Kisumu
4/12/07
 
ERUSTUS MWENCHA TOP KENYA’S MOST RESPECTIVE DIPLOMAT IS SET TO LEAVE COMESA FOR ANOTHER TOP JOB.

By Leo Odera Omolo
 
Erustus Mwencha the Secretary General of the Lusaka based Common Market for East and Southern Africa (COMESA) is set to leave the organization after being at the helm of Africa’s largest trading grouping for 25 years.
 
Mwencha a Kenyan who hails from Kisii region within Nyanza Province was originally the PTA director of Agriculture and had worked his way to the top through hard work and sweat.
 
He has seen COMESA evolve from a Parential Trade Area (PTA) to a fully-fledged trading bloc where 13 countries do business under a Free Trade.
 
Mr. Mwencha is one of the candidates for a top position within the African Union Commisssion.
 
During his reign at the helm of Comesa, the organization exports increased by 32 per cent over the 2005 level to reach USD 79 billion in 2006 with intra-Comesa trade growing by 8 per cent over the same period to reach USD 68 billion.
 
The key Comesa institutions have also grown from strength to strength. The PTA Bank has only been recently restructured with its board of directors revolving in June this year to increase its authorized capital from USD 4554 million to USD 41.18 billion. Paid up capital is now USD 2 billion.
 
The board also approved a general capital increase to raise the bank’s subscribed capital from USD 354 billion to USD 41.18 billion. Paid capital is now USD 236 million.
 
Zep – Re, Comesa’s re-insurance Company made a profit of USD 1.3 million in the period ending September 2007.
 
A dividend of USD 500,000 was paid to shareholders out of the profit realized in 2006.
 
Premium income is now of USD 27.3 million and assets are worth USD 47 million. Zep-Re’s two new regional offices in Lusaka, Zambia and Douala, Cameroon are now fully operational.
 
After a slow start, Comesa’s political risk Insurance Agency, African Trade Insurance Agency (ATI), has picked up and is now big business, having issued insurance policies covering political and commercial risk in seven countries for a total transactionvalue of USD 400 million.
 
The sectors covered include telecommunications, manufacturing, agribusiness, export services, mining and real estate.
 
Next year, ATI will be establishing representative offices in Tanzania, Uganda and Zambia.
 
Mwencha was recently quoted by a Kenyan Weekly as saying that one of his greatest challenge was the role he has played in negotiations on economic partnership with European Union (EU).
 
At a meeting on November 12, the two parties agreed that it was not possible to conclude a comprehensive EPA by December this year as had been contemplated.
 
The parties agreed to work towards an interim arrangement that will address the issue of trade disruption for some Comesa countries while at the same time spelling out the framework for continuation of EPA negotiations in 2008.
 
Mr. Mwencha arguably is one of the few surviving most efficient international civil servant. He has served under several PTA and Comesa CEO’s. One of these is the current President of Malawi Mr. Bungu Wa Mutharika whom had seconded.
 
 
Ends
leooderaomolo@yahoo.com