investments, create new employment opportunities for young generations. We
should also boost volume of inter-trade, open up new markets for our exports, enhance
dialogue and cooperation with our partners, coordinate our stance in world economic fora
to find out appropriate and effective mechanisms and initiatives, reduce debt burdens,
facilitate transfer of technology and know-how and make available resources necessary
for the development process in our countries.
Ladies and Gentlemen,
Today, as I am addressing this distinguished gathering, of top-level politicians,
economists and businessmen from within and outside the COMESA countries as well as
representatives of major economic and financial institutions and corporations, who
undertake a key role in steering economic policy on both regional and international
levels, I should refer to what came to be called" the rapid drift towards
globalization".
This is so closely associated with a revolution in communication technology that made
some people talk of haves and have-nots or knows and know-nots in terms of the ability
to integrate and interact with the rapid flow of information and its inceasing impact on
world trade.
Our countries have no choice in the face of this phenomenon but to catch up with the
progressing march with sure steps. We have to work together, within this forum as well
as in other regional and international fora to curb its risks and maximize its benefits
and
available opportunities to open up to world markets, augment foreign investments and
upgrade data bases, technologies and know-how.
Our current endeavour to reinforce regional integration of COMESA countries, widen
the volume of our markets, facilitate inter-trade movement among our countries,
modernize inter-communication and transport networks are only but live witness of our
serious exercise in reacting with the phenomenon of globalization as well as a true
evidence of our ability to create an outstanding regional economic organization that
would provide for the private sector a favourable atmosphere to improve its role in the
development process, thus establishing a solid base for bringing about a better future for
our peoples.
In this connection, I would like also to point out one of the most significant
manifestations of globalization, namely the escalating role of transnational corporations
(TNCs). Over the past few years, these have grown into mammoth economic entities,
through which more than one half of the volume of world trade in commodities and
services, while their decisions affect the flow of direct investments to all countries of
the
world.
As we meet, within this important forum, with representatives of more than one
hundered fifty TNCs, I would like to call upon them, without attempting to deny their
right to make profit, to play a greater role in securing balanced growth among countries,
in the interest of common welfare and benefit to all.
Gone is the time of self-isolation, for ours is a world of integration and cooperation
among peoples and states. I am confident that your meeting will provide an opportunity
for widening prospects of cooperation, exploring latent innovative capabilities and the
huge potential available with the time-honoured peoples and states of COMESA.
It is my hope that this great gathering of businessmen and senior officials of the
COMESA and other world countries will contribute to extending bridges of cooperation
between its parties, augmenting investment opportunities and trade volume, providing
chances for further coordination and exchange of expertise, within an atmosphere of
mutual trust and meaningful cooperation for the mutual benefit of all parties.
In couclusion, I wish your conference all success in realizing constructive economic
integration and cooperation for the benefit of our people and our coming generation.
May Allah guide your steps,
May peace be upon you.
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