§ Lack
of harmonised and integrated trade policies and procedures. Examples include,
identical products being imported into a country at variable rates of duty
§ Under-developed
transport infrastructure. It can cost up to $3 to transport a bag of rice 400
kilometres!
§ Lack
of quality transport companies in terms of, reliable vehicles, service
consistency, and peace of mind.
§ Mis-alignment
of agreed ECOWAS policies, with customs practices on the ground.
The existence of the ECOWAS Trade
Liberalisation Scheme (or ETLS), which was first implemented in 1979, still has
a long way to go for region-wide adoption and recognition, on the ground. This
has manifested itself in a number of ways, including:
§ Significant
delays in clearing imported goods, into markets where they are deemed as
competitors to the incumbent. One incident on the Senegal/Mali border, led to a
30 ton goods truck being held by Malian Customs for over 2 months. This was
despite it having all relevant documents including an ETLS.
§ Border
authorities refusing to recognise the ETLS, or at worst claiming ignorance of
its existence! This is particularly prevalent on Guinea Bissau’s border with
Senegal, where language challenges do impact on customs practices.
§ With
a large chunk of intra-regional trade being informal, some border authorities
do take advantage of traders, who have limited access to independent
information concerning their trading rights.
Further information on the ETLS can
be found at www.etls.ecowas.int
Solutions On The ground
So, how do you overcome these ‘bottlenecks’,
which could be the difference between success and failure? From the author’s
own experience, the steps to follow are:
§ Contact
your local Ministry of Trade, and develop a relationship with the technocrat
responsible for Trade and in particular the ETLS. See them in person, and take
their guidance to apply for an ETLS certificate.
§ Speak
to prominent businesses heavily involved in regional trade in your country.
Secure contact details of senior Customs Officials at the relevant borders, and
confirm from them any particular procedures you need to be aware of prior to
making your first shipment.
§ Contact
your local Chamber of Commerce, to tap into the experiences of their members,
and perhaps to be referred to a company willing to share their expertise. The
success of this approach will depend on the Chamber, as some have been known to
be ineffective in this regard.
§ It
is best to own vehicles involved in the regional distribution of goods.
Transport ‘companies’, are usually one vehicle entrepreneurs who more often
than not, ineffectively maintain their vehicles, employ unregulated or tested
drivers, and are reluctant to engage in a ‘formal’ contract, beyond a verbal agreement.
§ When
planning delivery windows in the region, add 3 additional days to your
estimate, to factor in vehicle breakdown, border issues, and security
challenges.
This article aimed at providing
crucial insights ‘from the ground’, of distribution challenges that all businesses
face in West Africa. It highlighted the key challenges, identified a key
instrument designed to improve the current status quo, and recommended
solutions to facilitate more effective intra-regional trade.
If you have any further queries
related to this article, please contact me at businessdiaspora@gmail.com .
