An analysis of trade facilitation challenges in Southern African Development Community (SADC) 2000 to 2014.

Abstract

The study analyses the factors that challenge the implementation of trade facilitation measures in Southern African Development Community (SADC) 2000 to 2014. The concept of trade facilitation is based on theories which include complex interdependence and regional integration. The SADC Trade Protocol adopted the agenda of trade facilitation which therefore means each member state is accountable to implement trade facilitation measures. The absence of trade facilitation hinders the smooth flow of trade which is evident in border delays, trade losses, uncertainty, limiting the attraction of Foreign Direct Investment (FDI) among others. The study extensively employed qualitative techniques to collect and analyse data which was drawn from in-depth interviews and documentary search. The Chirundu One Stop Border Post (OSBP) between Zambia and Zimbabwe, Mauritius and Mozambique single window systems and the South Africa Coordinated Border Management (CBM) approach were discussed as success milestones taken so far by SADC. SADC faces a number of political and economic challenges in its effort to implement trade facilitation. Lack of strong political will, multiple memberships in regional blocks, internal challenges and preference of other international trade agreements over the SADC Trade Protocol are some of the political challenges. Fiscus constraints, different levels of economic development, different border opening times and diverse documentation requirements of road user fee, environmental, health and safety standards as well as a revenue mentality against the trade facilitation agenda are some of the chief economic challenges that SADC has experienced. If unaddressed these political and economic challenges will continuously lead to increased trade costs and cumbersome trade processes. The region is progressing at a very passive pace in line with trade facilitation; to change this SADC can initiate the mobilisation of resources for capital expensive projects like OSBP. It can also organise the simplification, standardisation and harmonisation of trade documents across the region as well as organise trainings for member states on the importance of trade facilitation with an emphasis on revenue generation