The thirty-first World Customs Organisation East and Southern Africa (WCO ESA) regional governing council meeting was held, in Pretoria, on May 15, with WCO chairperson Professor Edward Kieswetter highlighting global trade as the “lifeblood” of economies.

He noted that global trade had reached a record $33-trillion last year, a 3.7% increase from the previous year, primarily driven by a 9% rise in service trade, which contributed $700-million.

Trading goods grew by 2%, adding $500-billion. Kieswetter said developing economies led this growth, with imports and exports having increased by 4% for the year.

However, momentum slowed in the latter half of the year.

Kieswetter said this deceleration, coupled with mounting global tensions, signalled uncertainty and potential disruptions ahead.

The challenge this year was to prevent global fragmentation while managing important policy shifts without undermining long term growth, that is, “transformative and strategic approach”, he asserted.

In response, customs administrations globally are undergoing significant transformation.

At the WCO policy and council commission meeting in June, the organisation would consider a strategic plan, as part of its efforts to remain relevant in a rapidly changing context, Kieswetter informed.

He also called for greater collaboration and investment in strategic partnerships; the accelerated adoption of emerging technologies; and investment in people – all undertaken sustainably.

Kieswetter said the WCO ESA region faced many common social and economic challenges, but also presented considerable opportunities. He highlighted that it was relatively stable, boasted significant resource potential and had a huge demographic advantage.

Therefore, there is scope to collaborate and share ideas and resources.

Opportunities in the region include focusing on investing in stronger regional partnerships between customs administration, developing an integrated approach to risk management, leveraging technology and data in support of trade facilitation, leveraging the exponential opportunity of e-commerce and ensuring the competitiveness and relevance of people, Kieswetter highlighted.

He also said there was room to build beneficial partnerships with the private sector while doing this, albeit in a holistic manner.

Kieswetter further posited that it would be beneficial for WCO ESA to develop a single repository of mutual clients, and regular reports on their compliance status, expeditiously.

He mentioned that financial constraints required innovative solutions, with funding required for the upgrading of technology and effective resourcing to build administration capacity.

Also, there was a need to resolve to fight crime and work toward the efficient facilitation of trade, Kieswetter said.

WCO ESA vice chairperson Dinathsing Mungla informed that the region had developed and proposed a new regional strategy for 2025 to 2028, seeking to ensure economic growth and intra-regional trade. The governing council was expected to review and adopt this strategy, he added.

Automated risk management, green customs, excise management and big data analysis were among the focus areas emphasised in the new strategy. Other aims included furthering gender inclusive, professional and modernised customs administration that was fair, efficient and effective in revenue collection and border management, Mungla said.

However, a key challenge for implementing strategy was galvanising donor support and funding for capacity building activities, reforms and modernisation projects, he pointed out.

WCO secretary general Ian Saunders said this was a year of change for the WCO, in how it operated and communicated with stakeholders.

He indicated that WCO modernisation was continuing from last year. The focus this year was mainly on the recruitment of new directors and restructuring of the secretariat, both effective July 1.

The WCO’s theme this year is “Customs Delivering on its Commitment to Efficiency, Security and Prosperity”.

Saunders called on stakeholders to help advance how customs was perceived and supported worldwide. He asserted that this would help create the basis for greater compliance, more investment in organisations and the space for innovation.

The WCO also recently brought on a new head of communications to help in these efforts.

South Africa’s Deputy Finance Minister Ashor Sarupen, standing in for Finance Minister Enoch Godongwana, highlighted the importance of customs, noting that it must move beyond its traditional gatekeeping role to become an economic enabler and trade facilitator.

For regional agreements such as the African Continental Free Trade Area to succeed, customs must enable trade by removing non-tariff barriers, simplifying procedures and lowering the cost of doing business, he emphasised.