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Oliver Kazunga Senior Business Reporter
THE Common Market for Eastern and Southern Africa (Comesa) region has achieved an average growth rate of 6.6 percent last year, up from 5.5 percent in 2012 on the back of increased trade and investment ties with emerging economies.In a latest macroeconomic developments report on the region, the Comesa Monetary Institute said the growth was also attributable to relatively high commodity prices and greater domestic demand underpinned by new, urbanising consumers with rising incomes.

Furthermore, it said public spending on infrastructure continued to rise while improved economic governance and management supported macro-economic stability and improved investment environment in many countries in the region.

Comesa bloc comprises 19 countries including Zimbabwe.

“Traditional services, such as transport, trade, real estate, public and financial services, and new services, such as information and telecommunication technologies are boosting growth in many countries,” said the monetary institute.

It said on the supply side, agriculture and services were the main engines of growth in 2013. In many Comesa member states, the agricultural sector accounts for about 25 to 30 percent of Gross Domestic Product (GDP) and employs about 80 to 90 percent of the workforce. And in some of the Comesa states, agricultural production was boosted by favourable weather conditions last year.

The Comesa Monetary Institute noted that services sector continued to be a principal engine of growth in the region.

“The region needs to pursue appropriate macroeconomic policies and at the same time increase access to key public services, notably education, health and security and further improving institutions and regulations for private sector activity.

“This helps improve human development, better attainment of the Millennium Development Goals and diversification of the economy,” said the monetary institute.

It said enhanced efforts to facilitate intra-Comesa trade and access to global markets to help the region promote growth and diversification and benefit more from expected increases in global economic activity was laudable.

Meanwhile, Comesa Monetary Institute observed that growth in developed economies was expected to pick up in the medium term and growth in emerging economies was likely to moderate with potential significant adverse effects on global commodity prices as well as trade and investment flows between Africa and the rest of the world.

“In the face of these risks, African countries need to continue to implement measures to boost domestic demand, diversify production and trade and promote rapid expansion in intra-African trade,” it said.