TRADE FACILITATION IN CENTRAL AFRICA – THE INTER-REGIONAL AGENDA

Mombert HoppeSeptember 29, 2011

Outline

Central Africa as connector region Current work: Cross-border trade

between Nigeria and Cameroon Current work: Cross-border trade

between Republic of Congo and the Democratic Republic of Congo

Conclusion

Central Africa as connecting region Trade facilitation interventions in CEMAC

countries create spillovers to other members (landlocked), but also to neighbouring regions

Central Africa is the integrating region between West, South, and East Africa Cameroon/Nigeria Congo/DRC DRC/Rwanda-Burundi-Uganda

TF projects between Cameroon and Nigeria, and between the two Congos support inter-regional connectivity Projects are linked to transport corridor work

Cameroon and Nigeria (1)

What? ESW to identify and prioritise challenges to cross border trade. In parallel to the ESW and based on initial findings, identify and implement quick TFF actions Broad UN partnership: contributes to the

broader UN agenda for securing border zones Where? Enugu/Bamenda corridor in the

West, and Maiduguri/Limani/Maroua corridor in the North

Cameroon and Nigeria (2)

How? Collection of trade data and prices, assessment of barriers at borders and behind borders, complemented by interviews with traders and other stakeholders

Undertake 4 case studies to allow prioritisation of barriers Currently defining products and transmission

channels 2 case studies product based, two transaction

based

Congo-DRC (1)

What? Recent analytical work on trade and regional integration between Brazzaville and Kinshasa (part of DRC CEM): Demonstrated degree of existing market segmentation

(goods, persons) between cities Identified key constraints to increasing cross-border

trade Cumbersome and lengthy procedures (17 agencies at Kinshasa

port), lawlessness, duopoly on transport services across the river Estimated substantial potential for increased cross-

border trade and economic activity TFF project under preparation to address these

barriers

Congo-DRC (2)

Where? TF project to address some of these barriers will focus on Brazzaville-Kinshasa link from Brazzaville side

How? Mission in October to define in greater detail the specific actions that need to be undertaken to address these constraints and to concretely change the situation on the ground

How to address existing barriers Some additional ESW to allow taking local

conditions into account, coupled with and leading to specific trade facilitation activities

Based on recent experience in the Eastern DRC, specific activities to facilitate inter-regional trade will likely center around: Improving inter-agency collaboration within and

between countries; reduce the number of agencies present at borders

Increase transparency regarding legal duties and fees

Address infrastructure constraints at border posts

Conclusion

Inter-regional agenda is key to improve competition between corridors and ensure broader integration

Particular challenges is the lack of political integrating framework

A team dealing with the cross-border agenda in Central Africa exists – including work on linking Central Africa to the EAC/COMESA