South Africa eases barriers to trade with neighbours

The South African government is working on removing barriers to trade with the country’s immediate neighbours. On November 7, Parliament’s standing committee on finance adopted a bilateral agreement between South Africa and Mozambique that brings the creation of a one-stop border post between the two countries a step closer after more than six years of negotiations. The implementation of the one-stop border post at the Lebombo- Ressano Garcia border could spur the introduction of similar facilities throughout the Southern African Development Community (SADC), which has made a commitment to stimulating trade through more efficient border crossings. Africa’s only one-stop border post is at Chirundu, which is the main crossing point for traffic travelling between Lusaka and Harare. South Africa has opened discussions with Zimbabwe about having a one-stop border post at the congested Beitbridge border to the south – which will speed up the movement of freight from Durban and Gauteng into the hinterland. In August 2012 South Africa and neighbouring Botswana signed a memorandum of understanding to promote trade and investment between the two countries and create opportunities for industrialisation and the manufacturing sectors. To the west, president Jacob Zuma called for the prioritisation of cross-border infrastructure between Namibia and South Africa in an address to the Namibian parliament early in November. Namibia and South Africa have signed 52 agreements and memorandums of understanding. “It is our belief that the establishment of a free-trade area in the sub-Saharan African region will greatly enhance our ability to trade with one another and ensure the strengthening of the region as a whole,” Zuma said. The World Bank estimates that a one-day reduction in inland travel time in sub-Saharan Africa could result in a 7% increase in exports. A 10% reduction in logisticsrelated costs through greater efficiency could increase exports 4.7%. INSERT 1 South Africa has opened discussions with Zimbabwe about having a onestop border post at the congested Beitbridge border to the south. INSERT 2 7% The estimated increase in exports as a result of a one-day reduction in inland travel time.