1. Workshop on Trade Facilitation and Aid for Trade: Sustaining Trade Facilitation Gains Through Effective Aid for Trade Strategies Joseph Atta-Mensah NEPAD and Regional Integration Division United Nations Economic Commission for Africa March 2009, Addis Ababa, Ethiopia

2. PRESENTATION OUTLINE
Evolving definition and scope of trade facilitation
Key issues of trade facilitation
Trade facilitation initiatives in Africa
Way forward
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3. Evolving Definition and Scope of Trade Facilitation
Logistics of moving goods through ports or documentation associated with cross-border trade
Environment in which trade transaction takes place
Transparency of customs, regulatory agencies
Harmonization of standards, conformity with international and regional regulations
Natural barriers to trade
Non-tariff barriers
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4. Weak Intra-African Trade
REC
Intra-community
Rest of Africa EU US
Others
CEMAC
1.9
2.2
41.2
30.5
24.2
COMESA
6.0
8.2
39.3
20.8
25.7
EAC
18.1
12.4
40.5
3.6
25.4
ECCAS
2.5
45.2
27.7
22.8
ECOWAS
10.3
2.9
39.0
26.1
21.8
SADC
12.8
4.6
26.6
14.0
42.0
Africa
6.8
5.8
49.7
15.1
22.7
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5. Marginalisation in the Globalisation Process
Volume of goods across borders has increased exponentially in recent years: 50 times higher in 1999 than in 1960
Africa has failed to benefit from steady increase in international trade
In 1950, Africa delivered 10% of world exports, by 2000 this share had declined to <3%
 Situation worse in sub-Saharan Africa whose share of world exports of goods and services is < 1.5%
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6. KEY ISSUES OF TRADE FACILITATION
High transport costs
Complicated customs procedures
Inadequate usage of information and communication technology
Payments, insurance and other financial requirements
International trade standards
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7. Transport cost as a share of value of exports (%)
HIGH TRANSPORT COSTS
Country
Transport cost as a share of value of exports (%)
Central African Republic 33
Chad 52
Malawi 56
Mali 36
Rwanda 48
Least developed countries 17
Developing countries 9
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8. CONTRIBUTING FACTORS TO HIGH TRANSPORT COSTS IN AFRICA
Inadequate infrastructure network
Inefficient transport services
Multiplicity of rules governing international transportation of goods
Numerous roadblocks
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9. Axle load limit (tonne)
VARIATIONS IN TECHNICAL STANDARDS FOR VEHICLES HAMPER MOVEMENT OF GOODS
RECs
Axle load limit (tonne)
Max. load
Max. length
Max height
Max. width
Single axle
Tandem axle
Triple axle
(tonne)
(metre)
(Meters)
CEMAC 13 21 27 50 18 4 25
COMESA 10 16 24 NA 22
ECOWAS 12 51
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10. ROADBLOCKS ARE A MAJOR OBSTACLE TO TRADE IN AFRICA
Highways
Distance (km)
Number of Checkpoints
Checkpoints per 100 km
Lagos-Abidjan
992 69 7
Cotonou-Niamey
1036 34 3
Lome-Ouagadougou
989 4
Accra-Ouagadougou
972 15 2
Abidjan-Ouagadougou
1122 37
Niamey-Ouagadougou
529 20
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11. CUMBERSOME CUSTOMS AND ADMINISTRATIVE PROCEDURES HAMPERS TRADE EXPANSION
Excessive documentary requirements
Insufficient use of automated systems
Lack of transparency, predictability and consistency
Lack of cooperation among customs and other governmental agencies
Separated border posts, differences in working hours, visa requirements for transport crew members
New maritime security measures
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13. INSUFFICIENT USE OF ICT INCREASES TRADE TRANSACTION COSTS
Telecommunication services are inadequate, inefficient and very expensive
Strong linkage between customs delays and telephone charges and internet distribution:
Botswana and Namibia: 4 days delay; $4.8 and $4.28 per 3 minutes international call respectively
Ethiopia and Cameroon: 30 and 20 days delays; $7.44 and $7.7 per 3 minutes international calls respectively
Low level of awareness of e-commerce
Insufficient physical infrastructure
Deficient electronic transaction infrastructure
Inadequate legal and regulatory framework
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14. Mobile Telephone and Internet connectivity in African RECs
Cellular subscribers per 100 people
Internet users per 10,000 people
CEMAC
5.2
21.8
COMESA
5.8
35.0
IOC
15.6
115.5
SACU
11.3
490.5
SADC
10.1
147.1
UMA
129.3
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15. INEFFICIENT INTERNATIONAL PAYMENT MECHANISMS RESULT IN LONG DELAYS
Documentary credit is the most popular international payment system in Africa
Half of all payment requests are rejected because of documentary inconsistencies.
High insurance premiums for African countries
Customs guarantee payments represent a high cost for transport operators
Multiplicity of currencies and exchange rate arrangements
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16. MULTIPLICITY OF INTERNATIONAL TRADE STANDARDS CONSTITUTE A BARRIER TO TRADE
Standards have potential to substitute tariffs and quantitative restrictions
Standards impose higher production costs for firms in developing countries
EU standards on agricultural products are of great concern to Africa
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17. EFFORTS TO FACILITATE TRADE IN AFRICA
Efforts at sub regional level
Several RECS have trade facilitation programmes
Bilateral cooperation
Several bilateral agreements exist
Cameroon has signed conventions with Chad and CAR; special facilities provided to landlocked countries at seaports
Efforts at country level - One stop shops
Efforts by international organizations
Corridor management committees
Observatories of abnormal practices
Joint border posts
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18. Regional TF Activities
Corridors recognized/benefiting from SSATP
Djibouti-Addis Ababa Corridor
Northern Corridor
Dar es Salaam Corridor
North South Corridor
Point Noire-Brazzaville/Matadi-Kinshasa-Bangui Corridor
Douala-Bangui-N’jamena Corridor
ECOWAS-UEMOA Corridors (Lagos-Abidjan; Tema-Ouaga-Niamey &Bamako; Lome-Ouaga-Niamey & Bamako)
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19. Regional TF Activities: Establishment of Corridor Committees (con’t)
Technical Committee for Djibouti- Addis Ababa Corridor (being) established in Ethiopia/ Djibouti(?)
Charter for Douala-N’jamena-Bangui Corridor reviewed; National Facilitation Committee created in Chad
Standard text for National Facilitation and Corridor Committees established in ECOWAS and 8 National Committees set up
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20. Regional TF Activities : Creation of Observatories
Committee need relevant information to function effectively
Observatories could play an important role in that regard
Observatory exist in Abidjan-Lagos Corridor
Baseline survey for Northern Corridor observatory completed
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21. Regional TF Activities : Establishment of Joint Border Posts
Prominent among TF projects
Several pilot projects introduced, including:
Malaba (Kenya/Uganda border)
Seme/ Krake Plage (Benin/Nigeria)
Cinkase (Burkina Faso/Togo)
Chirundu (Zambia/Zimbabwe)
Having an appropriate legal framework is a constraint to establishment of joint border post
Study on legal status of joint border posts undertaken by ECOWAS
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22. Trade Facilitation measures in COMESA, ECOWAS and CEMAC
Hamonised:
-Transit charges
-Carrier license and transit plates
-Axle load limits
Introduced:
-ACIS, ASYCUDA
-Customs bond guarantee scheme
-Inter-State road transport convention
-Inter-State road transit convention
-Brown Card insurance scheme
-ASYCUDA
-Highway code
-Common insurance scheme
-Multimodal transport Convention
-Concept of corridors
-TIPAC
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23. THE WAY FORWARD
1. Strengthen Africa’s infrastructure network to support international trade
2. Improve the efficiency of transport services
3. Remove illegal roadblocks
4. Speed up customs and border crossing procedures
5. Promote the use of new technology
6. Strengthen regional initiatives
7. Reduce negative impact of multiplicity of standards:
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24. Thank you!
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