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THE Common Market for Eastern and Southern Africa (Comesa) and AfreximBank) have signed a US$1 billion agreement to implement a regional customs transit guarantee scheme that supports countries under the African Continental Free Trade Area.

Under the African Continental Free Trade Area (AfCFTA), which was operationalised in January this year, regional member states agreed to ensure that 99 percent of their tariffs are removed to promote intra-African trade.

The intervention is expected to reduce the impact of potential loss of revenue by governments as a result of tariff scrapping.

The two parties have agreed to implement the Comesa Regional Customs Transit Guarantee Scheme, commonly known as RCTG-CARNET, said Comesa in a media update.

“This marks the beginning of the implementation of the bank’s US$1billion AfCTFA adjustment facility to support countries from significant tariff revenue losses as a result of the implementation of the AfCTFA agreement of which about US$200 million is earmarked for the Comesa region,” it said.

The Comesa trading bloc consists of 21 member States that include Zimbabwe, Zambia, Malawi, Eswatini (Swaziland), Lesotho, Namibia, Egypt, Kenya, Rwanda, Djibouti, Cote D’Ivoire and Ethiopia.

– @okazunga