Ebola Economic Impact

As the fight to contain Ebola continues, the economic impact is already being felt both in the three most affected countries and throughout the region.

The World Bank reports that Guinea, Sierra Leone and Liberia could see a loss of $97 million in trade if the outbreak is contained quickly and up to $809 million if containment is delayed. These may not seem like very high figures in US terms but, remembering that these countries are still among the poorest in the world, one can see that the effect could be devastating. Overall, West Africa could see a $32 billion negative impact in 2015.

According to the World Bank, "Early estimates for growth in Guinea have been halved from 4.5% to 2.4% as a result of the disease. Already among the poorest countries in West Africa with a population of 12 million, Guinea has seen the biggest losses in its agriculture industry. An exodus of farm workers from the countryside has meant lower exports of key products like cocoa and palm oil."

Sierra Leone was in the process of becoming a middle income country with growth rates in double digits. Now forecasts from World Bank indicate zero growth in 2015 as the disease spreads to almost every district in the country.

Liberia is the worst affected country both in terms of cases, deaths and the rapid spread of Ebola. Negative economic growth is possible in 2015 if the disease is not quickly contained. Already the impact has been clear - 6 incoming commercial flights per week, compared to 27 before the outbreak; closure of one of the two largest mining companies; reduction in social and business interaction causing problems for almost every economic sector. 

Even countries not directly affected by Ebola are suffering economic hardships. Ghana reports evacuation of non-essential ex-pat personnel by many companies especially in the mining sector. Some local hotels report occupancy rates at 30% or lower. 

Help is coming from many sources including CDC, USAID and American Logistics Aid Network. 

The AGS branch in Monrovia reports handling over 700 tonnes of materials on behalf of the World Health Organization. Our branches in Conakry and Freetown are also receiving shipments and expect much more in the coming months.

We can only hope that the assistance will help control the disease. The economic impact will not be restricted to the affected countries, or even the region, if the outbreak continues. Consider that the SARS virus in 2003 is estimated to have had a $50 billion negative impact on the global economy. It infected 8,000 people and caused 800 deaths. Ebola has already infected in excess of 10,000 people, half of whom have died. While reports of the limited cases in the US and elsewhere have possibly been over emphasized, the danger in West Africa is very real.

TW

This blog represents the opinions of the author and should not be interpreted as representing the opinions, or recommendations of Mobilitas or AGS Worldwide Movers. All data and information provided on this site is for informational purposes only. The author makes no representations as to accuracy, completeness, timeliness, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. The blog is the property of the author and should not be re-posted without express, written consent.

Updates - Kenya-Uganda Railroad

The second post I uploaded to this blog concerned the infrastructural challenges faced by many African countries and focused on transport problems between the Port of Mombasa and the Kenyan capital in Nairobi. Happily, there has been some progress.

The Kenya railroad project seems set to proceed with funding from China. The project will include a standard gauge rail line from Mombasa to Nairobi, for which funding has already been secured and a contract agreed with the China Road and bridge Corporation (CRBC). Work is expected to be completed by 2017 on this section. The new railroad is expected to cut freight transit times to 8 hours, from the current 36 hour journey and passenger trains will complete the trip in 4 hours.

In separate agreements, signed and witnessed by the Presidents of Kenya, Uganda, Rwanda and South Sudan, the Exim Bank of China will fund 90% of the cost of extending the railway from Nairobi to Kampala with links to Rwanda, Burundi and South Sudan. Kenya will fund the remaining 10%.

The implications for the region are enormous because the Uganda-Kenya border is home to what may be the most significant oil and gas reserves outside of Saudi Arabia. The Ugandan reserves are estimated at 6.5 billion barrels, although how much is recoverable with current technology is still debated. However, most experts agree that oil production in the region will last at least 30 years. The ability to haul equipment and supplies to the area is currently a major obstacle to development of the fields and the new railroad will represent a huge step forward.

Just today, UK based Tullow Oil announced plans to begin drilling activities in the Turkana region of Kenya after discovery of fresh deposits in what company officials called an "excellent start to exploration campaign".

No doubt we will see more news on this topic in the coming months.

In unrelated and somewhat topsy turvy news, Rwanda announced plans to screen airline passengers arriving from the United States and Spain due to the confirmation of Ebola cases in both countries. I can't say that I blame them.

TW

This blog represents the opinions of the author and should not be interpreted as representing the opinions, or recommendations of Mobilitas or AGS Worldwide Movers. All data and information provided on this site is for informational purposes only. The author makes no representations as to accuracy, completeness, timeliness, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. The blog is the property of the author and should not be re-posted without express, written consent.

Nigeria Import and Export process

CUSTOMS CLEARANCE / TIMEFRAME: 

 Sea shipments  4 to 8 weeks (Lagos) / 5 to 9 weeks (Abuja)* 
 Air shipments  2 to 4 weeks* 

*providing all requested documents have been submitted to AGS Nigeria 

DOCUMENTATION: 

Diplomat 

 Original passport  
 Exemption forms validated by the Ministry of Foreign Affairs (CC1 and/or CC3) 
 Original Bill of Lading / AWB 
 TIN (Tax Identification Number) from the FIRS (Federal Inland Revenue Services). This is the TIN from the Diplomatic Organization. 
 Detailed and valued inventory list 
 The Embassy will be required to write letters of authority, addressed to: 

1.
The Area Comptroller of Customs, 
Nigeria Customs Service, 
Ikeja Airport (if Airfreight shipment) or 
Apapa Port, Tin Can Port, Pan Atlantic Area Command (if Sea freight shipment) 

2.
The Officer in charge, 
NDLEA, 
Ikeja Airport (if Airfreight shipment) or 
Apapa Port, Tin Can Port, Pan Atlantic Area Command (if Sea freight shipment) 

3.
The Officer in charge, 
SSS, 
Ikeja Airport (if Airfreight shipment) or 
Apapa Port, Tin Can Port, Pan Atlantic Area Command (if Sea freight shipment) 

4.
The Managing Director of Mid Maritime Services Ltd if the cargo is transferred to that terminal  
The original Bill of lading must be stamped by the Embassy. 
The exemption forms (CC1 and/or CC3) have to be delivered to AGS Nigeria, preferably several working days prior to the arrival of the cargo.  

Exemption process (for diplomatic shipments) 

 minimum 2 weeks 
 Documents needed: original BL or original AWB, packing list, valued inventory, letters of authority 
 Using these documents, the diplomatic organization has to process the following forms (exemption documents) from the Ministry of Foreign Affairs in Abuja, from the above listed documents o CC1 Form for importation of personal effects or items meant for the use of the Embassy o CC3 Form for importation of vehicle  

 Once the ministry has approved the documents, a copy is sent to the diplomatic organization and another directly to the Nigerian Customs. The letter often gets lost, which delays the process – it is important to follow-up with the Ministry of Foreign Affairs to get the tracking number of the copy that has been sent and trace the receiver at the customs in Lagos. 
 Shipper does not need to be present in Nigeria for process to start. Indeed, diplomatic shipments are consigned to the diplomatic organization, the whole clearing can be done without the diplomat being in the country. 
 Exemption process can (and should preferably) start prior to arrival of shipment. The time required to obtain these exemption documents depends on the diplomatic organization’s relationship and capacity to follow-up with the Ministry of Foreign Affairs and varies between 2 weeks and several months 
 In some cases, it is possible to start the process without the approved forms, i.e. get a provisional release. The Embassy then has to ask approval of customs, under the condition that they forward the proper CC1 or CC3 forms as soon as available. This is not always accepted by the Nigerian customs.   

_________________________________________________________________________________


Nigerian Returning Citizen

In order to qualify to import USED personal effects, they must comply with the following:

 Must possess a valid Nigerian passport (e-passport)
 Minimum duration of stay out of Nigeria: 9 months uninterrupted
 No visits to Nigeria for more than 60 days in total over 2 years prior to return
 Must be relocating to Nigeria for good and be physically present in Nigeria at the time of arrival of the shipment and for the whole duration of the clearing process
 Must have obtained a personal TIN (Tax Identification Number) from the FIRS (Federal Inland Revenue Services) Customs will check all entry and exit stamps in the Nigerian passport(s). The returning citizen MUST be physically present in Nigeria during the customs clearing process.
Note that Nigerian customs often query returning residents whose records show a lot of travels in and out of Nigeria in the few months preceding their last entry in Nigeria.
 Original Nigerian passport(s) – COMPULSORY. Required for the whole duration of the clearing process. An E-passport is compulsory since the beginning of 2012.
 Original Bill of Lading / AWB
 Full contact details in Nigeria – COMPULSORY
       o Complete residence address in Lagos
       o Description of access (floors, elevators, possibility of parking a trailer truck close to entrance               of your residence…)
       o E-mail address
       o 2 telephone numbers
 Valued inventory (dated and signed) – COMPULSORY
 Copy of packing-list in English
 Letter of refund of container deposit/excess demurrage – COMPULSORY (sea freight). We will pay the demurrage charges to the shipping line and the container deposit (if any) on your behalf. We will provide in due course a template of the letter for you to sign, requesting the shipping line to refund the container deposit and the excess demurrage charged if any, to us directly.
 Personal TIN (Tax Identification Number) from the FIRS (Federal Inland Revenue Services). AGS can provide you with one free of charge.

 Letter of introduction from employer in Nigeria – RECOMMENDED. It is strongly recommended, especially for imports by SEA freight, that you provide a letter (original on letterhead) from your employer in Nigeria, stating:
       o A brief history of your employment abroad (if you have been employed by the same company)
       o The position you will be filling with your company in Nigeria
       o If you have been travelling in and out of Nigeria in the months preceding your return for professional reasons, the letter should state the reasons.
 Any other proof of employment/residence abroad – RECOMMENDED. Also recommended, especially for imports by SEA freight, are documents proving you have been residing abroad such as:        o Letter from employer abroad stating the duration of employment abroad, position held etc.
       o Copy of letter of termination of contract
       o Any other supporting document
 Certificate of Fumigation if cargo contains wooden crates or packaging

_________________________________________________________________________

Expatriate  


 ORIGINAL passport – COMPULSORY. Your original passport will be required for the whole clearing process. It can be released to you during the process, but with consequences on the process. Originals are mandatory. Even legalized copies will not be accepted.
 Original Bill of Lading / AWB
 Work Permit
 ORIGINAL resident permit (CERPAC (Combined Expatriate Resident Permit and Alien Scheme) or green card) – COMPULSORY. The original of your CERPAC or green card will be required for the whole duration of the clearing process. It can be released to you during the process, but with consequences on the process. Your CERPAC must bear the “embossed seal” from Nigerian Immigration. It must be signed in the “Expatriate’s signature” space, and your passport photograph affixed in the designated space. Your employer should advise the procedure, but in order to obtain the CERPAC, the prerequisites are:
       o Your company must be incorporated in Nigeria and have obtained expatriates quotas from the  Nigerian authorities
       o You must have obtained an STR (“Subject To Regularization”) visa from the Embassy of        Nigeria in your country of origin.
Once you enter Nigeria with the STR visa, your employer should immediately apply for issuance of your temporary resident permit (CERPAC).
 Full contact details and residence address in Nigeria – COMPULSORY
o Complete residence address in Lagos:
o Description of access (floors, elevators, possibility of parking a trailer truck close to entrance of your residence…)
o 2 telephone numbers (one must be a Nigerian mobile phone number)
 Detailed, dated and signed Valued inventory – COMPULSORY
 Original Packing-list in English – COMPULSORY 
 Certificate of transfer from the company
 Personal TIN (Tax Identification Number) from the FIRS (Federal Inland Revenue Services). AGS can provide you with one free of charge.
 Letter of refund of container deposit / excess demurrage – COMPULSORY (sea freight). If your removal is coming in by sea freight, we will pay the demurrage charges to the shipping line and the container deposit (if any) on your behalf in the course of the clearing process. We will provide in due course a template of the letter for you to sign, requesting the shipping line to refund the container deposit and the excess demurrage charged, if any, to us directly.
 Letter of introduction from employer in Nigeria – RECOMMENDED. It is strongly recommended, especially for imports by SEA freight, that you provide a letter (original on letterhead) from your employer in Nigeria introducing you as a new staff member and stating:
        o A brief history of your employment abroad (if you have been employed by the same company)
       o The position you will be filling with your company in Nigeria
 Certificate of Fumigation if the cargo contains wooden crates

Shipper needs to be in Nigeria in order to get a work permit. He must enter Nigeria with a STR visa and the documents he obtained from the Embassy of Nigeria at the time of application. The employer submits the paperwork and passport to immigration – the duration of the process varies, depending on the relationship of the employer with the immigration authorities, it can take from one week to several weeks! The letter from your company in Nigeria should be provided prior to the arrival of your consignment in Nigeria. Your passport and resident permit will be required as we get confirmation of arrival of your shipment, or a few days before that.
For all non-diplomatic shipments, please note:
 The consignee must be physically present in Nigeria during the customs clearing process.
 The consignee must be coming to Nigeria for permanent employment purposes and be employed by a company legally incorporated in Nigeria.  The original Bill of lading must be endorsed by the consignee “deliver to …..” and signed.  

________________________________________________________________________


DETAILED PROCESS FOR SEA SHIPMENTS 

Step 1 - 2 to 3 working days 
The relevant documents (original passport and, for foreigners, original resident permit / CERPAC), are collected from client, ideally 2–3 days before the date of discharge of the container. At the same time, client endorses the BL to release the container to our clearing agent.

Step 2 - 1 day 
Documents are transmitted to our clearing agent

Step 3 - 2 to 3 working days
Application is lodged at the Customs Head Office at Harvey Road, Lagos, with these original documents. This can be done once the rotation number of the vessel is known, or once the container is actually discharged.

Step 4 - 3 to 4 working days
Customs Area Commander (CAC) gives approval of application and go-ahead to proceed with examination (2 working days if CAC is on seat)

Step 5 - 4 to 5 working days
Container is dropped at terminal for physical examination (on average about 4–5 working days after the CAC’s approval) – delay variable as examinations are quite often postponed and rescheduled, due to terminal congestion, bad weather or non-availability of customs. Containers under diplomatic status do not get opened, but customs will still proceed to a physical inspection to check the seal number on the container.

Step 6 - 2 to 4 working days 
Customs release is granted by the CAC based on the examination report (normally 2– 4 working days, depending on CAC’s availability). If the shipment is queried, it results in much longer delays to either object the query, or for customs to raise a debit note for customs duties and taxes applicable on relevant items. In some instances, the container has to be re-positioned for a second examination.

Step 7 - 2 to 3 working days 
Our agent obtains and pays the debit notes from the shipping line and from the terminal and obtains the TDO (terminal delivery order).

Step 8 - 1 day 
Truck is dispatched to collect the container (usually it takes 1 full day to retrieve the container from the terminal and bring it back to our yard).

Step 9 - 1 day
Delivery (Finally!)

IMPORTANT 
New items are strictly forbidden in Nigeria  - huge delays and fines to be expected

Do NOT ship to TINCAN Port - delays and extra charges / please only ship to APAPA port 

Extra charges are to be expected on all shipments to Nigeria

Timeframe for export shipments from Lagos

 Sea shipments  4 to 5 weeks
 Air shipments  1 to 2 weeks

Timeframe for export shipments from Abuja

 Sea shipments  4 to 6 weeks
 Air shipments  1 to 2 weeks


AGS NIGERIA 

 Established in 2004
 2,600m2 storage capacity
 10 fully owned vehicles
 60 staff members for service in English and French  

Our Services 

 Customised solutions for local, national, office and international moves
 Packing and crating services
 Export and import customs clearance
 Short- and long-term storage
 Comprehensive relocation services


TW