1. IMPROVING TRANSIT COOPERATION, TRADE AND TRADE FACILITATION FOR THE BENEFIT OF THE LLDCS: CURRENT STATUS AND POLICY IMPLICATIONS. 10 December 2015 Dr. Robert M. Okello Robert.Okello@Lyciar.com 10 December 2015 Lyciar Dare to Know VIENNA PROGRAMME OF ACTION Africa Regional Report 1 UN-OHRLLS

2. 16 AFRICAN LLDCs 10 December 2015 2 UN-OHRLLS

3. PRIORITIES OF VPoA 10 December 2015 3 Fundamental Transit Policy Issues. Infrastructure Development and Maintenance. International Trade and Trade Facilitation. Regional integration and cooperation. Structural economic transformation. Means of Implementation. UN-OHRLLS

4. POLICY IMPLICATIONS – PRIORITY 1 s 10 December 20154UN-OHRLLS Necessary Legal Frameworks are in place and effective:  African countries should put special emphasis on implementing the REC Protocols on Free Movement – which have stalled with –ve effect.  TAH Agreement should be signed to improve quality.  African countries should make greater use of WTO TFA by filing necessary Notifications to get technical assistance.

5. POLICY IMPLICATIONS – PRIORITY 1 s 10 December 20155UN-OHRLLS Issue for Harmonization East Africa EAC COMESA Southern Africa SADC Central Africa ECCAS CEMAC West Africa ECOWAS UEMOA Vehicle Load and Dimensions Control (Axle load and Gross Vehicle Mass limits) Yes. Axle Load/GVM Weighbridges installed Yes. Axle Load/GVM Weighbridges installed Yes – Inter-State Road Transport (TIE). Axle Load/GVM Road Transit ChargesHarmonized with SADCHarmonized with COMESA and EAC Carrier License and Transit PlatesYes Third Party Motor Vehicle Insurance Schemes Yellow CardYellow Card (of COMESA)Orange Card ECOWAS Brown Card insurance scheme (Convention A/P1/5/82) -ECOWAS "Carte Brune" (Brown Card) and CIMA Code Road Customs Transit Declaration DocumentCOMESA Customs Declaration Document (CD-COM) Single Administrative Document (SAD) ECOWAS’ Interstate Road Transit Scheme (ISRT) – Convention A/P4/5/82 and Supplementary Convention A/SP.1/5/90 Road check pointsSignificant reduction ECOWAS Interstate Road Transport (IST) – Convention A/P.2/5/82 Regional Customs BondCustoms Bond Guarantee Scheme - Harmonized with SADC Customs Bond Guarantee Scheme - Harmonized with COMESA and EAC Customs Agreements on Inter-State Road Transit (TRIE Convention) Border Posts Operations15 OSBP envisaged; 7 under development Chirundu OSBP Pilot; Other OSBP Projects in NSC ICT for Vehicle Tracking and Fleet Management Automated Sysytems for Customs Data (ASYCUDA) ASYCUDA

6. POLICY IMPLICATIONS – PRIORITY 1 s 10 December 20156UN-OHRLLS Customs and Border Crossing Procedures:  Customs Union eliminates unnecessary delays (SACU, EAC) => Greater push by RECs and AU towards CFTA/CU and African Passport Re. Protocols on Free Movement.  ICDs/DRY Ports and OSBP/JBP greatly improve transit efficiency => More required along all borders and corridors.  Application of ICT (ASYCUDA, Single Window, etc.) increases efficiency in border operations => More use of ICT is required.  Liberalization of Visa requirements improve movements and increase tourism (EAC UNIVISA, Rwanda Visa Policy) => Protocol on Free Movement should be implemented.

7. CUSTOMS AND BORDER CROSSING PROCEDURES - ONE STOP BORDER POSTS 10 December 2015 7 UN-OHRLLS

8. POLICY IMPLICATIONS – PRIORITY 2 s 10 December 20158UN-OHRLLS Infrastructure No. 1 Priority: PIDA is agreed Regional Priority => National programmes be aligned to PIDA Leadership matters in regional infrastructure development (PICI Progress) => More PIDA projects should be incorporated into PICI. Private sector appetite for investment in infrastructure development constrained by project development => More resources should be allocated to Project Preparation Process in order to attract financing.

9. PRIORITY 2: INFRASTRUCTURE DEVELOPMENT AND MAINTENANCE – PIDA PAP Projects. s 10 December 20159UN-OHRLLS Sector Number of projects Cost (US$ billions) Region Number of projects Cost (US$ billions) Transport2425.400Continental73 Energy1540.300North Africa21.3 Water91.700 West Africa166.2 ICT30.5 Central Africa921.5 Southern Africa 6 12.6 East Africa1123.3 Total5167.9Total5167.9

10. POLICY IMPLICATIONS – PRIORITY 3 s Africa Share International Trade Small and Stagnant:  Exports Dominated by Commodities and Vulnerable to Demand and Price => Expanding Service Sector Gains From Global Value Chains.  Intra-African Trade Lowest in World => AU Industrialization Policy to Boost Intra-African Trade through Complementarities?  Intra-African Trade in Intermediate Manufactured Goods More Diversified => Trade in Services and Regional Value Chains Opportunity for Expansion. 10 December 201510UN-OHRLLS

11. Africa Export Trade – Trends and Concentration 10 December 201511UN-OHRLLS

12. Africa Export Trade Share – Trends 10 December 201512UN-OHRLLS

13. Share Intra-Regional Trade by Region 2013 10 December 201513UN-OHRLLS

14. POLICY IMPLICATIONS – PRIORITY 3 s Trade Facilitation Key to Africa’s Future Dev:  Cost of Exports Highest in World => Continue infrastructure Development through Corridor Development Approach (Experience in LLDCs of East & Southern Africa).  RECs Key to Trade Facilitation => Harmonization Transit Policies and Practices (; Documentation; Transit Operations; etc.)  National Actions in Transit Countries Important =>Application of ICT (ASYCUDA, Single Windows, etc.) 10 December 201514UN-OHRLLS

15. Trade Facilitation – Private Sector Participation – ICF Africa s I 10 December 201515UN-OHRLLS Project NameExpected Results Senegal – Paperless Trade & Customs Modernization Project  Cargo dwell times for imports have been reduced substantially from 17 days to 3 days. Derived private sector savings in 2014 alone to total almost US$ 42m. vis-à-vis combined ICF and Government of Senegal total investment of US$ 11m. Burkina Faso – Facilitation of Custom Procedures · Reduce time to undertake pre-clearance process from 15 days to 3 days · Reduce documents required for import from 10 to 7 · Reduce documents required for export from 10 to 3 Ethiopia – Single Window · Produce private sector savings amounting to US$ 794m within first two years of operations. · Increase trade volume by US$ 1.3b and revenue by US$ 172m within first two years of operations. · Reduce clearance document preparation time by 80%. Kenya – National Electronic Single Window · Reduce cargo dwell time at seaports from 8 days to 3 days · Reduce cargo dwell at airports from 5 days to 1 day · Reduce cargo dwell at key border posts from 2 days to 1 day Tanzania – Modernization of Customs Administration · Reduce the average time for clearing goods at the port of Dar es Salaam from 5 days to 1 day for export goods, and from 9 days to 5 days for import goods. · Reduce the time to lodge and issue Customs release orders at the port of Dar es Salaam from 4 days to 1 day

16. POLICY IMPLICATIONS – PRIORITY 6 s Means of Implementation:  Global Support => Continued Advocacy Special Needs of LLDCs in all International Actions (SDG, FinDev, etc.)  African Leadership => Prioritization and Implementation of Relevant Agreements (WTO TFA, Agenda 2063 CAP; REC Agreements; Corridor Agreements; PIDA, etc)  AfT => ODA support to trade related sectors for LLDCs (Development Corridors, Institutions, etc.) 10 December 201516UN-OHRLLS

17. POLICY IMPLICATIONS – PRIORITY 6 s Means of Implementation:  IDFI => AfDB continued leadership in sourcing financing (NEPAD, ICA, Infrastructure Dev. Funds, Emerging Economies – BRICS, etc.)  Extend Role of Private Sector Beyond Infrastructure Investment => Modernization of Ports of Dakar, DSM, etc. (ICF)  Expand Involvement of other Stakeholders => Port Community in Mombasa; PIDA Business Working Group (WEF); PIDA Continental Business Network (AfDB); Walvis Bay Corridor Group; MDCI; NSCCG; DCM; etc. 10 December 201517UN-OHRLLS

18. PRIORITY 6: MEANS OF IMPLEMENTATION VPoA is implemented in the current African regional framework for Development – Agenda 2063 Translates into:  Trade and Industrialization as Engines of Economic Growth  Infrastructure Development as Pre-Condition. NEPAD Infrastructure Prioritization: PIDA, PAP, PICI, DAA, etc. Resource Mobilization – Domestic; IFI’s, ODA, Private Sector. 10 December 201518UN-OHRLLS

19. Trade Facilitation – Implementation of WTO TFA s 10 December 201519UN-OHRLLS Simplification and streamlining border crossing procedures – Good progress along Corridors (OSBP/JBP; ICD/DRY PORTS; ASYCUDA; Single Window Improve transit facilities and their efficiency – Trade facilitating Infrastructures. Transit regulations, formalities and procedures for traffic in transit are published and updated - ???????

20. Trade Facilitation – Implementation of WTO TFA 2013 s 10 December 201520UN-OHRLLS 16 African Countries Filed Category A Notifications: Botswana, Burundi, Cote d’Ivoire, Egypt, Gabon, Kenya, Mauritius, Morocco, Nigeria, Rwanda, Republic of Congo, Senegal, Seychelles, Tanzania, Tunisia and Uganda (4 LLDCs). Zambia and Ghana in process. Botswana, Niger and Togo have accepted the Additional Protocol to date.

21. 10 December 2015 21 Thank You Robert.Okello@lyciar.com Thank You Robert.Okello@lyciar.com UN-OHRLLS