Trade systems are a form of public infrastructure. People producing and selling goods and services, and those involved in moving them across borders, need international trade systems to provide clear enforceable rules and processes for fast and predictable cross-border movement. Before they ship, businesses need to know how long clearance will take, and which rules will apply consistently from one crossing to the next. Consumers in turn need to know that they can get what they want, at the right price, and at a quality that can be trusted.
With tighter regulation and more volatile supply chains, risk is now the central constraint on international trade. Where trade systems are weak and market share unpredictable, investment is deterred, and opportunity is smothered by delay and the power of discretion. Conversely, when they are strong, they reduce risk and cost, increasing margins and therefore competitiveness.
Over the past year, the questions I have heard from government, business and delivery partners have converged around these issues. Are the rules predictable and are they geared towards trade happening in the right way? In short, can firms plan with confidence? Do the rules not only stay consistent, but are they designed to drive growth, while protecting consumers?
Enabling governments, regional economic communities and economic blocs to say yes to these questions is the standard by which any trade strategy should be judged. It is also why, as Chair of TMA’s Council, I remain confident in Strategy 3, now in its third year. It targets a reduction in the time and cost of cross-border trade, through cutting edge digital trade systems, integrated physical infrastructure, and rules that widen participation for every size of business. TMA also enables business and public institutions to agree, verify and comply with standards that allow Africa’s exports to compete in world markets.
The economic case then follows. International partners are increasingly backing approaches that demonstrate a shift from dependency to capability, delivering systemic changes that lower risks for both firms and governments, so that trade and private investment can do more of the heavy lifting. Development relationships are evolving to respond to these imperatives, which also deliver mutual benefits and shared gains for producers, international offtakers, and everyone in between. This is a win-win, increasing bilateral trade volumes and creating value both within Africa and in our countries.
This past year has seen that approach show its worth in practice. In Kenya’s horticulture export chain, TradeMark Africa and partners are helping to shape a cool logistics corridor – from inland production through Mombasa port – so that exports reach global markets more reliably and at a lower cost through sea freight, while also meeting sanitary and phytosanitary standards and quality requirements. Customs and cargo-tracking reforms have continued to advance, with new fleet management and cargo tracking systems under development to ease the movement of goods on the Ethiopia-Djibouti corridor and so increase exports out of the region and deliver better value for consumers.
Team Europe is also innovating around a more joined-up way of working, pooling institutions and member states behind a shared regional plan, which is driving investments along the Northern Corridor from Mombasa all the way through to Burundi and DRC. These will deliver cross-cutting systems for traders across Eastern Africa, rather than one border at a time. That is the correct instinct. Trade does not improve through isolated projects; it improves when systems connect and rules align.
This last year, TradeMark Africa has also deliberately focused on ensuring that trade practices work for everyone involved, such as the safety and treatment of small-scale traders. A new cross-border programme spanning six West African countries is tackling barriers such as harassment and informal fees, making cross-border trade safer and more viable, especially for women.
Over the next four years of Strategy 3, the international community’s partnership with Africa through TradeMark Africa will join up these efforts, scale those which work, and convert reforms into outcomes that matter – in this case at least 400,000 jobs, resilient markets, and systems that stand up to shocks – and deliver value along supply chains.
What gives me confidence that we will achieve and sustain these targets, is the partnership model that underpins this report. As an African institution, TradeMark Africa works with and alongside African public and private bodies, whom it ultimately serves. This is the condition for lasting reform. Our shared commitment, as a coalition of international partners, is to stay the course by backing practices that work, learning quickly, and investing in the practical systems that allow African businesses to compete, comply and grow.
Leo Svahnback,
Council Chair, TradeMark Africa