Dar Es Salaam — THE Common Market for Eastern and Southern Africa (COMESA) has signed a Memorandum of Understanding (MoU) with the Economic Community for West African States (ECOWAS) to enhance private sector development in the two regions and to advance regional economic integration towards attaining the African Economic Community (AEC).

The two organizations are both recognized Regional Economic Communities (RECs), working towards realizing the AEC as envisaged by the Lagos Plan of Action, through effective utilization of resources for the benefit of member states.

COMESA Secretary General, Mr Sindiso Ngwenya and ECOWAS President, Dr Mohamed bin Chambas signed the MoU on January 29, this year in Addis Ababa, Ethiopia.

The MoU is as a result of a mission to COMESA undertaken within the Framework of the Programme for Building African Capacity for Trade (PACT II), by the ECOWAS Private Sector Directorate headed by Mr Alfred Braimah, in November last year.

PACT II is funded by the Canadian International Development Agency (CIDA) and co-implemented by the two RECs in their respective regions, in partnership with the International Trade Centre (ITC).

One of the key components of this programme relates to the promotion of inter-REC cooperation, as well as the need to link and facilitate dialogue between apex private sector bodies in the two regions.

This will, among other benefits, enable networking and sharing of business proposals and best practices among Member States.

The COMESA Secretary General, Mr Sindiso Ngwenya, said in a statement that it is expected that the COMESA Business Council (CBC) and the ECOWAS Business Council (EBC), will lead and facilitate the process.

The MoU will provide an opportunity for member states to cooperate in various areas of mutual interest, including matters of inter-regional trade development and trade promotion, as a mechanism for enhancing economic development and improving the livelihoods of the region's citizens.

It is also expected that the visibility and participation of women in business will be advanced, as this is crucial to creating employment and increasing household incomes, while effectively contributing to economic growth and poverty reduction.

He said member states will have the opportunity to share lessons and experiences and to collaborate in the establishment of common positions on matters of international trade and investment negotiations.

The MoU also provides member states in the two RECs, with the occasion to develop and implement common intra-regional strategies and programmes.

Key areas of cooperation contained in the MoU range from private sector development, including women in business and small and medium enterprises (SMEs), to enhancing agricultural development, food and nutrition security, with a particular focus on implementing the Comprehensive Africa Agriculture Development Programme (CAADP).

Furthermore, there is scope within the MoU for collaboration on Diaspora engagement with emphasis on attracting investment and human resources to the region, as well as promotion of Public-Private Partnerships (PPPs) to enable the implementation of bankable projects, particularly those relating to infrastructural development.