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THE BORDERLESS ALLIANCE:
         FROM DREAM TO REALITY




 By: Ziad Hamoui, President, Borderless Alliance
 06-NOV-12, Logistics West Africa 2012, Eko Hotel, Lagos
Current Situation in West Africa
Reality on the ground contradicts pledges of
improvement and hinders efforts in the sub region:
1.   Public sector is stagnant          (Status Quo)

2.   Private sector is fragmented       (Cannot ignite change)

3.   Consumer is frustrated             (Very high cost of goods)

4.   Trader/Producer is uncompetitive   (High cost of doing business)
Consequences on Trade and Transport
• High Costs;      West African freight costs among highest in the world
• Long delays;     Ports, Borders, Inland Terminals, and Checkpoints
• Uncertainty in Time and Costs; Unpredictability discourage investment
• Corruption;      Illegal stops, procedures, delays and costs are rampant
West African producers struggle to compete internationally
legend
                                        COUNTRY        RANK, LPI 2010   RANK, LPI 2012   CHANGE
             Better
                                            …
             Worse                     SOUTH AFRICA         28               23          +5
                                          EGYPT             92               57          +35
                                            …
                                          BENIN             69               67          +2
                                       COTE D'IVOIRE        109              83          +26
                                          NIGER             106              87          +19
                                       GUINEA BISSAU        149              94          +55 (*)
                                           TOGO             96               97          -1
                         WEST AFRICA
                                          GHANA             117              108         +9
                                         SENEGAL            58               110         -52 (*)
                                          GUINEA            97               115         -18
                                         GAMBIA             113              118         -5
                                          LIBERIA           127              119         +8
                                          NIGERIA           100              121         -21 (*)
Sources:
                                        MAURITANIA           X               127
-World Bank Logistics
Performance Index 2010
                                       BURKINA FASO         145              134         +9
                                       SIERRA LEONE         153              150         +3
-World Bank Logistics
Performance Index 2012                     MALI             139               X
(modified)                              CAPE VERDE           X                X
Everyone WANTS positive, permanent change but
How do we ACHIEVE positive, permanent change??
                ADVOCACY can result in change
   • The public and private sectors have to work together for CHANGE to
   happen !

   • Issues need to be addressed at the decision making level for CHANGE
   to happen !
BORDERLESS Vision
   Promoting competitive trade in West Africa; eliminating barriers to
    trade and transport
   Collaborating on Simplified and harmonized procedures, for the free
    movement of people and goods, unhindered by delays along the
    corridors
   Encouraging investment, for the creation of more jobs and more
    income for people and governments
                                              Competitive trade




                             Standardized                          Increased
                              Procedures                          Employment
Why we need BORDERLESS
Trade and Transport Facilitation very beneficiary across a
              broad spectrum of agencies:
  1. TRADERS &           2. GOV         3. SERVICE
                                                        4.CONSUMERS
   PRODUCERS            AGENCIES        PROVIDERS
 • Less Cost of      • More Taxes     • Higher Asset   • Less Costly
   Trade               Collected        Turnaround       Goods
 • Less Time for     • Less           • Less           • Higher
   import/export       Fraudulence      Additional       Purchasing
 • More              • Job Creation     Charges          Power
   investment                         • Lower Costs
Everybody is a consumer
     Value Invested by   Barriers to trade:
     Consumer            - Business Environment
                         - Import Procedure
                         - Checkpoints
                         - Borders
                         - Profit Margins



                         Value Received at
                         Point of Sale

                          Value Leakage
• BORDERLESS campaign was Launched in March 2010 at Seme-
Krake (Since then, Road shows, Conferences, Reports, Caravans…)

•Evolved into advocacy group; in May 2011, the Borderless Alliance
was born, then in May 2012, the alliance was launched
Previous Advocacy Successful Activities
                (Based on recommendations from the Trade Hub technical studies)

1.   Meetings with Ghana CEPS commissioner & Parliamentary Transport Committee
2.   RESULT: Elimination of the ‘GO-RO boys’ at Ghana/Burkina Faso border

1. Publication of 17th quarterly road governance Report (Now at 19th report)
2. RESULT: Minister of Security of Togo eliminates checkpoints

1.   Inauguration of Border Information Center at Aflao (Ghana/Togo Border)
2.   RESULT: Measured reduction of transit time by more than 50% in a year
Current Advocacy Priority Issues
1.   Deployment of new BICs (Paga, Elubo, Seme-Krake) within next six months
2.   Objective: to extend reduction in cross-border delay time & cost to regional level

1.   Piloting an ‘Express/Expedited Lane’ in Ghana (based on ETLS)
2.   objective: to expedite clearance procedure and reduce delays/costs

1.   Reduction of Transit fees across Abidjan-Lagos coastal corridor
2.   Objective; to increase volume of regional trade
How to Overcome Challenges?

STRENGTH
                  UNIFIED VOICE OF
                                         CLOUT OF
    IN            PRIVATE SECTOR         ADVISORS
NUMBERS
                  REPRESENTATION
Elements of Successful Advocacy
1. Credibility: regularly updated data provide verifiable proof

2. Visibility: perceiving obstacles at all levels of operations, on
   a regional level

3. Versatility: Problem-solving approach to barriers of trade
   and transport (troubleshooting)

4. Communication: Dialogue with stakeholders to the highest
   levels
Accrued Benefits to Supporting Alliance
      Member-Specific:           Non Members-Specific:
1. Technical Assistance       1. Reduced Costs and Delays
2. Complaint follow-through      Across the Region
3. Networking Opportunity     2. Better Business
4. Regional recognition          Environment
                              3. More Competitive Trade
Steps Completed So Far
1.   Borderless Alliance registered as a non-profit organization
2.   Temporary housing/funding provided by West Africa Trade Hub
3.   “Internal Regulations” & “Code of Ethics” drafted
4.   First Annual Stakeholders Conference held in Abidjan on May
     15-16, 2012; more than 175 participants
5.   Series of events and workshops held at Cote d’Ivoire, Nigeria,
     Senegal, Benin and Burkina Faso, with many more on the way
The Way Ahead: Two-fold Plan
1. Further Mobilization of Private Sector (Increase Members, National
   Chapters, Workgroups…)

2. Implementation of Elements of Advocacy Agenda
   - Additional BICs
   - Express Lanes
   - Strategic Partnerships (Advisors, Authorities, Other Alliances)


            Engaging Regional Authorities Effectively
       (ECOWAS, Regional Governments, Regulatory Bodies…)
Upcoming Annual Borderless Conference




Attendance/Registration details at booth #D25
 We believe that positive, permanent change is possible

 We believe that we can achieve a borderless West Africa


     Join us in Our Campaign
                  www.borderlesswa.com

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Borderless Alliance: From Dream To Reality

  • 1. THE BORDERLESS ALLIANCE: FROM DREAM TO REALITY By: Ziad Hamoui, President, Borderless Alliance 06-NOV-12, Logistics West Africa 2012, Eko Hotel, Lagos
  • 2. Current Situation in West Africa Reality on the ground contradicts pledges of improvement and hinders efforts in the sub region: 1. Public sector is stagnant (Status Quo) 2. Private sector is fragmented (Cannot ignite change) 3. Consumer is frustrated (Very high cost of goods) 4. Trader/Producer is uncompetitive (High cost of doing business)
  • 3. Consequences on Trade and Transport • High Costs; West African freight costs among highest in the world • Long delays; Ports, Borders, Inland Terminals, and Checkpoints • Uncertainty in Time and Costs; Unpredictability discourage investment • Corruption; Illegal stops, procedures, delays and costs are rampant
  • 4. West African producers struggle to compete internationally
  • 5. legend COUNTRY RANK, LPI 2010 RANK, LPI 2012 CHANGE Better … Worse SOUTH AFRICA 28 23 +5 EGYPT 92 57 +35 … BENIN 69 67 +2 COTE D'IVOIRE 109 83 +26 NIGER 106 87 +19 GUINEA BISSAU 149 94 +55 (*) TOGO 96 97 -1 WEST AFRICA GHANA 117 108 +9 SENEGAL 58 110 -52 (*) GUINEA 97 115 -18 GAMBIA 113 118 -5 LIBERIA 127 119 +8 NIGERIA 100 121 -21 (*) Sources: MAURITANIA X 127 -World Bank Logistics Performance Index 2010 BURKINA FASO 145 134 +9 SIERRA LEONE 153 150 +3 -World Bank Logistics Performance Index 2012 MALI 139 X (modified) CAPE VERDE X X
  • 6. Everyone WANTS positive, permanent change but How do we ACHIEVE positive, permanent change?? ADVOCACY can result in change • The public and private sectors have to work together for CHANGE to happen ! • Issues need to be addressed at the decision making level for CHANGE to happen !
  • 7. BORDERLESS Vision  Promoting competitive trade in West Africa; eliminating barriers to trade and transport  Collaborating on Simplified and harmonized procedures, for the free movement of people and goods, unhindered by delays along the corridors  Encouraging investment, for the creation of more jobs and more income for people and governments Competitive trade Standardized Increased Procedures Employment
  • 8. Why we need BORDERLESS Trade and Transport Facilitation very beneficiary across a broad spectrum of agencies: 1. TRADERS & 2. GOV 3. SERVICE 4.CONSUMERS PRODUCERS AGENCIES PROVIDERS • Less Cost of • More Taxes • Higher Asset • Less Costly Trade Collected Turnaround Goods • Less Time for • Less • Less • Higher import/export Fraudulence Additional Purchasing • More • Job Creation Charges Power investment • Lower Costs
  • 9. Everybody is a consumer Value Invested by Barriers to trade: Consumer - Business Environment - Import Procedure - Checkpoints - Borders - Profit Margins Value Received at Point of Sale Value Leakage
  • 10. • BORDERLESS campaign was Launched in March 2010 at Seme- Krake (Since then, Road shows, Conferences, Reports, Caravans…) •Evolved into advocacy group; in May 2011, the Borderless Alliance was born, then in May 2012, the alliance was launched
  • 11. Previous Advocacy Successful Activities (Based on recommendations from the Trade Hub technical studies) 1. Meetings with Ghana CEPS commissioner & Parliamentary Transport Committee 2. RESULT: Elimination of the ‘GO-RO boys’ at Ghana/Burkina Faso border 1. Publication of 17th quarterly road governance Report (Now at 19th report) 2. RESULT: Minister of Security of Togo eliminates checkpoints 1. Inauguration of Border Information Center at Aflao (Ghana/Togo Border) 2. RESULT: Measured reduction of transit time by more than 50% in a year
  • 12. Current Advocacy Priority Issues 1. Deployment of new BICs (Paga, Elubo, Seme-Krake) within next six months 2. Objective: to extend reduction in cross-border delay time & cost to regional level 1. Piloting an ‘Express/Expedited Lane’ in Ghana (based on ETLS) 2. objective: to expedite clearance procedure and reduce delays/costs 1. Reduction of Transit fees across Abidjan-Lagos coastal corridor 2. Objective; to increase volume of regional trade
  • 13. How to Overcome Challenges? STRENGTH UNIFIED VOICE OF CLOUT OF IN PRIVATE SECTOR ADVISORS NUMBERS REPRESENTATION
  • 14. Elements of Successful Advocacy 1. Credibility: regularly updated data provide verifiable proof 2. Visibility: perceiving obstacles at all levels of operations, on a regional level 3. Versatility: Problem-solving approach to barriers of trade and transport (troubleshooting) 4. Communication: Dialogue with stakeholders to the highest levels
  • 15. Accrued Benefits to Supporting Alliance Member-Specific: Non Members-Specific: 1. Technical Assistance 1. Reduced Costs and Delays 2. Complaint follow-through Across the Region 3. Networking Opportunity 2. Better Business 4. Regional recognition Environment 3. More Competitive Trade
  • 16. Steps Completed So Far 1. Borderless Alliance registered as a non-profit organization 2. Temporary housing/funding provided by West Africa Trade Hub 3. “Internal Regulations” & “Code of Ethics” drafted 4. First Annual Stakeholders Conference held in Abidjan on May 15-16, 2012; more than 175 participants 5. Series of events and workshops held at Cote d’Ivoire, Nigeria, Senegal, Benin and Burkina Faso, with many more on the way
  • 17. The Way Ahead: Two-fold Plan 1. Further Mobilization of Private Sector (Increase Members, National Chapters, Workgroups…) 2. Implementation of Elements of Advocacy Agenda - Additional BICs - Express Lanes - Strategic Partnerships (Advisors, Authorities, Other Alliances) Engaging Regional Authorities Effectively (ECOWAS, Regional Governments, Regulatory Bodies…)
  • 18. Upcoming Annual Borderless Conference Attendance/Registration details at booth #D25
  • 19.  We believe that positive, permanent change is possible  We believe that we can achieve a borderless West Africa Join us in Our Campaign www.borderlesswa.com