1. Towards a Central Africa Trade Facilitation Strategy
BBL – September 29th 2011

2. Content Background for BBL 4-point agenda Conclusions and way forward
Logistic challenges and intra-regional TF
Logistics challenges and inter-REC TF
TF in custom union agenda
Policy dialogue
Conclusions and way forward

3. Background: process Process clients side: Process Bank side:
AFT process: regional preparatory and Geneva
AfDB role
Process Bank side:
Input by Bank TTL
May 19, 2011
Consensus on content and process:
Content: A holistic trade and transport facilitation strategy accounting for the views/vision of clients: Identify gaps in the current portfolio; propose an framework to all activities
Process: within Bank, with other development partners, with clients
The objectives of the BBL : agree content and process

4. Background:Some basic few facts
Client side:
Two partially overlapping RECs: CEMAC and ECCAS:
Scope CEMAC + DRC (not accepted by all of the clients)
Two main corridors: Douala and Pointe Noire
Dominance of some large countries: Cameroon, DRC, Gabon
Key to Pan-African integration
Bank side:
Several CD
Not very popular to work on
Inter-REC trade
(CEMAC - ECOWAS)
Trans-Cameroon Corridors
(Douala to CAR and Chad)
Eastern Africa Corridors
(Mombasa, Dar Es Salaam)
Trans-Equatorial Corridors
(Matadi / Pointe–Noire to CAR and DRC)
South – Eastern Africa Corridors
(Durban, Dar Es Salaam)

5. Background: heterogeneous region
Population (millions)
Land area (000 sq.km)
Density (Pop. /sq.km)
GDP /capita (constant 2000)
CEMAC / ECCAS countries
Cameroon
18.9
465
40.6
710
CAR
4.4
623
7.1
230
Chad
11.1
1,259
8.8
251
Congo
3.6
342
10.5
1,214
Gabon
1.4
267
0.6
4,157
Equatorial Guinea
0.7 28
25.0
8,692
CEMAC
40.1
4,984
8.0
835
ECCAS only countries
DR Congo
64.2
2,267
28.3 99
STP
0.2 1
200.0 …
Angola
18.0
1,247
14.4
410
Burundi
8.1 26
311.5
111
ECCAS
130.6
8,525
15.3
265
Sub-Sahara Africa
819.3
23,629
34.7
426
% CEMAC to SSA
4.9%
21.1%
23.2%
196.1%
% ECCAS to SSA
15.9%
36.1%
44.2%
62.2%
A contrasted region:
High income (Gabon) developing –LMIC (Cameroon, Congo), LDCs
Major oil and mineral producing countries in SSA
weak infrastructure, fragile states, land locked countries, sparsely populated countries and forested areas, poor intra-regional interconnection.
Weak regional economy, venerable to external shocks

6. Background: Underperforming by most rankings
Region and access to sea
Docs to
Import
Time in days to
Total cost
Export
Central Africa
10.4
54.9
$4,356.0
8.4
42.1
$3,350.1
Coastal states
9.2
44.2
$3,357.6
8.8
33.2
$2,411.6
Landlocked states
13.5
81.5
$6,852.0
7.5
64.5
$5,696.5
West Africa
7.9
30.9
$1,915.4
7.4
26.8
$1,528.6
26.6
$1,507.4
7.2
23.0
$1,230.8
10.0
48.0
$3,547.3
8.3
42.0
$2,719.7
Sub-Saharan Africa
7.7
32.3
$1,961.5
8.7
38.2
$2,491.8
OECD
4.4
10.9
$1,058.7
4.9
11.4
$1,106.3
In terms of absolute ranking of the countries, the two landlocked states of Central Africa, Chad and Central African Republic, are the last two for the cost to export, and Congo is joining them to constitute the last three for the cost to import.

7. Background: Poorly integrated region
Deficit of transport infrastructure due to :
Geography: sparsely populated areas not generating sufficient transport demand to justify heavy investment in infrastructure
High costs decreasing competitiveness, and preventing development of trade

8. 4-Part agenda (1): intra-regional logistics
The trade corridor is decomposed into three components:
Maritime gateway
Land transport link
Inland terminals
For each node and mode, physical operations and documentation process are influencing each other’s efficiency
Overall coordination of the corridor is ensured through policy dialogue
Land-link
Institutional Environment
Inland Terminal
Monitoring & Evaluation
Gateway

9. 4-Part agenda (2): connector for Pan-African integration
harmonization of facilitation instruments and policies between RECs
Lack of harmonization can prevent movements of persons (visa issues), movements of trucks across borders, raise payment across border difficulties, etc.
Border management agencies and facilities
For inter-REC trade, all procedures take place at the border and, in most cases, outside the main trading routes. Corresponding border posts generally lack adequate facilities, and border management staff may not be sufficiently trained, particularly when dealing with small scale traders
Transport and logistics services
Inter-REC volumes are modest, and small scale traders are common
Transition from informal to formal trade requires the availability of consolidation and support logistics services so that several traders can combine their goods to access third party transport services.
For each category, the magnitude of the challenges and the policy response differ, depending on whether they refer to formal or informal trade.

10. 4-Part agenda (3): Trade facilitation and effective customs union
To strengthen the customs union, the following is needed:
Harmonization of tariff nomenclature.
Common regulations guiding customs management.
Shared payment systems.
Removal of standards-related trade restrictions within CEMAC.

11. 4-part agenda (4): Policy dialogue
TF involves disparate sectors with different interests
Government makes the rules, and private sector must obey them; need effective cooperation from both sides.
The best policy has its roots in facts in an adequate framework for credibility, especially where non-economic factors prevail.