Less red tape, more harmonised systems and increased regional integration are prerequisites if cross-border trade is to thrive.Hold-ups, particularly at border posts, continue to delay cargo, driving up the cost of logistics, while non-tariff barriers (NTBs) add further strain.The African Continental Free Trade Area (AfCFTA) – which was implemented on January 1 – has been touted as the answer to the low levels of intra-African trade, but few traders are seeing any difference at ground level yet. This is not surprising as phase 1 of negotiations, covering trade in goods and trade in services, has not been completed. Phase 2, which will cover investment, intellectual property rights (IPRs) and competition policy, has yet to commence, while e-commerce is expected to be part of third-phase negotiations.According to Niki Kruger, chief director of trade negotiations at the Department of Trade, Industry and Competition (DTIC), negotiations have taken much longer than was initially expected, but deadlines have been set for discussions to be completed by the end of this year.She said despite the negotiations not being completed, South Africa remained positive about the agreement and the impact it would have on economies on the continent.“South Africa has always seen the AfCFTA contributing to African economies – not just unlocking the markets, but also intra-African investment f lows.”Freight forwarders contacted by Freight News confirmed this, saying there was not much difference as yet in the trade f low, but most were hopeful about the impact of the agreement in the future.Gavin Kelly, CEO of the Road Freight Association (RFA), said the standing time at the border posts remained one of the biggest cross-border challenges. “The situation has been exacerbated by Covid-19 and we need to get to a system of some normality sooner rather than later. That being said, the situation is really out of everyone’s hands and authorities are doing what they can.”Transporters have called for more collaboration between countries. Botswana, for example, introduced such tight lockdown regulations that many trucking companies found it unprofitable to cross into the region through the country. This led to other borders having to deal with an unexpected increase in traffic.Kelly said more alignment and harmonisation would improve the situation. “We do believe that there is a lot of planning and talking happening behind the scenes to find solutions for the congestion and challenges at the border posts in the region. We are also seeing far more cooperation than ever before and it is very encouraging.”He said moving borders towards the smart border concept was imperative as this would ultimately ease the delays. “Clearing and processing would happen at a desk far away from the border as it would all be electronic and the actual stops at the border would be the exception and no longer the norm.”Feature by Liesl VenterWe are seeing far more cooperation than ever before over border post congestion and it is very encouraging.– Gavin Kelly
