Mercoledì, Maggio 29, 2024
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Desiderio Consultants Ltd. è una think tank ed una rete di consulenti internazionali per lo sviluppo indipendenti costituita per promuovere ed influenzare politiche doganali e commerciali nei Paesi Africani, al fine di raggiungere riforme di facilitazione del commercio che favoriscano la crescita degli scambi commerciali a livello internazionale e regionale
Creativity, Commitment to Excellence, Results

Notizie

Railway transport, the grand absent in Africa’s transport system geography

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To boost free trade in Africa, infrastructure plays a key role. A report from the International Trade Council submitted to the Connecticut General Assembly (the legislative branch of the State Government of Connecticut) noted a few years ago that “International trade cannot happen without roads, bridges, railroads, harbors, airports, and fiber optic cables”, concluding that for this reason, infrastructure should be regarded (by States) not only as financial burdens, but as economic assets where to attract strategic investments. In Africa, a continent that is tipically characterized by long distances between urban centers and production areas, railway transport is key, being this mode of transport the most economically viable over long distances and for the transportation of high cargo volumes (as the load capacity of trains is much higher than lorries or trucks). Yet, this mode of transport is also the most underdeveloped in Africa. This is mostly due to the colonial legacy of the African transport system. Indeed, most of the railways and interstate roads that currently exist in Africa were built during the colonization era by European nations to connect mining areas and agricultural production centers in the interior of the continent to the coast, so as to enable the export of raw materials needed to feed the production processes of European manufacturing companies. The same nations had no economic interest in building railroads and roads connecting African states to each other.

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The Africa of the many visions that rarely materialize or that materialize when it is too late

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Among the main decisions arisen during the 37th AU summit held from 15th January to 18th February 2024 in Addis Ababa, Ethiopia, there is the launch of an Alliance for African Multilateral Financial Institutions (AAMFI), also called "Africa Club". AAMFIs are a group of African-owned and African-controlled financial institutions that were created to support investments and financing needs of African States. They include the African Export Import Bank (AfreximBank), the Trade and Development Bank (TDB), the Africa Finance Corporation (AFC), the African Reinsurance Corporation (Africa-Re) and the African Trade and Investment Development Insurance (ATIDI). All these institutions are owned and participated by African states and play an important role on financing and investment in Africa, by supporting African states’ debt during recent times of crisis.  So far, however, they have acted independently from each other. The idea is to create a structure that can coordinate the actions of all these institutions so that they can work in a concerted manner.

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Somalia: a future logistics hub in Africa?

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Interview to our CEO for the Ports and Harbours magazine on the potential of Somalia for development of port traffic in the Horn of Africa.

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New report shows growing interest for Africa for investments by the logistics industry

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The recently issued Agility Emerging Markets Logistics Index report 2024 shows that logistics businesses are looking at the massive population growth and trade expansion spurred by the African Continental Free Trade Area (AfCFTA) for increasing their logistics investments in the continent. Despite the speed and ease of doing business in Africa is improving via investment promotion agencies and one-stop shop solutions, improved governance, growing transparency, improved rule of law, and stronger protections for property rights, the report also notes that infrastructure gaps and high logistics costs are still a challenge in the continent that need to be urgently addressed. We highlighted the potential of Africa for attracting investment in logistics services in this post on our blog.

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Rules of origin (RoO): which ones cause highest compliance costs on companies?

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Rules of origin (RoO) represent an important chapter of preferential trade agreements (PTAs). They aim at preventing the entry in the PTA of products originating from third countries through the partner that applies the lowest tariff, for being subsequently circulated in the entire PTA duty-free (a phenomenon known as ‘trade deflection’). However, also unilateral trade arrangements have their own RoO. The Generalized Systems of Preferences (GSPs) or the US AGOA programme for instance, are preferential trade arrangements adopted unilaterally by some industrialized countries to offer mark access (without reciprocity) to developing and less developed countries from selected countries. A new paper published by FERDI (Fondation pour les Études et Recherches sur le Développement International) shows that the adoption of more flexible product-specific rules of origin within preferential agreements would give a significant boost to global trade.

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