By Cecilia Chiluba / Zambia /Lusaka
Common Market for Eastern and Southern Africa (COMESA) says the regional bloc faces a narrowing economic outlook and persistent structural challenges despite signs of resilience across Member States.
Speaking during the 46th Meeting of the COMESA Council of Ministers in Lusaka on Thursday, Secretary General Chileshe Kapwepwe revealed that economic growth in the regional bloc dropped to 5.8% in 2024, down from 6.1% in 2023, with projections showing a further decline to 5.5% in 2025.
Ms. Kapwepwe attributed the deceleration to global disruptions, constrained fiscal space, and lingering domestic pressures that continue to strain key sectors.
“Despite this deceleration, many economies-maintained resilience, supported primarily by increased public investment, stronger commodity export activity, and improved macroeconomic management, as evidenced by easing inflation and stabilization of public debt ratios,” Ms. Kapwepwe noted.
She further stressed that the region’s integration and transformation agenda remains heavily constrained by long-standing obstacles, which include limited financing, slow domestication of regional commitments, non-tariff barriers, restricted movement of people, weak connectivity, and low levels of value addition across industries.
“In response to these realities and aligned with continental integration agendas such as the African Union’s Agenda 2063 and the United Nations Sustainable Development Goals, our commitment to accelerating economic integration and structural transformation is anchored within the new Medium-Term Strategic Plan (MTSP) for 2026–2030.”
“Buoyed by the 2025 Summit theme “Leveraging Digitalization to Deepen Regional Value Chains for Sustainable and Inclusive Growth,” the Plan emphasizes consolidating integration of markets, whilst leveraging on frontier technologies to enhance productivity and connectivity to promote equitable and inclusive growth and development,” she added.
Ms. Kapwepwe further observed that COMESA has continued to deepen its Free Trade Area (FTA), with 16 actively participating Member States, adding that engagements continue with the Democratic Republic of Congo (DRC), Ethiopia, and the Kingdom of Eswatini to join the FTA regime.
“To enhance trade efficiency and predictability, COMESA has made decisive strides in embracing digitalisation and trade facilitation to overcome bottlenecks in integration. The launching of the electronic Certificate of Origin and the national single windows systems tools have significantly streamlined trade processes, enhanced transparency and reducing transaction costs, making cross-border trade faster and more efficient.”
“Various other trade facilitation and digital instruments are already in place, including those for monitoring cargo movement, payments and settlement systems, regional food statistics, NTB reporting, supporting small-scale traders and the facilitation of Mutual Recognition of Standards, and Agreements,” Ms. Kapwepwe stressed.
She urged Member States to reaffirm their collective determination to build a stronger, more integrated, and more resilient COMESA.
“With unity of purpose, sound governance, and firm political will, we can transform COMESA into the dynamic, competitive, and people-centred community envisioned by the Treaty,” she said.
The Meeting was officially opened by Zambia’s Vice President Mutale Nalumango, who drew attention to rising investor confidence in the region.
Ms. Nalumango, who was represented by Defence Minister, Ambrose Lufuma, revealed that foreign direct investment into COMESA surged by 154 percent between 2023 and 2024, reaching US$100 billion.
“As a measure of economic growth and development, foreign direct investments (FDI) in COMESA increased by a whooping 154% from a total of US$65 billion in 2023 to U$100 billion in 2024. This indeed is indicative of a growing economy. Zambia on its part as one of the key investment destinations in COMESA has attracted a total of US$7.6 billion in realized investments predominantly in mining, manufacturing and renewable energy sector,” she added.
Further, green field investment now comprises 18 percent of COMESA’s total foreign direct investment inflows, directly supporting regional climate resilience and sustainable growth.
The Vice President, also underscored the role of digital transformation in regional development, noting that while mobile penetration across COMESA exceeds 90 percent, rural internet access remains low.
She cited Zambia’s growing digital footprint—with over 6.5 million internet users—and praised the rollout of the COMESA Digital Retail Payment Platform between Zambia and Malawi as a major milestone for secure cross-border payments benefiting SMEs.
“Zambia has experienced rapid digital growth, today we are counting over 6.5 million internet users with a digital penetration rate of 31.2 percent; while mobile cellular connections reach is pegged at 78.7 percent of the population,” she said.
“In particular, the rollout of the COMESA digital retail payment platform between Zambia and Malawi marks a milestone in securing regional payment solutions, benefiting the micro, small and medium enterprises and enhancing cross-border trade.”
Mrs. Nalumango further observed that COMESA’s combined population of over 682 million and GDP of US$1.12 trillion positions it as one of Africa’s most influential regional economic communities.
She encouraged member states to accelerate adoption of frontier technologies and support the proposed COMESA Medium-Term Strategic Plan for 2026–2030, which prioritizes digital and physical connectivity, mining, and the blue economy.
