You are on page 1of 6

Current Advocacy Projects

1. 2. 1. 2. Establishment of the Border Information Center at Aflao (Ghana-Togo) Result: Measurable reduction in cross-border delay time Express/Expedited Lane Opportunity: expedite clearance procedure and reduce delays

ECOWAS Intra-Trade Pales

ECOWAS exports continue to be dominated by minerals, petroleum and primary agriculture. Biggest markets are USA (35.6%) and EU (28.2%) with China and Asia gaining. For the period 2000 - 2007, Intra-ECOWAS trade accounted for only 9.3% of ECOWAS total trade. Rest of Africa a scant 3.5%. This is much less than elsewhere. For example:

NAFTA 40% Western European 63% MERCUSOR - 20%.

On average, Intra-ECOWAS exports account for only 4% of countries GDPs.

Argument goes that a country & region cannot grow sustainably without intra-regional trade.
In other words ECOWAS has UPSIDES.

High Trade Costs Erode Competitiveness

Trade Hub is building statistical base on the cost of moving goods within ECOWAS and UEMOA Based on initial responses, leading exporters are paying roughly 20% of cif value to ship ETLS FMCG from Accra to Lagos. Total Cost is about $15/km, of which 55% comprises in/formal fees for ETLS. Transport translates to $400-600/day/truck. Indicative time from loading to delivery is 8 days (for 400 km!).

Fees and Red Tape

Various Formal and Informal Taxes and Charges Imposed along the Ghana to Nigeria Corridor 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Administrative Tax (1% fob) Assoc. of Customs Agent Levy BIVAC (GH) CBC Certificat dorigine (Chambre) Certificat dorigine douane Certificat sanitaire CNCB Commune Convoy Fee/Escorte Custom Agent Declaration/quittance Ecor Ecotax ECOWAS tax 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Enregistrement Entry Tax Fin. Charge for Remboursables Gendarmerie Levy Hygiene & Sanitation Import Card Laisser Passer NAFDAC Parking/Stationnement Passage BMA Passage magasin douane PC Police Levy Prise en charge 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Redevance informatique Section visite Sortie Standard Org. of Nigeria Statistical Tax Taxes de declaration Taxes globales Taxes Supplmentaire Tolls/Page Transit Fee URCB (Syndicats) VAT/NHIL Veterinarian Tax Visa

Whats Holding Back ECOWAS Trade ?

Non-complementarity. Differentiated goods are relatively few. Multiple national currencies with limited convertibility. High costs of doing and transacting business and trade.

Limited effect of ETLS and ECOWAS Compensation Scheme.

Dominance of Informal Cross Border Trade over formal trade. AND, red tape, in/formal fees and delays at border crossings.

Opportunities Boom or Bust

Will West African companies and institutions capture and drive the boom or fall by the wayside? What strategies will the private sector and government embrace? For example:
Country-centric Open Markets Economies of Scale Middle Class Oligopoly Primary Agriculture Trade Tariffs vs. vs.


Regional Protected Markets vs. Small Scale Bottom of Pyramid vs. Competition vs. Agribusiness Income Taxes