Today's blog is for those who import or export to Africa, especially West Africa and should be of specific interest to companies in the relocation and international moving business.
Time and again we come upon situations where an assignee expresses dismay at the time it takes to get a shipment through customs. This dismay then translates into a poor service evaluation and a perception that we are not doing our job.
My company is undertaking a complete review of local conditions, as they impact import and export, in an effort to help our clients set their customers expectations realistically when shipping to or from Africa. This is a large undertaking and will take some time to complete.
In the meantime, the statistics below are taken from a paper published by the World Bank (WB) and the International Finance Corporation (IFC) on the topic of doing business with the Economic Community of West African States (ECOWAS).
(http://www.doingbusiness.org/~/media/FPDKM/Doing%20Business/Documents/Profiles/Regional/DB2012/DB12-Economic-Community-West-African-States.pdf )
ECOWAS has annual exports of almost $146 billion and exports of $115 billion (2011).
Annual growth from 2010 was 35.6% for exports and 34.3% for Imports.
The ten year average growth was 17.2% for exports and 16.6% for imports.
Obviously, this is a growing economic group and is focused on facilitating growth. The Transport and Telecommunication Directorate defines its programs as:
Develop Common Transport and Telecommunications policies, laws and regulations;
- Develop an extensive network of all weather highways within the Community;
- Formulate programmes for the improvement and integration of railway networks;
- Formulate programmes for the improvement of coastal shipping services and inter state inland waterways and for the harmonization of maritime transport policies and services;
- Promote the development of regional air transport services and implement air transport safety and security programmes;
- Encourage the establishment and promotion of joint ventures and the participation of the private sector in the areas of Transport and Telecommunications.
(From the ECOWAS web site at www.comm.ecowas.int/dept/stand.php?id=f_f1_brief&lang=en)
Therefore, the following statistics, also from the WB/IFC paper, make for somewhat depressing reading.
Documents needed to export (number)
Worst = 10 (Burkina Faso)* Best = 5 (Cape Verde) Region Average is 7 World best = 2 (France)
Time to export (days)
Worst = 59 (Niger) Best = 11 (Senegal) Region average is 27 World best = 5 (Hong Kong)
Cost to export (US$ per Container)
Worst = 3545 (Niger) Best = 831 (Gambia, The) Region Average is 1508 world best = 450 (Malaysia)
NOTE: This is NOT the shipping cost but simply the cost to process the export.
Documents needed to import (number)
Worst = 10 (Burkina Faso)* Best = 5 (Cape Verde)* Region Average is 8 World best = 2 (France)
Time to import (days)
Worst = 64 (Niger) Best = 14 (Senegal)* Region Average is 30 World best = 4 (Singapore)
Cost to import (US$ per container)
Worst = 4030 (Burkina Faso) Best = 885 (Gambia, The) Region Average is 1896 World best = 435 (Malaysia)
In some areas there is certainly improvement but there is yet a long way to go. Below is a sample listing, from the WB/IFC paper, of steps taken by some member countries to improve the import and export processes.
DB Year
DB2010 Liberia
The trade process was expedited by creating a one-stop shop
bringing together various ministries and agencies, and
streamlining the inspection regime.
DB2010 Mali
Implementation of an electronic data interchange (EDI)
system, improvements in the terminals used by Malian
traders, and streamlining of required documentation have
reduced trade times.
DB2010 Senegal
Processes at the container terminal were improved,
shortening the time required to move containers from the
port of Dakar. Trade has also been facilitated by
improvements to the computerized customs system (GAINDE)
and the expansion of the number of agencies included in the
network.
DB2010 Sierra Leone
Despite successful efforts to reduce the time to trade in Sierra
Leone, some fees were increased, making trading across
borders more costly.
DB2009 Benin
The export process was sped up by two days by improving
port infrastructure.
DB2009 Liberia
Trade was reformed by reducing fees for customs clearance
and port and terminal handling.
DB2009 Mali
Trade was sped up by implementing an electronic data
interchange system and risk-based inspections and improving
border cooperation.
DB2009 Nigeria
Upgrades to the facilities at Apapa port in Lagos sped the
import and export process.
DB2009 Senegal
The top reformer globally in easing trade, Senegal introduced
a single window for customs clearance, cutting document
requirements in half. It also set up an electronic data
interchange system, implemented risk-based inspections,
extended the operating hours of customs, and improved port
and road infrastructure.
DB2008 Ghana
Operational changes at the Port Authority permitted to
reduce importation time.
You can see that Ghana, a country I have already referenced as 'ahead of the curve', was the first to implement changes. Senegal, if not listed as 'best' in the lists above, is second or third best in days to import or export. Of course, there is a cost for this, so they rank just below the Region Average in both categories.
As we await further improvements, perhaps this piece will assist you to set your clients' expectations at levels appropriate to their destination.
TW
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