Download - IMPERIAL Logistics
Africa
World Trade Organisation - Geneva 2012
Africa in Perspective – Key Road Block Scenario
Key Challenges
Conclusion - Risk and Reward
Over 1,100 operational locations worldwide
968 Operational sites in Southern Africa
61 Operational sites in Europe
The world does not underestimate the opportunity, potential & businesses opportunity in Africa!
Africa needs become competitive :
• Transparent Trade Facilitation Imports / Exports;• Improved Trade Procedures • Cross border & corridor development• Combined commitment by Africa governments
• Reducing the cost of logistics• Conversion of import cargo to the African destination ports• Create balanced two directional volume flows
• Investment in infrastructure• Ports• Rail• Roads• ICD• IDP
Red Tape moving goods Regionally, Intra-Africa, Cross Border & Imports / Exports
Vastly Duplicative
No alignment & co-operation between relevant government & trading agencies
Average Custom Transactions:
Some 25 different parties and 40 documents
A vast amount of data elements:
Some 20% repeated numerously
Re-Keying of data in excess of 80% - Post to Post
Cost of Logistics – Perspective:
Globally to “GDP” - 7.5%
South Africa to “GDP” - 13.0%
Africa to “GDP” - +30%
Border Posts – Africa
Inefficient
Lack of and no regional alignment – information technology as an enabler
Border Agency Facilitation
Totally duplicative – re-keying of all information
Lack of resource i.e. current methodology
Road block and “ The key cost driver” to trade facilitation
Imports % Contribution
China 28.7
India 12.9
USA 11.3
France 11.2
Brazil 7.4
UK 7.4
Japan 2.9
Product Category Export World Import World
Basic Foods 14,875,274 21,052,701
Beverages & Tobacco 1,934,175 1,653,717
Ores, Metals & Precious Stones 19,304,114 3,931,312
Fuels 81,278,815 17,188,542
Manufactured Goods 19,442,801 34,861,887
Chemical Products 6,829,963 16,684,141
Machinery & Transport Equipment 9,685,665 53,868,421
Total 153,350,808 149,240,722
Exports % Contribution
EU 41.9
ROW 17.87
USA 17.6
Asia 6.6
Intra Rec 5.8
China 5.5
ROA 2.81
Top ports handle more than a 90% of total volume in SADC region and East coast shares 71% and West coast shares 29% of total volume.
SADC Region Key Gateway Ports Volume in 2008-09 (all in tonnes)
East Coast Ports Country Export Import Transit
Duban SA 26 759 299 47 725 485 8 916 032
Port Elizabeth SA 6 227 482 4 423 266 678 665
Maputo MZ 1 749 329 575 802 1 749 329
Dar Es Salam TAN 1 480 152 6 148 690 377 479
West Coast Ports Country Export Import Transit
Saldanha SA 34 561 876 13 212 275 1 707 376
Cape town SA 6 372 035 6 769 983 1 804 896
Walvis Bay NAM 3 769 756 1 568 754 871 184
Luanda AG 2 240 000 4 360 000 1 980 000
Data Source: Various SADC Port Sites
Heading % “COS” Cost PD Days PA
W/Ave Tariffs Imports on TCD 15 $46 312
X Border Tariffs 4 $30 312
Fixed Cost ito Logistics 50 $365.00 312
“Logistics” as part of the value chain, the key driver of cost in Africa (+30% of “GDP”) - negatively impacting on economies in the region and certainly socio conditions
Assumptions:
Simulation - Container Shipment , Main Chinese Port to Lusaka
Weighted Average Import Tariffs / Duties – Machinery, Manufactured Goods, Food & Chemicals
28 shipments per annum
40’ TEU’ – 30 ton per container
Three destination Ports on weighted average - destination
Simplified trade procedures
Expediting the passage and release of product Customs & border post, reformation & modernisation Information Technology & Systems – aligned, as a business enabler in, too & out of Africa
Reduce Cost of Logistics
Balancing imports to export volumes - two way traffic - Conversion
Political & Regulatory Challenges - Integrity & Strength of Institutions
Socio Economic Challenges – Growth vs. Infrastructure
Social Media & Connectivity - Enabler
Banking & Finance Challenges – Growth, Sustainability & Continuity
Human Resource Challenges - Foundation
Infrastructure Challenges – Road, Rail, Air and the Great Lakes
The state of all the above result in a much higher cost of doing business in Africa compared to that of the developed world.
“SME,s” and the informal sector in Africa equate to some 65% of “GDP” creation and (as well now, the formal sector) find it cannot participate in Intra Africa, Regional Trade and Internationally, from a volume perspective and or the lack of formal, supportive and well managed trade and government agencies, as enablers and the catalysts to growth .
Vehicle to enhanced Socio-economic development
Regional Employment Creation
Economic Growth prosperity, success, sustainability and continuity is dependent on
development
Transformation and empowerment to the future
Skills Development
Dedicated development interventions and initiatives local employed population
Transformation objectives promoted by various skills development initiatives
Africa “The Future”: Facilitating Trade through integrity , Simplified Trade Procedure & Framework and Integrated Infrastructure & Information Technology