WTO SYMPOSIUM

COMMENTS ON CONSULTING ENGINEERING SERVICES IN SOUTH

AFRICA AND AFRICA

CONTENT

1. Background2. FIDIC/GAMA3. Engineers Mobility Forum4. Flows of natural persons in Engineering?5. Influence ability to supply services through other modes?6. Nature of movement and levels of skills involved?7. Barriers to move abroad to supply services?8. How do you deal with these barriers today?9. Policy initiatives and reforms that would facilitate the

movement of natural persons?

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Background

•African exports of commercial services jumped 46% in two years (between 2003 and 2005) according to WTO.

• According to a Unido report weak capacity supply is hindering Africa’s export performance , and this explained why the continent had lost market share from 6% of the world’s export in 1980, to only 3% in 2007.

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BackgroundStatus of Consulting Engineering in Africa according to

FIDIC survey• Companies are small.• Do not have work on a consistent basis.• Lack of management skills.• Unable to recruit and retain staff• Governments prefer foreign consulting engineers• Donor and government agencies give preference to foreign consultants

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BOTS KENY NAMI NIGE SAFR TANZ UGAN ZAMB ZIMB

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Number of Firms in MA and Country

FIRMS IN ASSO FIRMS IN COUNTRY

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BOTS KENY NAMI NIGE SAFR TANZ UGAN ZAMB ZIMB

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Volume of Trade of Member Firms (US$/Annum)

<100,000 0.1-0.5MILL 501,000 - 2.5MILL >2.5MILL

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WHO GIVES US WORK?

NATIONAL/STATE GOVT INTERNATIONAL FINANCING AGENCIES

DONOR AGENCIES EXPORT BUSINESSES

PRIVATE SECTOR CONTRACTORS

OIL & GAS

BackgroundThere are three agreements covering mutual recognition in respect of

tertiary-level qualifications in engineering

1. The Washington Accord signed in 1989 was the first - it recognises substantial equivalence in the accreditation of qualifications. Normally of four years duration. Full Members: Australia, Canada, Ireland, New Zealand, United Kingdom, United States of America, South Africa, Hong Kong, China. The current Provisional Members are: Japan, Malaysia, Singapore, Germany.

2. The Sydney Accord commenced in 2001 and recognises qualifications in engineering technology, normally of three years duration.

3. The Dublin Accord is an agreement for accreditation of tertiary qualifications in technician engineering, normally of two years duration. It commenced in 2002.

Background: Three Agreements covering competence standards for practicing engineers

•The concept of these agreements is that a person recognised in one country as reaching the agreed international standard of competence should only be minimally assessed (primarily for local knowledge) prior to obtaining registration in another country that is party to the agreement.•The oldest such agreement is the APEC Engineer agreement which commenced in 1999. The representative organization in each economy creates a "register" of those engineers wishing to be recognised as meeting the generic international standard. •The Engineers Mobility Forum agreement commenced in 2001. It operates the same competence standard as the APEC Engineer agreement but any country/economy may join. The parties to the agreement are largely engineering bodies. There are intentions to draw EMF and APEC closer together.•The Engineering Technologist Mobility Forum agreement was signed by participating economies/countries in 2003. The parties to the Agreement have agreed to commence establishing a mutual recognition scheme for engineering technologists.

Flows of natural persons in Engineering?

• Apart from restrictions to mobility placed by governments through immigration controls, the mobility of engineers has always been fairly restricted by the profession itself. This is understandable as standards vary enormously worldwide.•World wide shortage of engineers, “churn” taking place.• South African, and African engineers mostly move within Africa on corporate transfers.• Little exports to developed countries in mode 4. • Emigration to developed countries for reasons of long term career prospects, education and security related issues has a major impact.• In SA there is a lack of experienced engineers in the 35 to 45 year bracket. • Outside South Africa, most movement is permanent particularly to the US for secondary  (MSc) and tertiary (PhD) degrees. They stay to obtain employment mostly in Academia.

Influence on industry's ability to supply services through other modes?

• In South Africa other modes of supply receives preference due to the lack of engineers at middle management level engineers.

•In the rest of Africa there is some trade in al four modes of supply, the small trade in mode four has little effect in most countries.

• Due to current demand for commodities Africa receives a lot of mode 4 type movement of engineers both as individual contractors and on corporate transfers.

Nature of movement and levels of skills involved?

• Most movement takes place through corporate transfers and as individual contractors.

•Skills involved are at a middle to senior management level.

• Due to current demand for commodities and increased spending on infrastructure in Africa many engineers render services in mode four.

• Apart from restrictions to mobility placed by governments through immigration controls, the mobility of engineers has always been fairly restricted by the profession itself. This is understandable as standards vary enormously worldwide.

• Immigration processes are slow and time consuming

• Lack of recognition of qualifications and experience

• Difficulties related to professional registration

• Lack of internationally standardised classification of professionals within the region or countries may discourage movement especially by more older (senior) individuals.

Barriers to move abroad to supply services

How do you deal with these barriers today?

• Compliance with immigration requirements can be “creative”.

• Engage government and inform them on what areas of the economy lack local professional skills. This makes it easier for professionals to be issued with work permits.

• Subcontracting the task of obtaining visas to specialist service providers

• Agreements on recognition of qualifications such as EMF etc.

• Re-writing of examinations in country of destination.

• Re-register as a professional in country of destination.

Policy initiatives and reforms that would facilitate the movement of natural persons?

• Encourage involvement of all engineering related professional bodies

• Establish standardised framework and encourage world wide utilisation of this framework for recognition of qualifications.

•Establish standardised framework for immigration authorities to monitoring mode 4 type of movement of natural persons.

• Regions should gradually adopt the 'European Union type' of integration with minor modifications to offset shocks on countries  with lesser 'projects turnover'.

Thank You