Africa

World Trade Organisation - Geneva 2012

 61 Operational sites
in Europe

Over 1,100
operational
locations 968 Operational sites in
worldwide Southern Africa

 Africa in Perspective – Key Road Block Scenario

 Key Challenges

 Conclusion - Risk and Reward

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
Total 153,350,808 149,240,722
Exports % Contribution Imports % 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

Luanda AG 2 240 000 4 360 000 1 980 000

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

Heading % “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

 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