Transcript Presentation - World Trade Organization

Africa
World Trade Organisation - Geneva 2012
61 Operational sites
in Europe
Over 1,100
operational
locations
worldwide
 Africa in Perspective – Key Road Block Scenario
 Key Challenges
 Conclusion - Risk and Reward
968 Operational sites in
Southern Africa
The world does not underestimate the opportunity,
potential & businesses opportunity in Africa!
Africa needs become competitive :
• Transparent Trade Facilitation Imports / Exports;
• Improved Trade Procedures
• Cross border & corridor development
• Combined commitment by Africa
governments
• Reducing the cost of logistics
• Conversion of import cargo to the
African destination ports
• Create balanced two directional
volume flows
• Investment in infrastructure
• Ports
• Rail
• Roads
• ICD
• IDP
 Red Tape moving goods Regionally, Intra-Africa, Cross Border & Imports / Exports

Vastly Duplicative

No alignment & co-operation between relevant government & trading agencies
 Average Custom Transactions:

Some 25 different parties and 40 documents

A vast amount of data elements:


Some 20% repeated numerously
Re-Keying of data in excess of 80% - Post to Post
 Cost of Logistics – Perspective:

Globally to “GDP”
- 7.5%

South Africa to “GDP”
- 13.0%
 Africa to “GDP”
- +30%
 Border Posts – Africa
 Inefficient
 Lack of and no regional alignment – information technology as an enabler
 Border Agency Facilitation
 Totally duplicative – re-keying of all information
 Lack of resource i.e. current methodology
 Road block and “ The key cost driver” to trade facilitation
Product Category
Export World
Import World
Basic Foods
14,875,274
21,052,701
Beverages & Tobacco
1,934,175
1,653,717
Ores, Metals & Precious Stones
19,304,114
3,931,312
Fuels
81,278,815
17,188,542
Manufactured Goods
19,442,801
34,861,887
Chemical Products
6,829,963
16,684,141
Machinery & Transport Equipment
9,685,665
53,868,421
153,350,808
149,240,722
Imports
% Contribution
Total
Exports
% Contribution
EU
41.9
China
28.7
ROW
17.87
India
12.9
USA
17.6
USA
11.3
Asia
6.6
France
11.2
Intra Rec
5.8
Brazil
7.4
China
5.5
UK
7.4
ROA
2.81
Japan
2.9
Top ports handle more than a 90% of total volume in SADC region and East coast shares 71% and West
coast shares 29% of total volume.
SADC Region Key Gateway Ports Volume in 2008-09 (all in tonnes)
East Coast Ports
Country
Export
Import
Transit
Duban
SA
26 759 299
47 725 485
8 916 032
Port Elizabeth
SA
6 227 482
4 423 266
678 665
Maputo
MZ
1 749 329
575 802
1 749 329
Dar Es Salam
TAN
1 480 152
6 148 690
377 479
West Coast Ports
Country
Export
Import
Transit
Saldanha
SA
34 561 876
13 212 275
1 707 376
Cape town
SA
6 372 035
6 769 983
1 804 896
Walvis Bay
NAM
3 769 756
1 568 754
871 184
AG
2 240 000
4 360 000
1 980 000
Luanda
Data Source: Various SADC Port Sites
“Logistics” as part of the value chain, the key driver of cost in Africa (+30% of “GDP”) negatively impacting on economies in the region and certainly socio conditions
% “COS”
Cost PD
Days PA
W/Ave Tariffs Imports on TCD
15
$46
312
X Border Tariffs
4
$30
312
Fixed Cost ito Logistics
50
$365.00
312
Heading

Assumptions:
 Simulation - Container Shipment , Main Chinese Port to Lusaka
 Weighted Average Import Tariffs / Duties – Machinery, Manufactured Goods, Food & Chemicals
 28 shipments per annum
 40’ TEU’ – 30 ton per container
 Three destination Ports on weighted average - destination
“SME,s” and the informal sector in Africa equate to some 65% of “GDP” creation and (as well
now, the formal sector) find it cannot participate in Intra Africa, Regional Trade and
Internationally, from a volume perspective and or the lack of formal, supportive and well
managed trade and government agencies, as enablers and the catalysts to growth .
 Simplified trade procedures
Expediting the passage and release of product
 Customs & border post, reformation & modernisation
 Information Technology & Systems – aligned, as a business enabler in, too & out of Africa
 Reduce Cost of Logistics
 Balancing imports to export volumes - two way traffic - Conversion
 Political & Regulatory Challenges - Integrity & Strength of Institutions
 Socio Economic Challenges – Growth vs. Infrastructure
 Social Media & Connectivity - Enabler
 Banking & Finance Challenges – Growth, Sustainability & Continuity
 Human Resource Challenges - Foundation
 Infrastructure Challenges – Road, Rail, Air and the Great Lakes
The state of all the above result in a much higher cost of doing business in Africa
compared to that of the developed world.

Economic Growth prosperity, success, sustainability and continuity is dependent on
development
 Transformation and empowerment to the future

Skills Development

Dedicated development interventions and initiatives local employed population

Transformation objectives promoted by various skills development initiatives

Vehicle to enhanced Socio-economic development

Regional Employment Creation
Africa “The Future”: Facilitating Trade through integrity , Simplified Trade Procedure &
Framework and Integrated Infrastructure & Information Technology