‘Growing move to strip away bureaucracy’

Trade barriers remain one of the biggest impediments to growing trade with and within Africa. According to Donald Nay, regional senior commercial officer, sub-Saharan Africa, for the US Commercial Service barriers such as local-content requirements, inefficient customs clearance and payment processes, high tariffs and limited access to finance are some of the major obstacles for American companies doing business in Africa. Charles Brewer, managing director of DHL Express sub- Saharan Africa countries agrees, saying it is especially the lack of trade agreements that impacts negatively. “Yet many countries are recognising that they need to find ways to make their markets accessible and easier to do business with. A great example for the region is Rwanda, which is looking to strip away bureaucracy, remove the red tape and make the country an attractive destination for trade and investment. More African countries need to follow this example, and the region will reap the rewards in the long term,” he says. Another challenge, says Nay, is the lack of infrastructure on the continent. Strong infrastructure improves the ease of doing business and is central to industrial competitiveness. “Political instability, weak or dysfunctional institutions, corruption, slow implementation of business- and investmentfriendly policies, and the lack of work force skills and development all affect trade and investment and are challenges that have to be overcome,” he said. Despite these issues countries such as the United States have committed to growing their trade with African states who have welcomed the move to diversify away from traditional markets such as Europe. At the same time there is also a strong drive towards growing trade regionally amongst African countries. “There are many ‘misconceptions’ about Africa that many believe play just as a big a role in slowing down trade with Africa,” said Nay. “For decades, misconceptions about Africa have abounded in the media, thereby dampening business. These need to be countered more effectively by all countries concerned,” he said. Africa itself is working hard to change these perceptions, with regional organisations such as the East African Community (EAC), the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (Comesa) tirelessly adapting and implementing policy that will address trade barriers. INSERT & CAPTION Many countries are recognising that they need to find ways to make their markets accessible and easier to do business with. – Donald Nay