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Breaking Down

Barriers

African Development Bank Group

Borderless 2012: Transforming Trade 1st


Annual Conference & General Assembly
AfDB
15-16 May 2012
Hôtel Golf, Abidjan, Côte d’Ivoire

Wednesday, May 16, 2012 ONRI- NEPAD Regional Integration & Trade 1
Slide Sequence
Policy-Strategic Issues Responses

AfDB’s Approach Barriers


Transport/Trade
Response on Barriers
Sectors
Benefits of IBMs
Expected Outcomes

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African Development Bank’s Approach
• The AfDB has a Regional Integration Strategy
(RIS) that has two key pillars:
• (i) Regional Infrastructure Development;
• (ii) Institutional Capacity Building
Other cross cutting issues include: cross border
trade facilitation; enhancement of regional
financial infrastructure etc.

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Transport and Trade Sectors Regional Operations in West Africa

Transport Sector Projects What is entailed under the AfDB’s Transport/Trade Beneficiary Project Institution Outcome
Facilitation Components Countries Cost in UA

Rehabilitation of the
Lomé - Cotonou Road
and Transport
150
Facilitation on the Benin-Togo ECOWAS
Abidjan-Lagos Corridor million
Project

Boke-Kebo Road Guinea- 90 million ECOWAS


Rehabilitation Project Guinea-Bissau
- Support provided to regional training programs & Barriers to trade
Rehabilitation of the institutions for trade facilitation and standards. Burkina-Faso - mitigated:
158 ECOWAS/
Atakpame – Kara Road - Construction of OSBPs Togo
- Users of the rehabilitated corridors sensitized to million WAEMU
and transport facilitation Transaction costs for
project on the Lomé trade facilitation measures
- Collaboration with ECOWAS and UEMOA movement of persons
Ouagadougou Corridor
Commissions respectively scaled up on the and goods reduced.
Integrated System of activities of the Observatory of Abnormal Practices Guinea-Mali - 40 million OMVS
Multimodal Transport to record unofficial stops and demand for Mauritania- Time taken reduced
payments. Senegal
- Collaboration to support institutional capacity of
Efficiency gains
ECOWAS/UEMOA on trade facilitation
Lomé-Cotonou (77.5 km) attained by services
on the Abidjan-Lagos providers and
Togo-Benin - -
Corridor rehabilitated by economic operators.
2014
- The Trans-Gambia
bridge on the Dakar-
Lagos corridor is Senegal-
constructed by 2016 - -
Gambia

Regional Integration & Strengthening institutional Capacity of RECs ECOWAS- UA 30 ECOWAS/


Trade WAEMU million WAEMU
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Barriers
• Capacity and institutional Weaknesses
Behind the Border • Non-Tariff Barriers
• Transit Corridor issues

• Operational Issues:- i.e. complex documentation,


unharmonised procedures, language challenges, varied
At the border agencies
Border • Legal issues: – unimplemented agreements/protocols
• Weak border infrastructure:- including ICT facilities

• Public policy issues – sudden shift in tariffs


After the border • NTMs i.e. SPS, TBTs,
• Political and/or Commercial risks

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AfDB’s Response to Barriers
• Collaborate with national institutions,
ECOWAS & UEMOA to address human
Behind the Border capacity and institutional Weaknesses
• Support elimination of NTBs along
transport and transit corridors

• Operational Issues:- support documentation and


At the processes harmonization including STR
Border • Legal issues: – push for agreements/protocols
• Weak border infrastructure:- OSBPs & IBM

• Public policy issues – sudden shift in tariffs


• NTMs i.e. support studies and workshops
on SPS, TBTs, etc
After the border
• Political and/or Commercial risks:
advocate for strengthening of RECs and
DSU mechanisms
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Best Practice - OSBP/IBM

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Lessons Learnt - Benefits of IBM
Clarifies Accountability of
responsibilities border agencies

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Expected Outcomes/Conclusion

Reduction in Transaction Costs

Reduction of Time Taken at Borders

Efficiency gains for economic operators

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THANK YOU

• Gerald AJUMBO
• NEPAD Regional Integration and Trade – ONRI
• B.P. 323-1002 Tunis Belvédére Tunisia
• Website: www.afdb.org
• E-mail: G.AJUMBO@AFDB.ORG

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