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Africa World Trade Organisation - Geneva 2012. Africa in Perspective – Key Road Block Scenario Key Challenges Conclusion - Risk and Reward Over 1,100.

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Presentation on theme: "Africa World Trade Organisation - Geneva 2012. Africa in Perspective – Key Road Block Scenario Key Challenges Conclusion - Risk and Reward Over 1,100."— Presentation transcript:

1 Africa World Trade Organisation - Geneva 2012

2 Africa in Perspective – Key Road Block Scenario Key Challenges Conclusion - Risk and Reward Over 1,100 operational locations worldwide 968 Operational sites in Southern Africa 61 Operational sites in Europe

3 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

4 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 % 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

5 Imports% Contribution China28.7 India12.9 USA11.3 France11.2 Brazil7.4 UK7.4 Japan2.9 Product CategoryExport WorldImport World Basic Foods14,875,27421,052,701 Beverages & Tobacco1,934,1751,653,717 Ores, Metals & Precious Stones19,304,1143,931,312 Fuels81,278,81517,188,542 Manufactured Goods19,442,80134,861,887 Chemical Products6,829,96316,684,141 Machinery & Transport Equipment9,685,66553,868,421 Total153,350,808149,240,722 Exports% Contribution EU41.9 ROW17.87 USA17.6 Asia6.6 Intra Rec5.8 China5.5 ROA2.81

6 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 (all in tonnes) East Coast PortsCountryExportImportTransit DubanSA Port ElizabethSA MaputoMZ Dar Es SalamTAN West Coast PortsCountry ExportImportTransit SaldanhaSA Cape townSA Walvis BayNAM LuandaAG Data Source: Various SADC Port Sites

7 Heading % COSCost PDDays PA W/Ave Tariffs Imports on TCD15$46312 X Border Tariffs4$30312 Fixed Cost ito Logistics50$ 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 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

8 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. 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.

9 Vehicle to enhanced Socio-economic development Regional Employment Creation 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 Africa The Future: Facilitating Trade through integrity, Simplified Trade Procedure & Framework and Integrated Infrastructure & Information Technology


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