How to reduce the cost of doing business

FTW readers shared a number of practical ideas on how African manufacturers and exporters can be made more competitive by lowering overall logistics costs. They include: • Reducing transit times at borders – one of the most mentioned challenges facing transporters. “Customs unions must play their part to ensure quicker clearing at the borders,” wrote logistics consultant Richard Froud. • “Open skies and one stop borders – better co-ordination and harmonisation between customs authorities in the various countries,” wrote Nexlog operations director Mike Walwyn. • Getting serious about tackling bribery and corruption – this is a common theme throughout the responses. • Upgrading of the rail infrastructure. The SADC region needs “well maintained and fully functional rail connections, standardisation of gauges, and proper implementation of the Yamassoukro Declaration,” wrote Walwyn. • He is supported by Supply Chain Dinamix’s Cobus Lubbe, who wrote that a move to rail would decrease bottlenecks and damage in road transport. He said governments should be putting pressure on rail managers to increase efficiency “(ie, focus on long-term investment and improvement projects). Rail is significantly cheaper than road”. • Lowering the cost of diesel for transporters.