This document discusses challenges to regional integration and intra-African trade. It finds that while regional economic communities have proliferated in Africa, they have failed to significantly increase trade, investment, and economic development. Barriers like tariffs, infrastructure issues, and inefficient border processes continue to impede the free flow of goods and services between countries. The document focuses on how improving border posts and customs procedures could reduce trade costs and delays, boost government revenues, and accelerate economic growth. Establishing joint border posts and one-stop border posts are presented as potential solutions to better facilitate cross-border commerce in Africa.
This document summarizes how external economic factors influence policymaking and management in Sub-Saharan Africa. It discusses several challenges, including weak competitive capacity in global trade which makes African exports less competitive. It also examines how commodity price fluctuations, decreasing capital inflows, high external debt burdens, and economic shocks in other countries negatively impact African countries' ability to effectively plan and implement development policies. The document concludes that African countries need to address internal weaknesses to strengthen their ability to deal with challenges posed by the external economic environment.
Working paper 201_-_does_intra-african_trade_reduce_youth_unemployment_in_africaDr Lendy Spires
Intra-African trade has increased over time but remains relatively low compared to other regions. Higher levels of intra-African trade are found to reduce overall, female, and male youth unemployment in Africa according to the author's empirical analysis. The study examines the relationship between intra-African trade and youth unemployment in Africa using data from 1980 to 2010 to inform policies around boosting intra-African trade and regional integration.
Over the last two decades, South Africa has made notable strides in moving away from the legacy of its apartheid
past and in consolidating the institutions and practices of democracy.
Doing Business, South Africa measures business regulations and their enforcement in 9 urban areas and 4 major ports.
Global value chains can contribute to productive
capacity development through several
mechanisms, including technology dissemination
and skills and knowledge development. They
can also open up opportunities for longer-term
industrial upgrading, especially in coordination
with other policy areas such as science, technology
and innovation policies that support technological
learning and boost competitiveness.
The document summarizes international trade and its importance for developing countries. It discusses how international trade has increased living standards globally by integrating economies. Developing countries have benefited from trade liberalization through faster economic growth, poverty reduction, and increased manufacturing exports. Further trade liberalization could realize even more gains, especially for the poorest countries. Key regional trade organizations that help developing countries participate in international trade, like AFTA and APEC, are also summarized.
Emerging markets present both opportunities and hidden risks for investors. While emerging economies often experience rapid GDP growth, studies show there is little correlation between GDP growth and investment returns. Investments in emerging markets face risks including foreign exchange conversion risks impacting returns, less liquidity, poor corporate governance, and political and regulatory risks like inconsistent transfer pricing rules. Thoroughly understanding country-specific risks is essential for investors when evaluating opportunities in emerging economies.
This document provides an overview of investment opportunities in Africa outside of commodities sectors and the potential role of Gulf investors. It finds that Africa has shown resilience to global headwinds like falling commodity prices due to positive demographic trends, economic reforms, and regional integration efforts. East Africa is emerging as the most appealing region for non-commodity Gulf investment, particularly in sectors like retail, tourism, manufacturing, and education. Gulf investors can enter African markets through various means like co-investing with private equity funds or acquiring existing businesses. Key opportunities exist in developing shopping centers, investing in tourism, and improving logistics for fast-moving consumer goods.
Beyond Commodities - Gulf investors and the new AfricaJoannes Mongardini
The document examines Sub-Saharan Africa's growth outside of natural resources and commodities, and the role of Gulf investors. It finds that Africa has proven more resilient to global headwinds than expected, supported by demographic trends, a growing middle class, and economic reforms. East Africa is emerging as the most appealing region for non-commodity Gulf investment, particularly in manufacturing, retail, tourism, and education. Gulf investors have potential options like co-investing with private equity or direct acquisitions. Retail, tourism, and improving logistics networks represent opportunities, but challenges remain in some sectors and countries.
This document summarizes how external economic factors influence policymaking and management in Sub-Saharan Africa. It discusses several challenges, including weak competitive capacity in global trade which makes African exports less competitive. It also examines how commodity price fluctuations, decreasing capital inflows, high external debt burdens, and economic shocks in other countries negatively impact African countries' ability to effectively plan and implement development policies. The document concludes that African countries need to address internal weaknesses to strengthen their ability to deal with challenges posed by the external economic environment.
Working paper 201_-_does_intra-african_trade_reduce_youth_unemployment_in_africaDr Lendy Spires
Intra-African trade has increased over time but remains relatively low compared to other regions. Higher levels of intra-African trade are found to reduce overall, female, and male youth unemployment in Africa according to the author's empirical analysis. The study examines the relationship between intra-African trade and youth unemployment in Africa using data from 1980 to 2010 to inform policies around boosting intra-African trade and regional integration.
Over the last two decades, South Africa has made notable strides in moving away from the legacy of its apartheid
past and in consolidating the institutions and practices of democracy.
Doing Business, South Africa measures business regulations and their enforcement in 9 urban areas and 4 major ports.
Global value chains can contribute to productive
capacity development through several
mechanisms, including technology dissemination
and skills and knowledge development. They
can also open up opportunities for longer-term
industrial upgrading, especially in coordination
with other policy areas such as science, technology
and innovation policies that support technological
learning and boost competitiveness.
The document summarizes international trade and its importance for developing countries. It discusses how international trade has increased living standards globally by integrating economies. Developing countries have benefited from trade liberalization through faster economic growth, poverty reduction, and increased manufacturing exports. Further trade liberalization could realize even more gains, especially for the poorest countries. Key regional trade organizations that help developing countries participate in international trade, like AFTA and APEC, are also summarized.
Emerging markets present both opportunities and hidden risks for investors. While emerging economies often experience rapid GDP growth, studies show there is little correlation between GDP growth and investment returns. Investments in emerging markets face risks including foreign exchange conversion risks impacting returns, less liquidity, poor corporate governance, and political and regulatory risks like inconsistent transfer pricing rules. Thoroughly understanding country-specific risks is essential for investors when evaluating opportunities in emerging economies.
This document provides an overview of investment opportunities in Africa outside of commodities sectors and the potential role of Gulf investors. It finds that Africa has shown resilience to global headwinds like falling commodity prices due to positive demographic trends, economic reforms, and regional integration efforts. East Africa is emerging as the most appealing region for non-commodity Gulf investment, particularly in sectors like retail, tourism, manufacturing, and education. Gulf investors can enter African markets through various means like co-investing with private equity funds or acquiring existing businesses. Key opportunities exist in developing shopping centers, investing in tourism, and improving logistics for fast-moving consumer goods.
Beyond Commodities - Gulf investors and the new AfricaJoannes Mongardini
The document examines Sub-Saharan Africa's growth outside of natural resources and commodities, and the role of Gulf investors. It finds that Africa has proven more resilient to global headwinds than expected, supported by demographic trends, a growing middle class, and economic reforms. East Africa is emerging as the most appealing region for non-commodity Gulf investment, particularly in manufacturing, retail, tourism, and education. Gulf investors have potential options like co-investing with private equity or direct acquisitions. Retail, tourism, and improving logistics networks represent opportunities, but challenges remain in some sectors and countries.
The document discusses emerging markets and economic development. It describes how countries have shifted from being hostile to foreign investment to seeking economic growth through globalization. Countries like China, India, and others are undergoing changes to become vast markets. The stages of economic development are outlined from traditional societies to mass consumption societies. Factors like infrastructure, information technology, and market forces shape how marketing strategies must be adapted for different levels of development in emerging economies.
This document discusses emerging markets and economic development. It notes that China and other emerging markets will account for 75% of global growth in the next decade as their economies develop. As incomes rise in these countries, new patterns of consumer behavior emerge. The stages of economic development are outlined from traditional societies to high mass consumption. Data is presented on infrastructure, market indicators, and consumption patterns in selected developing countries. Vietnam and South Africa are highlighted as newest emerging markets that could see rapid growth if reforms continue.
1. The document discusses globalization and its impact on the UK economy. It describes how national economies have become increasingly integrated through rising international trade, financial flows, and foreign direct investment.
2. Both benefits and disadvantages of globalization are outlined. Potential benefits include increased economic growth and specialization, while risks involve greater economic imbalances and instability within and between countries.
3. Data about recent economic indicators for the UK such as GDP growth, inflation, and debt levels is provided for background context on how globalization influences the British economy.
This document discusses emerging market economies. It defines an emerging market as a nation's economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets and regulatory bodies. Emerging markets offer opportunities for trade and investment but also risks. Lower-income and developing countries represent vast emerging markets. Privatization of state-owned enterprises offers opportunities for international firms to invest and gain access to new markets. Risks of emerging market investments include political, economic and currency volatility.
Africa 2050 Realizing the Continents Full PotentialDr Lendy Spires
This document presents a vision for Africa in 2050 called "Africa 2050: Realizing the Continent's Full Potential". The vision sees Africa achieving much higher living standards, with average per capita income increasing six-fold to $17,000, extreme poverty reduced dramatically, and 1.4 billion additional Africans joining the middle class. Key elements of the vision include much higher productivity, a thriving private sector, better integrated regions in Africa, and relationships with other world regions based more on trade and investment than aid. Achieving this vision will require leveraging drivers of change like population growth and urbanization, while managing risks like conflict and inequality. The document outlines a strategic framework and specific policy agenda to promote inclusive growth, competitive
The document summarizes the state of regional integration in Latin America and identifies key challenges. It notes that Latin American countries trade far less with each other than other regions do internally. While regional integration has reduced tariffs, there remain significant shortcomings like insufficient regulatory harmonization, weak dispute settlement, and complex overlapping integration agreements. For regional integration to maximize benefits, the document argues Latin American countries need to further facilitate intraregional trade as their most conducive path for export diversification, SME growth, and socially inclusive development.
This document discusses barriers to greater African participation in global trade and recommendations to address them. It finds that while some African countries have increased exports, many have not due to various barriers. Key recommendations include: 1) Deeper regional economic integration in Africa to create larger markets and exploit economies of scale; 2) Addressing high tariffs and non-tariff barriers African exports face in global markets, particularly for agricultural goods; 3) Improving African infrastructure and production capacity to allow greater processing of exports within Africa rather than just raw materials. Overall, reducing trade barriers both within Africa and faced by African exports globally could significantly boost African economic growth and development.
This document is a summary of the 2015 Aid for Trade at a Glance report published jointly by the OECD and WTO. It discusses how high trade costs inhibit developing countries from fully exploiting market access opportunities and integrating into the global economy. The key sources of trade costs identified are border procedures, transport infrastructure, and non-tariff measures including standards. While trade costs alone do not determine development pathways, they are a major factor in why some countries struggle to grow and diversify. Reducing trade costs is especially important for least developed countries and small and medium enterprises. The WTO Agreement on Trade Facilitation is highlighted as an important step towards lowering trade costs. Aid for trade disbursements are helping to reduce trade
The key indicators of globalization include international trade flows, financial flows, and investment flows. International trade in goods and services has grown rapidly in recent years, with annual trade growth around twice the rate of world economic growth. This increase is largely due to transnational corporations that structure production across countries based on costs. Various trade agreements have also contributed to rising world trade by reducing trade barriers between member countries.
The document provides an overview of the Middle East and North Africa (MENA) region, including:
- MENA accounts for approximately 6% of the world's population and contains 60% of the world's oil reserves and 45% of natural gas reserves, making it an important source of global economic stability.
- Key sectors discussed are trade/infrastructure, water/agriculture, health/education, and emerging challenges of climate change and conflict resolution.
- Currently, the region faces turmoil from ongoing conflicts in Syria, Iraq, Libya and Yemen, which have displaced millions of people and set back development. Unemployment also remains high in many countries.
Growing Economic Power of Developing CountriesSundar B N
This document discusses the growing economic power of developing countries. It outlines characteristics of emerging economies such as high population growth, unemployment, and dependence on primary commodity exports. Challenges include market volatility, political instability, and corruption. Sources of economic power include natural resources, trade relationships, and large populations driving demand. Benefits of increased economic power include more jobs, exports, technology upgrades, and foreign investment. The conclusion states that human resources and government policies, rather than just capital, are driving faster growth in developing nations.
External Trade Benefits and Poverty Reduction in English Speaking West Africa...iosrjce
This research examines the impact of external trade benefits on poverty reduction in five English
Speaking West African Countries (ESWACs) from 1980 to 2013. These countries include; The Gambia, Ghana,
Liberia, Nigeria and Sierra Leone). The study expressed external trade benefits (ETB) as increase in export
earnings (EXE), trade openness (TOP), total government expenditure (TGE) and reduction in foreign exchange
rate (FER), while poverty level is expressed as real gross domestic income (GNI) per capita current US Dollar.
Theoretically, the study relied on five trade theories, in practice; the study constructs a balanced panel data
structure (BPDS) and methodologically, departs from the classical OLS and 1st generation panel econometric
techniques to adopting recently developed 2nd generation panel data econometric methods. The results of the
study reveal that external trade benefits were not found to be significant enough to reduce the poverty level in
ESWACs from 1980 to 2013.This impliesthat external trade benefits did not significantly increase GNI per
capita in ESWACs within the period of study. Based on this result, the study therefore concluded that the impact
of external trade benefits on poverty level is a trivial matter because external trade benefits have not
comprehensively and significantly augmented the status of real gross domestic income (GNI) percapital
currentUSDollar of English speaking West African countries within the period of study. Following this
conclusion we recommended, among others, that policy implication on the result of co-integration of the panel
equation 2 is that more credible expansionary fiscal policy should be pursued as this will help to pump more
money into circulation with the aim of creating and expanding employment opportunities that would be able to
reduce poverty in the region and cut in public investment spending on agriculture and industrial sectors should
be avoided so that the countries will be encouraged to produce locally and also export.
The document provides information on emerging markets, focusing on BRIC (Brazil, Russia, India, China) countries. It defines emerging markets and discusses their key characteristics. It provides details on the economies, industries and companies of each BRIC country, highlighting their rapid growth and opportunities for trade and investment. Challenges facing these developing economies are also noted.
Globalization refers to the increasing integration and interdependence of world economies through increased trade and financial flows. It involves the increased movement of goods, services, capital, people and ideas across international borders. Some key aspects of globalization include increased international trade, foreign direct investment, and greater integration of financial markets. Globalization has had significant impacts on the Indian economy, including boosting exports but also increasing inequality as not all groups have benefited equally from greater economic openness. It also presents challenges like asymmetric distribution of benefits that can breed opposition to further globalization.
The document discusses several aspects of the global economy including:
- Trade and foreign direct investment have grown rapidly in recent decades, increasing economic integration.
- Gross world product, the total output of all economies, has grown significantly but global trade has grown even faster.
- Economic growth moves in cycles internationally as economies influence each other through trade, investment, and financial flows. Downturns in one country can spread to others through these global connections.
The Copernican Revolution in the Study of Economic Growth John Ross
The document discusses a "Copernican revolution" in the study of economic growth, where new evidence and methods of analysis challenged existing theories. Specifically:
1. Long-term studies by Maddison showed capital investment, not total factor productivity (TFP) as theorized by Solow, was the main driver of economic growth.
2. Jorgenson developed methods accounting for quality changes in capital and labor, addressing flaws in Solow's growth accounting framework.
3. International organizations now recognize the importance of capital investment over TFP, abandoning the theory that TFP is the primary source of growth.
CH 1 GLOBALIZATION & INTERNATIONAL LINKAGES Shadina Shah
This document provides an overview of globalization and international linkages. It discusses the major trends in global economic integration, including the shifting balance of global economic power and increasing trade and investment flows. It also analyzes the different economic systems used by countries and recent economic developments and performance in various world regions, including developments in international agreements, trade, foreign investment, and competitiveness. Key regions discussed include North America, South America, Europe, Asia, and developing/emerging countries.
In order to maximise the benefits of regional integration and look for new opportunities for competitiveness, policymakers, the private sector and development partners need access to accurate and comprehensive data on intra and inter-regional trade in Africa with respect to agricultural goods. It is in this context that CTA and the International Food Policy Research Institute (IFPRI) are launching the “African Agricultural Trade Status Report”, which examines the current status, trends and outlook in African trade performance, making an important contribution towards data and analysis of developments both at regional and at continental levels. The Report, which is released in conjunction with the Briefing, builds on the work by the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) of CAADP and the African Growth and Development Policy Modeling Consortium (AGRODEP) trade and also reflects the CTA’s commitment to advancing knowledge and sharing of best practices relating to agricultural trade.
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
The document discusses emerging markets and economic development. It describes how countries have shifted from being hostile to foreign investment to seeking economic growth through globalization. Countries like China, India, and others are undergoing changes to become vast markets. The stages of economic development are outlined from traditional societies to mass consumption societies. Factors like infrastructure, information technology, and market forces shape how marketing strategies must be adapted for different levels of development in emerging economies.
This document discusses emerging markets and economic development. It notes that China and other emerging markets will account for 75% of global growth in the next decade as their economies develop. As incomes rise in these countries, new patterns of consumer behavior emerge. The stages of economic development are outlined from traditional societies to high mass consumption. Data is presented on infrastructure, market indicators, and consumption patterns in selected developing countries. Vietnam and South Africa are highlighted as newest emerging markets that could see rapid growth if reforms continue.
1. The document discusses globalization and its impact on the UK economy. It describes how national economies have become increasingly integrated through rising international trade, financial flows, and foreign direct investment.
2. Both benefits and disadvantages of globalization are outlined. Potential benefits include increased economic growth and specialization, while risks involve greater economic imbalances and instability within and between countries.
3. Data about recent economic indicators for the UK such as GDP growth, inflation, and debt levels is provided for background context on how globalization influences the British economy.
This document discusses emerging market economies. It defines an emerging market as a nation's economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets and regulatory bodies. Emerging markets offer opportunities for trade and investment but also risks. Lower-income and developing countries represent vast emerging markets. Privatization of state-owned enterprises offers opportunities for international firms to invest and gain access to new markets. Risks of emerging market investments include political, economic and currency volatility.
Africa 2050 Realizing the Continents Full PotentialDr Lendy Spires
This document presents a vision for Africa in 2050 called "Africa 2050: Realizing the Continent's Full Potential". The vision sees Africa achieving much higher living standards, with average per capita income increasing six-fold to $17,000, extreme poverty reduced dramatically, and 1.4 billion additional Africans joining the middle class. Key elements of the vision include much higher productivity, a thriving private sector, better integrated regions in Africa, and relationships with other world regions based more on trade and investment than aid. Achieving this vision will require leveraging drivers of change like population growth and urbanization, while managing risks like conflict and inequality. The document outlines a strategic framework and specific policy agenda to promote inclusive growth, competitive
The document summarizes the state of regional integration in Latin America and identifies key challenges. It notes that Latin American countries trade far less with each other than other regions do internally. While regional integration has reduced tariffs, there remain significant shortcomings like insufficient regulatory harmonization, weak dispute settlement, and complex overlapping integration agreements. For regional integration to maximize benefits, the document argues Latin American countries need to further facilitate intraregional trade as their most conducive path for export diversification, SME growth, and socially inclusive development.
This document discusses barriers to greater African participation in global trade and recommendations to address them. It finds that while some African countries have increased exports, many have not due to various barriers. Key recommendations include: 1) Deeper regional economic integration in Africa to create larger markets and exploit economies of scale; 2) Addressing high tariffs and non-tariff barriers African exports face in global markets, particularly for agricultural goods; 3) Improving African infrastructure and production capacity to allow greater processing of exports within Africa rather than just raw materials. Overall, reducing trade barriers both within Africa and faced by African exports globally could significantly boost African economic growth and development.
This document is a summary of the 2015 Aid for Trade at a Glance report published jointly by the OECD and WTO. It discusses how high trade costs inhibit developing countries from fully exploiting market access opportunities and integrating into the global economy. The key sources of trade costs identified are border procedures, transport infrastructure, and non-tariff measures including standards. While trade costs alone do not determine development pathways, they are a major factor in why some countries struggle to grow and diversify. Reducing trade costs is especially important for least developed countries and small and medium enterprises. The WTO Agreement on Trade Facilitation is highlighted as an important step towards lowering trade costs. Aid for trade disbursements are helping to reduce trade
The key indicators of globalization include international trade flows, financial flows, and investment flows. International trade in goods and services has grown rapidly in recent years, with annual trade growth around twice the rate of world economic growth. This increase is largely due to transnational corporations that structure production across countries based on costs. Various trade agreements have also contributed to rising world trade by reducing trade barriers between member countries.
The document provides an overview of the Middle East and North Africa (MENA) region, including:
- MENA accounts for approximately 6% of the world's population and contains 60% of the world's oil reserves and 45% of natural gas reserves, making it an important source of global economic stability.
- Key sectors discussed are trade/infrastructure, water/agriculture, health/education, and emerging challenges of climate change and conflict resolution.
- Currently, the region faces turmoil from ongoing conflicts in Syria, Iraq, Libya and Yemen, which have displaced millions of people and set back development. Unemployment also remains high in many countries.
Growing Economic Power of Developing CountriesSundar B N
This document discusses the growing economic power of developing countries. It outlines characteristics of emerging economies such as high population growth, unemployment, and dependence on primary commodity exports. Challenges include market volatility, political instability, and corruption. Sources of economic power include natural resources, trade relationships, and large populations driving demand. Benefits of increased economic power include more jobs, exports, technology upgrades, and foreign investment. The conclusion states that human resources and government policies, rather than just capital, are driving faster growth in developing nations.
External Trade Benefits and Poverty Reduction in English Speaking West Africa...iosrjce
This research examines the impact of external trade benefits on poverty reduction in five English
Speaking West African Countries (ESWACs) from 1980 to 2013. These countries include; The Gambia, Ghana,
Liberia, Nigeria and Sierra Leone). The study expressed external trade benefits (ETB) as increase in export
earnings (EXE), trade openness (TOP), total government expenditure (TGE) and reduction in foreign exchange
rate (FER), while poverty level is expressed as real gross domestic income (GNI) per capita current US Dollar.
Theoretically, the study relied on five trade theories, in practice; the study constructs a balanced panel data
structure (BPDS) and methodologically, departs from the classical OLS and 1st generation panel econometric
techniques to adopting recently developed 2nd generation panel data econometric methods. The results of the
study reveal that external trade benefits were not found to be significant enough to reduce the poverty level in
ESWACs from 1980 to 2013.This impliesthat external trade benefits did not significantly increase GNI per
capita in ESWACs within the period of study. Based on this result, the study therefore concluded that the impact
of external trade benefits on poverty level is a trivial matter because external trade benefits have not
comprehensively and significantly augmented the status of real gross domestic income (GNI) percapital
currentUSDollar of English speaking West African countries within the period of study. Following this
conclusion we recommended, among others, that policy implication on the result of co-integration of the panel
equation 2 is that more credible expansionary fiscal policy should be pursued as this will help to pump more
money into circulation with the aim of creating and expanding employment opportunities that would be able to
reduce poverty in the region and cut in public investment spending on agriculture and industrial sectors should
be avoided so that the countries will be encouraged to produce locally and also export.
The document provides information on emerging markets, focusing on BRIC (Brazil, Russia, India, China) countries. It defines emerging markets and discusses their key characteristics. It provides details on the economies, industries and companies of each BRIC country, highlighting their rapid growth and opportunities for trade and investment. Challenges facing these developing economies are also noted.
Globalization refers to the increasing integration and interdependence of world economies through increased trade and financial flows. It involves the increased movement of goods, services, capital, people and ideas across international borders. Some key aspects of globalization include increased international trade, foreign direct investment, and greater integration of financial markets. Globalization has had significant impacts on the Indian economy, including boosting exports but also increasing inequality as not all groups have benefited equally from greater economic openness. It also presents challenges like asymmetric distribution of benefits that can breed opposition to further globalization.
The document discusses several aspects of the global economy including:
- Trade and foreign direct investment have grown rapidly in recent decades, increasing economic integration.
- Gross world product, the total output of all economies, has grown significantly but global trade has grown even faster.
- Economic growth moves in cycles internationally as economies influence each other through trade, investment, and financial flows. Downturns in one country can spread to others through these global connections.
The Copernican Revolution in the Study of Economic Growth John Ross
The document discusses a "Copernican revolution" in the study of economic growth, where new evidence and methods of analysis challenged existing theories. Specifically:
1. Long-term studies by Maddison showed capital investment, not total factor productivity (TFP) as theorized by Solow, was the main driver of economic growth.
2. Jorgenson developed methods accounting for quality changes in capital and labor, addressing flaws in Solow's growth accounting framework.
3. International organizations now recognize the importance of capital investment over TFP, abandoning the theory that TFP is the primary source of growth.
CH 1 GLOBALIZATION & INTERNATIONAL LINKAGES Shadina Shah
This document provides an overview of globalization and international linkages. It discusses the major trends in global economic integration, including the shifting balance of global economic power and increasing trade and investment flows. It also analyzes the different economic systems used by countries and recent economic developments and performance in various world regions, including developments in international agreements, trade, foreign investment, and competitiveness. Key regions discussed include North America, South America, Europe, Asia, and developing/emerging countries.
In order to maximise the benefits of regional integration and look for new opportunities for competitiveness, policymakers, the private sector and development partners need access to accurate and comprehensive data on intra and inter-regional trade in Africa with respect to agricultural goods. It is in this context that CTA and the International Food Policy Research Institute (IFPRI) are launching the “African Agricultural Trade Status Report”, which examines the current status, trends and outlook in African trade performance, making an important contribution towards data and analysis of developments both at regional and at continental levels. The Report, which is released in conjunction with the Briefing, builds on the work by the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) of CAADP and the African Growth and Development Policy Modeling Consortium (AGRODEP) trade and also reflects the CTA’s commitment to advancing knowledge and sharing of best practices relating to agricultural trade.
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
Pacific Coast Locators is a privately owned utility locating company that serves clients in construction, engineering, and environmental industries. They use ground penetrating radar and electromagnetic equipment to accurately mark the locations of underground utilities to promote safety and prevent damages. Their services help avoid costly accidents and project delays that can result from unmarked utilities. Studies show utility locating saves $4-10 for every $1 spent by reducing relocation and delay costs during construction projects.
Audacity es un editor de audio y grabador gratuito disponible para Windows, Mac y Linux. Permite grabar, editar y mezclar audio, así como agregar efectos. Fue creado en 1999 por Dominic Mazzoni y Roger Dannenberg. SoundCloud es una plataforma para distribuir música en línea donde los usuarios pueden compartir, promocionar y vender su trabajo. Los usuarios pueden escuchar música directamente en el sitio o a través de aplicaciones móviles. Flickr es un sitio para publicar fotos e imágenes. Los usuarios deben
Las licencias Creative Commons son contratos legales que permiten proteger y compartir contenidos como blogs, documentos y presentaciones, especificando si se puede usar, modificar o distribuir la obra con fines comerciales o no. Algunas herramientas que facilitan el intercambio de recursos son YouTube para videos, SlideShare para presentaciones y Flickr para fotos. La ofimática web agiliza tareas de oficina mediante el uso compartido de documentos en redes, aunque depende de la conectividad y puede exponer contenidos a ediciones no autorizadas.
Chuma Leratile Gqaza is a 3rd year chemical engineering student at Cape Peninsula University of Technology. He completed his secondary education at Vela Private School in 2013. His work experience includes shadowing a chemical engineer at Johnson and Johnson in 2012 and working as a laboratory technician at Consol Pty Ltd from 2015 to 2016. He has developed strong leadership, technical, and time management skills through his academic studies and work. References are provided from his previous school principal, two past employers, and a past supervisor.
O documento discute planejamento escolar realizado por Cristiane Ferreira Nunes e Rosimeire Alves Magalhaes. As autoras analisaram as necessidades da escola e desenvolveram um plano para melhorar o ensino e aprendizagem dos alunos no próximo ano letivo.
Anthony Stark is a billionaire engineer who constructed a powered armor suit to escape captivity. After a terrorist attack lodged shrapnel in his heart, Stark created increasingly advanced suits of armor to fight threats. He co-founded the Avengers initiative and uses his Iron Man suits equipped with repulsor rays, lasers, and missile launchers to battle villains with superhuman strength and jet propulsion capabilities.
This document provides baseline results from a 2014 neighborhood survey conducted by Mission Promise Neighborhood (MPN) in San Francisco's Mission District. The survey collected information from 342 Latino families with children ages 0-23 on topics like housing, employment, education, health, and community resources. Key findings include high levels of housing instability and overcrowding, low-wage jobs held by working parents, early childhood development needs, and safety concerns in the neighborhood. The results establish a baseline for tracking changes over time as MPN works to address concentrated poverty and increase opportunity for families in the community.
SD Inglés II U2 A4 CCH Oriente Matutino: Nadia González, Efraín Hernández, Mó...Araceli Mejia
Este documento presenta una secuencia didáctica para una unidad de inglés sobre dar y seguir indicaciones para llegar a lugares. La secuencia incluye actividades como ver videos, identificar vocabulario, completar guiones, seguir indicaciones en un mapa, practicar preguntas de dirección, escribir mensajes de texto con indicaciones y role plays. El objetivo es que los estudiantes puedan intercambiar información sobre lugares y dar instrucciones para llegar a ellos de forma oral y escrita.
El documento describe los pasos para la fabricación y comercialización de productos, incluyendo la planificación de la producción mediante diagramas de flujo y listados de fases, así como ejemplos del proceso para una mesa, con fases como cortar la madera, colocar el vidrio y pintar. Explica también los procesos de aprovisionamiento de materiales, fabricación y almacenamiento de materia prima.
El documento analiza críticamente una película desde varias perspectivas como el género, la equidad vs igualdad, y los paradigmas de género. Señala que todos los roles y estereotipos de género son paradigmas que se han ido rompiendo con el tiempo. También discute que al discriminar o asignar roles de género rígidos según la sociedad se genera violencia al no haber respeto por lo que cada uno piensa.
SD Inglés II U2 A2 CCH Vallejo Matutino: Diana Fernández, Luis Daniel Gonzále...Araceli Mejia
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This document summarizes the history of regional integration in Africa. It discusses how African governments have pursued many regional integration initiatives to address the challenges of small national markets and fragmented geography. However, these initiatives have had poor implementation despite ambitious targets. The traditional paradigm of linear market integration focusing on border measures may not be appropriate for Africa, as supply-side constraints may be more important barriers. A deeper integration agenda addressing behind-the-border issues could more effectively help overcome national constraints.
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past three decades, either unilaterally or as part of multilateral initiatives. Nevertheless, trade barriers remain
high in many developing countries. One of the concerns that attributes to the reluctance of many of these countries
to liberalize their trade regime is the possible worsening of the trade balance.
This research paper is meant to give a recommendation on which macro-economic indicators sub-Saharan African
countries should pay particular attention to, implementing the necessary policies to ensure its effectiveness thereby
ensuring a step-up in those aspects of the economy in order to promote development. It considers 46 different
countries with different economic policies in sub-Saharan Africa for a 14-year period. Most papers considering
sub-Saharan African region consider a selected few countries based on certain economic reasons of their choice,
and those who consider most countries in the region have different macroeconomic indicators they employ for their
modeling. This paper considers if not all, almost all sub-Saharan African countries regardless of their economic
status.
The WTO has made broad efforts to support trade development in Africa over the last 10 years through various agreements, programs, and technical assistance. This includes supporting implementation of the Trade Facilitation Agreement to reduce trade costs, the Standards and Trade Development Facility to help exports meet sanitary requirements, and capacity building initiatives on intellectual property, government procurement, and trade in services. The COVID-19 pandemic has significantly slowed economic growth and development gains in Africa due to disruptions to trade and the continent's vulnerability. The WTO and multilateral trading system aim to continue providing frameworks to spur investment and recovery through open and predictable markets.
Sub-Saharan Africa has significant potential for economic growth through trade and regional integration given its small, undiversified economies that are distant from major markets. However, the region faces many challenges to realizing this potential including weak transportation infrastructure that results in high trade costs. Addressing these infrastructure deficiencies through regional coordination and cooperation could help reduce trade barriers and unlock economic growth in the region. Key areas for collaboration include developing integrated regional transportation corridors, reducing administrative trade costs, and creating regional electricity markets to achieve economies of scale in power generation. Political commitment is needed to drive reforms across borders to improve infrastructure that facilitates regional trade integration in sub-Saharan Africa.
The East African Community (EAC) was established in 2000 between Kenya, Uganda and Tanzania with the aim of increasing trade and economic cooperation in the region. It has since expanded to include Rwanda and Burundi. The EAC seeks to create a large common market to attract investment and increase competitiveness. With a population of over 137 million currently that is projected to exceed 150 million by 2015, the EAC represents a sizable consumer market in Africa second only to Nigeria. Member states have also experienced strong GDP growth averaging around 8-9% annually in recent years. While challenges remain, the EAC's political and economic integration has progressed further than its previous iteration and its development is expected to significantly impact business opportunities in East
Edwin Laurent opened remarks at a conference on economic potential for Africa's regional trade cooperation by acknowledging the importance of an Africa-led approach to development. He highlighted that Africa has not fully benefited from globalization and economic growth in the same way as other developing regions. However, regional integration efforts including trade blocs could help address challenges by extending domestic markets and enabling countries to better capitalize on economic opportunities through cooperation rather than competing interests of foreign entities. While regional approaches show promise, Laurent noted transportation infrastructure and costs present major barriers to realizing their full benefits for development in Africa.
South Africa, officially the Republic of South Africa, is the southernmost sovereign state in Africa.
It is bounded on the south by 2,798 kilometers of coastline of Southern Africa stretching along the South Atlantic and Indian Oceans, on the north by the neighbouring countries of Namibia, Botswana and Zimbabwe, and on the east by Mozambique and Swaziland, and surrounding the kingdom of Lesotho.
South Africa is a multiethnic society encompassing a wide variety of cultures, languages, and religions.
Its pluralistic makeup is reflected in the constitution's recognition of 11 official languages, which is among the highest number of any country in the world.
South Africa has the seventh-highest per capita income in Africa. However, poverty and inequality remain widespread, with about a quarter of the population unemployed and living on less than US$1.25 a day.
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This document discusses diversifying African trade. It provides a snapshot of current African trade, which remains highly dependent on commodities, with minerals and ores making up over two-thirds of exports. While the EU and US are still major trade partners, Chinese trade with Africa has surged significantly in recent years. The report examines partnerships with emerging economies like India and Turkey that are increasing trade with Africa. It also looks at regional trade blocs and external trade policies, identifying obstacles to trade and providing recommendations to further diversify African trade and promote sustainable economic growth.
Regional Economic Integration (REI) refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together.
Regional economic groups eliminate or reduce trade tariffs (and other trade barriers) among the Partner States while maintaining tariffs or barriers for the rest of the world (non-member countries).
Geographical proximity, cultural, historical, and ideological similarities, competitive or complementary economic linkages, and a common language among the Partner States are importantly required for effective economic integration.
Regional economic integration in Africa traces back to 1910 with the formation of Southern African Customs Union (SACU) by the countries of Botswana, Lesotho, Namibia, Swaziland and South Africa. Other main economic arrangements include East African Community (EAC), Southern African Development Community (SADC), the Economic Community of Central African States (ECCAS), Economic Community of West African States (ECOWAS), the Common Market for Eastern and Southern Africa (COMESA), Arab Maghreb Union (AMU) etc. Also there is the planned African Economic Community, whose treaty was signed in 1991 (the Abuja Treaty) and it is expected by 2025. All these efforts are aimed at unifying Africa, but, there has been limited success due to the various problems which the region is facing including the internal civil wars.
Regional economic integration in Africa has not been so effective and it faces some challenges including overlapping memberships due to the multiplicity of its economic communities.
The similarity and smallness of the African countries together with the competition between each other in the global market for the same products are some of the reasons responsible for the past lack of success in the economic integration in the continent.
Several attempts of regional economic integration in Africa have been put into place over time, however they have been ineffective in promoting trade and attracting Foreign Direct Investment (FDI) in the continent.
Relatively high external trade barriers and low resource complementarity between Partner States limit internal and external regional trade.
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1. The document summarizes the key discussions and recommendations from a regional review meeting on Aid for Trade in Africa organized by the United Nations Economic Commission for Africa and other organizations.
2. Participants emphasized that regional integration and reducing trade costs are essential for Africa to benefit from globalization. Key priorities identified included infrastructure development, trade facilitation, and building human and institutional capacity.
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This document discusses the challenges facing integration efforts of the African Union (AU) and the Economic Community of West African States (ECOWAS). It outlines the historical evolution of both organizations and their objectives. Some of the main hurdles to integration in Africa mentioned include economic weaknesses in African countries, a lack of commitment to agreements, inadequate private sector involvement, and lengthy customs procedures. Other challenges are lack of intra-African trade due to similar industries and high transport costs, as well as problems with secretariat management and policy harmonization. Bad governance and instability in many African nations pose additional barriers to successful regional integration.
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The document summarizes the role and functions of the Economic and Social Commission for Asia and the Pacific (ESCAP). ESCAP is the regional development arm of the United Nations and serves as the main economic and social development center for the UN in Asia and the Pacific. It has 53 member states and 9 associate member states. ESCAP provides strategic links between global and country-level programs and issues to support governments in the region. It is headquartered in Bangkok, Thailand.
The document discusses the potential for deeper economic integration between the EU and Mediterranean partner countries through regulatory harmonization. Specifically:
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2) Reforming sectors like transport, telecom, electricity, and finance could have particularly strong payoffs by addressing market failures and catalyzing domestic reforms.
3) The EU's experience with integration and enlargement shows that regulatory harmonization can boost economic growth when combined with domestic adjustment policies.
In order to maximise the benefits of regional integration and look for new opportunities for competitiveness, policymakers, the private sector and development partners need access to accurate and comprehensive data on intra and inter-regional trade in Africa with respect to agricultural goods. It is in this context that CTA and the International Food Policy Research Institute (IFPRI) are launching the “African Agricultural Trade Status Report”, which examines the current status, trends and outlook in African trade performance, making an important contribution towards data and analysis of developments both at regional and at continental levels. The Report, which is released in conjunction with the Briefing, builds on the work by the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) of CAADP and the African Growth and Development Policy Modeling Consortium (AGRODEP) trade and also reflects the CTA’s commitment to advancing knowledge and sharing of best practices relating to agricultural trade.
The Brussels Development Briefing n.47 on the subject of “Regional Trade in Africa: Drivers, Trends and Opportunities” took place on 3rd February 2017 in Brussels at the ACP Secretariat (Avenue Georges Henri 451, 1200 Brussels) from 09:00 to 13:00. This Briefing was organised by the ACP-EU Technical Centre for Agricultural and Rural Cooperation (CTA), in collaboration with IFPRI, the European Commission / DEVCO, the ACP Secretariat, and CONCORD .
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Recent policies guiding economic and trade relations between the European Union (EU) and countries of the Mediterranean were aimed at creating an area of shared prosperity. The process started in the late 1970’s with the establishment of Cooperation Agreements between the EU and many countries of the Mediterranean region. The goal was to create a free trade area. This initiative gained speed in the mid‐1990’s with the launch of the Barcelona Process (1995) which eventually upgraded most of these Cooperation Agreements into Association Agreements (AA). These AAs sought the gradual elimination of tariffs on a substantial share of trade between its signatories. At the same time, the EU supported the signing of bilateral agreements between countries of the Mediterranean in order to enhance South‐South integration.
Authored by: Luc De Wulf, Maryla Maliszewska
Published in 2010
Regional integration may not always be necessary for development, as some theories and examples suggest. While regional trade blocs can increase trade and investment, they can also divert trade away from more efficient partners outside the bloc. Studies show countries may grow faster through nondiscriminatory trade liberalization at the multilateral level rather than preferential regional agreements. Regional integration also does not insulate countries from external economic forces, and intra-regional trade as a percentage of total trade often remains low. For these reasons, some studies argue South-South regional integration could potentially harm development more than help it.
Similar to Border Posts Checkpoints and Intra-African Trade - formated (20)
Border Posts Checkpoints and Intra-African Trade - formated
1. A f r i c a n D e v e l o p m e n t B a n k
AfDBChief Economist ComplexJanuary 2012
1 Introduction
For over five decades, regional integration
has been part of the African continent’s ove-
rarching strategy for economic transforma-
tion. The establishment of regional trade
agreements (RTAs) and regional economic
communities (RECs) was viewed as the pa-
nacea for a whole range of socioeconomic,
developmental and political challenges.
Their scope included the promotion of intra-
regional trade, policy coordination, and the
management or development of shared
physical infrastructure. While some of these
regional arrangements also covered issues
of common interest in public governance,
defense, and security, others extended to
political issues. The creation of RTAs and
RECs was treated as the sine qua non to
address the challenges of small domestic
markets, weak productive structures, slow
progress on reforms/ economic growth, and
widespread conflict/political instability. Over
time, however, these regional arrangements
were either punctuated by periods of stag-
nation or blighted by reversals, with modest
achievements, at best, in a few instances.
Today, regional economic groupings abound
in Africa,1 with varying degrees of integra-
tion. Nonetheless, they have failed to live up
to their full potential in terms of achieving si-
gnificant economies of scale, increased
competitiveness, industrial modernization
and upgrading, higher domestic and foreign
investment, and greater intraregional trade.
African countries have yet to fully exercise
their bargaining power or to reap all the be-
nefits of trading and engaging in a globali-
zed world, where accelerated growth is
posited as one of the key drivers of poverty
reduction. This can be largely attributed to
existing barriers (both tariff and nontariff) to
the free movement of goods and services
across countries.
The key question that these challenges beg
is: Why have countries involved in regional
integration in Sub-Saharan Africa failed to
foster competition, subsidiarity, access to
wider markets (via trade), larger and diversi-
fied investments/production, socioeconomic
stability, and bargaining power? This com-
plex and multifaceted subject demands a
more focused analysis, which may be fur-
thered by reframing the question thus: What
are the fundamental challenges to trade (i.e.
the free movement of goods and services)
which need to be addressed in order to fully
reap the benefits of regional integration in
Africa? Answering this question will help to
deepen our understanding of the concept
CONTENT
1 Introduction 1
2 Intra-African Trade
Performance 2
3 Border Posts
and Checkpoints
in Africa 5
4 Joint Border Posts
as a Solution 10
5 Potential One-Stop
Border Posts 12
6 Conclusion and
Recommendations 18
Mthuli Ncube
Chief Economist and Vice President
(ECON)
m.ncube@afdb.org
+216 7110 2062
Charles Leyeka Lufumpa
Director
Statistics Department
(ESTA)
c.lufumpa@afdb.org
+216 7110 2175
Steve Kayizzi-Mugerwa
Director
Development Research Department
(EDRE)
s.kayizzi-mugerwa@afdb.org
+216 7110 2064
Victor Murinde
Director
African Development Institute
v.murinde@afdb.org
+216 7110 2075
1 There are at least 14 Regional Economic Communities (RECs) in Africa that are officially or unofficially recognized by the African
Union (AU), some of which overlap in membership. Those RECs include AMU (Arab Maghreb Union), CEMAC (Communauté
Economique et Monétaire des Etats de l’Afrique Central), CEN-SAD (Communauté des Etats Sahélo-Sahariens), COMESA
(Common Market for Eastern and Southern Africa), EAC (East African Community), ECCAS (Economic Community of Central
African States) ECOWAS (Economic Community of West African States), IGAD (Intergovernmental Authority on Development),
SADC (Southern African Development Community), SACU (Southern Africa Customs Union) and UEMOA (Union Economique
et Monétaire Ouest Africaine).
Border Posts, Checkpoints,
and Intra-African Trade:
Challenges and Solutions
Habiba Ben Barka, Senior Planning Economist
2. A f r i c a n D e v e l o p m e n t B a n k
2
and challenges of regional integration in
Africa. Indeed, the range and scope of
the challenges are too broad to be co-
vered in a short single paper. Conse-
quently, we focus our discussion on
border posts and key impediments to
intra-African trade, which lie at the very
heart of the issue. The paper examines
the key impediments to and necessary
steps for improving cross-border trade
in Africa by facilitating both “hard” and
“soft” infrastructure development.
The core challenge is how to improve
the processes of moving goods and ser-
vices across national boundaries, and
henceforth, building and operating effi-
cient border posts and customs proce-
dures. To date, few trade facilitation
initiatives have successfully addressed
this challenge. Improving border posts
and customs procedures will not only re-
duce the cost and delays incurred by
commercial companies, and enhance
trade competitiveness, but will also
boost government revenues (potentially
by up to 25 percent) and accelerate
economic development in the continent.
2 Intra-African Trade
Performance
In 2009, Africa’s contribution to global
trade stood at just under 3 percent of
global trade, compared to close to 6
percent for Latin America and a signifi-
cant 28 percent for Asia (see Graph 1).
During the same year, intra-African
trade (i.e. trade among African coun-
tries) accounted for about 10 percent
of the continent’s total trade. This is far
below the levels of intraregional trade
achieved in Latin America and Asia (22
percent and 50 percent, respectively).
Africa’s poor performance in this res-
pect can be attributed to a variety of
systemic barriers, including: the small
size of its markets, fragmented econo-
mic space, and both demand- and
supply-side constraints. These
constraints include inadequate infra-
structure, low production capacity, limi-
ted trade financing and investment
opportunities, weak human and institu-
tional capacities, and weak trade facili-
tation. We need to examine why the
continent’s positive GDP growth record
– averaging 5.4 percent a year from
2005 to 2010 (see Graph 1) – has failed
to improve its trading position or its in-
tegration into world markets (Africa’s
GDP being less than 2 percent of the
world’s total).
The low level of intraregional trade in
Africa has been persistent. The intensi-
fication of the RTAs following the initia-
tives agreed under the Abuja Treaty of
1991 (e.g. the establishment of the Afri-
can Economic Community and the
more recent Constitutive Act of the Afri-
can Union) encouraged governments
and subregional organizations as well
as pan-African organizations (AU,
NEPAD) to scale up their efforts to-
wards facilitating intraregional trade.
Since 2000, a new pattern of trade for
the continent has begun to take center-
stage, as Africa has witnessed an up-
surge in its trade with emerging BRIC
nations. This has led to a stalling in the
ratio of Africa’s intraregional merchan-
dise trade to total trade, which has sta-
bilized at around 10 percent. Yet the
Graph 1 Africa in a globalizing world
3. A f r i c a n D e v e l o p m e n t B a n k
3
volume of intra-African trade has been
increasing. Africa’s trade and invest-
ment relationships with emerging mar-
kets has been largely at the expense of
its traditional partners (principally the
EU and the US), which have witnessed
a decline in their trading with the conti-
nent. Overall, Africa is trading more
today than in the past, but that trade is
more with the outside world than inter-
nally.
While many African RECs have made
significant progress in the area of trade
facilitation, much more effort is required
to harmonize and integrate subregional
markets. The low level of intraregional
trade is due to the lack of complemen-
tarity and diversification of production
structures, high production costs, ina-
dequate transportation infrastructure
and communication technologies, and
other technical barriers. The problem is
particularly acute in the case of the
Central African Economic and Mone-
tary Community (CEMAC) and the Arab
Maghreb Union (AMU or UMA). Al-
though the AMU member states do not
face the challenge of undiversified ma-
nufacturing exports and trade costs,
their trading pattern is concentrated on
their external partners (the EU accounts
for two-thirds of total AMU exports2),
rather than other AMU members.
CEMAC ranks lowest in terms of intra-
regional trade, with intra-CEMAC ex-
ports representing only 1.1 percent of
its total exports in 2009. The West Afri-
can Economic and Monetary Union
(UEMOA or WAEMU) registered a stron-
ger performance during the same year,
with its intra-regional exports represen-
ting 13.2 percent of its total exports.3 It
is no coincidence that UEMOA, which
is the best-performing REC in terms of
intra-community trade, successfully set
up a customs union and common mar-
ket in 2000, eliminated tariffs on goods
traded between its member states, har-
monized its customs clearance proce-
dures, abolished entry visas among all
its member countries, and significantly
improved transportation networks and
telecommunications connectivity.
The large disparity among regional
groupings in terms of intraregional trade
is clearly attributable to their differentia-
ted levels of progress in various areas:
removing tariffs and nontariff barriers;
freeing the movement of persons
across borders; developing efficient in-
frastructure; and creating enabling en-
vironments for doing business.
2.1 What are the principal
internal factors accounting
for low intraregional trade?
Trade between countries and between
subregions is typically hampered by
Graph 2 Intraregional export of commodities in selected subregions
Source: AfDB and UNCTAD.
2 United Nations Economic Commission for Africa (UNECA), Assessing Regional Integration in Africa IV. Addis Ababa, May 2010.
3 United Nations Conference on Trade and Development (UNCTAD), Economic Development in Africa Report 2009: Strengthening Regional Economic Integration for Africa’s
Development. Geneva, 2009.
4. A f r i c a n D e v e l o p m e n t B a n k
4
supply and demand factors on the one
hand (e.g. import quotas, anti-dumping
regulations,4 countervailing duties, bor-
der tax adjustments and subsidies),
and technical barriers to trade on the
other (e.g. sanitary and phytosanitary
measures, rules of origin, standards
and qualifications). Other impediments
to intraregional trade include poor in-
frastructure, a lack of human and insti-
tutional capacities, underdeveloped
and undiversified export base and ser-
vices, and political instability. Tariffs and
nontariff measures are not considered
to be significant constraints to intra-
African trade, largely because most
African countries belong to the World
Trade Organization (WTO), and so have
ratified the articles of the General
Agreements on Tariffs and Trade (GATT
1994), as well being signatories of re-
gional trade agreements (RTAs).
To unlock the potential of intra-African
trade and boost competitiveness, go-
vernments should redouble their efforts
to improve both ”hard” and ”soft” infra-
structure. “Hard” infrastructure impro-
vements would include: constructing
and/or rehabilitating transportation net-
works (roads, railroads, port facilities,
and airports), ensuring a reliable and af-
fordable source of power, and building
robust ICT systems and services. Mea-
sures on the “soft” infrastructure side
include: simplifying and harmonizing
customs and border procedures; en-
couraging the use of new technology
by customs agencies; and eliminating
corruption and illegal payments (inclu-
ding bribes to officials) at borders and
checkpoints. Tackling these issues will
not only facilitate intraregional trade and
international exports but will also im-
prove the business environment in the
continent generally, thereby encoura-
ging investment, both domestic and fo-
reign. Furthermore, the “soft”
infrastructure improvements will foster
transparency and incentivize those in-
volved in informal trade to formalize
their activities (the informal economy in
Africa represents on average about 50
percent of official GDP).
The inadequate and poor quality of
transportation infrastructure in African
countries acts as a major hindrance to
the free flow of goods across borders.
Given the substandard condition of the
African road network (only 22.7 percent
is currently paved), the poor intercon-
nectivity of the rail networks, and the li-
mited capacity of many smaller ports to
accommodate the largest supersize
container ships, moving goods across
borders is very costly and subject to
lengthy delays. This impinges on com-
petitiveness as well as consumer de-
mand, since high trade costs result in
higher retail prices and dampen the pu-
blic’s appetite to increase their spen-
ding. To give an idea of the extent of the
problem, it is estimated that transpor-
tation costs are 136 percent higher in
Africa than in other developing regions.
To improve the main intra-African road
network though would require an in-
vestment of US$ 32 billion over 15
years (including maintenance), but this
would generate trade expansion worth
about US$ 250 billion, which is almost
an eightfold return on investment.5
Once the challenge of the physical
transporting of goods from one transit
country to another country has been
addressed, most traders encounter a
further significant obstacle, which is the
cumbersome and costly procedures to
clear goods at customs and border
posts. In Africa, the average customs
transaction involves 20–30 different
parties, 40 documents, 200 data ele-
ments (30 of which repeated at least
30 times), and the rekeying of 60-70
percent of all data at least once.6 In
most African countries, there are two
complete sets of controls to be com-
pleted – one on each side of the border
post – with numerous forms of docu-
ments to be filled and cleared. These
administrative hurdles escalate trade
costs (it is estimated that each day of
delay at customs is equivalent to an
additional 85km between the trading
countries). They also encourage illicit
trade and corruption in order to bypass
delays at customs and border posts.
The lengthy procedures for clearing
goods at border posts could be ad-
dressed by the introduction of compre-
hensive automated systems for
document checking and clearing.
Many African border posts do not use
modern information technology in do-
mestic and international trade. And the
few border posts that do have integra-
ted electronic devices for document
logging face other difficulties in terms
of the frequent breakdowns of electro-
nic systems and the lack of sustainable
access to power. This renders intrare-
gional trade and exports from Africa
more expensive, due to the long cus-
toms clearance delays and lack of
transparency in the assessment of du-
ties and taxes. Improving the level of
4 “Dumping” may be defined as the act of a charging a lower price for a good in a foreign market than is charged for the same good in a domestic market. This is often
referred to as selling at less than "fair value". Under the World Trade Organization (WTO) Agreement, dumping is condemned (but is not prohibited) if it causes or threatens
to cause material injury to a domestic industry in the importing country.
5 UNCTAD, 2009, op. cit.
6 UNECA, 2010, op. cit.
5. A f r i c a n D e v e l o p m e n t B a n k
5
automation in customs services will
help to regularize the procedures,
speeding up the process and leading
to increased revenues for the govern-
ments. For instance, in Angola, the ef-
ficient use of modern information
technologies for customs procedures
has significantly cut processing time
and increased customs revenues by
150 percent.7
An even more serious challenge is that
of corruption and illicit trade, which is
extremely high at most African border
posts. As the transparency and predic-
tability of trade and business adminis-
trations are lacking, most customs
officers and companies/traders routi-
nely find themselves engaged in bribery
acts and the under-declaration of
goods as means to “facilitate” pay-
ment. Efforts to curb corruption and
bribery will not only reduce trade costs
but will also improve the business-en-
abling environment, encourage foreign
and domestic investments, and boost
government revenues.
3 Border Posts
and Checkpoints
in Africa
A border post can be defined as the
“location where one country’s authority
over goods and persons ends and ano-
ther country’s authority begins.” It is the
location where a multitude of govern-
ment agencies (i.e. Revenue Authority
– Customs; Immigration; Security – Po-
lice; Ministry of Agriculture; Ministry of
Health; Bureau of Standards, etc.) are
involved in the various document and
goods controls, the calculation and col-
lection of duties and taxes, as well as
immigration. The multiplicity of those
agencies operating on both sides of the
same border doubles the bureaucracy
at border posts, which translates into
congestion and delays (the waiting time
for a container/truck to cross a border
post in Africa can range from 3 minutes
to 2.8 days8). The cumbersome proce-
dures entailed in customs processing
can cost a consignment about US$
185 for each day of delay.9
Compared to other global regions, in-
traregional trade costs in Africa are a
matter of consternation. For instance,
the average cost of exporting overseas
a container from an African country is
US$ 2,000 while in Asia it is estimated
at less than half that amount (about
US$ 900).10 In Africa, border check-
points have been overstretched in
terms of manpower and infrastructure.
While they are primarily intended to
prevent the entry into the country of
undesirable individuals (e.g. criminals
or others who pose threats) and the
smuggling of illegal goods, they face a
range of obstacles to the free flow of
people, services and goods. These
can be summarized as: the limited in-
frastructure available, congestion due
to increased traffic volumes, delays
due to the use of outdated manual
procedures, corruption and illegal tra-
ding.
Table 1 below presents the cost of tra-
ding across selected African and global
sub-regions.
7 UNCTAD, 2009, op. cit.
8 ESA BMO Network, Harmonizing Border Procedures in the ESA Region to Facilitate Trade. November 2010.
9 Ibid.
10 Exporting procedures include packing the goods at the factory, transporting the goods inland (especially for landlocked countries), clearing the goods across borders,
and departure from the port of exit.
Table 1 Cross-border trade indicators in selected sub-regions
Region Documents to
export
(number)
Time to export
(days)
Cost to export
(USD
per container)
Documents to
import
(number)
Time to import
(days)
Cost to import
(USD per
container)
SADC 7.3 31.2 1,856.3 8.4 38.0 2,273.3
COMESA 7.2 32.4 1,915.3 8.2 38.3 2,457.5
ECOWAS 7.6 27.6 1,528.1 8.1 31.6 1,890.9
CEMAC* 9.0 35.2 2,808.8 10.8 44.0 3,721.4
Middle East & North Africa 6.4 20.4 1,048.9 7.5 24.2 1,229.3
East Asia & Pacific 6.4 22.7 889.8 6.9 24.1 934.7
South Asia 8.5 32.3 1,511.6 9.0 32.5 1,744.5
Latin America 7.1 19.0 1,310.6 7.5 22.0 1,441.1
Eastern Europe & Central Asia 6.4 26.7 1,651.7 7.6 28.1 2,457.5
EU 4.5 11.5 1,025.3 5.3 12.1 1,086.5
OECD 4.4 10.9 1,058.7 4.9 11.4 1,106.3
Source: Ministry of Economy and Finance of Nigeria (December 2011).
* The aggregate data for the CEMAC region cover all member states with the exception of Chad (i.e. Cameroon, Central African Republic, Congo,
Equatorial Guinea, and Gabon). This is due to lack of accurate data and information for Chad.
6. A f r i c a n D e v e l o p m e n t B a n k
6
3.1 Border Posts and
Checkpoints in West Africa
According to the 15th report by the Im-
proved Road Transport Governance
Initiative (IRTG), there are between 1.8
and 3.2 checkpoints per 100 km along
corridors in West Africa.11 Further, the
bribes collected by customs, police,
gendarmerie, and other uniformed ser-
vices range from US$ 3 to US$ 23 per
100 km (close to US$ 200 per average
trip). The Abidjan–Bamako corridor has
the highest number of checkpoints and
levels of bribery, which is principally a
legacy of the 2011 political crisis in
Côte d’Ivoire, especially in the northern
region of the country. A consignment of
goods moving along the West African
corridors can expect significant delays,
ranging from 18 to 29 minutes per 100
km, which equates to 7 hours of delays
per average trip. Those delays are
mainly due to the lengthy checking of
goods and vehicles by uniformed ser-
vices (police, gendarmerie, and cus-
toms) stationed along the corridors and
at border posts.
The graphs below give an overview of
the number of checkpoints, bribes, and
delays along selected corridors in West
Africa, during the first quarter of 2011.
11 The Improved Road Transport Governance Initiative (IRTG) is an ECOWAS and UEMOA initiative established in 2005 with technical and financial support of USAID’s West
Africa Trade Hub and with financial support from the World Bank’s Transport Policy Program in Sub-Saharan Africa (SSATP). It seeks to promote good road governance
along primary road corridors in the West African sub-region. http://www.borderlesswa.com.
Graph 3 Average number of controls per trip by different services
“Others” for the Abidjan-Bamako corridor include the “Forces Nouvelles” operating mainly in the Northern part of Cote d’Ivoire. Source: 15Th IRTG Report
UEMOA. http://www.borderlesswa.com.
Graph 4 Average Bribes per Trip by Service
7. A f r i c a n D e v e l o p m e n t B a n k
7
It is noteworthy that despite these high
costs, West Africa’s intraregional trade
constitutes an important proportion of
the sub-region’s total trade (13.2 per-
cent). Any improvement in removing
these administrative bottlenecks will re-
duce the trade transaction costs, en-
hance export competitiveness, and
increase intraregional trade.
One sector that is badly impacted by
the delays and inefficiencies at border
posts is agriculture, particularly in rela-
tion to value-chain crops and livestock
(e.g. maize, onions/shallots, lives-
tock/meat, millet/sorghum, rice, and
poultry). The delays experienced by
trucks carrying agricultural products;
the density of checkpoints along the
corridors; and the high “facilitation pay-
ments” to officials, severely impact the
transportation cost of goods from the
production zones to the consumer
markets, driving up retail prices. For
instance, a truck transporting
millet/sorghum on the Koutiala–Dakar
corridor (between Mali and Senegal)
has to pass through close to 100
checkpoints and border posts, and the
driver can expect to pay bribes of
about US$ 437 along the route. The
impact is exacerbated when it comes
to perishable goods, which rely on
speedy delivery times. In the wider
context of soaring global prices for
food, the need to address food secu-
rity within the continent, and the poten-
tiality of agricultural as a major export
earner– particularly to its BRIC partners
– such bottlenecks constitute a risk to
Africa’s export-led growth performance
and to its economic development.
The number of controls and the levels
of bribes and delays vary significantly by
corridor and by country. For instance,
the Ouagadougou–Tema corridor (bet-
ween Burkina Faso and Ghana) and the
Ouagadougou–Lomé corridor (between
Burkina Faso and Togo) experience a
high number of customs controls, al-
though the level of bribes paid to cus-
toms is very low compared to the
Bamako–Ouagadougou corridor (bet-
ween Mali and Burkina Faso), where al-
most half of the bribes go to the police.
Another interesting finding is that al-
though the Bamako–Ouagadougou
ranks third (among the six selected cor-
ridors in the above graphs) in terms of
the number of controls and level of
bribes paid per trip, it records the lowest
level of delays per trip (126 minutes of
delays, compared to 591 minutes for
the Bamako–Dakar corridor).12
While this paper does not delve into the
reasons for the high numbers of check-
points along certain corridors or the va-
ried levels of bribes paid to different
uniformed services, it recognizes the
severity of these constraints and seeks
to sensitize governments on the need
to remove them. To ensure trade com-
petitiveness as well as national and re-
gional economic growth, West African
countries, under the umbrella of the
RECs (i.e. UEMOA and ECOWAS),
should commit more efforts toward im-
proving good governance on the main
trade corridors in the subregion.
Graph 5 Delays per Trip in Minutes
12 UEMOA, 15th Improved Road Transport Governance (IRTG) Report. March 2011.
8. A f r i c a n D e v e l o p m e n t B a n k
8
3.2 Border Posts and
Checkpoints in Eastern
and Southern Africa
In Eastern and Southern Africa, goods
are transported through 10 major corri-
dors, namely Northern, North–South,
Dar Central, Dar es Salaam, Nacala,
Beira, Maputo, Trans Kalahari, Trans
Kaprivi, and Trans Cunene (see Map 1).
The large number of border post and
roadblocks along those corridors and
the inefficiency of the procedures are
overwhelmingly costly to traders and
businesses in the sub-region.
For instance, traders/trucks have to
negotiate 47 roadblocks and weigh
stations between Kigali (Rwanda) and
Mombasa (Kenya); and they have to
wait about 36 hours at the South
Africa–Zimbabwe border post (Beit-
bridge). In Southern Africa and EAC
countries, customs delays cost the
two sub-regions about US$ 48 million
and US$ 8 million respectively per
annum.13
13 USAID, Cross-Border Trade in East African Countries: Shared Issues and Priorities for Reform, June 2009.
Map 1 Corridors of East and Southern Africa, 2009
The customs environment in the Southern and Eastern African sub-region is characterized by a lack
of coordination among the multiple government agencies on both sides of borders. This raises the
common challenge of the duplication of procedures at each border, which increases the potential for
risk management and fraud. While some countries in the sub-region have entered into agreements to
standardize customs procedures and to coordinate government agencies, limited progress has been
achieved in the integration of processes and cooperation between border checkpoints. Furthermore,
the lack of computerized customs management systems results in lengthy and inefficient manual
operations carried out by traders and officials at borders. In most cases where customs systems are
not harmonized, the different government agencies at borders cannot interact or trade. Even when
computerized systems are used, such as ASYCUDA (see Box 1), the incompatibility of the systems that
are tailor-made to suit each country’s specific needs, together with unreliability of the networks, pose
additional threats to the cost of trade in the sub-region.
9. 3.3 The Challenge of Informal
Cross-border Trading
The bottlenecks confronting formal
cross-border trade in Africa serve to
fuel the very high level of informal tra-
ding practices. These can be defined
as the trade in goods, between two
neighboring countries, which does not
pass formally through customs
controls. While informal trade is a major
source of job creation and livelihoods
(60–70 percent of African households
earn income from the informal sector),
policymakers have been slow to incen-
tivize traders to formalize their activities.
The informal sector in Africa, which is
estimated to represent about one-third
of official GDP, is characterized by
micro, small and medium-size enter-
prises (MSMEs), predominantly women
and individual dealers in agro-business
and pastoral activities. Small traders
and business owners turn to the infor-
mal sector to avoid the complex regu-
lations and duties (especially the high
price of import and export duties) levied
in formal trade, cumbersome customs
procedures, and the high degree of
corruption and “facilitation payments”
encountered at checkpoints and bor-
der posts.
The types of products traded informally
are mainly unprocessed and from sec-
tors that are weak and poorly organi-
zed. In West Africa, they include cotton
fiber, cement, vegetable oils, petroleum
products, fertilizers, and pesticides.
Countries such as Ethiopia, Djibouti,
Somalia, and Kenya have a high inci-
dence of informal cross-border trading
in respect to veterinary drugs, livestock,
milk and dairy products, chickens and
eggs, fish, coffee, grains, beans, shoes,
clothing, manufactured and electronic
goods. In the Southern African sub-re-
gion, it is mostly crop products such as
maize, rice, and beans that are traded
informally among countries. For ins-
tance, the volume of maize traded in-
formally in the sub-region rose to
11,168 metric tonnes (MT) in April 2011
(a 79 percent increase over the pre-
vious year).14
Informal cross-border trade brings with
it a number of disbenefits. It weakens
formal trade and lessens government
resources (such as value added taxes).
It reduces potential investment in the
local economy, while being rendered
“invisible” in official national statistics,
which are used for forward planning
and policymaking by governments. In-
formal trade also lowers the efficiency
of policy measures that guarantee
health, safety and environmental pro-
tection. For example, agricultural goods
traded informally escape SPS (Sanitary
and Phytosanitary Measures) controls
at borders, which may pose health
risks. To sum up, the cost of informal
cross-border trade is significant for
most African governments and for ove-
rall socioeconomic development. For
instance, in 2006, the informal export
of goods from Uganda to its five neigh-
boring countries reached close to US$
231 million, which equates to about 86
percent of official export flows to these
countries.15
In order to address this problem, Afri-
can governments need to incentivize
small and large-scale informal trade
operators to formalize their activities by
registering their businesses, and paying
customs duties and taxes. This will help
to build an enabling environment for
business (i.e. equal access to credit
and training, knowledge and informa-
tion sharing etc.). Any attempt to in-
crease formal cross-border trade in
Africa should be accompanied by the
design and implementation of joint
trade policies as well as effective cus-
toms procedures.
A f r i c a n D e v e l o p m e n t B a n k
9
Box 1 Automated System for Customs Data (ASYCUDA)
Developed under UNCTAD’s Special Program for Trade Efficiency to assist in the
clearance of goods, ASYCUDA is a computerized customs management system which
covers most foreign trade procedures. It handles manifests and customs declarations,
accounting procedures, as well as transit and suspense procedures. The system
generates trade data that can be used for statistical economic analysis. The main
objectives of ASYCUDA are to reduce the administrative costs of external trade control
activities; help governments to bring about more effective implementation of external
trade regulations; accelerate the clearance of goods across borders; and produce timely
and reliable data.
In Africa, ASYCUDA was first implemented in Mali and Mauritania in the early 1980s. To
date, about 38 African countries have successfully installed ASYCUDA for the
computerization of their customs operations.
Source: ASYCUDA. http://www.asycuda.org
14 Southern Africa Regional Poverty Network (SARPN). Informal Cross-Border Food Trade in Southern Africa. Issue 69. April 2011.
15 Lesser, C. and E. Moisé-Lehman,. ”Informal Cross-Border Trade and Trade Facilitation Reform in Sub-Saharan Africa.” OECD Trade Policy Working Papers, No. 86. OECD,
2009.
10. A f r i c a n D e v e l o p m e n t B a n k
10
4 Joint Border Posts
as a Solution
The cumbersome procedures and re-
quirements for trading across borders
and the resulting increased trade costs
have been the subject of much discus-
sion at international trade forums. This
has underscored the need to negotiate
and implement preferential trade agree-
ments aimed at reducing the barriers
and costs of trade, which result from
compliance costs, procedural delays,
and lack of predictability, among
others. For instance, the International
Convention on the Simplification and
Harmonization of Customs Procedures,
which entered in force in 1974 (Kyoto
Convention), is a landmark agreement
for facilitating international trade and
harmonizing legislative and regulatory
requirements. The imperative to simplify
and harmonize customs procedures
was reiterated during the 2003 World
Trade Organization (WTO) Ministerial
Conference, where it was stated that
“customs administrations are a major
component in the efficiency of interna-
tional trade because they process
every single consignment to ensure
compliance with national regulatory re-
quirements and international multilateral
trading rules.”16
Many regions of the world have ente-
red into agreements to facilitate the
cross-border transportation of goods
and persons, and to standardize and
harmonize customs policies and pro-
cedures. For instance, in Asia, the
Agreement on the Facilitation of Cross-
Border Transport of Goods and People
was signed in 1999 by six member
states, namely Laos, Thailand, Viet-
nam, China, Myanmar, and Cambodia.
This calls for the harmonization of
cross-border procedures and the pro-
pagation of multimodal transportation.
It enabled the implementation of fast
border clearance through the esta-
blishment of Joint Customs Controls at
selected border sites (e.g. in Laos,
Thailand, Vietnam, and Cambodia) and
the practice of One-Stop Customs Ins-
pection (i.e. customs procedures car-
ried out at only one side of the border
but in compliance with the laws of both
countries). In the European Union, the
establishment of Joint Customs
Controls between member states has
significantly reduced duplicated ins-
pections at borders, minimized unpre-
dictable delays, and reduced the overall
cost of trade.
Improving customs procedures through
one-stop customs inspection or a One-
Stop Border Post (OSBP) is a relatively
recent phenomenon in Africa. An Afri-
can regional grouping that has carried
out significant work in this area is the
South African Development Commu-
nity (SADC), which comprises 14 mem-
ber states (Angola, Botswana,
Democratic Republic of Congo, Leso-
tho, Malawi, Mauritius, Mozambique,
Namibia, Seychelles, South Africa,
Swaziland, Tanzania, Zambia, and Zim-
babwe). Acknowledging the high addi-
tional costs caused by delays at border
posts, SADC has adopted as a core
mandate to create and implement Joint
Customs Controls. Currently, agree-
ments are being concluded between
member states over the establishment
of joint facilities and the harmonization
of cross-border procedures.
Other African regional groupings such
as the Southern African Customs
Union (SACU), Common Market for
Eastern and Southern Africa (CO-
MESA), East African Community
(EAC), and Economic Community for
West African States (ECOWAS), also
view the establishment of one-stop
and joint control arrangements at bor-
ders as key to facilitating trade. In
Southern Africa, the Chirundu OSBP
and the recently signed border agree-
ment between Mozambique and
South Africa constitute two such ini-
tiatives. The adoption of the EAC One
Stop Border Posts (OSBPs) Bill, in
May 2010, will set the legal framework
and encourage political commitment
for the establishment and implemen-
tation of OSBPs in the sub-region.
Currently, negotiations are ongoing to
establish an OSBP in Malabar, bet-
ween Kenya and Uganda. In West
Africa, ECOWAS is making provision,
with assistance from the EU (through
9th European Development Fund –
EDF) for the construction of five Joint
Border Posts (Nigeria–Benin, Togo–
Ghana, Benin–Niger, Togo–Burkina
Faso, and Burkina Faso–Ghana). This
initiative, which supports the imple-
mentation of the ECOWAS Protocol
on the Free Movement of Persons,
Goods and Services and the Right of
Residence and Establishment, aims to
reduce the formalities and required
time for goods and persons to cross
borders as well as to help check irre-
gular practices (e.g. the smuggling of
goods or informal trade).
4.1 Case Study: The Chirundu
One-Stop Border Post
Chirundu, situated on the border bet-
ween Zambia and Zimbabwe, is the
main entry point for commercial goods
16 World Customs Organization (WCO), 2003.
11. A f r i c a n D e v e l o p m e n t B a n k
11
and people entering Zambia from Zim-
babwe, South Africa and other com-
mercial ports in Southern Africa, or
proceeding through Central and Eas-
tern Africa. Because of its strategic lo-
cation (a gateway for trade between
two busy sub-regions, Southern and
Eastern Africa), Chirundu handles a
high density of commercial traffic (an
average of 268 trucks per day). This led
in the past to heavy congestions, de-
lays at border posts and related cor-
ruption tendencies, and hence
increased costs of trading. The bottle-
necks faced by traders at Chirundu and
other border posts motivated COMESA
to introduce one-stop border posts in
the region, with Chirundu being a pilot.
Figure 1 below gives a view of the bor-
der crossing procedures at Chirundu
prior to the launching of the Chirundu
OSBP in December 2009.
The Chirundu OSBP was established
with the aim to “reduce the duplication
caused by dealing with two identical
sets of agencies by having juxtaposed
facilities for authorities on either side,
with each juxtaposed facility handling
traffic going in only one direction on ei-
ther side of the border”. Figure 2 below
shows how the situation has changed
since the OSBP was implemented.
Now trucks/traders that are North-
bound are only checked and cleared
once, on the Zambian side, while those
that are Southbound are cleared by au-
thorities posted on the Zimbabwean
side.
Figure 1 Chirundu border crossing procedures prior to OSBP (Zimbabwe–Zambia)
Figure 2 Chirundu One-Stop Border Post
12. A f r i c a n D e v e l o p m e n t B a n k
12
A recent evaluation of the Chirundu
OSBP17 has highlighted many benefits
of the new facility, including the reduced
supply chain transaction costs, increa-
sed government revenues, reduced du-
plication of efforts, reduced retail price
of consumer goods, and promoted in-
vestment and growth. The time taken
by a truck to cross the border has been
reduced from 2–3 days to just 2 hours,
and the fast-track preclearance process
takes only 15 minutes. Furthermore, the
reduced transaction costs (both in
terms of fixed costs and truck/driver’s
time), have translates into increased vo-
lume of goods traded across the bor-
der, which has significantly increased
(by 30 percent) revenues for the Go-
vernment of Zambia.
4.2 The Economic Benefits
of Joint Border Posts
Moving away from two-control stops to
a Joint Border Post, in full compliance
with the regulatory requirements of the
neighboring countries, will clearly im-
prove and enhance intraregional trade
in Africa. It will also result in improved
efficiencies of customs and other go-
vernment agencies, increase coopera-
tion, the sharing of information and
trade data, better resource utilization.
The clearance of goods through a sin-
gle customs declaration prevents the
substitution of one set of documents
for another, and discourages any at-
tempt at corruption by border officers.
Customs Efficiency: Modernizing and
harmonizing customs administrations
by streamlining and simplifying clea-
rance procedures will be beneficial to
traders, businesses, and national eco-
nomies. The delays at borders, the lack
of transparency and predictability, and
the cumbersome and outdated cus-
toms procedures are all factors leading
to the significant losses of business and
investment opportunities. Through mo-
dernization and the introduction of ICT
systems, operational efficiency will in-
crease.
Cost savings for Governments: The
streamlining of administrative proce-
dures, the introduction of computerized
customs management systems, and
the sharing of information between dif-
ferent agencies and countries, should
reduce officials’ workloads, thereby li-
berating skilled human resources for
other activities. (UNCTAD)
Increased Trade and Revenues: The
reduced cross-border delays, simplified
customs procedures, and minimized
rent-seeking activities by government
officials (i.e. bribery and corruption) will
significantly reduce the cost of trade
transactions. Also, the existence of
well-functioning border posts will en-
courage informal traders to transport
and declare their goods through official
circuits, thereby reducing the smug-
gling of trade goods and increasing
trade flows. The income revenue ac-
cruing from increased trade will not only
benefit traders and businesses but also
the national and sub-regional econo-
mies.
Reduced Import Prices for Goods:
Consumers, who are at the end of the
cross-border trade chain, will also gain
from the efficiency of customs proce-
dures. The reduced cost of trade trans-
actions through efficiency savings at
borders can be leveraged by compa-
nies and traders so that they can pass
on these savings to consumers via
lower prices of imported goods.
Job Creation and Growth: While it is
difficult to quantify the correlation bet-
ween improved customs procedures
and employment creation, empirical
evidence suggests that increased trade
volumes and reduced prices of goods
will lead to higher demand by consu-
mers, thereby stimulating the economy
and the jobs market. Also, the impro-
ved facilitation of cross-border trade
should incentivize informal traders to
formalize their activities. This will enable
them to gain better access to credit
and training, to grow their businesses,
and increase their workforces.
5 Potential One-Stop
Border Posts
Regional initiatives to improve trans-
portation infrastructure in Africa and to
stimulate intraregional trade have tradi-
tionally focused on “hard” infrastructure
development projects, such as the
construction/rehabilitation of roads, rail-
roads, ports, power and ICT networks.
However, from an economic develop-
ment perspective, what is equally im-
portant is the extent to which the flow
of goods and movement of persons
along those routes is facilitated. There
are currently nine trans-African high-
ways – some with missing road links
(see Map 2) – and 44 land transporta-
tion corridors linking economic centers,
countries, and ports. However, the
density of the network remains relatively
low, the efficiency of transportation lo-
gistics services is very poor, and the
administrative and customs procedures
are highly cumbersome on some parts
of the road network.
17 Marko Kwaranda, “Evaluation of Chirundu One Stop Border Post – Opportunities and Challenges.” Trade & Development Studies Centre, July 2010.
13. A f r i c a n D e v e l o p m e n t B a n k
13
In line with the Vision 2040 of the
AU/NEPAD-led Program for Infrastruc-
ture Development in Africa (PIDA), this
paper makes recommendations on the
construction and operational effective-
ness of potential One Stop Border
Posts along the main corridors in
Africa. The expansion of OSBPs will
not only facilitate cross-border proce-
dures and reduce barriers to intrare-
gional trade; it will also create larger
markets and economies of scale,
strengthen economic relations, and en-
hance the overall economic develop-
ment of the continent. As we have
seen, a number of OSBPs have al-
ready been built and are operational in
a number of countries in Africa. As
more governments and regional and
continental organizations commit to
enhance trade facilitation by simplifying
and harmonizing cross-border proce-
dures, the development of new OSBPs
has become paramount.
For instance, in the East and Southern
African sub-region, it was agreed to
transform various borders into OSBPs,
with some being already at the imple-
mentation phase.
14. A f r i c a n D e v e l o p m e n t B a n k
14
Map 2 Trans-African Highways
Developing OSBPs will also help address the special needs of African landlocked countries, which
lack maritime access and are isolated from world markets, and consequently suffer high transit costs
for their traded goods. In Africa, 16 countries are landlocked (Botswana, Burkina Faso, Burundi, Chad,
Central African Republic, Ethiopia, Lesotho, Malawi, Mali, Niger, Rwanda, South Sudan, Swaziland,
Uganda, Zambia, and Zimbabwe) and these depend on neighboring countries particularly to engage
in international trade. Long distances from markets, together with the bottlenecks at border posts,
significantly constrain these countries’ trade, reducing their competitiveness, and impeding their
socioeconomic development. It is estimated that in these landlocked countries, the cost of trading is
50 times higher and the volumes of trade are 60 percent lower than in African coastal countries.18
Source: Study on Program for Infrastructure Development in Africa (PIDA). AfDB.
18 UNCTAD, op. cit., 2009.
15. A f r i c a n D e v e l o p m e n t B a n k
15
Table 2 Transit corridors and potential OSBPs serving African landlocked countries
Subregions /
Landlocked Countries
Main Road Corridors Sea Port Access Sea Port Access
West Africa
Mali
Burkina Faso Niger
Abidjan-Burkina Faso-Mali (1200 km) Abidjan, Côte d’Ivoire Kaouara-Niangoloko (Burkina Faso –
Cote d’Ivoire)
Koloko-Heremakono (Mali – Burkina
Faso)
Paga-Dakola (Burkina Faso – Ghana)
Diboli (Burkina Faso – Niger)
Cinkansé (Burkina Faso – Togo)
Kidira (Mali – Senegal)
Gaya (Niger – Benin)
Ganta (Cote d’Ivoire – Liberia)
Maka (Liberia – Sierra Leone)
Mano River (Sierra Leone – Guinea)
Pamalap & Sao Vicente (Guinea –
Guinea Bissau)
Seleti (Senegal – The Gambia)
Rosso (Senegal – Mauritania)
Tema/Takoradi-Burkina Faso-Mali
(1100 km to Ouagadougou)
Tema/Takoradi, Ghana
Lomé-Burkina Faso-Niger/Mali
(2000 km)
Lomé, Togo
Cotonou-Niger-Burkina Faso-Mali
(1000 km up to Niger)
Cotonou, Benin
Lagos-Niger (1500 km) Lagos, Nigeria
Lagos-Niger-Mali (8000 km) Lagos, Nigeria
Central Africa
Chad
Central African
Republic (CAR)
Port Harcourt-Chad Port Harcourt, Nigeria Kousseri (Chad – Cameroon)
Bekay-Bedayo (Chad – CAR)
Garoua-Boulai (Cameroon - CAR)
Mfumi-Ekok (Nigeria – Cameroon)
Mbalam (Cameroon – Congo)
Campo (Cameroon – Gabon)
Ndende-Doussale (Gabon – Congo)
Brazzaville-Kinshasa (Congo – DRC)
Dilolo (DRC – Angola)
Douala-CAR-Chad
(1800 km)
Douala, Cameroon
Pointe Noire-CAR-Chad (1800 km) Pointe Noire, Republic of Congo
Eastern Africa
Ethiopia
Burundi Rwanda
Uganda
Dar-es-Salaam – Rwanda-Burundi-
Uganda-DRC (Central Corridor –
1400 km to Kigali, 1600 km
to Kampala)
Dar-es-Salaam, Tanzania Busia and Malaba (Kenya – Uganda)
Gatuna-Katuna (Uganda – Rwanda)
Kagitumba-Miramar (Rwanda –
Uganda)
Mpondwe (Uganda – DRC)
Ishasha (Uganda – DRC)
Bunagana (Uganda – DRC)
Cyangugu (Rwanda – DRC)
Tunduma-Nakonde (Tanzania – Zam-
bia)
Moyale (Ethiopia – Kenya)
Kurmuk-Metema (Ethiopia – Sudan)
Dewele-Galafi (Ethiopia – Djibouti)
Mombasa-Rwanda-Burundi-Uganda-
DRC (Northern Corridor – 1200 km to
Kampala, 2000 km to Bujumbura)
Mombasa, Kenya
Berbera-Ethiopia (850 km) Berbera, Somalia
Djibouti-Ethiopia (900 km) Djibouti, Djibouti
Southern Africa
Zambia
Malawi
Zimbabwe
Botswana
Lesotho
Swaziland
Lobito-DRC-Zambia
(1300 km)
Lobito, Angola Kazungula (Zambia – Botswana)
Mamuno TK (Namibia – Botswana)
Messina-Beitbridge (Zimbabwe –
South Africa)
Komatipoort-Ressano Garcia (South
Africa – Mozambique)
Forbes-Machipanda (Mozambique –
Zimbabwe)
Nyamapanda-Cuchamano (Zim-
babwe – Mozambique)
Walvis Bay-Zambia-DRC (Trans Ca-
privi Corridor – 2100 km to Lusaka)
Walvis Bay, Namibia
Walvis Bay-Botswana-South Africa
(Trans Kalahari Corridor–1800 km)
Walvis Bay, Namibia
Durban-Zimbabwe-Zambia-DRC
(North-South Corridor – 2500 km to
DRC)
Durban, South Africa
Beira-Zimbabwe-Zambia-DRC Beira, Mozambique
Nacala-Malawi-Zambia-DRC Nacala, Mozambique
Source: AfDB compilation based on PIDA Vision 2040 and UNECA Assessing Regional Integration in Africa IV.
16. A f r i c a n D e v e l o p m e n t B a n k
16
Map 3 Potential One-Stop Border Posts based on PIDA Vision 2040
The cumbersome administrative procedures and poor facilities within the transit countries, underscore
the need for a greater number of efficient transit corridors and for better coordination and
harmonization of customs procedures through the development of OSBPs. Table 2 and Map 3 give an
overview of the main corridors among African landlocked and coastal countries as well as existing
and planned OSBPs that will help reduce delays at borders and costs of trade, and consequently
increase the competitiveness and productivity of African countries.
Source: Study on Program for Infrastructure Development in Africa (PIDA Vision 2040)
17. A f r i c a n D e v e l o p m e n t B a n k
17
5.1 West Africa
In the West African sub-region, UEMOA
and ECOWAS have taken the lead to
facilitate trade transportation and har-
monize customs procedures through
the development of OSBPs /Joint Bor-
der Posts (JBPs) at several sites. Cur-
rently, four OSBPs are under
construction on the borders between
Nigeria and Benin (Krake Plage), Togo
and Ghana (Akuna-Noepe), Benin and
Niger (Malanville), and Togo and Bur-
kina Faso (Cinkansé). The physical in-
frastructure and other technical designs
of the first ECOWAS JBP (Sémé Kraké
Plage JBP between Nigeria and Benin)
were validated in February 2010.19
UEMOA is also planning to develop
other JBPs on the borders of Burkina
Faso, Mali, Côte d’Ivoire, Senegal, Gui-
nea Bissau, and Niger. Overall, the
PIDA report recommends the construc-
tion and implementation of 13 OSBPs
in West Africa, namely Kaouara–Nian-
goloko (Burkina Faso/Côte d’Ivoire),
Koloko–Heremakono (Mali/Burkina
Faso), Paga–Dakola (Burkina Faso/
Ghana), Diboli (Burkina Faso/Niger),
Cinkansé (Burkina Faro/Togo), Kidira
(Mali/Senegal), Gaya (Niger/Benin),
Ganta (Côte d’Ivoire/Liberia), Maka (Li-
beria/Sierra Leone), Mano River (Sierra
Leone/Guinea), Pamalap & São Vicente
(Guinea/Guinea Bissau), Seleti (Sene-
gal/The Gambia), and Rosso (Sene-
gal/Mauritania).
The potential benefits of the JBPs in-
clude better quality and faster regional
transportation and road transit, less
waiting times at the borders, reduction
of transport costs, free flow of ex-
changes, improved security of freight
and passenger movements, and higher
volumes of trade. The Cinkansé Border
Post, located between Togo and Bur-
kina Faso, will facilitate trade on a busy
traffic route from the Port of Lomé to
Burkina Faso, Mali, and Niger. Cur-
rently, trucks and passengers have to
pass through 12 agencies, 6 at each
border (Police, Immigration, Customs,
Water & Forestry, Veterinary and SPS,
and Gendarmerie). With the construc-
tion of the JBP, the flow of traffic and
clearance of trade goods will improve
significantly, and the concerned go-
vernments will benefit from harmonized
control procedures and increased reve-
nues (administrative charges for use of
Cinkansé JBP agreed with UEMOA
range from US$ 4 for a vehicle of less
than 9 passengers to a freight of US$
100 for a vehicle loaded with goods)20.
5.2 East and Southern Africa
In East and Southern Africa, many
OSBP initiatives have already begun
and successful systems are being im-
plemented on the borders between
Kenya and Uganda (Malaba), Zambia
and Zimbabwe (Chirundu), and Zim-
babwe and Mozambique (Forbes–Ma-
chipanda). Unlike in West Africa, the
development of OSBPs in Southern
Africa is agreed on a bilateral basis,
with SADC and COMESA providing
support to the governments and agen-
cies involved.
The successful implementation of the
Chirundu OSBP (see section 4.1
above) helped to promote the introduc-
tion of the OSBP system in the East
African Community (EAC). The EAC
member states (Burundi, Kenya,
Rwanda, Tanzania, and Uganda)
agreed to further inter-agency coordi-
nation and cooperation as well as to
promote cross-border information sha-
ring and networking through the design
and implementation of OSBPs throu-
ghout the sub-region. This approach
will feed into the EAC Common Market
Protocol’s goal of fast-tracking the free
movement of persons, labor, goods,
and capital among its members. The
EAC OSBP Bill will take precedence
over the national laws of member coun-
tries with regard to all cross-border re-
lated procedures and regulations. The
ultimate goals are to streamline border
operations, improve trade environment,
enhance transport efficiency, eliminate
trade barriers, and reduce uncertainty
in transit and clearance time.
The EAC is currently piloting the deve-
lopment of the Namanga (Kenya–Tan-
zania), Busia (Kenya–Uganda) and
Malaba OSBPs. Bilateral discussions
and negotiations are underway for the
procurement and design of the Ga-
tuna–Katuna (Uganda–Rwanda) and
the Kagitumba–Miramar (Rwanda–
Uganda) OSBPs. The other borders en-
visioned by the PIDA study to be
converted into OSBPs include Mpon-
dew (Uganda–DRC), Ishasha (Uganda–
DRC), Bunagaga (Uganda–DRC),
Cyangugu (Rwanda–DRC), and Tun-
duma–Nakonde (Tanzania–Zambia).
The aim is to improve customs clea-
rances and other services at the bor-
ders, boost intraregional trade, as well
as improve the revenue collections of
governments. For instance, in Uganda
where intra-EAC trade contributes to
over 50 percent of customs collections,
the improved customs clearances and
19 CDC, ICA, EAC, and JICA, One Stop Border Post (OSBP) Source Book. September 2011.
20 Ibid.
18. A f r i c a n D e v e l o p m e n t B a n k
18
increased cross-border trade through
the establishment of OSBPs will further
boost the Uganda Revenue Authority
collections.21
5.3 Central and North Africa
The Central and North African countries
are the least integrated in terms of road
density and intraregional trade. While
the road network and the quality of
transport infrastructure in North Africa
surpass the African average, it is the li-
mited intraregional trade that is a major
problem. North African countries trade
more internationally, mostly with the EU
and other OECD countries, than intra-
regionally. Central Africa is characteri-
zed by poor infrastructure (road,
railroads, ports, and ICT), inefficient
transportation services, and the phe-
nomenon of roadblocks, all of which re-
sult in high transportation and trade
costs. A comprehensive and coordina-
ted approach to facilitate intraregional
and international trade, through impro-
ved infrastructure, reduced check-
points, and harmonized customs and
border procedures, will be key to ex-
panding trade and strengthening the in-
tegration agenda in the sub-region.
Promoting the development of OSBPs
and corridor development programs
in these two sub-regions of Central
and North Africa will not only expand
intraregional and international trade, it
will also boost competitiveness and
inclusive economic growth. For ins-
tance, developing regional transporta-
tion infrastructure and OSBPs in
Ouajda–Tlemcen (Morocco–Algeria),
Ghardimaou (Algeria–Tunisia), Ras Adjir
(Tunisia–Libya), and Musaid–Saloum
(Libya–Egypt) will contribute to increa-
sed production and exchange between
North African countries and improve
access to social services, especially by
the poor and disadvantaged regions of
the countries.
6 Conclusion and
Recommendations
This paper has explored the extent to
which inefficient border posts and
checkpoints in many African countries
are contributing to low intraregional
trade activity. The paper found that im-
proving and harmonizing customs pro-
cedures as well as addressing
corruption and other illicit practices that
take place at checkpoints can signifi-
cantly reduce the cost of trade and in-
crease government revenues.
While there has been a consensus
among African leaders and policyma-
kers on the need to fast-track improve-
ments in trade and regional integration,
progress in facilitating the cross-border
movements of goods and services has
generally been slow. Trade facilitation
measures in Africa have ranged from
the reduction of tariffs and the removal
of quotas, to the creation of sub-regio-
nal customs unions and a common
market. Nonetheless, many obstacles
remain and there is a clear imperative
to improve trade transport infrastruc-
ture and services and to strengthen the
efficiency of border clearance proce-
dures as a means to reduce the high
cost of trade in Africa and make the
continent more competitive.
One approach to address these pro-
blems is the establishment of One Stop
Border Post (OSBP) or Joint Border
Post (JBP) systems. Improving the effi-
ciency of custom clearance procedures
through OSBPs will not only help in-
crease the flow of goods across bor-
ders, it will also significantly improve
African countries’ productivity and
competitiveness, contribute to raising
government revenues, and increase
business and income opportunities, es-
pecially for landlocked African coun-
tries.
In order to promote a harmonized and
integrated border management system
through the creation of a OSBP/JBP,
the following steps should be conside-
red:
• The movement to more integrated
border agencies operations should
start with an analysis/mapping of
each agency’s existing procedures,
mandate, and operations. Based on
these findings, a new set of joint ope-
rational procedures need to be
agreed upon with all agencies invol-
ved.
• A governance model for the JBP will
need to be defined (financing moda-
lities, operational framework), delega-
tion of different responsibilities, etc.
• A careful study of existing traffic flows
at the JBP, together with waiting
times, document processing times,
customs clearance times, among
other things, would need to be un-
dertaken. After the JBP is in place, a
monitoring and evaluation system
should be designed to measure the
impact of the changes and to conti-
nuously identify possible bottlenecks
at the border post.
• New operational procedures for all
21 TradeMark Southern Africa. “One Stop Border Boosts URA collections.” June 2011.
19. A f r i c a n D e v e l o p m e n t B a n k
19
border-crossing agencies should be
designed, leading to the development
of common documents and integra-
ted procedures.
• The delegation of responsibilities and
tasks, the exchange of information,
as well as the need to operate on an
extraterritorial basis for some agen-
cies requires that an enabling legal
and regulatory framework be prepa-
red.
• The decision to share data between
the different agencies and Depart-
ments operating at the border will re-
quire a new IT environment, and pos-
sible the introduction of a Single Win-
dow platform.
• All procedures should comply with
the highest international standards for
data exchange and the use of data
elements.