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The WTO made a request to the Trade Hub to assist financially and technically in the WTO Trade Facilitation Self-Assessment of Needs and Priorities in certain SADC Countries. The Trade Hub has already conducted WTO Trade Facilitation Assessments in Malawi, Swaziland, Lesotho, Mozambique and Angola using the new WTO-developed Self-Assessment Tool. The Seychelles WTO Trade Facilitation Assessment was conducted solely by Trade Hub Staff on behalf of the WTO.

Furthermore, as this was the first visit of the Trade Hub to the Seychelles, it was a great opportunity for the Director of Trade Competitiveness to explore ways in which private sector competitiveness can be strengthened in the Seychelles and to inform the private sector of the opportunities under AGOA and how they can effectively utilize them.

In 2008, the Trans Kalahari Corridor (TKC) countries of Botswana, Namibia and South Africa made a decision to develop and implement a regional Authorized Economic Operators (AEO) Accreditation Scheme, based on the WCO Guidelines and regional accreditation experiences as a benchmark for a harmonized approach to the TKC.

Currently, only South Africa has legislated and is implementing the AEO Accreditation Scheme. Botswana has no formalised accreditation scheme but do accord differentiated treatment to those clients that are perceived to be compliant as well as accord them some benefits that ensure speedy clearance of their consignments. Namibia also has no formal accreditation system as envisaged in the WCO SAFE Framework of Standards, but applies some elements of accreditation as part of routine procedure.

Development of an AEO Accreditation Scheme that combine local accreditation experiences and WCO guidelines on AEO programme as a benchmark for a harmonised approach to the TKC.

The meeting was convened in accordance with the agreement of the earlier Dar es Salaam Corridor Committee (DCC) meeting in Lusaka, that the National Road Transport Associations (NRTAs) of the four member states and Federation of East and Southern African Road Transport Association (FESARTA), set up the DCC secretariat in Dar es Salaam.

Institutional
1. It is an Interim Steering Committee (ISSC) and the intention is that it should not be in place for more than 1-2 years;
2. It is to remain in place until the secretariat is strong enough to stand alone and the DCC is able to be responsible for it;
3. Membership of the committee to comprise the four NRTAs, FESARTA, TPA and the Hub, with a max number of 10 members, including Tanzania International Container Terminal Services (TICTS), TAZARA, MCC Ltd;
4. Members must be part of the DCC; and
5. FESARTA is to be the secretariat of the ISSC.

Terms of Reference
1. Oversee the setting up the DCC secretariat;
2. Monitor and evaluate the performance of the secretariat;
3. Assist in identifying and sourcing funding for the secretariat;
4. Receive quarterly reports from secretariat;
5. Report on the activities of the secretariat quarterly to the DCC; and
6. Meet as and when, but at least twice per annum.

The Southern African Development Community (SADC) was created in 1992 by the Treaty of Windhoek, replacing the Southern African Development Co-ordination Conference. The current 14 members of SADC are Angola, Botswana, the Democratic Republic of Congo (DRC), Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia, and Zimbabwe.

The SADC’s goals are broad and far-reaching, and include reducing poverty and improving the living standards of the people of Southern Africa by advancing the economic and social development of the region. The SADC Protocol on Trade is part of the SADC’s larger program of regional cooperation, which seeks to benefit all Member States by contributing to economic development in Southern Africa.

The SADC Protocol on Trade has been in effect since January 25, 2000. It is an agreement between SADC Member States to reduce customs duties and other barriers to trade on imported products from each other. By lowering customs duties and removing other barriers to trade, the SADC countries intend to promote economic growth and regional integration. By January 1, 2008, most customs duties (85%) should be eliminated for goods traded between SADC member countries. In the next several years, SADC intends to establish a customs union, in which all SADC Member States will have a common external tariff.

The Southern African Customs Union (SACU) is aimed at stimulating economic growth and development through regional economic integration. SACU provides for the imposition of a common external tariff by the five SACU countries (Botswana, Lesotho, Namibia, South Africa and Swaziland) and the free movement of goods between their territories.

The Trans Kalahari Corridor (TKC) Customs administrations of Namibia, Botswana and South Africa have simplified and harmonized their Customs transit procedures and introduced a common Customs transit declaration, the SAD 500. Together with the linked SAD 501 (continuation sheet) and the SAD 502 (transit control form) it is used as the only document for all Customs transit transactions along the TKC in the three countries. It replaced differing national Customs transit documents in each country. The SAD documentation is completed once at the office of commencement with enough copies for each transit border post until reaching the office of final destination. The transmission of the SAD document across international frontiers is however done manually, which means it has to be keyed in to Customs computers in the other country, which causes some delays. The simplified Customs procedures and harmonization of documentation have greatly reduced costs and transit time along the TKC. This is a key facilitation measure for transport corridors generally.

The SADC Protocol on Trade provides for the attainment of a Free Trade Area (FTA) in 2008 through the elimination of tariff and other barriers to trade. The SADC Protocol on Trade calls for the elimination of barriers including non tariff barriers to intra–SADC Trade. Member states agreed to phase tariff reduction over a specified period from 2000 to 2010) leading to the eventual elimination of import duties including all existing forms of non-tariff-barriers (NTBs). The process of elimination of all barriers to intra–SADC trade started in 2000 after the Protocol on Trade came into force but, there has been no mechanism for monitoring the implementation of the SADC Protocol on Trade. A Mid Term review was undertaken to assess the process of integration in 2004; this review recommended a number of actions by Member States to accelerate the implementation of the SADC Protocol on Trade. In 2007, as part of the implementation of the Mid-term review, the SADC Secretariat conducted a trade audit through the assistance of the USAID funded Southern Africa Global Competitiveness Hub to determine progress so far on tariff phase downs in preparation for a FTA by 2008. The Audit was limited to tariff and trade facilitation aspects. This audit showed some progress towards the elimination of tariff barriers to trade and implementation of trade facilitation tools.

The SADC Protocol on Trade, in Article 6, calls for the elimination of all existing forms of non-tariff-barriers (NTBs) and for Members to refrain from imposing any new NTBs but very limited progress has been achieved to date. SADC through the DFID funded Regional Trade Facilitation Program (RTFP) conducted NTB inventory studies which confirmed the prevalence of NTBs in the region. To eliminate these NTBs, SADC agreed that there should be a non tariff barriers (NTBs) problem-solving mechanism

The purpose of the meeting was to discuss work being done by the Botswana government, particularly with the Transport Hub from the Ministry of Works, and by the Trade Hub on transport issues.

Maxine Kennett opened the meeting. She gave a brief overview of the Trade Hub, their role and their work. Mainly with respect to their advisory role and support on issues of trade, transport, investment and energy to SADC, SACU and their respective governments. She also introduced Godwin Punungwe, the Transport Advisor, to the delegates from the Ministry of Works.

The Botswana Unified Revenue Service (BURS) in collaboration with the Southern Africa Global Competitiveness Hub (the Hub) held half day workshops at the Hub’s Conference Room in Gaborone and Thapama Lodge, Francistown on 10th June, 2008 and 12th June, 2008, respectively.

The main objectives of the workshops were to provide an opportunity for BURS to share the concept of the Customs-to-Business Forum (CBF) with its key Customs stakeholders and to solicit their support for the proposal of setting up a CBF in Botswana. This proposal is in line with the World Customs Organization’s Framework of Standards that requires Customs Administrations around the world to establish efficient and safer international trading arrangements by adopting new approaches to their working methods in partnerships with other customs administrations and the business sector.

The workshops were funded by the Hub and attended by representatives from the BURS, the private sector and the public sector.

The SADC Member States that have signed the Interim Economic Partnership Agreement (IEPA) have agreed to negotiate liberalization commitments in one service sector during the second phase of the EPA negotiations starting in 2008.

Although Botswana has experience in implementing the General Agreement on Trade in Services (GATS) commitments in the World Trade Organization (WTO), capacity remains low among stakeholders to participate actively and effectively in the services negotiation process in the IEPA.

Therefore, at the request of the Ministry of Trade and Industry (MTI) a one day workshop for private sector stakeholders organized jointly by Trade Hub and Botswana Confederation of Commerce, Industry and Manpower (BOCCIM) was held to sensitize and build the capacity of the private sector to better understand trade in services at the multilateral, regional and bilateral level and to raise awareness of the role the private sector can play in the EPA negotiation process.

The Swaziland Ministry of Natural Resources and Energy wrote to the Regional Electricity Regulators Association (RERA) to ask for assistance in identifying experts who can help in drafting a roadmap to establish the Energy Regulatory Authority of Swaziland.

RERA in turn made a formal request to the USAID Trade Hub to provide assistance to Swaziland to address the specific requests highlighted in the above paragraph. (This request for support is in the context of the Memorandum of Understanding (MoU) that RERA has with the US Government and the ad-hoc support provided to regulators by the USAID Trade Hub under the MoU and in accordance with the approved FY 2008 work plan for the USAID Trade Hub.

This report responds to the request to develop a high level road map for the establishment of the Energy Regulatory Authority of Swaziland (ERAS). The next phase will be to identify the regulatory expert(s) and staff needed and to proceed with developing a business plan, drawing up capacity building requirements and providing the necessary on the job training whilst coordinating external training and secondments to other regional regulatory institutions.

This simple guide seeks to assist importers and exporters in Madagascar to understand the basic steps to follow when importing from or exporting to the Southern African Development Community (SADC) Member state

The Southern Africa Development Community (SADC) aims to promote regional integration and sustainable development in the regional community. There are currently 14 Members of the SADC. Seychelles has applied to join SADC. Only 12 countries (Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe) have acceded to the SADC Protocol on Trade which calls for the implementation of a Free Trade Area from 2008. Each country has negotiated two tariff reduction schedules. One schedule is applicable only to South Africa and another schedule to all other SADC members. The Southern African Customs Union (Botswana, Lesotho, Namibia South Africa and Swaziland) made one offer to the rest of the SADC Member states

The tariff schedules have either three or four product categories. Category A products are those products that went to zero-duty immediately upon implementation. The tariff for Category B products gradually went down to zero-duty by 2008, and the tariff of Category C products (Sensitive products) reach zero-duty in 2010. Category E products are excluded from any tariff reductions. Madagascar’s schedule has four Categories-A, B, C and E.

These regulations may be cited as the Customs and Excise Regulations, 2008.

In these regulations unless the context otherwise requires -"officer" means any officer whose right or duty it is to require the performance of, or to perform, the act referred to. "foreign-going" means departing from any place within the common customs area to any place outside the common customs area

This project was initiated by the USAID-funded Trade Facilitation and Capacity Building Project based in Gabarone, Botswana which has Swaziland as one of its targeted countries for assistance. The function of the TFCB Project is to help increase economic growth through enhancing the competitiveness of these countries in world markets.

The TFCB project undertook an Investor Roadmap exercise for Swaziland in July 2005 where primary research on the various procedures that govern private investment in Swaziland was carried out. The Investor Roadmap diagnostic identified the administrative, procedural, and regulatory constraints to investment in Swaziland and made practical recommendations for change.

Upon completion, the findings and recommendations were presented to Cabinet and senior government officials including heads of parastatals. In July 2005, following presentation of findings, the Swaziland Investment Promotion Authority (SIPA) and representatives from several other government agencies reached a tentative agreement to change certain procedures and systems to better facilitate local and foreign investment. The findings and recommendations were broadly endorsed. As a result, the TFCB project has provided ongoing support and technical assistance to SIPA towards implementation of the Investor Roadmap recommendations.

The purpose of this document is to setting the basic legal background for private sector certification in SPS sensitive trade together with a list of the available regional resources for certification in the Southern African Development Community (SADC). Where necessary international certification bodies are listed. In this context, a list of the various certification requirements together with agents and companies in the SADC region are presented for use by those considering exporting trading within SADC in sanitary and phytosanitary (SPS) sensitive goods. Organic standards constitute an exception to the argument presented in this section in the sense that although originally a private standard they have now been developed into formal government and regional regulated standards with moves towards the adoption of international standards.

This document is laid out mainly in the form of appendices as it intended as a resource and reference paper for locating regional, or where these do not exist, international resources for private sector certification of food and agricultural exports. This document presents a UK/European and South African perspective on Private Sector certification. The reason is that Europe, and more specifically the UK is often the primary destination for many food exports from the SADC region and that South Africa is the biggest market within SADC. As such the major retailers in the UK and South Africa have had a significant voice in leading the way for the development of private standards. The most notable proponents of private sector standards are TESCO and Marks and Spencer in the UK and Woolworths in South Africa and these retailers are the models used in developing this document.

The need for improved facilitation on African Transport and Transit Corridors is receiving increasing recognition as part of the overall effort to reduce cost and delays and to improve the predictability and reliability of transport. Facilitation is a critical component of efforts to increase trade, economic development and regional integration. One Stop Border Posts (OSBPs) are seen as one means of achieving this objective. This study, commissioned by the Trans Kalahari Corridor Management Committee and funded by the USAID Southern Africa Global Competitiveness Hub, analyzed the feasibility of introducing an OSBP at the Trans Kalahari Corridor (TKC) border posts between Botswana and Namibia. OSBP and other trade facilitation measures are an important aspect of Southern African Development Community (SADC) and Southern Africa Customs Union (SACU) initiatives, and it will assist the further development of OSBP elsewhere in these regions.

One of the items considered in the Policy Matrix on Expanding Credit Access in Angola, prepared early in 2007, was the issue of foreign exchange controls. The matrix noted that Angola had in place an elaborate foreign exchange control and licensing system administered by the National Bank of Angola (BNA). It also questioned whether such a system might not be doing more harm than good, for instance by increasing transaction delays and costs while actually undermining confidence in the currency and inhibiting capital inflows. The Policy Matrix therefore proposed that consideration be given to rationalizing the existing system of exchange controls, as part of a broader process of financial sector reform and liberalization, and extending the scope of market-based economic policies in Angola. At the same time it was acknowledged that such a program of exchange control reform would have to be handled carefully. It was noted that exchange control liberalization may lead to short term capital flows that could destabilize the economy, and also that alternative measures might be needed, for instance to complement exchange rate policy. Hence it was felt that a cautious program of reform would be appropriate.

Railways in Southern Africa constitute one of the most integrated networks linking some 12 mainland SADC countries, with a route network of more than 22,000 kilometers. Around the 1970s, railways carried most of the internal as well as exports and imports amounting to about 250 million tones, with the railway market share exceeding the 50% mark, and enjoyed recognized levels of efficiencies.

Whilst the railways had been reliable forms of transportation for both passengers and goods for decades, on a selective basis, the performance of railways in some countries started declining, with levels of efficiencies declining to ultimately low levels of performance, followed by requests for increased levels of subsidy by central governments.

The Maputo Corridor Logistics Initiative (MCLI) requested the Southern Africa Global Competitiveness Hub, hereafter referred to as the Hub, to fund or produce a study on a sustainable funding model for the MCLI based on the user-pay principle. The Hub agreed to undertake the study culminating in this study on Sustainable Funding of Corridor Management Institutions (CMI).

In 2004 the Hub undertook the Dar es Salaam Corridor Institutional Sustainability Study as well as the Trans Kalahari Corridor Institutional Sustainability Study. A review of these studies revealed that membership contributions whether by the private or public sector were generally not viable in the long term for sustainable funding of corridor management institutions. Of all the corridor management institutions the studies had reviewed only the Northern Corridor Transit Transport Coordinating Authority (NCTTCA) had a sustainable funding mechanism through tonnage levy for traffic passing through the Mombassa Port. However, neither study described in detail how the funding mechanism used by the NCTTCA worked and how it could be applied to other corridors.

The Trade Hub has become one of the preferred facili-tators for World Trade Organization (WTO) Trade Fa-cilitation Needs Assessments within the SADC region. Increasing transparency, simplifying, standardizing and modernizing import and export procedures as well as improving the conditions for transit represent the es-sential substantive areas of trade facilitation.

The objective of WTO Trade Facilitation Needs As-sessments is to: (a) identify trade facilitation needs and priorities of the country; (b) where feasible, determine the resource implications of implementing proposed trade facilitation measures under the WTO trade nego-tiations; and (c) determine the country’s capacity to im-plement trade facilitation measures that would derive maximum benefits.

This report has been prepared by the Southern Africa Global Competitiveness Trade Hub to provide the Banco Nacional de Angola (BNA) with a critical analysis of key constraints to improving the efficiency of the banking sector and developing a sound and efficient financial sector in Angola. The report addresses five specific elements of BNA’s Policy Matrix for Expanding Credit Access: improving the supply of term finance; expanding access to credit for small and medium scale enterprises (SMEs); reducing the cost of credit; establishing benchmark interest rates to guide the pricing of credit products; and assessing the possibility of introducing deposit insurance in Angola. The report takes into account the special conditions prevailing in Angola, and also draws heavily on lessons from international experience. Based on this analysis, the report offers more than 80 recommendations for consideration by BNA, the Government of Angola (GOA), and other stakeholders, to improve the supply of financial services and the efficiency of the banking sector.

 Customs Modernization

 Author(s): Luc De Wulf

This document argues that a common vision is imperative for a successful customs modernization. A Time Release Study (TRS) could help for three reasons: it will bring all the stakeholders together (thereby establishing a common opinion, both of customs workers and their clients), it will make it possible to determine at what stage problems appear and their nature, and it will serve as a tool to measure the impact and progress of a Customs Reform and Modernization Program.

Reviving Botswana's Cattle Sector Through Trade 

Author(s): Keith Jefferis

This policy brief highlights the crisis that the Botswana's Cattle Sector is facing and the possible solution. Historically the Cattle Sector is a very important element of Botswana's economy, but in the period between 1966 and 2004 it has deteriorated drastically, for various reasons. The size of the national cattle herd is shrinking, the costs are exceedingly high and the Botswana Meat Commission is the monopoly export abattoir. The author presents the possible solution, which is a radical change of the Beef/Cattle production system, from the existing one, to the more modern "Weaner System".