Trade Facilitation

As part of its commitment to roll out 21st century trade facilitation tools in Southern Africa, the Southern Africa Trade Hub facilitated a workshop for MCNet to share Mozambique’s experience in developing a National Single Window (NSW) with their Malawi Counterparts from August 7-9 in Maputo, Mozambique.

The first Southern African regional conference, “21st Century Trade Facilitation Tools: Increasing International Competitiveness,” took place from September 10-11, 2012 in Johannesburg. The conference was attended by delegates from a variety of Southern African countries and focused on modern tools to ease the flow of goods between countries, increase trade, generate economic growth and create jobs. The conference was hosted by the United States Agency of International Development (USAID) and the World Customs Organization (WCO), and organized by the USAID Southern African Trade Hub.

Africa's economic potential as the next leading source of global economic growth could remain unfulfilled if the barriers to international and interregional trade were not addressed, Trade and Industry Minister Dr Rob Davies said last week.

Speaking at the Southern Africa Trade Facilitation conference, in Johannesburg, he pointed out that, despite Africa's position as the second-fastest-growing continent after Asia, inadequate infrastructure, the limitations of small and fragmented markets and the inadequate diversification of industrial structures were responsible for the low levels of trade.

The World Bank's 'Trading Across Borders' indices ranked Southern African countries in the lowest quartile, between 136 and 164, among 183 countries.

The high costs and lengthy duration of movement of goods over Southern African borders, which reduced commercial and industrial competition and discouraged trade, needed to be mitigated through efficient trade facilitation and cost-effective transport services, logistics and customs reforms.

Davies commented that the Southern African Development Community (SADC) free trade agreement (FTA), which was expected to be implemented this year, would boost interregional trade, as almost all tariff lines would be duty free.

The SADC FTA, incorporating the East African Community and the Common Market for Eastern and Southern Africa, would extend across 26 countries, comprising a combined population of 600-million, and open up markets reaching a gross domestic product (GDP) of about $1-trillion.

The SADC FTA could also form the basis of an Africawide FTA, which would also open a market reaching a GDP of $6-trillion, deal with the small and fragmented economies, enhance the interest in foreign investment in Africa and further boost trade.

World Customs Organisation capacity building director Erich Kieck said constraints could also be mitigated through trade facilitation tools, like the national single window (NSW), customs connectivity, coordinated border management, one-stop border posts and customs modernisation tools.

The purpose of this conference, "21st Century Trade Facilitation Tools: Increasing International Competitiveness", was to share proven trade facilitation tools (national single window, customs connectivity, coordinated border management and one stop border posts) and programs that are being used with positive results by countries around the globe to increase their competitiveness and their Doing Business/Trading Across Border Indices with the view of encouraging more countries in Southern Africa to understand and benefit from these tools.

South Africa and other African nations must improve cross-border trade if they are to reach their economic potential, Trade and Industry Minister Rob Davies says.

"Africa's full economic potential will remain unfulfilled unless we address the challenges of inadequate infrastructure," Davies said.

The minister said other challenges included small and fragmented markets between African nations, "all of which are responsible for the low levels of intra-Africa trade".

Davies was speaking at the Southern African Trade Facilitation Conference, in Kempton Park.

He said the continent had a great deal of potential as it was the second fastest growing region in the world economically, had a young population, and a growing middle class with purchasing power.

Africa's economic potential as the next leading source of global economic growth could remain unfulfilled if the barriers to international and inter-regional trade were not addressed, Trade and Industry Minister Dr Rob Davies said on Monday.

Speaking at the Southern Africa Trade Facilitation conference, in Johannesburg, he pointed out that, despite Africa's position as the second-fastest growing continent after Asia, inadequate infrastructure, the limitations of small and fragmented markets and the inadequate diversification of industrial structures, were responsible for the low levels of trade.

The World Bank's 'Trading Across Borders' indice ranked Southern African countries in the lowest quartile, ranking between 136 and 164, among 183 countries.

The high costs and lengthy duration of movement of goods over Southern African borders, which reduced commerce and industry competition and discouraged trade, needed to be mitigated through efficient trade facilitation and cost-effective transport services, logistics and customs reforms.

Davies commented that the Southern African Development Community (SADC) free trade agreement (FTA), which was expected to be implemented this year, would boost inter-regional trade, as almost all tariff lines would be duty-free.

The SADC FTA, incorporating the East African Community and the Common Market for Eastern and Southern Africa, would extend through 26 countries, comprising a combined population of 600-million, and open up markets reaching a gross domestic product (GDP) of about $1-trillion.

The SADC FTA could also form the basis of an Africa-wide FTA, which would, besides others, open a market reaching a GDP of $6-trillion, deal with the small and fragmented economies in Africa, enhance the interest in foreign investment in Africa and further boost trade.

World Customs Organisation capacity building director Erich Kieck commented that the trade constraints could also be mitigated through the implementation of trade facilitation tools, such as the national single window (NSW), customs connectivity, coordinated border management (CBM), one-stop border posts and customs modernisation tools.

The NSW would connect trade-related stakeholders within a country to a single electronic data information exchange platform, while customs connectivity would link the customs management systems of countries to each other. CBM would see greater coordination between border management agencies to improve efficiency and effectiveness.

Johannesburg - South Africa and other African nations must improve cross-border trade if they are to reach their economic potential, Trade and Industry Minister Rob Davies said on Monday.

"Africa's full economic potential will remain unfulfilled unless we address the challenges of inadequate infrastructure," Davies said.

The minister said other challenges included small and fragmented markets between African nations, "all of which are responsible for the low levels of intra-Africa trade".

Davies was speaking at the Southern African Trade Facilitation Conference, in Kempton Park.

He said the continent had a great deal of potential as it was the second fastest growing region in the world economically, had a young population, and a growing middle class with purchasing power.

As part of the on-going effort to modernize customs operations, customs administrations in Southern Africa have introduced Information and Communication Technology (ICT) solutions, the majority through the United National Conference on Trade and Development (UNCTAD)-developed Automated System for Customs Data (ASYCUDA). These solutions are aimed at streamlining cumbersome customs and trade facilitation procedures thereby reducing delays in cargo clearance and transit times while working towards a paperless trading environment.

As part of its Coordinated Border Management (CBM) program, SATH undertook a BOA at Ressano Garcia along the Mozambique/South Africa border. The objective of the assessment was to establish processes used by the different agencies to clear goods, identify challenges and recommend mechanisms to addresses obstacles. The assessment also entailed establishing the time it took for trucks to cross the border by physically recording arrival and departure times at points where the clearance of goods was undertaken.