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3 years ago

Opportunity Issue 95

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TRADE Unlocking trade

TRADE Unlocking trade and transport facilitation bottlenecks Botswana, Namibia, South Africa and beyond. The governments of Botswana, Namibia and South Africa, recognising the need to eradicate poverty and place their countries on the path of sustainable economic development and growth, established the Trans Kalahari Corridor Management Committee (TKCMC). This move was influenced by the need to achieve the transport and trade facilitation objectives as well as deeper regional integration as espoused in the SACU, SADC and AUDA – NEPAD Agenda. In 2007, the Trans Kalahari Corridor Secretariat (TKCS) was established to coordinate the functions and decisions taken by the TKCMC. South Africa is the current chair of the TKCMC. The objectives of the TKCMC are to simplify crossborder transactions and customs operations along the Corridor; facilitate the movement of goods and persons on the TKC by simplifying and harmonising the requirements and controls that govern the movement of goods and persons with a view to reducing transportation costs and transit times; integrate the spatial, economic and transportation planning for the contracting parties; promote deeper integration by harmonisation of conflicting regulations and policies of the three countries in line with the SADC Regional Indicative Strategic Development Plan (RISDP); integration of trade, transport, logistics and travel systems of the three countries with the objective of providing quality services at minimal costs, thereby increasing competitiveness of the SADC and SACU region. In 2016, a new strategic plan was developed with a goal to have the TKCMC be the leading corridor in trade facilitation to achieve socio-economic integration and development. The strategy is underpinned by four pillars which are organisational efficiency; border management; stakeholder management; and safety and security. The strategic objectives for the TKCMC work programme include accelerating economic integration and development; enhancing stakeholder capacity; having a responsive border regulatory framework; as well as improving border infrastructure, road safety and security along the TKC, road infrastructure, stakeholder relations and communication infrastructure. The TKCMC work programme is a robust trade facilitation programme that supports effective trade facilitation and eventually lower trading costs. The TKCMC is cognisant of the fact that transport operators and traders choose their routes based on the performance of the corridor, and these performance indicators are the distance-related operating costs; travel time; predictability of transit; reliability of services along the corridor; safety and security as well as the “hospitability” of the route. These are therefore paramount for the TKC to remain a corridor of choice and thereby achieve its vision of being a leading corridor in trade facilitation for socioeconomic integration and development. Covid-19 impacted the TKCMC work programme. Most programmes could not be executed because negotiations could not continue as the member states’ focus was on addressing the spread of the coronavirus. Movement on the corridor was also affected as borders were only open for essential goods. However, as restrictions eased all types of cargo could move. The TKCS is optimistic that the downward spiral in growth and volumes due to Covid-19 by all TKCMC member states and the region will change for the better as countries ease their Covid-19 restrictions. This recovery will be influenced by: • Regional integration (harmonisation of conflicting regulations. Covid-19 has exposed this problem) • Development of regional industrial policy (accelerate the industrialisation with a focus to improve local production capacity within the region) • Innovation in the facilitation of trade and SMART corridors (less human contact is required, virtual queuing of vehicles at the borders, pre-clearance, cargo and vehicles) • Linking Africa to allow Africa to trade with Africa • African Continental Free Trade Area (AfCFTA) • Need to build back better with private sector as the driving force. The resilience of the private sector • Deliberate effort to support private sector empowerment recovery schemes (youth and women). The TKCMC’s objectives are to simplify crossborder transactions and customs operations along the Corridor ___ __ Leslie Mpofu, Executive Director 8 | www.opportunityonline.co.za

BUSINESS UPDATE BUSINESS UPDATE News & snippets Industry Industry insights insights from from the the past past quarter quarter Volatility in in manufacturing The The latest latest production production data data for for the the manufacturing manufacturing sector released by Statistics South Africa reflects the the resilience resilience of of the the Metals Metals and and Engineering Engineering (M&E) (M&E) cluster cluster of of sub-industries sub-industries on on a month-on-month month-on-month basis, basis, says says Steel Steel and and Engineering Engineering Industries Industries Federation Federation of of Southern Southern Africa Africa Chief Chief Economist Michael Ade. The The figures painted a worrisome annual trend as the recession deepened amid the pandemic. Unadjusted recession deepened amid the pandemic. Unadjusted manufacturing manufacturing production production decreased decreased on on an an annual annual basis basis by by 10,8% 10,8% in in August August when when compared compared with with August August 2019. 2019. The The largest largest contributors contributors to to this this decrease decrease year-on-year year-on-year in in the the M&E M&E industry industry were were the the motor motor subindustries, which which recorded recorded -30.6%, -30.6%, followed followed by by the the sub- steel, metals and and machinery sub-industries at at -11.7%. -11.7%. Supporting the DRIVING South African SOUTH aerospace, AFRICA’S defence AEROSPACE and marine INDUSTRY manufacturing sectors The Aerospace Industry Support Initiative (AISI) is a South African government initiative with the specific aim of improving the competitiveness of the local aeronautics, space, defence and marine advanced manufacturing sectors. The AISI takes its strategic direction from government’s objectives with a specific emphasis on industrialisation of technology and technology-based supplier development. The Department of Trade, Industry and Competition (the dtic) utilises the CSIR and its position in the National System of Innovation (NSI) as an independent, strategic directed R&D entity to give industry access to national expertise and infrastructure in order to improve its capabilities and offerings. Established in in 2006, the the AISI AISI has has supported the the South South African African industry both directly and and indirectly through interventions implemented by by the the following programmes: • Technology-based Technology-Based Supplier Development • Industry Development and Technology Support • Marine Manufacturing, Associated Services and and Other Manufacturing Industries Supplier Development Programme • Supplier Sector Strategic Development Support Programme Initiatives • Sector Coordination, Strategic Promotion Support Initiatives and Awareness See • Coordination, page 9 of this issue Promotion for more and information Awareness about AISI Building PPE capacity Owned and managed by Ntombekaya (Ntombie) Nonxuba, Rise Uniforms is a manufacturer and supplier of high-quality uniforms, corporate wear and medical PPE. Based in Philippi, Cape Town, they manufacture locally as per client specifications and supply nationally. In operation since 2007 and formally registered in 2010, the company has an established track record of consistently supplying uniforms to to well-known brands such as Pick n Pay and and Boxer superstores. Beyond simply meeting a product need, Rise Uniforms is is 100% black female-owned and employs employs 52 52 people from the township. With a strong strong desire desire to to see see transformation in in the Philippi area, area, Nonxuba Nonxuba deliberately deliberately chose chose this this location location for the production facility and offers a significant number number of of employment employment and and business business opportunities opportunities in in an an area area that that has has a staggering staggering 38% 38% unemployment rate. They also offer training opportunities to groups of women. Over the years, opportunities to groups of women. Over the years, Rise has improved their production processes and Rise has improved their production processes and built their production capacity substantially. built their production capacity substantially. Find us on www.chemicorp.co.za

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