DTIC Launches New Support System to Address SA’s Export Barriers

The Department of Trade, Industry and Competition (the dtic) launched the Export Barriers Monitoring Mechanism (EBMM) that will put South Africa in a strong position to provide the type of consistent, ongoing support that is needed to continuously improve the country’s export environment. The Department’s e Deputy Director-General of Export Development, Promotion and Outward Investments, Ms Lerato Mataboge said the fundamental aim of EBMM is to make the government’s support to exporters facing barriers more effective, more flexible, and more accessible.

By creating a systematic approach to monitoring these barriers, the government can develop a long-term agenda to target the most important export barriers. By addressing each individual barrier, government can begin to manage each problem with the level of nuance and detail needed for these complex challenges.

During an initial pilot project, 28 key export barriers were processed by the EBMM and during the initial phase of the national lockdown, the EBMM methodology was used to process 76 barriers related to COVID-19. From today, the EBMM is open to any firm that encounters an export barrier of any kind, whether locally or in any foreign market.

In 2018, South African exporters faced an estimated 154,571 unique customs requirements worldwide. Over the last ten years, 23,795 new or amended technical barriers to trade have been registered with the World Trade Organisation; while over the same period 13,364 sanitary and phytosanitary barriers were registered or amended.

DTIC’s priority is to work progressively to smooth these barriers, the experience of the last decade of trade has demonstrated that we need to be prepared to manage this growing complexity. Increasingly, a key component of global competitiveness will be how we manage a constantly changing global trading environment. Managing this environment will only be possible through a close working partnership between the government and the private sector.

Speaking at the same launch, the Executive Director of the South African Electrotechnical Export Council, Ms Chiboni Evans, highlighted the importance of maximising content and projects in the African continent, and the important role played by export barriers in reducing competitiveness in the region.

Persistent logistics barriers meant that transporting goods by road took longer from all our major cities to mines in the Southern African Development Community (SADC) region. It was then easy for these countries to import goods from Asia, Americas and Europe rather than waiting on South Africa.

Highlighting previous experiences of partnering with the dtic to resolve export barriers, Ms Evans noted that a lot of the barriers to export can only be resolved by the private sector working together with government. She added that this new mechanism will assist greatly in opening up government support to a much broader spectrum of private sector individuals.

All export barrier queries can be reported to ExportBarriers@thedtic.gov.za or through the the dtic website.

Source: The Department of Trade, Industry and Competition, August 31, 2020

EAC Compliant Companies Awarded Regional AEO Certificates

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

What Shoprite and Woolworths can tell us about Non-tariff Barriers

SAIIA PaperGauging from the title of this SAIIA report, it is the first time I ever saw the use of private sector entities as the vehicle for delivery. A nice and welcomed approach. While the report tends towards technical analysis, it does provide some sound thoughts on the extent of non-tariff barriers (NTBs) outside of the traditional barriers such as antidumping duties, quantitative restrictions, import levies. In fact the report focusses on licensing rules, import permits, standards as well  and customs procedures.These NTBs are likely to be less transparent but more prevalent and representative of the constraints Southern African traders face in selling merchandise across borders on a day-to-day basis.

It is interesting to see that corruption features in at least 3 out of the 4 NTBs by category identified by the private sector. While the quest for more automation at borders is definitely feasible, the question of limitation of human intervention at the border will undoubtedly be a stumbling block in many countries. It requires some political will to actually do something about the “rot” at borders. To access the report please visit the SAIIA website

The paper provides an overview of the incidence and impact of non-tariff barriers (NTBs) in the Southern African Development Community (SADC) region. The analysis draws on the growing body of literature on NTBs pertaining to regional trade in Southern and Eastern Africa, but importantly it supplements this with the experience of the private sector in the region. It reviews the current processes and achievements in addressing NTBs within Southern Africa. Practical measures are proposed to facilitate the removal of NTBs within Southern Africa, informed by the lessons from other regions. Source: South African Institute of International Affairs.

Africa – ready for rich pickings?

While on the theme of African economic and trade emancipation, it is interesting to consider the detailed analysis and evaluation occurring in regard to African continental readiness for information and communication technologies. One such study is the Transformation Ready or eTransform Africa programme, a joint programme of the African Development Bank and the World Bank, in partnership with the African Union. Bear in mind that the WCO and African Development Bank recently signed a cooperation agreement to enhance the capacity of Customs administrations in Africa. 

The study (Click Here!) is a series of  case studies of certain countries. The aim of the programme as a whole, as set out in the terms of reference, is to:

  • Take stock of emerging uses of ICT across sectors and of good practices in Africa and in other continents, including how ICTs are changing business models in strategic sectors.
  • Identify key ICT applications that have had significant impact in Africa or elsewhere and that have the potential of being scaled up, both from the public and private sectors.
  • Identify binding constraints that impact ICT adoption and scaling-up of effective models, such as the need to develop a regional culture of cyber security, and measures to address these constraints, including in relation to the role of different actors and stakeholders (private, public, development community, civil society, etc).
  • Commission a series of country case studies, to formulate a guide for rolling out and scaling up key applications in Africa, in each of the focus sectors, and thereby to identify opportunities for public/private partnership, as well as identifying areas where intervention can be reduced or eliminated.
  • Develop a common framework for providing support in ICT for development to countries that brings together the operations of the two Bank Groups and their respective departments.

The terms of reference for individual sectors were as follows:

  • Within each sector, identify specific opportunities and challenges in Africa that can possibly be addressed with an increased or better use of ICT. Constraints that are hindering ICT uptake and scale-up will be examined within the context of each sector/industry, including human capacity in IT skills and sustainable business models such as for public private partnerships (PPP). Further, the appropriate role of governments in the provision of priority ICT applications and services will be examined in order to maximize private sector development;
  • Undertake a quick scan of ICT applications in the different sectors and identify a few applications that have had significant impact in Africa or elsewhere and that have the potential of being scaled up. The scan should refer to a matrix of selection criteria on which to select case study countries that are considered ripe for the creation of public/private partnerships. On this basis, specific country case studies will be chosen – two to three per sector — on a representative basis, for deep dive analysis. The selection of case studies should be made in consultation with the partners and the other consultants. A workshop should be organized by the coordinator firm at an early stage in the project to finalise this selection.
  • Analyze and understand the barriers to the greater adoption and mainstreaming of ICTs. Barriers may include, for instance, low purchasing power, illiteracy, infrastructure constraints, lack of regulation, poorly functioning mobile ecosystem, power shortages, political instability etc. Identify cases/examples on how these have been dealt with;
  • Analyze and understand the enabling factors of success, including political economy, policy, institutional, human, financial and operational factors;
  • Consider the option of developing multi-country programs or special facilities that would allow fast-tracking specific programs across countries;
  • Provide guidelines on designing appropriate and sustainable ICT components for sector projects (including building effective public and private partnerships) and on evaluating the impact of these interventions; and
  • Propose a course of action on how to include ICT in policy dialogue and planning with country counterparts on sectoral development goals and priorities. Experiences and best practices from other regions will be drawn upon to define the role of the public sector, bearing in mind that government is increasingly positioned as a lead user of ICTs as well as a regulator of the sector.
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The following article provides a disturbing – some would call it conspiracy theory – on what lies in store for the continent of Africa. Perhaps the colonial days will be viewed as mild should some of the suggested schemes materialise.