Construction, transportation and financial services have good
potential for regional cooperation and development, due to firms
with export experience and business opportunities in new regional
transport networks. The Southern African Development Community
(SADC) Protocol in Transport shows the potential for growth, with
ten transport corridors under way in the region. Firms in the three
sectors represented at the event can "bundle" their services in
bidding processes to make more competitive offers.
In partnership with the Department of Trade and Industry, South
Africa, ITC convened the meeting to help African firms find new
business partners in the region, build cooperation among service
industry associations and identify challenges affecting growth in
trade in services.
Participating countries were Angola, Botswana, Burundi, Lesotho,
Madagascar, Malawi, Mauritius, Mozambique, Namibia, Rwanda, South
Africa, Swaziland and Zambia. Participants took part in at least
1,000 bilateral meetings during the event, with the aim of
increasing cooperation to develop trade in services.
Driving the economy
Trade in services in Africa is growing fast. African exports of
commercial services jumped 46% in two years, according to the World
Trade Organization. Between 2003 and 2005, exports rose from $39
billion to $57 billion for transport, travel, business,
professional and other services.
Services are helping to drive the economy. ITC studies in the
region show that services employ a third of the work force and are
responsible for half the new jobs being created. Services also help
produce and deliver manufactured goods.
At the meeting, influential service sector associations and
firms said that trade policies for construction, transportation and
financial services urgently need to be harmonized to faciliate
cross-border business. "Other barriers include limited access to
finance, lack of systems to recognize credentials and weak
telecommunications infrastructure," said Doreen Conrad, Chief of
ITC's Trade in Services section.
Remigius Makumbe, Executive Secretary of SADC, said the
organization was committed to creating an enabling environment for
regional trade and was making progress in fostering "intra-regional
connectivity". Better cooperation among service associations would
help reduce artificial barriers to trade in services, such as
failure to harmonize and recognize professional credentials.
The event's networking possibilities helped participants
"develop a local knowledge base and build a regional foundation to
sustainable economic growth and human development, one of the
United Nations Millennium Development Goals," said Stephen Browne,
Deputy Executive Director of ITC.
Also attending were embassy representatives from participating
countries, the United Nations Development Programme, the African
Development Bank and the Common Market of Eastern and Southern
Africa.
Follow-up
In early 2007, ITC will visit some SADC member countries to
address concerns that these countries raised at the Bridges Across
Borders meeting. ITC will also continue to advise them on building
service coalitions and help increase service providers'
participation in export development strategies.
For more information, contactservices@intracen.org
Contributors: Emmanuel Barreto, Doreen Conrad, Natalie
Domeisen, Sandile Nqidi