The document summarizes a round table discussion on promoting intra-African trade. Participants discussed challenges to intra-African trade like infrastructure issues, non-uniform standards, and lack of trade data. They also suggested ways to address these challenges such as improving trade information systems, empowering small businesses, and promoting a more unified regulatory environment in Africa.
Promoting advocacy on intra african trade for development in africa
1. PROMOTING ADVOCACY ON INTRA-AFRICAN
TRADE FOR DEVELOPMENT IN AFRICA
Round Table Brainstorming Meeting
Thursday 26th
November
DRAFT REPORT
I. INTRODUCTION
A small round table brainstorming meeting on the above
subject took place at CAPDEV’s1
office on 26th
November
2009. The meeting brought together a number of persons
knowledgeable and with diverse experiences on the subject
and related development issues. Attached to this note is the
list of key participants in this first session of brainstorming. A
few other invitees expressed interest, but were unable to
attend due to prior engagements.
II. PURPOSE AND AGENDA
The purpose of this small round table brainstorming initiative
is to generate and exchange ideas on the present situation
of Intra-African trade promotion and advocacy. For this first
meeting, the agenda items included:
Introduction to the subject for discussion: Promoting
an Intra-Africa Trade for Development Agenda.
Promoting advocacy and actions towards a greater
Intra-Africa Trade in the context of the current global
economic and financial crisis and current continental
developments in Africa.
1
Capdev: Capacity and Development Services (near Fourways, Johanessburg). The
office is also promoting an African Trade and Development Initiative (Af-TADI)
2. General exchange of views on:
Challenges
Opportunities
Entry points
Key players (Institutions, Organizations, Individuals/
Champions, etc.)
III. CONTENT OF DISCUSSIONS
i Presentation
The discussion began with a short PowerPoint presentation
(by the organizer of the meeting) regarding the overall Intra-
African trade situation. Some of the points highlighted in the
presentation included:
a) Some trends and current situation regarding Intra-Africa’s
Export and Import patterns
Over the decade there has been up and down
movement in terms of the volume of Intra-Africa trade,
with only very modest increases.
About five countries in Africa export most of their goods
in Africa; with South Africa and Nigeria accounting for
1/3 of export within Africa. ( African Economic outlook report 2008 by
AfDB, ECA)
In 2006, African exports grew by 21% to
US$360.9billion (about 3% of world exports); compared
to 73% and 53% for EU and Asia respectively. ( African
Economic outlook report 2008 by AfDB, ECA)
3. Intra African trade exports by economic grouping in
2007 showed the following
CEMAC: To Africa US$1 968 000 000
To the world US$11 543 000 000
COMESA: To Africa US$12 747 000 000
To the World US$107 346 000 000
ECOWAS: To Africa US$ 9 941 000 000
To world US$ 73 348 000 000
SADC: To Africa US$ 14 758 000 000
To the world US$ 111 200 000 000
(African Statistical Yearbook 2009 by AfDB, AUC and UNECA)
b) Examples of challenges
Infrastructure
Transport and cost
Behind the border-issues
TBs and NTBs
Lack of information
Multiplicity of trade agreements
Multi-membership
Trade patterns inherited at independence
Soft issues (Governance, stability, economic
management, etc)
Influence/implications of trade negotiations (WTO Doha
round, EPA’s bilateral agreements, etc)
c) Some forward looking questions:
How best to re-energize current efforts regarding
Intra-African Trade?
What could be some (or new) options of approach to
tackling the different categories of challenges?
4. Are there current spaces for stronger advocacy and
actions?
What would be the possible contributions or roles for
key African stakeholder groups?
ii. General discussions
The discussions yielded a good exchange of views and
many substantive points from the participants. These
included highlights of various challenges that contributed to
a low level of Intra-African trade; as well as some
suggestions/entry points for addressing some of the
challenges.
(a) Challenges discussed:
The need for effective functional configurations (e.g.
Free Trade Areas) for promoting inter-country trade
Quality and standard issues: The standards of goods
(e.g. in terms of quantity, weight and measurements)
applicable, vary greatly in African countries
Lack of information and data on Intra-Africa trade
(official and informal): the lack of adequate, and up-to-
date on Intra-Africa trade is a bottle neck that needs to
be addressed urgently
Multiplicity of trade agreements: The diversity and
multiplicity of trade agreements in regions and
amongst African countries render effective
implementation some-what difficult; and this has an
influence on the level of Intra-Africa trade
The nature of enterprises and their management/
leadership scales/styles: small trading businesses in
Africa are often family businesses that are unable to
plan beyond their locality and country
5. Custom regulations and procedures- burdensome
administration at the boarders
Intra-African trade information management systems:
The non-availability of or difficulty to access trade
information in African countries constitute a big
challenge in promoting Intra-Africa trade for
development.
Trade patterns inherited at independence: Some trade
in Africa is still too tied to past colonial
influences/impacts as some African countries orientate
their exports/imports and trade links accordingly.
Soft Issues such as the following: Good governance,
stability, economic management, etc still pose a
challenge to Intra-Africa trade development. Political
dimensions often do constitute a challenge in terms of
whether, what, and how Intra-Africa trade is promoted
between countries
Beneficiation factor: the need to add value to things
that Africa is producing
Homogeneity of Africa’s trade products: Insufficient
diversification of raw and secondary products; and low
levels of value-addition.
(b) Suggested entry points for promoting advocacy
Intra-Africa trade going forward
A number of ideas were expressed that could be retained for
further work and discussions on promoting advocacy and
actions towards greater Intra- Africa trade:
Intra-Africa trade data and research: The need to
increase knowledge and generate information,
including developing new and grounded data on Intra-
Africa trade. More complete data is needed to cover to
include official trade as well as generating new data to
6. capture informal sector, people to people and grass-
root trade (the role of women, youth, etc).
Intra-Africa trade information systems/mechanisms:
the need to improve trade information, and to explore
the possibility of putting in place an information portal
on intra-Africa trade. This could include a mapping of
potentials and opportunities available for Intra-Africa
trade.
Create learning opportunities and promote a global
African platform for expanded Intra-Africa trade
Make investment codes Intra-Africa-friendly and more
accommodative
Technology: the need for African countries to develop
and invest in technologies that could enhance
processing of raw materials, finished products and
inter-country trading.
Greater recognition and enhancement/management of
Informal trade: African countries need to support
informal trade activities as well as people-to-people
trade through enabling management, proper policies
and tax systems.
Facilitate and enhance the movement of people in a
way that promotes free movement for trade
purposes. (i.e. manage perse, rather than restrict the
movement of people in economic spaces for trade
purposes
Enhance uniform framework regulations within African
countries: most investment codes document could
benefit from a slightly greater inter-country
harmonisation; as well as from the explicit inclusion of
policies encouraging and the management of Intra-
African trade.
Put in place political and economic mechanisms to
protect the trade environment in Africa
7. Small operator empowerment/enhancement:
Empower small businesses through Finance,
knowledge and skills to trade within the continent.
De-linking trade and aid
Sharing information on, and progressive
harmonization of business modus operandi (modern
practices as well as operational approaches cross
countries)
Protecting local products: The need to identify proper
mechanisms and ways to protect local product is
important for Intra-African trade development
Need to balance national sovereignty concerns with
the greater continental imperatives of regional
integration
Free Trade Areas (FTAs): The usefulness of
promoting Free Trade Areas (beyond customs unions,
per se); including possibility of creating an all Africa
Free Trade Area
Opening of free trade zones to other countries in
Africa to facilitate the flow of goods and services
Trade facilitation: More attention should be given to
trade facilitation measures.
Dual approach: Intra-Africa trade and regional
integration strategies could benefit from promotion of
both official trade as well as harnessing the potential
of the informal sector for inter-country trade. This
includes boosting the roles of CBOs/CSOs/informal
sector
Changing the mind-sets and attitudes of Africans;
through promoting greater interest and mobilisation for
Intra-Africa trade.
8. IV. CONCLUDING REMARKS AND NEXT STEPS:
Concluding Remarks
a) This round table brainstorming meeting provided an
opportunity for a substantive exchange of ideas on key
issues regarding this challenging subject. Participants
welcomed the rich and constructive sharing of perspectives
that build on (as well as contribute to) the work of some of
their organisations and others concerned with trade issues in
Africa.
b) Additional observations from the meeting point to the
usefulness of further enriching advocacy efforts through
building on and drawing upon the following helpful
considerations:
c) The reaching out to various African organisations; as well
as international organisations (e.g. ITC, UNECA, AfDB,
UNCTAD, WTO ETC.) regarding data on Intra-Africa
trade.
d) Working with and reaching out to and through non-state
concerned organisations such as OSISA and many
others, for collaboration and mobilization on Intra African
trade, knowledge generation and sharing to further
economic justice and development
e) Close work with NEPAD/African Union Commission
(responsible focal points) in promoting advocacy on the
issue.
f) Draw on useful information and analysis, for example the
kind of information prepared by think thanks such as
SAIIA and other actively engaged institutions that can be
identified.
g) Avail of and make use of the supportive environment and
information that could be available from the DTI and
similar official set ups.
9. h) Avail of the new environment provided by the AUC trade
initiatives and the ongoing work of the regional economic
communities.
Next Steps
This summary note (report) on this round table
brainstorming meeting is being shared (first) with the
participants, and then to all those invitees who were
unable to attend this time. It will also be eventually
shared as appropriate for advocacy purposes with the
few organisations actively working on Intra Africa trade
issues.
It is planned to organise a second round table
brainstorming session in the first quarter of 2010,
shortly before a larger meeting planned to take place.
Report prepared by:
Office of Mr Samuel Nyambi
CAPDEV/ Af-TADI
Johannesburg
1 December 2009
10. ANNEXES:
A) Agenda:
Promoting advocacy on Intra-African Trade for Development
Thursday 26 November 2009
Proposed Agenda
10:45am: Arrival (Tea and Coffee)
11:00am: Start of meeting
Welcome, Introductions and remarks about the purpose of the meeting
Introduction to the subject for discussion: Promoting an Intra-African
Trade for Development Agenda.
Discussions
12:00 pm: Promoting advocacy and actions towards a greater Intra-African Trade
in the context of the current global economic and financial crisis and current
continental developments in Africa.
General exchange of views on:
Challenges
Opportunities
Entry points
Key players (Institutions, Organizations, Individuals/ Champions, etc.)
12:45 pm: Concluding Remarks
13:00 pm: Lunch and end of meeting
11. B) LIST OF PARTICIPANTS
Name Organisation Responsibility E-mail Tel
Nkululeko
Khumalo
SAIIA Senior Researcher Khumalon@gmail.com 011 339 2021
Victor Mathale
NEPAD Advisor-Trade
and Industry
victorm@nepad.org 011 256 3600
Deprose
Muchena
OSISA Programme
Manger
Depose@osisa.org 011 587 5000
Zandi Mtetwa
The DTI NEPAD Assistant
Director
ZMtetwa@thedti.gov.za 012 394 3019
Ben Fugah
ECIC Senior Economist bfugah@ecic.co.za 012 471 3806
Rosalie Lo
NEPAD
Secretariat
Gender, CSO’s
and Parliamentary
Advisor
rosaliel@nepad.org 0718508559
Anna Worifah n/a n/a annaworifah@yahoo.co.uk 073 232 6545
Samuel Nyambi CAPDEV/
Af-TADI
Senior
Development Co-
ordinator
capdev.services@gmail.com
samuel.nyambi@gmail.com
011 513 3129/
011513 3128
*Other participants from Mr. Nyambi’s office:
Olivia Mbanzang N.
Solomon Tekom
Vincent Oparah
Lerato Pagiwa
C) List of other interested persons invited but unable to attend due to earlier commitments
Peter Draper SAIIA Trade Programme Head peter.draper@saiia.org.za 012 430 2670
Cosmas
Mamhunze
ECI Africa-Trade
and AGOA/
SAIBL
Senior Specialist- Trade
and AGOA
Cosmas.mamhunze@eciafrica.com 011 602 1273
Catherine Grant Business Unity
South Africa
(BUSA
Director: Trade Policy catherine.grant@busa.org.za 011 784 8000
Brendan Vickers IGD Senior Researcher:
Multilateral Trade
brendan@igd.org.za 011 3151299
Ximena Gonzalez-
Nunez
TIPS Executive Director Ximena@tips.org.za 012 431 7900
Bongekile Mbili ECI Africa- Trade
and AGOA/
SAIBL
Senior Specialist- Trade
and AGOA
Bongekile.Mbili@eciafrica.com 011 602 1263
Patrick Ooro Standard Bank Operations Manager:
Community Banking
Fund
patrick.ooro@standardbank.co.za 011 374 1253
Phiwe Marumo IDC Senior Business
Development Manger
phiwem@idc.co.za 011 2693000
Nolwazi Gasa DBSA Coordinator: Socio
Economic
NolwaziG@dbsa.org 011 3133725