Logistics key to unlocking big intraregional trade potential

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Ports & Shipping

Logistics key to unlocking big intraregional trade potential

Samsa Centre for Ships executive head Sobantu Tilayi speaks about the importance of using ports for trade. Camerawork: Nicholas Boyd. Editing: Darlene Creamer.

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22nd July 2011

By: Dennis Ndaba

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The South African Mari-time Safety Authority (Samsa) says there is big potential in intra-African trade, as the continent depends on trade for economic devel-opment as well as regional or intraregional trade.

Samsa Centre for Ships executive head Sobantu Tilayi told the Africa Ports & Harbours Congress 2011 that, even if 91% of trade in Africa was seaborne, the continent had the lowest percentage in terms of intra-African trade, compared with intratrade on other continents.

Only 10% of African countries trade among each other, while the percentage for Asian countries is 48%, and 68% for European countries.

“The development of landlocked countries and markets is dependent on the network performance of maritime transport and logistics corridors, which include ports and ships that carry the trade,” Tilayi said.

He added that the develop-ment of the maritime transport network infrastructure was an enabler and a catalyst for the competitiveness of Africa’s economy.

Tilayi noted that the mari- time economy was a precon-dition for Africa’s development.

“There is huge potential for Africa to link its own trade to the market it is trading with. If we address the situation, we are going to be able to better connect trade for the continent.”

He pointed out that there was a case study in which Africa chose to stay out of the game of transportation of its own mineral resources, and added that the continent did not have maritime banking and insurance services and, each time these services were required, one needed to fly to London.

“There cannot be growth of the economy on the African continent if we do not attend to the maritime industry and, also, without the underpinning skills, there can be no growth,” Tiyane stated.

He advocated collaboration between South Africa and other African countries in trying to enhance maritime interests and to determine the maximum value that can be extracted from these interests.

“There is an adequate policy and regulatory framework to assist the development of the maritime industry in general in South Africa and Africa.”

Tiyane cited issues of taxation as an inhibitor to the industry, as well as institutional arrangements, which he argued made it difficult for govern-ment to have a comprehensive understanding of the industry.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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