Private Sector Role in Intra-Africa Trade Trade Facilitation

1. Private Sector Role in Intra-Africa Trade & Trade Facilitation Presented by Chiwama M. Musonda Private Sector & Trade Development Zambia

2. PROFILE OF PRESENTATION Introduction Definition of “private sector” Private sector in Africa Intra-Africa trade Private sector role in intra-Africa trade Private sector role in trade facilitation Conclusions and recommendations

3. 1.0 INTRODUCTION Private sector development viewed important across the continent Private sector development has moved hand in hand with privatisation Bilateral donor involvement in private sector evolution

4. 2.0 DEFINITION OF “PRIVATE SECTOR” A basic organising principle for economic activity where private ownership is an important factor, where markets and competition drive production and where private initiative and risk-taking set activities in motion. Hence, applied in all economic activities

5. 3.0 PRIVATE SECTOR IN AFRICA Locally owned enterprises Micro and Small Enterprises Larger enterprises Foreign-owned enterprises

6. 4.0 INTRA-AFRICA TRADE Increased intra-African trade growth rate – 4.7% in 2002 to 13.5% in 2003 Increase of share of intra-Africa trade in total African trade to 9.6% in 2003 from 9.1% in 2002 Reasons: shipping & air-links improvement, external trade payment reforms, reduced TBs and NTBs to intra-Africa trade, competitiveness, better information flow & better trade infrastructure

7. Table 1: Intra COMESA Trade (US$ million)

8. Table 2: Intra-Regional Integration Arrangements, 1999

9. Continued: Intra-REC trade still low Caused by indebtedness, lack of foreign exchange, continent’s continued dependence on external markets for its primary commodities hinders intra-trade within her RECs ECCAS & CEMAC among RECs with lowest levels of exports & imports among themselves

10. 5.0 PRIVATE SECTOR’S ROLE IN INTRA-AFRICA TRADE Need to respond to integration process and therefore implement changes in production Contribution to political decision making process Practical contribution to regional integration and intra-Africa trade through provision of human and financial resources Key role in producing world-class goods and services Collaboration with the public sector Need to invest in such sectors as telecommunications and transport for enhanced intra trade Innovation through capacity building and research and development initiatives

11. 6.0 PRIVATE SECTOR’S ROLE IN TRADE FACILITATION Lobbying and advocacy Participation in debates Assistance in policy making, transparency of governments and fight against corruption Supporting economic reform programmes Institutional development through capacity building, training, exposure and technical assistance Coordination with main economic actors/ players Coordinate the setting up of trade facilitation committees Funding of trade facilitation studies and projects

12. 7.0 CONCLUSIONS Evident that Africa governments are focused on improving the macro-economic environment Governments across Africa need to create enabling environments to attract increased private sector investment Governments across the continents should reduce borrowing from commercial banks so that the private sector is not crowded out. This will result in reduced interest rates attractive to the private sector. Need to harmonise legislation among Africa’s regional groupings Economic groupings should strive to promote and increase private sector participation in intra-Africa trade and trade facilitation Broadening and expanding institutional mechanisms for private and public cooperation

13. Thank you for your time!!!!