South African exporters to southern Africa are paying a much higher price to send their products to neighbouring countries than their counterparts who export to South Africa.
“We recognise that our neighbours have needed a helping hand in getting their products to market and that much is written about the trade imbalance between South Africa and some of its cross-border trade partners, but we are definitely losing opportunities for expansion into neighbouring markets because of high tariffs and logistics costs, amongst others,” an exporter told FTW on condition of anonymity.
Leon von Benecke, director of operation support and safety for National Road Carriers, agreed. “The logistics playing field is not equal between South Africa and its neighbours.”
He pointed to the looming carbon tax that would soon be implemented in South Africa. “We already pay carbon tax in many other countries but they are exempt from taxes here.”
Von Benecke added that fuel prices and toll gate fees were “exorbitantly high” in many neighbouring countries.
“Toll fees – often charged in US dollars – are an easy way for countries to up their revenue, and since exports into Africa often originate in South Africa, the price of the exported goods compares unfavourably to that of a locally produced item,” he said.
Another transporter – who has recently decided to bypass the “heavily congested and corrupt” Beitbridge border and use the Kazangula crossing – highlighted in a recent nontariff barrier (NTB) complaint that Botswana required transporters to get exemption permits issued either in Francistown or Gaborone.
“The same original permits must then be couriered to Kazungula where the permit must then be presented to the Kazungula Post and Telecommunication (PTC) desk for authorisation and stamping, then on to the Botswana Power Corporation for authorisation and stamping. Only then can the truck proceed to Kazungula weighbridge and present the permit,” the complaint reads.
Futhermore, these permits were only valid for seven days so the window in which to use the same permit was very narrow, especially since there were sometimes issues where the Zambia Revenue Authority Asycuda system experienced failures and down time, the transporter explained.
“This is just one of many hurdles being put in the road which is increasing the costs of regional trade.”
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We already pay carbon tax in many other countries but they are exempt from taxes here. – Leon von Benecke
