As the digital transformation continues to stride across Africa, it is clearing the way and opening vast swathes of potential for its nations, businesses, and citizens. The continent stands on the cusp of a tech explosion with several nations having achieved sustained growth in internet-driven GDP (iGDP)2 – in many cases doubling from 1.5% to more than 3% since 2012 (https://accntu.re/3Cz3zY4). Some experts put the economic growth in Africa at US$180 billion, and if trends continue it could rise to US$712 billion by 2025.
The
flow of trade into and out of the continent is integral to this growth, and as
the African Continental Free Trade Area’s (AfCFTA) effects begin to be
increasingly felt, the amount of trade among African nations is set to double (https://bit.ly/3Ctg8UE).
According
to the United Nations Conference on Trade and Development (https://bit.ly/3ciY8l8),
Africa currently accounts for 2.9% of the world production, and 2.6% of world
trade. Intra-Africa trade stands at 15.4%. If the ease of regional and
international trade improves, this figure could be significantly higher. For
this potential to be realised, however, it is critical for governments to work
together with businesses, in private-public partnerships (PPPs).
According
to the United Nations Conference on Trade and Development, Africa currently
accounts for 2.9% of the world production, and 2.6% of world trade
The
Niger Example
The
work the Nigerien government has conducted in conjunction with the country’s
private sector stands as a testament to this. As a landlocked country, it
depends on its neighbour’s infrastructure to import and export goods, which can
lead to prohibitive costs.
It
is for these reasons the Niger government has planned to build the Dosso dry
port (https://bit.ly/3R548fW) in conjunction with
Bolloré Africa Logistics (BAL) as a way of reducing costs, minimising risks for
the country’s operators (https://bit.ly/3PQ5U3B), improving and
speeding up procedures, tightening security and increasing customs and tax
receipts. This helped overcome a significant obstacle for the country’s
economic development, and eased congestion at the seaports of Cotonou (Benin),
Lome (Togo), Tema (Ghana), and Abidjan (Côte d’Ivoire).
The
ease and efficiency of goods movement have been bolstered further by a PPP
contract between the Nigerien government and Webb Fontaine (https://bit.ly/3PRe0cr),
which saw the implementation and long-term management of the new
government-owned Niger National Single Window project (NNSW). Deployed over
four years, Single Window included the roll-out of a state-of-the-art Port
Community System, created specifically for Niger as a landlocked nation.
With
one single platform through which all stakeholders – international and domestic
traders, banks, and various administrative government departments – have
access, Niger’s import/export processes have been streamlined and sped up. The
platform digitises the approval of licenses and permits for imported/exported
regulated products and provides payment platform for trade documents.
Previously, the application for the flow of goods was a complicated process
taking several days – or even weeks. Today, it can be accomplished in a matter
of hours. This, in turn, has a knock-on positive effect on other areas of the
import/export process – transportation of goods, for example, can also proceed
more quickly.
This
ten-year initiative is still paying dividends as it is constantly evolving to
meet the needs of its stakeholders; the developers are cognisant that not every
user of the platform is the same, and as new requirements or challenges in the
supply chains are encountered, stakeholder feedback is listened to, considered,
and applied where possible. Furthermore, the platform acts as a bridging entity
between organisations that may not wish to share their inner processes, such as
competing banks, for example. Single Window’s developers have integrated
payment gateways into the platform that enable the banks individual customers
to transact securely, without having to reveal proprietary information to their
competitors.
The
success of public private partnerships such as these will help to ease the flow
of goods across borders is not limited to Niger. It has already proven a
success in other countries, such as Nigeria (https://bit.ly/3pKEGkk),
Congo (https://bit.ly/3RcNUkW), Cote d’Ivoire, Benin
and Guinea. As more governments collaborate with the private sector to make
import/export easier, they will help to unleash the vast potential for economic
growth that exists in Africa.
Distributed
by APO Group on behalf of Webb Fontaine.
Source: APO Group