There is still huge
potential for growth in
cross-border trade but a
variety of trade barriers
remain – aside from the usual
customs clearance and border
congestion bugbears.
FTW asked some industry
members to weigh in.
Q1
What are the
biggest trade
barriers holding
back cross-border
growth?
The availability of foreign
exchange to traders
enabling them to transfer
funds within reasonable time
frames in order to procure goods
quickly. The South African
trader needs to develop more
confidence in trading with the
rest of Africa with regard to
documentation requirements,
protocols and the formalities of
securing payment for goods and
services.
The introduction of
certificates required for trading
into some African countries is
new and has created some level
of uncertainty amongst traders
with regard to procedural
requirements. For example,
effective March 1, 2016,
Zimbabwe introduced the
CBCA certificate (Consignment
Based Conformity Assessment
Programme).
~ Ron Frick, Simba Logistics
The lack of cross border
visas for commercial
drivers.
High transit fees in some of
the countries.
~ Cindy-Lu Hasheela
Walvis Bay Corridor Group
The high rates of duty
where regional trade
facilities\agreements do not
reduce duty tariffs.
We have recently seen the
introduction of new customs
systems in Mozambique and
Swaziland and the rollover has
been nothing short of chaotic.
~ Alwyn Nel,
Kingfisher Freight
Q2
How can these
barriers be
overcome?
There is a need to ensure
contracts are worded
appropriately.
Roles and responsibilities
need to be clearly defined for
all parties involved. There
should be no room for
assumptions – as trivial as
it may seem. All services
and related costs need to be
accounted for upfront.
When selecting service
providers, shippers should
take into consideration
the cost of doing business,
but this should not be the
only criterion used in the
nomination of a service
provider. Value should
be placed on the expert
knowledge of a service
provider who can provide for
safe and reliable transport and
effectively and expeditiously
deal with problems as and
when they arise.
Increased relationship
marketing in Africa will
go a long way to improving
knowledge of the markets, the
cultures and the procedures
that need to be followed as a
means of doing effective
business.
~ Ron Frick
We have established
transport forums
between the various
countries. These transport
forums have been set up
through memorandums
of understanding (MoU)
with the various countries
and through private public
partnerships (PPPs) where
we discuss and try to resolve
the various corridor
matters.
~ Cindy-Lu Hasheela
Wherever possible we
have tried to work in
conjunction with the
governing authorities and
administrators to see what
can be done to speed up the
process.
~ Alwyn Nel
