The future in digital trade for the African SME (AWBC March 2009)

1. The future in digital trade for the African SME (AWBC March 2009) Conor O’ Riordan Tradefacilitate.com EU ETEN Global Project leader (2007-2009) Chair Digital paper TBG2 UNECE CEFACT Trans Atlantic Business Dialogue SME 25 years SME international trade in import / export

2. The realities for the Africa’s SME engaged in international trade • Trade data comes before goods Jan 1 2011 • Goods will only move as fast as the quality of trade data presented from that date • US/ EU have common goal competitive paper free secure trade with global partners • Global secure trader status AEO CTPAT • Paper free harmonise trades data for global interoperability • WCO and UNECE/UNCEFACT and UN Charter 29/09/09

3. WTO –WCO – UN – USA – EUBi-lateralReappraisal • Committed to competitiveness via paper free • Agree onSecure Traders, Trusted Partners. • Agree on total transparency for Customs from Point of Origin to Destination. • Correct Customs Classification of Goods $$. • Counteract counterfeit to protect Multi-national Brands & market share. • Reduce Risk of Bogus Traders. • Reduce Risk of Terrorist Infiltration, through various security measures.

4. EU saw paper free a passport for SME competitiveness • Enables customs to segment its customer base and increase its effectiveness by: • Identifying trusted or low risk traders • Focusing it’s interventions accordingly • Opportunity for legitimate SME traders to avoid unnecessary delays or burdens by: • Implementing satisfactory controls • Co-operating with customs

5. Don’t know about changes in legislation • Don’t know about their responsibility for visibility in supply chain which will reduce their costs of goods traded by up to 40% • Historical freight forwarder role changed and also self preservation • Historical information providers to SME limited in resources and capability. • How will the SME globally who account for 98 % of all global trade find paper free ?

6. EU project findings are replicated globally • SME deal in Minutes not years or millenium • Customs and security is not sexy ( Kovacs). • No political will and no funds around MASP • EU, Member state politicians demanded legislation EU implemented and have left it to the private sector to lead. • Reality is EU member states individually cannot deal with their own Sme (OECD UN) so Brussels is dealing with a multiple of 27 times the local problem

7. We know this why ? • EU base global research over 3 years • Pre and during EU ETEN (EU, USA, APEC, Oceania, America’s, Ethiopia • World bank, IFC, IADB US AID EU • APEC, ASEAL, UNCEFACT , UNECE , ESCAP, UNECA • “If there is no political will it is not on national agenda, then it is not in public policy then there is no accountability i.e no support /awareness”

8. Why did the EU fund the an SME led private project for 18 months ? • EU policy is private sector must lead with low cost solution for SME who are the economic backbone of the EU and the EU requires they remain competitive in international trade. • To validate an easy to use , low cost SAAS ICT solution to enable the EU SME on single window access, paper free trade capability and AEO assistance (24 vs 29 )

9. Lessons learnt globally from EU base • Politicians responsible for FDI, Exports, SME, will sign up to a national agenda for SME & National economic competitiveness. • Associations and bodies who service SME can access funds to engage educate and enable SME training on digital trade • Associations who bring SMEs embrace a “faster, cheaper and more secure” message for their members and they look proactive. • Abundance of technology and funding BUT shortage of awareness and solutions for paper free digital trade for SME

10. Where do we go from EU 18 month validation process ? • From 2/03/2009 Tradefacilitate commercially provide globally a simple, low cost web-based solution for end-to-end international paper-free trade to SME’s globally M • Benefits for SME’s will mean increased competitiveness and make them compliant for secure global trade.

11. African like EU private sector must lead on paper free • Message is about compliance, it is about SME and national competitiveness attract FDI and give first mover advantage to grow exports . • SME pay taxes rates and vote for politicians and January 1 2011 non negotiable for Africa inc and SME are the economic backbone of AFRICA , like everywhere globally EU , USA , Australia, China • UK government research says by going paper free in perishables the current paper trade costs of 1, 000,000,000 euro can be reduced by 700,000,0000 . (SITPRO HERMES 2008)

12. African SME requirements are like EU’s to plug into paper free trade 1)Political responsibility for African and national policy must be secured by Private sector 2) Public sector responsibility to deliver on above 3) Private sector SME responsibility from big business 4) All in 1,2,3 ensure SME private sector aware of how EU USA China is empowering SME’s in international trade reduce costs and move goods quicker and more securely via paper free. AFRICA inc and regional policy should cover cohesion across trade data, ICTand providing education and enablement to keep their SME regionally and internationally competitive.

13. The Prize for Africa Inc for going paper free ECONOMIC COMPETIVENESS IN A CONNECTED DIGITAL TRADE WORLD • SME Import & Export global competitiveness • African customs improve revenue collection on imports and fast track exports. • Attract FDI as AFRICA is open for global digital trade business

14. Thank you “ UNCEFACT FORUM 11/03/ 2007 DUBLIN “ The Tradefacilitate company committed to ensuring at the end of the EU project we would transfer and share all IPR and global knowledge and partners with African SME’s and we are here now to do that “ coriordan@tradefacilitate.com