Archives For Regional Integration

AGOA States-GAO

“Is the Africa Growth and Opportunity Act (AGOA) always a poisoned chalice from the United States of America?”, asks an editorial in The East African. The Kenya newspaper suggests it appeared to be so after the US allowed a petition that could see Tanzania, Uganda and Rwanda lose their unlimited opening to its market.

This follows the US Trade Representative assenting last week to an appeal by Secondary Materials and Recycled Textiles Association, a used clothes lobby, for a review of the three countries’ duty-free, quota-free access to the country for their resolve to ban importation of used clothes, the The East African continues.

The US just happens to be the biggest source of used clothes sold in the world. Some of the clothes are recycled in countries like Canada and Thailand before being shipped to markets mostly in the developing world.

In East Africa, up to $125 million is spent on used clothes annually, a fifth of them imported directly from the US and the bulk from trans-shippers including Canada, India, the UAE, Pakistan, Honduras and Mexico.

The East Africa imports account for 22 percent of used clothes sold in Africa. Suspending the three countries from the 2000 trade affirmation would leave them short of $230 million in foreign exchange that they earn from exports to the US.

That would worsen the trade balance, which is already $80 million in favour of the US. In trade disputes, numbers do not tell the whole story. Agoa now appears to have been caught up in the nationalism sweeping across the developed world and Trumponomics.

US lobbies have been pushing for tough conditions to be imposed since it was enacted, including the third country rule of origin which would require that apparel exports be made from local fabric.

The rule, targeted at curbing China’s indirect benefits from Agoa through fabric sales, comes up for a legislative review in 2025, making it prudent for African countries to prepare for the worst. Whether that comes through a ban or phasing out of secondhand clothing (the wording that saved Kenya from being listed for a review) is immaterial.

What is imperative is that African countries have to be resolute in promoting domestic industries. In textiles and leather, for instance, that effort should include on-farm incentives for increasing cotton, hides and skins output, concessions for investments in value-adding plants like ginneries and tanneries and market outlets for local textile and shoe companies.

The world over, domestic markets provide the initial motivation for production before investors venture farther afield. Import bans come in handy when faced with such low costs of production in other countries that heavy taxation still leaves those products cheaper than those of competitors in the receiving countries.

The US has also been opposed to heavy taxation of used clothes, which buyers say are of better quality and more durable. For Kenya to be kept out of the review, it had to agree to reduce taxes on used apparel.

These factors have left Agoa beneficiaries in a no-win situation: Damned if you ban, damned if you do not. With their backs to the wall, beneficiaries like Tanzania, Uganda and Rwanda have to think long term in choosing their industrial policies and calling the US bluff.

Beneficiaries must speak with one voice to effectively guard against trade conditions that over time hamper domestic industrial growth. Source: The East African, Picture: US GAO

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EU SADC EPAThe EU has signed an Economic Partnership Agreement (EPA) on 10 June 2016 with the SADC EPA Group comprising Botswana, Lesotho, Mozambique, Namibia, South Africa and Swaziland. Angola has an option to join the agreement in future.

The other six members of the Southern African Development Community region – the Democratic Republic of the Congo, Madagascar, Malawi, Mauritius, Zambia and Zimbabwe – are negotiating Economic Partnership Agreements with the EU as part of other regional groups, namely Central Africa or Eastern and Southern Africa.

For specific details on the key envisaged benefits of the agreement click here!

The EU-SADC EPA is the first EPA signed between the EU and an African region, with an East African agreement expected to follow in a few months, but with the West African agreement having met fresh resistance. EU Trade Commissioner Cecilia Malmström stressed at the signing ceremony the developmental bias in the agreement, which extended duty- and quota-free access to all SADC EPA members, except South Africa. Africa’s most developed economy has an existing reciprocal trade framework known as the Trade and Development Cooperation Agreement, which came into force in 2000.

South Africa, meanwhile, had secured improved access to the EU market on a range of agricultural products, as well as greater policy space to introduce export taxes. EU statistics show that bilateral trade between South Africa and the EU stood at €44.8-billion in 2015, with the balance tilted in favour of European exports to South Africa, which stood at €25.4-billion. This improved access had been facilitated in large part by South Africa’s concession on so-called geographical indications (GIs) – 252 European names used to identify agricultural products based on the region from which they originate and the specific process used in their production, such as Champagne and Feta cheese. In return, the EU has agreed to recognise over 100 South African GIs, including Rooibos and Honeybush teas, Karoo lamb and various wines.Sources: EU Commission and Engineering News

 

 

Namport-rail-upgradeThe Namibian Ports Authority has completed the upgrade of all railway infrastructure at the Port of Walvis Bay at a cost of N$20M (US$1.3M)

The work was included in Namports maintenance programme in 2010, but is now part of wider plans to upgrade facilities at Walvis Bay in preparation for the completion of the new container terminal.

A total of 4.5kms of track inside the port and the section of railway running from the city into the port have been replaced using material that can cope with heavier loads.

A spokesperson for Namport said: “Although the project was of relatively low value, its execution was complex as we had to ensure minimum operational interruption to the track, which is in daily use.”

The new container terminal is being constructed on 40-ha of reclaimed land and will add 700,000 TEU of annual handling capacity to the existing 350,000 TEU. Walvis Bay is already attracting bigger ships and recently handled its biggest ever container vessel the CMA CGM DANUBE, a 112,580 dwt vessel with a nominal intake of 9200 TEU.

A statement from Namports read: “The visit of CMA CGM DANUBE complements our port expansion project, which accommodates greater carrying capacity. Following the completion of the port expansion project vessels such as this will be accommodated at the new container terminal.”

The Walvis Bay Corridor Group, which was set up to promote the use of the port among neighbouring states, is keen to improve ancillary infrastructure at Walvis Bay to make the most of the new terminal.

Namport manager for corporate communication Taná Pesat said: “The benefits are our safe and secure corridors to and from landlocked SADC markets. The frequency of direct ship calls and flexibility of doing business with ease.”

However, the plot of land at the port given to Zimbabwe in 2009 for the construction of a dedicated dry port has still not been developed. Source: World Cargo News

The SARS Customs Detector Dog Unit (DDU) recently deployed two trained detector dog handlers and dogs on foreign soil in Maputo, Mozambique. This forms part of a Customs co-operation agreement between the governments of South Africa and Mozambique.

The capacity-building programme provides for the training of at least eight detector dog handlers and dogs for Mozambique in over a period of 14 weeks followed by a ‘Train-the-Trainer’ programme for purposes of sustainability.

The deployment of SARS Detector Dog Handlers and dogs trained to interdict endangered species and narcotics in Maputo will promote and strengthen a  cross-border intergovernmental approach in the prevention and detection of smuggling of illicit, illegal goods or substances via ports of entry between Mozambique and South Africa.

The programme is designed to capacitate Mozambique Customs in the establishment of its own canine unit that will further enhance its current non-intrusive scanning enforcement capability at ports of entry and exit. Source and pictures: SARS

AfricaMap_SADCThe following article titled ‘Cross-border projects dependent on cost’ was recently published by Transport World Africa. It deals essentially with cross border logistics and provides an insight into regional infrastructure and logistics projects – successes, failures and their impact on transport logistics. It emphasizes the need for greater and closer public and private partnerships, but alas sovereign states appear to be more focused inwardly on their domestic affairs. 

Implementers of projects have the knack of focusing on what they know very well, often leaving out what they do not know. Usually, this comes back to bite them. An example is in the integration of leadership. Countries in the Southern African Development Community (SADC) region compete with each other for demand and capacity provision, which results in the inflated cost of logistics.

Rather, countries should work together. Integrating ports and funding is relatively easy. What is not available is integrated leadership in the region (excluding heads of various states), agreeing that SADC is ‘one country’. Logistics planning is still done at the country level, which is not practical, because then supply chains are being developed that are competing with each other. The sector should be cautious about acceleration, and about what is funded. One example is Transnet, whose plans should fit into regional plans, but right now they do not.

The softer issues in project development often go ignored, but they are at times the most important. There should be a halt to focusing mainly on mega-projects, since they take time and money, as well as resulting in complications (excluding Grand Inga). Despite this, mega projects do create a common vision for a region. Do sponsors have the capacity to support these projects? Institutional capacity is certainly needed. At the political level, southern Africa has done well, top–down approaches are there, but things go off course when there is the attempt to get others to plug-in to this.

One-stop border posts are very important. It was cautioned that the region must be careful not to follow the architecture of colonial extraction, which means focusing on intra-Africa trade rather than too great a focus on ports and exports. Government and private sector must both drive natural winners and losers in markets. There is sufficient funding and policies, but project preparation is limited. What is needed is to decide how to make hubs of excellence, and decide who is going to do what.

The high-level work has been done, but now the sector is facing an implementation challenge. Governments do not do regional integration very well. The private sector does the regional integration, and they suffer most when it does not work. Regional infrastructure will not happen unless there is public support for it. The most successful cross-border project was a PPP: the M4 toll road. This had a large economic impact.

Also, the Port of Maputo has been successful in generating income. Ports without land side integration are useless. Projects need a soft-issue mediator; otherwise there are great ideas, but no implementation. The private sector should not see itself as a messiah, but should rather have a sense of responsibility for developing supply chains. There needs to be a clear understanding of soft issues, clear legal and policy understanding, and communication. SADC has been driving the implementation of harmonisation of vehicle load management for twenty years. A mediator between the public and private sector (such as Maputo Corridor Logistics Initiative (MCLI) is absolutely necessary.

It is a stark reality how little intra-African trade there is. To address this there should be a clear target for development in future. In Namibia, there are efforts to focus on the positives in regards to transport development, even with limited resources. Namibia has been independent for 25 years; 15 years ago the Walvis Bay Corridor was created as a focus on regional integration and regional development. There are 2.2 million people in Namibia, which means a small economy.

There is no real choice but to take into consideration the region and recognise the value Namibia can add. In regards to planning, in 1995 it developed its first transport master plan, and in 2014 it developed its second transport master plan (this was twenty years apart). In February 2015, it developed a logistics master plan to develop Namibia into a logistics hub in the region. It has focused on transport modes because it has a port emphasis. It started roads development.

Currently, Namibia is building its first dual-carriage road (65 km), which is a big step for such a small economy. It would like to do more with sufficient funding. Namibia is also looking into what to do with aviation. As a whole, the country is trying to develop as an alternative trade route for southern Africa. Five to seven years ago, Walvis Bay was just a fishing port, but now R500 million is coming into Namibia’s economy through this post (from zero rand 10 years ago). Namibia is trying to create a better alternative in the SADC region. Now it is looking to focus on developing the manufacturing sector. Namibia is working with South Africa to develop partnerships (excluding transport corridors to production corridors). Continue Reading…

EAC CompliantThirteen compliant companies across East Africa were awarded Regional Authorized Economic Operator (AEO) certificates jointly by Partner States Commissioners of Customs and Director Customs, EAC at a ceremony held at Serena Kampala, Uganda on 24th July 2015.

The Commissioner Customs, URA Mr. Dickson Kateshumbwa who represented the URA Commissioner General was the chief guest during the award ceremony. The Chief Guest observed that with the award of Regional AEO certificate, the project had now come of age and indeed puts EAC on the global map of being the first region to implement a regional AEO programme. The Director Customs, Mr. Kenneth Bagamuhunda congratulated the thirteen companies and remarked that the AEO programme will go a long way in supporting the SCT implementation and eventually spur the growth of intra and extra trade. The SCT Coordinators recited each company profile before all the commissioners and Director Customs awarded the Regional AEO certificate to each of the awardees.

The companies were selected after meeting the set admissibility as set out in the AEO selection criteria. The awarded companies participated in the project pilot phase of the project but have continued to demonstrate and maintain high compliance to the set standards. The companies, from different sectors have continued to move consignments under the AEO scheme and in return have been offered benefits that are now currently under review to ensure they are not only tangible but are attractive enough to draw interest from other traders. Source: WCO

SACU IT Connectivity ConferenceRepresentatives from the Southern African Customs Union (SACU) gathered in Johannesburg, South Africa recently to refine requirements towards the development IT connectivity and electronic data exchange to facilitate cross-border customs clearance in the region. The workshop was convened by the SACU Secretariat under the sponsorship of the Swedish government and technical support from the World Customs Organisation.

Work already commenced way back in 2012 on this initiative. Progress in the main has been hampered by the legal agreement which to date not all members of the Customs Union have ratified. One of the features of this initiative, however, has been the continuity of support rendered by the WCO.

This event was indeed fortunate to secure – once again – the services of S.P. Sahu, former head of Information Technology at the WCO. After his secondment to the WCO he is now back in his home country where he is the Commissioner for Single Window based in Delhi, India.

S.P’s years of experience in both the technical and operational spheres of customs and the international supply chain enable him to articulate concepts and solutions in a manner which are practical and simple to understand. The workshop recognised the need to accelerate border processes and to this end the border process should be limited to physical examination, inspection, release; declaration processes should be done away from borders.

While simple enough in theory, the notion of clearance away from borders could pose challenges. Many of Africa’s borders – including those of a ‘One Stop’ kind – have not fully embraced the need to integrate processing and synchronize Customs activities. The challenge posed by ‘regional integration’ is one of surrendering national imperatives for a common regional good. It imposes a co-ordination of and development towards ‘regional objectives’ with the same level of purpose as national states do for their domestic agenda’s. In the case of SACU, it challenges member state’s stance on what real benefits the customs union should aspire to, beyond the mere sharing of the common revenue pool.

The outcome of the workshop resulted in a more refined, do-able scope and objective. With Mr. Sahu’s experience and guidance, the revised Utility Block (UB) speaks to all facets (legal, operational and technical) of the ‘regional agreement’ to the extent it specifies in the required detail the programme of action required on the part of the member stats as well as the SACU Secretariat. Refinement of the UB includes the removal from scope of the Release Message, Manifest Information and bond/guarantee message for the purpose of simplification of customs processes.

What remains are –

  • An Export & Transit Message – which includes the Unique Consignment Reference (UCR) validated and approved by the Export/Exit country.
  • An Arrival Confirmation/Notification Message – where the arrival date time would be when the import country recognises goods as received and places the goods under its customs procedure.
  • A Control Results Message – which includes the results of data matching, inspection and risk assessment based on agreed business rules.

In support of the above, SACU recently agreed on a framework of a UCR which must be further discussed and agreed upon by the respective member states. The UCR is a structured reference number which will be used by customs administrations of the respective member states to ‘link up’ import declaration data with the corresponding ‘export declaration’ data electronically exchanged by the export country.

Regional traders who have electronic clearance and forwarding capability will also play a role in the exchange of data through the exchange of the UCR on export and transit information with their counterparts or clients in the destination country. Once the exchange of data is operational between member states, it will be imperative for the importer to receive/obtain the UCR from the exporting country and apply it to his/her import declaration when making clearance with Customs.

The SACU Utility block will be tabled at a future Permanent Technical Committee meeting of the WCO for consideration and approval. A Utility Block is a concept structure which is proposed under the WCO’s Globally Networked Customs (GNC) initiative which seeks to aid and assist its members in the operationalisation of Mutual Administrative Assistance agreements.

robertmugabejacobzuma2015govtza_SnapseedSouth Africa and Zimbabwe have elevated bilateral relations with the signing of five agreements set to benefit both countries. The agreements were signed on Wednesday during President Robert Mugabe’s state visit to South Africa at the invitation of President Jacob Zuma. An agreement regarding mutual assistance between customs administrations between the two countries was also signed, which will further cooperation towards the establishment of a one-stop border post. This is viewed as a crucial milestone.

Heads of Customs Governing Council for the ESA Region with WCO Secretary General Kunio Mikuriya

Heads of Customs Governing Council for the ESA Region with WCO Secretary General Kunio Mikuriya

At the invitation of the Vice-Chair of the East and Southern Africa (ESA) Region, Mrs. Agnes Katsonga Phiri, Commissioner of Customs and Excise, Malawi, the Secretary General, Mr. Kunio Mikuriya attended the 19th Meeting of the Heads of Customs Governing Council ESA Region, on 15 and 16 May 2014. The meeting was hosted by the South African Revenue Service (SARS) in Johannesburg.

The Commissioner of SARS, Mr. Ivan Pillay welcomed delegates from the Members of the Region on the 20th Anniversary of democracy in South Africa, a period during which much had been achieved. He highlighted the importance of the WTO Agreement and its impact on Customs and the growth in African trade.

Addressing the Governing Council, the Minister of Finance, Mr. Pravin Gordhan emphasized the evolving role of Customs in a changing and challenging environment. The continued growth of economic activity in Africa required innovative Customs procedures to secure and facilitate trade, particularly in the context of regional integration. The WTO Agreement on Trade Facilitation (ATF) offered a golden opportunity as Customs would have a central role in its implementation. Customs must continue to enhance its operational capacity by increased automation, embracing other agencies and harmonization and simplification of procedures. The importance of Capacity Building was emphasized.

Secretary General Kunio Mikuriya gave a comprehensive report on recent WCO activities. He referred to the many developments on the WTO ATF agenda. The WCO had established a web tool dedicated to this topic, including an analysis of the ATF Articles and relevant WCO instruments with a self assessment aspect. Mr. Mikuriya recalled that the WCO theme for this year is “Communication” and asked all Members and agencies present to ensure that all were aware of each other’s activities.

Secretary General Mikuriya also met with the Minister of Finance, Mr Pravin Gordhan, to discuss a number of issues of mutual interest including implementation of the ATF, information exchange and the evolving role of Customs. The Governing Council discussed the way forward as regards ATF implementation, and expectations of trade input to WCO activities. Source: WCO

PAUL-KAGAME-WINDOW-SYSTEMPresident Paul Kagame yesterday launched Kenya National Electronic Single Window System seen as a major boost for regional trade since it will simplify clearance processes of goods.

The launch was part of the activities of the 5th Northern Corridor Integration Projects Summit held in Nairobi, and was attended by Presidents Kagame, Uhuru Kenyatta of Kenya and Yoweri Kaguta of Uganda, as well as the second vice president of Burundi and Tanzania’s prime minister.

Rwanda, Uganda and Kenya – which heavily rely on the Kenyan port of Mombasa – are spearheading a series of joint projects aimed at fast tracking regional development through joint infrastructure, trade and political and economic integration.

The use of Electronic Single Window System is expected to centralise trade services such as tracking of goods, custom clearance, and electronic payment including through mobile money.

The system will also integrate with Kenya Revenue Authority, making the clearance at Kenyan ports a lot faster and easier.

“I just want to reiterate how this is one of many important projects that the East African Community partner states have undertaken to deepen integration that we have been seeking, make business more efficient, and lower the cost of doing business as we move forward,” Kagame said at the launch.

Making tech tick

He reiterated Rwanda’s “continued active participation towards making integration a reality.” President Kenyatta and his deputy William Ruto described the Single Window System as yet another building bloc in the EAC integration process.

“Our ultimate vision should be to implement an EAC Regional Single Window platform. The benefits from this initiative may not be fully realised unless all of us in the region adopt National Single Window Systems.

“Our brothers in Rwanda are already implementing a Single Window System and similar efforts are underway in Tanzania and Uganda,” Kenyatta said.

The Kenyan leader said the technology will make it possible for traders to submit information about their goods to multiple government agencies in multiple locations, making business faster and more efficient.

After the launch of the Kenya National Electronic Single Window System, also known as Kenya TradeNet, the Heads of State and Government discussed the progress of several other projects under the Northern Corridor initiative. Source: AllAfrica.com

Africa_Road_Corridors_HandbookAs countries across Africa gear themselves towards growing and stimulating inter-regional trade, the transport corridors being developed across the continent are important passageways for the movement of freight.

Though the growth and development of rail across Africa is in the pipeline over 80 percent of all freight being transported is on road.

Transporting goods on trucks is an expensive business. Africa can be challenging at the best of times due to non-tariff barriers even though governments across the continent are trying to make it easier for the flow of goods from one country to another.

The logistics of transporting freight can be a harrowing and expensive exercise.Especially if a transport manager is not armed with key and pertinent information – regarding the route, border posts, costs, relevant documentation required at borders, waiting times at the border posts, location of wellness centres,road conditions and where the tolls and weighbridges are situated.

3S Media in association with FESARTA have released the Africa Corridors Handbook which gives transport and logistics managers all the key information they need before drivers embark on a journey.

Having the correct information on hand is critical for every transport operator that is moving freight across Africa and now it is available in one concise handbook. Click the following hyperlink to purchase the book.

2014 Africa Transformation ReportThe inaugural Africa Transformation Report ranks Mauritius as the most economically transformed country out of 21 sub-Saharan African countries measured in its African Transformation Index, which takes account of a country’s economic diversification, export competitiveness, productivity, state of technology upgrading and human wellbeing.

The continent’s largest economy, South Africa, ranks second and Côte d’Ivoire third, while Nigeria, Burundi and Burkina Faso prop up the index.

The ranking has been included within a larger 207-page study, which cautions that, while many African economies are growing strongly, most economies are not transforming sufficiently to support a sustainable reduction in poverty, inequality and unemployment.

Six of the world’s fastest growing economies are currently in Africa, including Angola, Nigeria, Ethiopia, Chad, Mozambique and Rwanda, while several others are expanding at growth rates of over 6% a year. However, much of this grow is still premised on the extraction and export of natural resources and is not being broadly spread, leaving more than 80% of the continent’s labour force employed in low-productivity farming, or informal urban business activities.

Compiled over a three-year period by Ghana’s African Centre for Economic Transformation (ACET) in partnership with South Africa’s Mapungubwe Institute for Strategic Reflection (Mistra), the study urges African governments to position economic transformation ahead of growth at the centre of their economic and development policies.

Speaking at a launch in Johannesburg, lead author and ACET chief economist Dr Yaw Ansu said growth was “good” and had arisen as a result of macroeconomic reforms, better business environments and higher commodity prices.

“But economic transformation requires much more,” Ansu stressed, arguing that countries needed to diversify their production and exports, become more competitive and productive, while upgrading the technologies they employed in production processes.

ACET president Dr KY Amoako said the transformation narrative had already been accepted by the African Union in its Vision 2063, as well as by the African Development Bank and the United Nations Economic Commission for Africa. He added that the African Transformation Index provided policymakers with a quantitative measure for assessing their transformation performance and for guiding future strategies.

Mistra executive director Joel Netshitenzhe argued that to turn growth into an “actual lived experience” for Africa’s citizens there was the urgent need to form national social compacts between government, business and civil society to support transformation.

Finance Minister Pravin Gordhan emphasised the same point in his recent Budget address, when he highlighted the work being done to secure a social compact to reduce poverty and inequality and raise employment and investment. Gordhan stressed this could not be a “pact amongst elites, a coalition amongst stakeholders with vested interests. Nor can it be built on populist slogans or unrealistic promises”.

“Our history tells us that progress has to be built on a vision and strategy shared by leaders and the people – a vision founded on realism and evidence,” the Minister stressed.

Netshitenzhe also highlighted the report’s emphasis on coupling growth with social development. “In fact, rather than merely being a consequence of economic growth, a reduction in poverty and general human development can be part of the drivers of economic growth.”

The report highlights key transformation drivers as being:

  • Fostering partnerships between governments and the private sector to facilitate entrepreneurship, investment and technology upgrading.
  • Promoting exports, particularly outside of the natural resources sector.
  • Building technical knowledge and skills.
  • And, pushing ahead with regional integration.

Four transformation pathways are also highlighted, including labour-intensive manufacturing; kick-starting agroprocessing value chains, improving the management of oil, gas and minerals; and boosting tourism.

“It’s good that we are growing – we are no longer the hopeless continent. We can transform this hope into reality, but to do that governments must put transformation at the top of their agendas,” Ansu asserted.

He also called on African citizens to begin to demand transformation. “Ask your government, how come we are not diversifying? How come our productivity remains stuck? How come our technological levels and our exports are not growing?” Source: Engineering News

ECDPM - SAIIAThis study is part of the ECDPM-SAIIA project on the Political Economy of Regional Integration in Southern Africa (PERISA). The PERISA project aims to inform and facilitate dialogue on the political economy drivers of regional integration in Southern Africa. It focuses particularly on the role of South Africa in this process with a view to better informing relations between the European Union and South Africa. Regional economic integration is essential for Africa’s development. While integration is taking place across the continent, it is not happening at the pace and the scope that the institutional architects in the Regional Economic Communities and their member states have agreed upon. Southern Africa is no exception. In looking for answers as to what obstructs or what drives regional integration, this study focuses on one particular type of integration process: cross-border transport corridors.

All Regional Economic Communities in Southern Africa have embraced transport corridors (also referred to as Spatial Development Initiatives) as key development tools. Adopting a corridor approach means engaging with a wide range of actors with different interests and influence along key transport routes that link neighbouring countries and ports. This includes the full range of government agencies that control borders for security, revenue collection, and regulatory purposes as well as infrastructure, transport, trade and economic ministries as well as a range of private sector actors from small-scale informal traders and producers to transporters and major international investors as well as port, rail and road operators.

The analysis focuses on the North-South Corridor and the Maputo Development Corridor. The North-South Corridor links Dar es Salaam in Tanzania to Durban in South Africa through Zambia, Zimbabwe and Botswana. The Maputo Development Corridor links Gauteng Province in South Africa to Maputo in Mozambique. The analytical focus is on South Africa and Mozambique, while from the multi-country North-South Corridor the focus in this paper is on Zambia, a potential key beneficiary of the initiative. Source: ECDPM.org

WB-South Africa-Export CompetitivenessThe report, South Africa Economic Update 5: Focus on Export Competitiveness, examines the performance of South Africa’s export firms against that of peers in other emerging markets— and analyzes the challenges. It assesses South Africa’s economic prospects in the context of the global economic environment and prospects.

With this Economic Update, we hope to enrich the on-going debate on growing a sector critical for South Africa’s economic growth. As with previous editions, this report is intended not to be prescriptive but to offer evidence-based analysis that will help bring South Africa’s policymakers, researchers, and export stakeholders closer to finding innovative and sustainable ways to grow the sector. The report highlights opportunities for growth, particularly with Sub-Saharan Africa being the largest market for non-mineral exports. It also explores strategic directions that can ignite export growth and help South Africa realize its goals of creating jobs and reducing poverty and inequality.

The report identifies three areas that present opportunities to promote the competitiveness and spur the growth in South Africa’s export sector:

  • Boosting domestic competition would increase efficiency and productivity. By opening local markets to domestic and foreign entry, South Africa would enable new, more productive firms to enter and place downward pressure on high markups. This would lower input costs and tip incentives in favor of exporting by reducing excess returns in domestic markets. Competition would also stimulate investment in innovation and, over time, condition the market to ensure that firms entering competitive global markets have reached the productivity threshold to support their survival and growth.
  • Alleviating infrastructure bottlenecks, especially in power, and removing distortions in access to and pricing of trade logistics in rail, port, and information and communication technologies would reduce overall domestic prices and further enhance competitiveness. It would be especially beneficial for small and medium-size exporters and non-traditional export sectors, which these costs tend to hit harder.
  • Promoting deeper regional integration in goods and services within Africa would generate the right conditions for the emergence of Factory Southern Africa, a regional value chain that could feed into global production networks. South Africa could play a central role in such a chain, leveraging the scale of the regional market, exploiting sources of comparative advantage across Africa to reduce production costs, and providing other countries in the region a  platform for reaching global markets. Progress on all three fronts would help catapult South Africa toward faster-growing exports, allowing it to realize the higher, more inclusive, job-intensive growth articulated in the National Development Plan.

Source: World Bank

WCO ESA_Snapseed

Participants from all 24 members of the WCO’s Eastern and South African region attended the forum. [SARS]

Customs officials from 24 eastern and southern African countries met in Pretoria this week to share knowledge and experience with regard to the successful modernisation of Customs administrations.

Opening the three-day forum, Erich Kieck, the World Customs Organisation’s Director for Capacity Building hailed it as a record breaking event.

“This is the first forum where all 24 members of the Eastern and Southern African region (ESA) of the WCO were all in attendance,” he noted. Also attending were officials from the WCO, SACU, the African Development Bank, Finland, the East African Community and the UK’s Department for International Development (DFID).

Michael Keen in the 2003 publication “Changing Customs: Challenges and Strategies for the Reform of Customs Administrations” said – “the point of modernisation is to reduce impediments to trade – manifested in the costs of both administration incurred by government and compliance incurred by business – to the minimum consistent with the policy objectives that the customs administration is called on to implement, ensuring that the rules of the trade game are enforced with minimum further disruption”

The three-day event witnessed several case studies on Customs modernisation in the region, interspersed with robust discussion amongst members. The conference also received a keynote addressed by Mr. Xavier Carim, SA Representative to World Trade Organisation (WTO), which provided first hand insight to delegates on recent events at Bali and more specifically the WTO’s Agreement on Trade Facilitation.

The WCO’s Capacity Building Directorate will be publishing a compendium of case studies on Customs Modernisation in the ESA region during the course of 2014.

WCO ESA members – Angola, Botswana, Burundi, Comoros, Djibouti, Eritrea, Ethiopia, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, Seychelles, Somalia, South Sudan, Swaziland, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.

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Source: SARS