The leaders of three African trading blocs on Wednesday agreed to create a free trade zone of 26 countries with a GDP of an estimated 624 billion US dollar, BBC online reported.
It is hoped the deal will ease access to markets within the region and end problems arising from the fact several countries belong to multiple trade groups. The deal also aims to strengthen the blocs bargaining power when negotiating international deals.
Analysts say the agreement will help intra-regional trade and boost growth and lend its backing to joint infrastructure and energy projects in the zone.
The three blocs which struck the deal were the Southern African Development Community (SADC), the East African Community (EAC) and the the Common Market for Eastern and Southern Africa (Comesa).
Six heads of state from 26 countries in Comesa, SADC and the EAC attended the meeting in the Ugandan capital, Kampala, to sign the agreement. Many of the leaders and representatives consider the new pact a way of giving Africa a greater voice on the world stage.
The SADC was first established as the Southern African Development Coordination Conference in 1980 in order to reduce independence on apartheid South Africa.
It was reincarnated as the SADC in 1992. It covers a population of some 248 million people and a zone whose cumulative GDP is 379 billion dollar in 2006. The SADCs members include South Africa, Tanzania, Zambia and Zimbabwe.
Comesa was established in 1994 and replaced the Preferential Trade Area. It includes 398 million people and the area has a combined GDP of 286,7 billion dollar in 2006. Among its members are Zimbabwe, Zambia, Uganda and Sudan.
EAC is the smallest of the group in terms of GDP, and had a GDP of 46,6 billion in 2006. Set up in 1967, disagreements between founding members Uganda, Kenya and Tanzania led to its collapse. A treaty was signed for its re-establishment in 1999 and the new EAC was formed in 2000.
