Good afternoon. I am delighted to participate in this important event.
The delays and costs of doing business in West Africa are a serious impediment to the region’s economic growth and development. Delays at borders and the costs incurred prevent businesses from expanding. As a result, businesses are unable to create jobs that reduce poverty.
The volume of traffic at this border reflects what is being lost. Although more than 2,300 vehicles cross this border daily, according to a 2012 study by the Japanese International Cooperation Agency, only a small proportion of that traffic is actually trucks carrying goods from Cote d’Ivoire destined for Ghana or Togo or Benin or Nigeria or elsewhere. This leads us to ask, why isn’t West Africa trading with West Africa? And, further, why isn’t the region gaining more from its own enormous market – more than 300 million people?
The USAID Trade Hub’s many transport and logistics studies show that delays have a significant impact on trade and investment in West Africa. At the first Borderless conference, which was held in Abidjan in 2012, Nestlé Côte d’Ivoire said if the delays and harassment that occur at checkpoints – and particularly at borders – were eliminated, the company would reduce its transport costs by 20 percent - and it would save over $6 million annually. Imagine the impact of that kind of savings on the company’s ability to expand – and create jobs. It is astounding.
There are two causes for these excessive delays and harassment: lack of access to information on processes and procedures at the borders; and lack of collaboration among stakeholders to identify and then act to resolve issues that lead to delays and harassment. And of course, corruption is also a major problem that must be addressed.
The new Border Information Center will directly address both these issues. Staff at the Center will provide information and assistance to traders on documentation and procedures, and they will work with stakeholders to identify and resolve aspects of doing business that lead to delays and harassment. This will help trade expand and reduce opportunities for corruption.
The U.S. Government has a strong interest in seeing trade and businesses expand in West Africa. When business flourishes – which it will when costs and delays are reduced – companies create more jobs. Each job, whether in agricultural production, manufacturing, or service industries, is a death knell to poverty. Further, jobs give people dignity and lay the foundation necessary for stability and progress in every society.
Wherever Border Information Centers have been opened – and this is the fifth to open over the last two years – measurable improvements have been achieved. The time it takes to move goods into Ghana has been cut by 66 percent since the Ghana-Togo Center opened in 2011. At the Benin-Nigeria border, illegal checkpoints were removed after the Center staff worked with stakeholders to identify and then eliminate them.
The key challenge is cross-border collaboration – and we all know that it is not easy. There are some barriers that, try as we might, we simply cannot eliminate – language is one and differences in procedural approaches are another. But, we know there are many areas where we can and must work together. I strongly encourage officials from both countries to increase your collaborative efforts.
This is not easy work – change is never easy. And these are big changes – you will meet resistance, I assure you. But, keep in mind what will happen when you make these changes: increased trade. As I mentioned earlier, most of the traffic at this border is not big trucks carrying goods. But it could and should be. As barriers are removed, that’s exactly what you will see.
Companies in Côte d’Ivoire and Ghana want to do business across this border. We have to make it less onerous. And as we do, we will see increased trade. And with that increased trade, we will see more jobs. More jobs means less poverty, more opportunity for young people and greater economic development and all of the benefits that brings.
I want to close with a quote from President Obama’s speech in June 2011, when he visited Ghana: “We believe in Africa's potential and promise. We remain committed to Africa's future. We will be strong partners with the African people.” Africa is essential to our interconnected world, and our alliance with one another must be rooted in mutual respect and accountability.
Thank you.
The delays and costs of doing business in West Africa are a serious impediment to the region’s economic growth and development. Delays at borders and the costs incurred prevent businesses from expanding. As a result, businesses are unable to create jobs that reduce poverty.
The volume of traffic at this border reflects what is being lost. Although more than 2,300 vehicles cross this border daily, according to a 2012 study by the Japanese International Cooperation Agency, only a small proportion of that traffic is actually trucks carrying goods from Cote d’Ivoire destined for Ghana or Togo or Benin or Nigeria or elsewhere. This leads us to ask, why isn’t West Africa trading with West Africa? And, further, why isn’t the region gaining more from its own enormous market – more than 300 million people?
The USAID Trade Hub’s many transport and logistics studies show that delays have a significant impact on trade and investment in West Africa. At the first Borderless conference, which was held in Abidjan in 2012, Nestlé Côte d’Ivoire said if the delays and harassment that occur at checkpoints – and particularly at borders – were eliminated, the company would reduce its transport costs by 20 percent - and it would save over $6 million annually. Imagine the impact of that kind of savings on the company’s ability to expand – and create jobs. It is astounding.
There are two causes for these excessive delays and harassment: lack of access to information on processes and procedures at the borders; and lack of collaboration among stakeholders to identify and then act to resolve issues that lead to delays and harassment. And of course, corruption is also a major problem that must be addressed.
The new Border Information Center will directly address both these issues. Staff at the Center will provide information and assistance to traders on documentation and procedures, and they will work with stakeholders to identify and resolve aspects of doing business that lead to delays and harassment. This will help trade expand and reduce opportunities for corruption.
The U.S. Government has a strong interest in seeing trade and businesses expand in West Africa. When business flourishes – which it will when costs and delays are reduced – companies create more jobs. Each job, whether in agricultural production, manufacturing, or service industries, is a death knell to poverty. Further, jobs give people dignity and lay the foundation necessary for stability and progress in every society.
Wherever Border Information Centers have been opened – and this is the fifth to open over the last two years – measurable improvements have been achieved. The time it takes to move goods into Ghana has been cut by 66 percent since the Ghana-Togo Center opened in 2011. At the Benin-Nigeria border, illegal checkpoints were removed after the Center staff worked with stakeholders to identify and then eliminate them.
The key challenge is cross-border collaboration – and we all know that it is not easy. There are some barriers that, try as we might, we simply cannot eliminate – language is one and differences in procedural approaches are another. But, we know there are many areas where we can and must work together. I strongly encourage officials from both countries to increase your collaborative efforts.
This is not easy work – change is never easy. And these are big changes – you will meet resistance, I assure you. But, keep in mind what will happen when you make these changes: increased trade. As I mentioned earlier, most of the traffic at this border is not big trucks carrying goods. But it could and should be. As barriers are removed, that’s exactly what you will see.
Companies in Côte d’Ivoire and Ghana want to do business across this border. We have to make it less onerous. And as we do, we will see increased trade. And with that increased trade, we will see more jobs. More jobs means less poverty, more opportunity for young people and greater economic development and all of the benefits that brings.
I want to close with a quote from President Obama’s speech in June 2011, when he visited Ghana: “We believe in Africa's potential and promise. We remain committed to Africa's future. We will be strong partners with the African people.” Africa is essential to our interconnected world, and our alliance with one another must be rooted in mutual respect and accountability.
Thank you.
