Tag / Mozambique

by Mike Poverello

A Triangle of Vulnerability – Illicit Trafficking off the Swahili Coast

Reports such as this should serve as intelligence for any law enforcement entity within the region as well as countries impacted by such illegal activities downstream.

A triangle of vulnerability for illicit trafficking is emerging as a key geographic space along Africa’s eastern seaboard – the Swahili coast.
At one apex of this triangle is Zanzibar, a major hub for illicit trade for decades, but one that is currently assuming greater importance. Further south, another apex is northern Mozambique. This area is experiencing significant conflict and instability, and is increasingly a key through route for the illicit trafficking of heroin into the continent and wildlife products from the interior. The final apex of the triangle is out to sea: the Comoros islands, lying 290 kilometres offshore from northern Mozambique and north-east of Madagascar. Comoros is not yet a major trafficking hub, but perennial political instability and its connections into the wider sub-regional trafficking economy make it uniquely vulnerable as illicit trade continues to evolve along the wider Swahili coastal region. These three apexes are linked by illicit economies and trade routes which take little heed of modern political boundaries.

Two main factors underlie the illicit markets that form the primary focus of this study. First, the powerful market demand for illicit wildlife products from Asia (and China in particular), and second, the steady growth in the volumes of heroin moving down the coast, with landings being made further and further south. The Indian Ocean islands themselves have long had serious challenges with heroin trafficking and use, and these are being exacerbated. Developments in Zanzibar, northern Mozambique and Comoros will have a crucial impact on wider patterns of trafficking and trade across the Swahili coast as a whole. For example, as we doc- ument the trade in endangered species from Madagascar which flows to Zanzibar and Comoros, Madagascar is also seen as a potential risk area for an increase in heroin trafficking.

At the time of writing, the impact of COVID-19 in the wider region was just becoming clearer as countries entered lockdown and began to restrict some forms of trade. The effect of these developments on the illicit political economy will still unfold in time to come.

Source: A Triangle of Vulnerability – Illicit Trafficking off the Swahili Coast authored by Alastair Nelson, June 2020

Also read: The Heroin Coast

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by Mike Poverello

Brexit and Southern Africa – no trade impact envisaged

Reuters reports that Britain has agreed a deal with six southern African countries including South Africa, the continent’s most developed economy, that will ensure continuity of trade conditions after Brexit, the British High Commission in South Africa said on Wednesday. 

Political turmoil in the United Kingdom has generated uncertainty over how, when and even if the country will withdraw from the European Union. Its current exit date is set for Oct. 31. 

But while the situation has left the future trade relationship between Britain and the EU in doubt, London has been working to minimise the impact of Brexit on other trading partners.

Britain initialled an Economic Partnership Agreement with the Southern African Customs Union (SACU) – comprising South Africa, Botswana, Lesotho, Namibia, and eSwatini (formerly known as Swaziland) – and Mozambique on Tuesday. 

“This trade agreement, once it is signed and takes effect, will allow businesses to keep trading after Brexit without any additional barriers,” Britain’s International Trade Secretary Liz Truss said in a statement. 

The agreement is still subject to final checks. But once signed formally, it will mirror the trade conditions the southern African nations currently enjoy with the EU. 

Trade between Britain and the six countries was worth 9.7 billion pounds ($12 billion) last year, with machinery and motor vehicles topping British exports to the region. The UK meanwhile imported some 547 million pounds worth of edible fruit and nuts. 

Britain has already signed trade continuity agreements with countries accounting for 89 billion pounds of its external trade. 

Prime Minister Boris Johnson says Britain must leave the EU on Oct. 31, but parliament has passed a law compelling him to ask Brussels to delay Brexit until 2020 unless he can strike a divorce deal. Johnson says he will not request an extension.

Source: Reporting by Joe Bavier, edited by Gareth Jones, Reuters Business News, 2019.09.11.

by Mike Poverello

Mozambique – Single Road Cargo Manifest Phase II

Mozambique flagThe Maputo Corridor Logistics Initiative (MCLI) recently published a communication informing it’s stakeholders about the Single Road Cargo Manifest as received from the Mozambican Revenue Authority (MRA).

The MRA has informed MCLI that the 2nd phase of the Single Road Cargo Manifest process will come into effect from the 16th of June 2017, when all international road carriers transporting goods to Mozambique through the Ressano Garcia border post will be required to submit the Road Cargo Manifest on the Single Electronic Window platform in compliance with national and international legislation. MRA Service Order Nr 17/AT/DGA/2017, in both Portuguese and English, is attached for your consideration.

For information and full compliance by all members of staff of this service, both (National and Foreign) International Cargo Carriers, Clearing Agents, Business Community, Intertek and other relevant stakeholders, within the framework of the ongoing measures with a view to adequate procedures related to the submission of the road cargo manifest, for goods imported through the Ressano Garcia Border Post, in strict compliance to both the national and international legislations, it is hereby announced that, the pilot process for transfer of competencies in preparation and submission of the road cargo manifest to Customs from the importer represented by his respective Clearing Agent to the Carrier is in operation since December 2016.

Indeed, the massification process will take place from 15th of April 2017 to 15th of June 2017, a period during which all international carriers (national and foreign) who use the Ressano Garcia Border, are by this means notified to register themselves for the aforementioned purposes following the procedures attached herewith to the present Service Order.

As of 16th of June 2017, the submission of the road cargo manifest into the Single Electronic Window (SEW) for the import regime, at Ressano Garcia Border, shall be compulsory and must be done by the carrier himself.

International road carriers must therefore register for a NUIT number with the Mozambican Revenue Authority between the 15th of April and the 15th of June 2017 and the necessary application form is included. Road carriers are urged to do so as soon as possible to enable the continued smooth flow of goods through the border post.

Specific details can be found here! 

Source: MCLI

by Mike Poverello

SA Customs lends Detector Dog support to Mozambique

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

by Mike Poverello

An interesting take on SADC developments and the lack of progress

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 →

by Mike Poverello

Xenophobia Backlash – Mozambique/South African Border closed

Lebombo border post has been closed until further notice Friday17 April 2015 after an unruly mob barricaded the N4 near Ressano Garcia, targeting trucks with South African registration numbers [Picture: Sowetan]

Lebombo border post has been closed until further notice Friday17 April 2015 after an unruly mob barricaded the N4 near Ressano Garcia, targeting trucks with South African registration numbers. [Picture: Sowetan]

The border post between South Africa and Mozambique has been closed until further notice Friday after an unruly mob barricaded the N4 near Ressano Garcia, targeting trucks with South African registration numbers.

This also came just as immigration officials from Mozambique early in the morning began the blocking of all vehicles coming from South Africa under unexplained circumstances. Witnesses told ZimEye.com the situation at the border is both shocking and desperate with drivers voicing their frustration at the hands of Mozambican border officials.

Lebombo border post has been closed until further notice Friday17 April 2015 after an unruly mob barricaded the N4 near Ressano Garcia, targeting trucks with South African registration numbers..

“Trucks with South African registration plates have been stoned in Mozambique. A volatile crowd of about 200 Mozambicans has barricaded the N4 about four kilometres east of the Resano Garcia border post, where there is a truck stop,” reported Corridor Gazette on Friday.

“It is suspected that this action in related to the Xenophobic attacks which have erupted in various areas of KwaZulu-Natal and Gauteng this week.”

Trac, a company which is responsible for the 570km of the road between Solomon Mahlangu off-ramp in Tshwane and the Port of Maputo in Mozambique, placed a warning on the protest action on its website.

A traveller who en route to Nelspruit from Maputo at around 9:30 on Friday morning told the website that: “The crowd let us pass because we had a Mozambican-registered car.

by Mike Poverello

Mozambique – conditions ideal for ‘Chinese model’ of Special Economic Zones

Maputo1Mozambique has the necessary conditions to successfully adopt the Chinese model of Special Economic Zones, which helped to boost the Chinese economy, according to researchers Fernanda Ilhéu and Hao Zhang.

In the study “The Role of Special Economic Zones in Developing African Countries and Chinese Foreign Direct Investment (refer to link below),” researchers from the Lisbon School of Economics and Management noted that over 35 years, the Special Economic Zones have had “a decisive role in the development of places like Shenzhen, Zhuhai, Xiamen, Shantou, Hainan and Shanghai, and that African countries can leverage this experience.

In 2006, the Forum on China-Africa Cooperation gave “significant priority” to creating up to 50 SEZs abroad, which are being implemented, with US$700 million invested by Chinese companies in 16 EEZ, according to information from China’s Trade Ministry.

Increasingly focused on business abroad, China needs raw materials and African markets to which to export its products, but can also benefit from shifting some of its industries to Africa, as the cost of Chinese labour increases.

The approach to Africa has involved through loans and financing for the construction of infrastructure, and “the development of African countries requires China’s increasing involvement,” including “collaborating in the development of SEZs,” the authors argue.

Regarding Portuguese-speaking countries, the average annual growth of trade between 2002 and 2012 totals 37 percent, turning China into the largest trading partner and largest export market for those countries.

The relationship has proved to be “dynamic in both directions,” they added, with hundreds of companies from Portuguese-speaking countries operating in China and Chinese investment in those countries of around US$30 billion, according to China’s Trade Ministry.

As for the SEZ, the two researchers focused their attention on the Mozambican Manga-Mungassa (Beira, Sofala province) SEZ, established in May 2012, under the management of China’s Dingsheng International Investment Company (Sogecoa Group), which has plans to invest close to US$500 million.

Nearing completion, the first phase includes the construction of warehouse units, followed by the “operational” phase, with construction of additional infrastructure such as hotels and housing, and finally the free industrial zone, where high tech units will be installed.

“In terms of knowledge transfer, Mozambique has made active steps in learning from the experience of Chinese SEZs and using this model to attract foreign investment,” they said.

In 2012 the Mozambican government created the Office for Economic Areas with Accelerated Development (Gazeda) that in addition to Manga-Mungassa, is responsible for the projects of the Belulane Industrial Park, the Locone and Minheuene Free Industrial Zones and the Crusse and Jamali integrated park.

On 6 May, 2014 the Mozambican government approved the establishment of the Mocuba SEZ, a sign of the “determination to create more conditions and to look for more opportunities and economic measures to create jobs and generate wealth,” in the country, the study said.

According to the authors, Mozambique has a strategic location, the ability to attract investment through the diaspora, as well as its model of economic growth and development in its favour, although there remain difficulties in infrastructure and technological development.

“The Chinese SEZ model can be successfully applied to the Manga-Mungassa area,” they concluded. Source: macauhub / MZ

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by Mike Poverello

WCO supports Capacity Building in Mozambique

Mozambique: Maputo, Mozambique Revenue Authority, Customs Division, Risk Management Unit

Mozambique: Maputo, Mozambique Revenue Authority, Customs Division, Risk Management Unit

In December 2014 a WCO Capacity Building support mission was undertaken to Mozambique. The mission was the fourth in a series of inputs as part of the Project for “Customs Capacity Building for WCO Members 2012-15” which is funded by the Norwegian Agency for Development Cooperation (NORAD). The aim of the project is to deliver technical assistance to seven countries in specific areas of Customs operations. As one of the countries participating in the project the assistance provided to Mozambique has been designed to strengthen their capacity in the areas of Risk Management and Human Resources/Training Policy Management.

The mission commenced with a meeting between the WCO delegation and Mr. Guilherme Mambo Director General, Customs. Progress with the project was discussed and specific plans for the introduction of new risk management procedures.

The mission focused on the delivery of a high-level strategic Risk Management workshop. The workshop was designed to support the implementation of a new Risk Management Framework and was attended by several members of the MRA Senior Management Team.

Together with the workshop, the WCO experts also conducted a Risk Management organizational review and prepared a report summarizing key findings and recommendations. Work also continued on supporting the MRA with the development of their new Strategic Plan and specifically with a review of existing risk profiles to ensure that they are aligned with the organization’s strategic objectives.

The opportunity was taken to also discuss establishing procedures for access to the WCO e-learning modules so that the MRA can make best use of the wide range of training modules that are available for their use, particularly in the areas of Risk Management, CBM, PCA and the Revised Kyoto Convention. Source and picture: WCO

by Mike Poverello

Second bridge over the Zambezi River opens in Mozambique

The second bridge over the Zambezi River in Tete, which is 715 metres long and was built by a consortium of Portuguese companies, was inaugurated Wednesday, after construction began in 2011. The bridge, which connects the city of Tete to the Moatize district, which has the largest deposits of coal in Mozambique, was completed last October.

The new bridge is an integrant part of the National Road EN103, which is the main connection between Mozambique and Zimbabwe, and allows the connection of Malawi and Zambia with the Beira Port. The National Road EN103 assumes itself as the main axis connecting north-south, linking South Africa to Malawi / Zambia.

The bridge as a whole is composed by the bridge itself which crosses the Zambezi riverbed, and an access viaduct to access the bridge from the south side.

The work, costing 105 million euros, was executed by a Portuguese consortium of contractors made up of Mota-Engil, Soares da Costa and Opway and, as well as the bridge, overpass and access roads, included rebuilding 260 kilometres of roads linking Tete to the borders with Malawi and Zimbabwe.

As part of the “New Tete Bridge and Roads” concession the project was designed for movement of heavy vehicles that currently cross the Samora Machel bridge, relieving pressure on the bridge, also on the Zambezi River, which was built over 50 years ago.

The new bridge is named Kassuende in honour of a place in the district of Marávia that between 1968 and 1974 was a logistics base in Mozambique’s armed liberation struggle. Source: Macauhub & Betar.pt

by Mike Poverello

Maputo Corridor “held ransom” by new RSA Immigration border crossing requirements

maputo_corridorSouth African authorities implemented legislation requiring all travellers from Mozambique to prove they hold enough funds to cover their visit, either by showing R3000 minimum or by providing a credit card with a bank statement, the Maputo Corridor Logistics Initiative (MCLI) said in a statement today. This led to considerable delays for freight, tourists, business and informal traders, which was worsened when a riot and blockade broke out at the Lebombo/Ressano Garcia border post.

Following the blockade the requirements were withdrawn, allowing traffic to pass through the border.

In their statement the MCLI declared they will directly contact the Minister of Home Affairs to settle the issue. “This requirement takes us back to the pre 2005 era where similar requirements were implemented”, the statement says, “and [it] is in direct conflict with the regional integration policy of SADC which expressly seeks to promote the ease of movement of people and goods through our borders.”

The statement calls the implementation for this legislation discriminatory towards informal traders who move through the border on a daily basis, and warns the long term impact on the region’s economy could be “dire”. Source: Club of Mozambique

by Mike Poverello

Chinese invest US$260 million in Mozambican SEZ

china_mozTo date Chinese company Dingsheng International Investments has invested US$260 million of a total US$500 million to build infrastructure in the Manga-Mungassa Special Economic Zone, in Mozambique’s Sofala province.

Aiuba Cuereneia, Mozambique’s Minister for Planning and Development, says, “The investment was used to build basic infrastructure, including the power and water supply, roads, industrial warehouses and other facilities, as part of a project that includes construction of an administrative building, customs warehouses, and an exhibition area, as well as a hotel.”

“The infrastructure built in the Manga-Mungassa SEZ would play a crucial role in supporting manufacturing and trading companies that, in turn, would reduce the cost of the initial investment made by Dingsheng International.”

The Manga-Mungassa SEZ was set up following a July 2012 law and covers an area of 217 hectares, which may be increased to 1,000 hectares. Dingsheng International manages the SEZ. Source: macauhub

by Mike Poverello

Getting to Grips with the Future Customs Control Act

Having recently introduced a whole new integrated customs business solution last year the South African Revenue Service (SARS) has spent the last six months stabilising its system. At the heart of the system is the Interfront Customs and Border management (iCBS) engine which takes care of all customs declaration processing.

CCB

Click on the image to download the Infogram

A new ‘state-of-the-art’ EDI Gateway infrastructure is at an advanced stage of development and configuration, and will be subjected to a series of rigorous testing both internally and with industry service providers over the next few weeks. The gateway is an important component of the organisation’s future aspirations in C-2-C, C-2-B and C-2-G information exchange with it’s stakeholders.

Over the last 2 years, SARS has been a key participant in the WCO’s Globally Networked Customs (GNC) initiative which seeks to develop standardised electronic information exchanges of commercial customs data and common border procedures between customs administrations. This is ‘greenfield development’ and requires innovative thinking between potential customs partners. In this specific area SARS has engaged both Mozambique and Swaziland Customs as willing partners in such an initiative. Developments with Mozambique are at an advanced stage and will shortly become a reality with the conclusion of the bilateral One Stop Border Post (OSBP) agreement that includes provision for electronic data exchange between the two administrations. More on this in a future post.

Technology aside, perhaps the most daunting task on the horizon is the introduction of the new Customs Duty and Control Acts which are currently in the parliamentary process. Much publicity and robust argument was aired in the printed media over the last year, all of which culminated in the parliamentary hearings overseen by parliament’s Standing Committee on Finance (SCoF) during November and December 2013. While an agreement was reached with the freight forwarding sector of the local supply chain and logistics industry on certain aspects of the Control Bill, there still lies much work and clarification to be addressed in these and other areas.

Notwithstanding the signing into law of the Customs Bills, operational enactment thereof can only occur once the ‘rules’ to execute this legislation are circulated for comment, finalised and gazetted. Even considering the legal and approvals process in a simplistic form, the implementation of this new legislation is just too complex to introduce in a once-off, big-bang approach.  Due consideration must be given to a transitional approach taking into account the practicalities thereof as well as economic and logistical consequences of such approach.   It is no understatement that the impact of the new legislation, its incorporation into current automated systems, policies and procedures as well as the necessary re-adjustments to be made by every entity engaged in business with SARS Customs is no small feat.

Furthermore, the implications of the recently concluded WTO Agreement on Trade Facilitation for South African Customs and Trade also needs to be determined and understood. While a large proportion of its content is encapsulated within the Revised Kyoto Convention, it is the first time ever that such requirements are subject to the conditions of a trade agreement.

It’s been some time since I last penned thoughts on the Customs Modernisation initiative. In retrospect and thinking ahead, the underlying bottom line to its longer term success lies in increased ‘communication’ with stakeholders – ironically, the World Customs Organisation’s adopted theme for 2014!

Please feel free to download the infogram on the future Customs Control Act by clicking on the picture above. Official links to the Customs Control and Duty Bills are included below. It would also be wise for parties involved in Excise to consider the contemplated changes contained in the Excise Duty Bill (Customs and Excise Amendment Bill).

Related documents

by Mike Poverello

Containers conveying Mozambican MiGs stuck in Germany

MiG-21_Fishbed_400x300Three MiG-21 fighter jets destined for Mozambique are stuck in Germany due to a lack of necessary permits. They are part of a batch of eight being shipped from Romania. Romanian company Aerostar is overhauling six MiG-21bis and two MiG-21UM trainer aircraft for the Mozambique Air Force and is also providing training for Mozambican MiG-21 pilots. Three MiG-21s were seen flying at Aerostar’s Bacau facility last year.

On Sunday Germany’s Der Spiegel reported that three MiG-21s were transported from the Romanian capital Bucharest by train in six containers and were to have been subsequently shipped to Mozambique from the Germany port of Bremerhaven. However, although the aircraft were declared according to procedure, their transport was done without the necessary permits and they were stopped. Der Spiegel reported that Germany’s public prosecutor will investigate the possible breach of arms control laws. The publication noted that Aerostar was found guilty of a similar incident in 2008. In 2012 German customs officials confiscated MiG-29 engines for Algeria and Tu-142 engines for India over the lack of necessary permits.

The Mozambique Air Force is slowly rejuvenating, considering that until recently it was almost entirely inoperable, suffering poor serviceability since independence from Portugal in 1975 and the collapse of the Soviet Union and its financial support in the early 1990s. The arrival of the MiG-21s will give the Air Force a jet capability not had in years, as its existing MiG-21s have fallen into disrepair and are grounded.

In addition to the MiG-21s, Mozambique has apparently bought two Aerostar Festival side-by-side light aircraft and will get an overhauled Aero Vodochody L-39ZO jet trainer. Late last year it emerged that Mozambique’s Air Force would also receive two second hand Antonov An-26B transport aircraft after they have been refurbished in the Ukraine. Source: Defence Web

by Mike Poverello

No cash! No problem!

banner4Transport Forex, created by Inter Africa Bureau de Change, a registered bureau de change with the South African Reserve Bank has created an unique online banking system for the transport industry.

With branches at all of South African border posts, the company has expanded operations into Namibia, Botswana, Zimbabwe, Mozambique, Zambia, the DRC and Tanzania with offices on all the major border posts between these countries.

Transport Forex is an online ordering system where the transport manager can deposit money in South Africa into the relevant account therefore ensuring when drivers arrive at the relevant border posts there is enough money for them to pay the relevant duties. At the same time, this ensures enough cash is in the account for drivers to purchase fuel at key petrol stations or even pay for a service on-route in one of the partner countries.

Once the monies have been deposited into the account, an order number is sent via SMS to the driver who then presents it at the relevant Transport Forex office to draw the necessary funds required.

In the same way you can book and pay for diesel for your truck on any of the major transport routes in Namibia, Botswana, Zimbabwe, Mozambique, Zambia, the DRC and Tanzania. Transport Forex has negotiated with partner fuel suppliers for better prices and passes this discount directly to the transport company.

A new Payment Service was introduced in 2013 for clients. Should additional unforeseen funds be required for an emergency while the driver is on the road then monies can be made available for drivers almost immediately. This prevents valuable time from being lost.

Transport Forex is also in negotiations with several government institutions so relevant duties and taxes for operators’trucks can also be paid through the system in advance.

To join Transport Forex simply log onto www.transportforex.co.za, and click on “Create Account”. Registration is free, and there are no monthly charges.

by Mike Poverello

African States urged to begin prioritising economic transformation

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