CONCEPT DOCUMENT ON FORMATION OF A PAN AFRICAN FREE TRADE ZONE ASSOCIATION

Transcription

1 CONCEPT DOCUMENT ON FORMATION OF A PAN AFRICAN FREE TRADE ZONE ASSOCIATION INTRODUCTION The globalization of trade and foreign investment over the past decade, as expressed in the World Trade Organization (WTO), have significantly exposed African economies to competitive pressures of the global economy. New global trading rules under the WTO present both steep challenges and fresh new opportunities to national economies on the African continent. In other parts of the industrialized world, individual country realignment to the new trading conditions have been complemented by regional trade blocs such as the North American Free Trade Association (NAFTA), European Union (EU), ASEAN and so forth to lower the cost of regional trade of member countries. The creation of the African Union (AU) in 2003 represents a historic opportunity for the African continent to work towards greater trade integration. Although the political, economic and social institutions underpinning the workings of the AU are still unfolding, it is clear that trade integration will become a key policy objective if the AU is to succeed in increasing the volume, and reducing the cost, of trade and economic development. In pursuing this objective, there are a variety of trade instruments that countries in recent years have begun to develop the most common of which are Economic Development Zones (EDZ), Free Trade Zones (FTZ), Export Processing Zones (EPZ) and Special Economics Zones (SEZ). Although all these instruments are differently structured and operated, they share a similar objective in the promotion of trade integration. 1. FREE TRADE ZONES IN AFRICA Economic Development Zones, Free Trade Zones, Export Processing Zones or Special Economic Zones are widely accepted as one means of increasing the ability of African countries to attract new foreign direct investment into specific locations. Such zones are successful where governments have introduced effective policy and legislative measures to free up economic development within the zones. In addition, zone operators have successfully used these policy frameworks to promote the strategic and locational advantages of investment into these zones by foreign investors. There are some 66 economic zones in Africa (source: ILO 2003) and, given evidence of an increase in FDI flows after the post-september 11 hiatus, the opportunity exists to increase trade with and investments into Africa. This coincides with the push towards bolstering the Nepad initiative. Typically, economic zones range from large land areas with a wide range of economic activity to very small, geographically localised, industry or activity specific zones. These economic or trade Page 1

2 or export processing zones may be aimed at economic development, or promoting free trade or export-oriented manufacturing. The 66 economic zones which have been identified in Africa are located across some 32 African countries. However, in Africa, most zones are in fact very small operations, covering a land area of less that 1000 hectares, with very specific economic focus usually centered on access to natural resources and fenced off. They include bonded warehouses, free ports and customs zones The South African Department of Trade and Industry, through The Enterprise Organisation, has long supported the notion of stronger links among the various economic free zones in an effort to maximise collaboration in terms of policy development and marketing initiatives. Specifically, it has been proposed that an organisation be established to draw together the various trade zones in a common purpose. This briefing document is intended to provide a basis for moving the process forward 2. CONCEPT It is proposed to form an association of economic development or free trade zones, to be known as the Pan African Free Trade Zone Association (PAFTZA). 3. OBJECTIVES The proposed Association would: 1. bring about greater trade synergies and strategic coordination of the continent s free trade and economic development zones, and through this, maximise and cheapen the flow of goods and services; 2. develop and adopt a continent-wide Charter of Free Trade Zones making provision for a set of common protocols, rules and ethical practices among member countries; 3. act as a marketing tool for the collective benefits of free trade areas within the AU with trading partners in other parts of the world; 4. provide a trade information and data service for its membership; 5. facilitate exchange of technologies, practices and experiences to member countries with the view to maintaining the competitive advantages of trade in Africa; and to 6. promote policy innovations within member countries to effect greater integration of free trade zones within their respective economic heartlands. Page 2

3 4. SERVICES TO BE PROVIDED BY PROPOSED ASSOCIATION The proposed Association would be providing the following services to member countries: 1. DATABASE SUPPORT SERVICE: Given the rapidly changing dynamics of the trade and technology environment within which trade zones operate, it is essential that members are constantly able to access strategic data to create competitive conditions of trade. Data would be sourced and packaged from other primary data providers, including specialised trade research institutes, public universities, policy research institutes, World Bank, WTO and other data holders for easy access to members. The data base service to membership would include, among others: data warehousing of regional or global trade policy changes and its potential impact on AU free trade zones; technical and operational data with respect to latest zone management technologies and practices; security of trade data to ensure members are regularly kept abreast with risks (environmental, political, military, etc.) that could affect trade stability and flows; GIS (geographical information systems) data on the spatial character of the AU Free Trade Zone network; Data on other Free Trade Zones in other countries of the global trading community. 2. POLICY ADVISORY SERVICE: To promote economic policy reforms which can lead to maximisation of trade and development linked to free trade zones; Sharing best practice policies. This would drill down to policies impacting the conceptualising, developing, managing and marketing of economic zones. Establish synergies in policy development, marketing programmes and operational requirements among zones in different African countries. For those zones which have been successful in attracting foreign direct investment, it should be possible to isolate those legal/legislative frameworks which have facilitated their successful development; Developing a Free Trade Zone Charter for adoption by members and member countries upholding international trade practices and standards. 3. NETWORKING To share experience, skills and technology resources among countries which have free trade zones; Exchange of personnel throughout the free trade zone association network for purposes of mutual learning and sharing of information; Page 3

4 Networking with economic and trade policy makers, civil society and environmental groups, trade unions and business leaders on the continent to supporting expanded use of free trade zones. Constant networking with key stakeholders is essential to counter negative perceptions on its utility and social impact. 4. PROMOTION AND MARKETING Market the concept of free trade zones and the benefits which flow from such initiatives to countries which do not have such zones, policy-makers and the wider public to ensure support; To promote greater trade amongst AU member counties; Promote investment into zones where legislative and regulatory regimes facilitate inward investment. To establish joint marketing platforms. Lobby for funding for research, policy formulation and investment promotion. 5. CURRENT FREE TRADE ZONE OPERATORS AND IPAs The following identified Free Trade Zones in Africa would be potential participants in the proposed Association: Country FullName Position Organisation ALGERIA Mr Baghdadli Director General Agence Nationale de Dév. de l'invest. ANGOLA Mr Carlos Antonio Fernandes Director General Instituto do Investimento Estrangeiro BENIN Mr Hugues Zonnahoue Director General Centre de Promotion des Investissements BOTSWANA Ms Mmasekgoa Botswana Export Develop. and Chief Executive Officer Masire-Mwamba Invest. Authority BURKINA FASO Mr. Issa Benjamin Office National du Commerce Director Baguian Extérieur BURUNDI Mrs Josiane Matuturu D.G. APEE - Agency of Foreign Trade CAMEROON Dr Michael Tomdio Director General National Office for Ind. Free Zones CAPE VERDE Ms Georgina de Mello President Center for Tourism Investment and Export Promotion CENTRAL AFRICAN REPUBLIC Mr Jacob Mbaitadjim Min. du Com. et Prom. (Sect. Privé) CHAD Cabinet du Ministere Min. Industrie Commerce et Artisanat COMORES Mr Daroueche Ministere, Infrastructures et Industries CONGO Cabinet du Ministere Ministère du Commerce et des PME DEMOCRATIC REPUBLIC OF Mr Kanza Tshibala P.D.G Fonds de Promotion de l' Industrie CONGO IVORY COAST Ms Christiane Duncan Advisor Ctre. Prom. des Inv. en Cote d' Ivoire DJIBOUTI Ms Moussa Ahmed Oubah Promotion Manager National Agency for Invest. Promotion EGYPT Dr. Mohamed El- General Authority for Investment & Chairman Ghamrawi Free Zones ERITREA Dr Araia Tseggai Chief Executive Officer Eritrea Free Zones Authority, Head Office ETHIOPIA Mr Mohammed Seyed Head Ethiopian Investment Authority Page 4

5 EQUATORIAL Ministerio de Industria, Comercio y Oficina del Ministerio GUINEA PYME GABON Mr Rene Wilfrid Mvoula Directeur Adjoint Direction Generale de l' Economie GAMBIA Mr Kebba S. Touray Gambia Invest. Prom. & Free Zones Ag. GHANA Mr George Aboagye Executive Director Ghana Free Trade Zones Board GUINEA Mrs Hadja Mariama Déo Balde Cabinet du Ministere Min. du Commerce, Industrie et PME GUINEA-BISSAU S.E.M. Antonio Serifo Secretariado do Comércio, Indústria, Embalo Turismo e Artesanato KENYA Mr Albert Oduol Gumo Chief Executive Export Processing Zones Authority LESOTHO Mr Ashraf Sentso Director Lesotho National Development Corp. LIBERIA Mr Henry Kaine Managing Director Liberian Industrial Free Zone Auth. LIBYA Dr Bashir A. Zenbil Director General Libyan Foreign Investment Board MADAGASCAR Mr Mamy Ratovomalala President Ministry of Industrialisation and Handicraft MALAWI Mr Ted. A. Kalebe General Manager & Chief Executive Malawi Investment Promotion Agency MALI Mr Mohamed Simpara Director General Centre National de Prom. des Invest. MAURITANIA Mr Oumar Sada Kelly Director Direction de la Promotion de L'investisement Privé MAURITIUS Mr Alain Chan Sun Director Export Processing Zones Dev. Auth. MOROCCO Ms Malak Sbiti Chef du Service des Industries Ministry of Economy and Finance MOZAMBIQUE Ms Sara Taibo Senior Official Investment Promotion Centre NAMIBIA Mr David Nuyoma Under Secretary / Executive Director Ministry of Trade & Industry NIGER Mr Daouda Moussa Director Centre de Promotion des Investissements (C.P.I.) NIGERIA Mr Adesina A. Nigeria Export Processing Zones Managing Director Agboluaje Authority UGANDA Dr Maggie Kigozi Executive Director Uganda Investment Authority REUNION Director General Fédération des C.C.I. de l'océan indien RWANDA Cabinet du Ministere Min. du Commerce Artisanat et Tourisme SAO TOME AND PRINCIPE SENEGAL Mrs Aminata Niane Director Oficina del Ministerio Ministerio de Economia Agence Nationale Pour la Promotion des Investissements et des Grands Travaux SENEGAL Mr Amadou Maleine Niang Chief Executive Officer Zone Franche Industrielle de Dakar SEYCHELLES Mr Conrad Benoiton Managing Director Seychelles Int. Business Authority SIERRA LEONE Mr Joseph W.A. Ministry of Trade Industry and State Director of Industries Jackson Enterprises SOMALIA Office of the Minister Ministry of Commerce and Industry Foreign Trade Department SOUTH AFRICA Dr. Mahlape Mohale Chief Executive The Enterprise Organisation, DTI SUDAN Mr Mohammed Abbas M.A. General Manager Sudanese Free Zone & Markets Co. SWAZILAND Mr Bhekie Dlamini Chief Executive Officer Swaziland Investment Promotion Authority TANZANIA Mr Shannel F. Mvungi Director National Development Corporation TOGO TUNISIA Mr Kpatcha Gnassingbe Mr Abdessalem Mansour Director General General Manager Togo Free Zone Authority Foreign Investment Promotion Agency Page 5

6 ZAMBIA Dr Mbikusita Lewanika Director General Zambia Investment Center ZIMBABWE Mr Walter K. Chidakwa General Manager Zimbabwe Export Processing Zones Auth. 6. RECOMMENDATION 1. Formal Support by member countries for the Project to establish a Free Trade Zone Association; 2. Establishment and funding of a small, fulltime secretariat operating under the auspices of Nepad. The secretariat to be responsible for drawing up terms of reference for PAFTZA, its marketing to African Union members, and submission for official adoption by decision-makers; 3. Specification by the Secretariat of a time-table for implementation and appointment of a Project Manager. Page 6