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05 October 2016

Cost of trading along Tema-Ouagadougou corridor reduced – Study

SpioResults from a performance analysis study revealed that the average cost of trading along the Tema-Ouagadougou corridor and other West African countries have reduced.

Conducted by the Economic Community of West Africa (ECOWAS) in collaboration with the African Development Bank (AfDB) and its partners, the study found that an improvement in cost of doing business along the corridors.

The report which was conducted through a consultation with actors such as, customs, corridor management organizations, transporters, and stakeholders was unveiled at a regional coordination meeting convened, in Abidjan by the ECOWAS, AfDB and the Accelerating Trade in West Africa ATWA project.

The study, conducted in four countries – Côte d’Ivoire, Ghana, Togo and Burkina Faso along the Abidjan-Ouagadougou corridors; Tema-Ouagadougou; Lomé-Ouagadougou, found that all three corridors have seen improvements in both costs and time.

The average corridor costs have gone down by 16 percent and average corridor times by 6 percent over the last 4 to 8 years.

In terms of cost distribution, the survey indicated that trucking costs absorb about 65 percent of the total corridor transport costs; ports take 20 percent while border crossings and clearance at the inland terminal account for about 15 percent of the total corridor costs for import.

The study found that export is generally less expensive and faster than import. Other indicators were also shared such as process and travel time to move goods along the corridors with rail versus road indicators.

In her view, Director, Regional Integration and Trade Department at the AfDB, Moono Mupotola noted that regional integration is a development imperative and a priority for the Bank.

“Integrating Africa is one of the five priorities of the Bank, Feed Africa, industrialize Africa, integrate Africa and improve the living conditions of the people of Africa.” She said.

She also stressed on the need to accelerate the integration of ECOWAS markets and work harder to make trade easier, faster and cheaper on the continent.

“Reducing the cost of transporting goods along our corridors is vital to the development of trade to boost economic growth in West Africa and indeed on the continent,” she told participants.

The study also highlighted some challenges that need to be addressed with a view of facilitating trade and reducing the cost of transport of goods.

These challenges include the absence of regular and coherent data on trade along the corridors, non-tariffs barriers, lack of data sharing amongst the countries customs authorities and delays in the implementation of legal and regulatory texts and agreements were also cited as shortcomings.

To overcome these challenges, all stakeholders and development partners who attended the meeting reiterated their willingness to help consolidate the gains on the West African corridors.

Source: Myjoyonline.com

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