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IMPERIAL Logistics. Africa. World Trade Organisation - Geneva 2012. Agenda. Africa in Perspective – Key Road Block Scenario Key Challenges Conclusion - Risk and Reward. 61 Operational sites in Europe. Over 1,100 operational locations worldwide.
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IMPERIAL Logistics Africa World Trade Organisation - Geneva 2012
Agenda • Africa in Perspective – Key Road Block Scenario • Key Challenges • Conclusion - Risk and Reward 61 Operational sites in Europe Over 1,100 operational locations worldwide 968 Operational sites in Southern Africa
IMPERIAL Logistics Africa in Perspective The world does not underestimate the opportunity, potential & businesses opportunity in Africa! • Africa needs become competitive : • Transparent Trade Facilitation Imports / Exports; • Improved Trade Procedures • Cross border & corridor development • Combined commitment by Africa • governments • Reducing the cost of logistics • Conversion of import cargo to the • African destination ports • Create balanced two directional • volume flows • Investment in infrastructure • Ports • Rail • Roads • ICD • IDP
IMPERIAL Logistics Africa – The Status Quos • Red Tape moving goods Regionally, Intra-Africa, Cross Border & Imports / Exports • Vastly Duplicative • No alignment & co-operation between relevant government & trading agencies • Average Custom Transactions: • Some 25 different parties and 40 documents • A vast amount of data elements: • Some 20% repeated numerously • Re-Keying of data in excess of 80% - Post to Post • Cost of Logistics – Perspective: • Globally to “GDP” - 7.5% • South Africa to “GDP” - 13.0% • Africa to “GDP” - +30% • Border Posts – Africa • Inefficient • Lack of and no regional alignment – information technology as an enabler • Border Agency Facilitation • Totally duplicative – re-keying of all information • Lack of resource i.e. current methodology • Road block and “ The key cost driver” to trade facilitation
IMPERIAL Logistics Africa – Top 80% African Commodities - Export / Import
IMPERIAL Logistics Africa – Export / Imports Top ports handle more than a 90% of total volume in SADC region and East coast shares 71% and West coast shares 29% of total volume. Data Source: Various SADC Port Sites
IMPERIAL Logistics Africa – Cost of Logistics – Current Status Quos - Inefficiencies “Logistics” as part of the value chain, the key driver of cost in Africa (+30% of “GDP”) - negatively impacting on economies in the region and certainly socio conditions • Assumptions: • Simulation - Container Shipment , Main Chinese Port to Lusaka • Weighted Average Import Tariffs / Duties – Machinery, Manufactured Goods, Food & Chemicals • 28 shipments per annum • 40’ TEU’ – 30 ton per container • Three destination Ports on weighted average - destination
IMPERIAL Logistics The Key Challenge “SME,s” and the informal sector in Africa equate to some 65% of “GDP” creation and (as well now, the formal sector) find it cannot participate in Intra Africa, Regional Trade and Internationally, from a volume perspective and or the lack of formal, supportive and well managed trade and government agencies, as enablers and the catalysts to growth . • Simplified trade procedures • Expediting the passage and release of product • Customs & border post, reformation & modernisation • Information Technology & Systems – aligned, as a business enabler in, too & out of Africa • Reduce Cost of Logistics • Balancing imports to export volumes - two way traffic - Conversion • Political & Regulatory Challenges - Integrity & Strength of Institutions • Socio Economic Challenges – Growth vs. Infrastructure • Social Media & Connectivity - Enabler • Banking & Finance Challenges – Growth, Sustainability & Continuity • Human Resource Challenges - Foundation • Infrastructure Challenges – Road, Rail, Air and the Great Lakes • The state of all the above result in a much higher cost of doing business in Africa • compared to that of the developed world.
IMPERIAL Logistics Reward • Economic Growth prosperity, success, sustainability and continuity is dependent on • development • Transformation and empowerment to the future • Skills Development • Dedicated development interventions and initiatives local employed population • Transformation objectives promoted by various skills development initiatives • Vehicle to enhanced Socio-economic development • Regional Employment Creation Africa “The Future”: Facilitating Trade through integrity , Simplified Trade Procedure & Framework and Integrated Infrastructure & Information Technology