US focus extends to cross-border trade facilitation

With continued
improvements
in ports and
expanded
rail infrastructure, South
Africa needs to lead the
way in facilitating crossborder
trade and ensuring
regulatory and systems
harmonisation.
This is the view of Donald
Nay, United States regional
senior commercial officer
for sub-Saharan Africa at
the US Commercial Service.
He told FTW that studies
had shown that just a 20%
decrease in cross-border
processing time could
“significantly” bolster the
economy of South Africa by
creating thousands of new
jobs.
“Trade facilitation is a
proven way to boost trade
and stimulate the economy,
especially for developing
nations, and South Africa
has the best infrastructure
regionally to facilitate
trade.
However they need to
continue with their capital
expenditure in ports and
rail,” commented Nay.
He pointed out that
currently 85% of South
Africa’s freight travelled
by road which took a
toll on the highways.
Furthermore, without
harmonisation at border
posts, trucks having to
wait days to cross borders
reduced the volume of
trade.
According to Nay, the
US Commercial Service
is tasked not only with
broadening and deepening
trade relations through job
creation in both countries,
but with actively breaking
down barriers that stand
in the way of the free f low
of goods and services, and
encouraging increased
investment.
“At the same time we
need to address critical
infrastructure and energy
challenges and promote
regional economic and
commercial integration.
In the energy sector
in particular we are
cooperating in a number
of areas and engaging on
a broad range of issues
through the US-South
Africa energy dialogue,”
said Nay, noting that the
US was impressed with
South Africa’s renewable
energy programme.
“We view it as one of
the best programmes
of its kind in the world
and are proud that the
United States is one of
the largest investors
in this programme –
including investments
from the US Overseas
Private Investment
Corporation and the US
Export-Import Bank. We
hope to continue to work
with South Africa as it
seeks to expand its energy
efficiency.”
Nay pointed out that some
of South Africa’s efforts
to create and implement
industrial policies had
created high levels of policy
uncertainty for local and
foreign investors alike.
“Among the key concerns
are evolving localisation,
tighter labour markets,
and the prospect of weaker
property rights,” he
explained.
However,
according to
Nay, record
growth
was set to
continue
across the
continent as
Africa raced
to catch up
with the rest
of the world.
He said
international
companies were
recognising this and
would continue to compete
for a piece of the action
in the thriving African
marketplace. “Already
there are more than 400
companies with Africabased
revenues greater
than US$1 billion. I expect
this to
continue to
grow and also
anticipate
seeing new
small and
mediumsized
enterprises
spring up
as a result
of increased
demand and
competition,”
said Nay.
CAPTION
SunEdison, a US-owned renewable energy development
company, is running an 86-MW DC solar photovoltaic project in
the Northern Cape as part of SA’s renewable energy programme.
INSERT & CAPTION
Time we need to address
critical infrastructure
and energy challenges,
and promote regional
economic and
commercial integration.
– Donald Nay
FACTS AND FIGURES
The United States is South Africa’s third-largest trading partner
• South Africa is a key export destination for the United States, constituting
18.5% of total trade with Africa.
• Two-way trade in goods topped US$13 billion in 2014, compared to US$15.8 in 2013.