Competitiveness of, and Challenges for, ACP Countries in the Current International Trading Environment

Box 1


Quotations on bottlenecks to international business development in selected ACP countries

 
A high concentration of businesses in large urban centers
A strong inclination to import rather than export.
Absence of harbor (land-locked country).
Agro-based economy.
Attitude of authorities concerned.
Bad and, in some cases, lack of roads linking the south to the provinces where tradable goods exist.
Border disputes 
Bulk of raw materials are imported and freight costs significantly increase production costs.
Bureaucracy - high level of internal corruption throughout the system leading to lack of correct information.
Bureaucracy and lack of co-operation by public servants, which encourages corruption.
Bureaucracy: The proposed key UN document on imports and exports in not yet available.
Businessmen lack experience in the international arena
Communication and transport infrastructure in Tanzania.
Communication facilities are unreliable.
Competition from imports in quality and price
Corruption among administrators directly involved with imports and exports.
Cumbersome Government procedures, paperwork, licenses and heavy multi tax on businesses.
Disguised protectionism.
Distance from source of raw materials. 
Djibouti is a transit port for Ethiopia & Somalia and has high port charges and high cost of living compared with neighbours.
Embargo.
Excess import duties and uneven duty charges for different importers.
Exchange rates.
Export enterprises have difficulty obtaining financing
Export financing, market research and information facilities are poor.
Exports: A country is forced to adopt protectionist policies when neighbouring countries do not have liberal trade policies. 
Exports: Tick-borne diseases affect livestock.
Foreign currency is controlled by the national bank of Ethiopia which maintains complex procedures (for exports).
Foreign exchange shortages.
Fraud.
Free trade and business development to be encouraged for Mozambican native handicrafts.
Freighting - presently we have no company here that can handle jewellery or polished gemstones/high grade rough gem stones with secure handling.
Getting accepted as a credible provider of services.
Government policies such as restrictions on hard currency.
High cost and insufficient telecommunications.
High cost of banking.
High cost of doing business in Uganda.
High cost of financing (around 7 % per month).
High customs duties on imported items and the time it takes to go through customs ( weeks for imports).
High import & export duties.
High inland freight cost.
High taxes on imports.
High transport costs (flight and seaway).
Importing consumer goods through legitimate channels almost impossible because of weakness (severe) in customs administration.
Imports: Customs red tape, incorrect classification of customs duties for raw materials, inspections.
Imports: insufficient purchasing power.
Imports: the pre-inspection of goods at origin and the bureaucratic procedures involved. 
Imposing an extra 10% surcharge on goods inspected by inspection company.
Inappropriate and outdated technologies leading to low productivity and lack of competitiveness.
Institutions responsible for business and trade promotion are highly politicized and promote undeserving cases.
Insufficient quantity and quality of export items, difficulties in meeting the minimum order requirements of the exporters abroad because of the poor potential of our market.
Isolation of Samoa from major consumer markets.
Lack of a convertible currency for imports.
Lack of a middle- and long-term vision by politicians as well as businessmen.
Lack of an effective local market.
Lack of a true business community with professional associations that are well informed about the international business climate.
Lack of competitive instruments and local experts.
Lack of coordination and inconsistencies in Government tax policies.
Lack of foreign currency and export-oriented products.
Lack of foreign currency for importing inputs.
Lack of highly trained manpower in international marketing management.
Lack of highly-skilled workers.
Lack of information about neighbouring markets.
Lack of information and expertise relating to export markets.
Lack of information on market development and lack of financing for this activity.
Lack of market information - the majority of rural population have no access to market information.
Lack of modern machinery to produce quality goods, all our factories are too old & need rehabilitation.
Lack of pre-shipment financing.
Lack of quality -control programs, e.g. ISO 9000.
Lack of transparent policies.
Lack of will to invest locally and develop local industry. 
Level of education.
Local administrative procedures.
Markets access is a key problem and has to be solved if long term growth is to be achieved.
Money restraint of FCFA in relation to other currencies.
Most companies are too poor to afford to advertise or participate in foreign country trade fairs etc.
Most organizations do not have enough experience exporting overseas.
Need for a railroad.
No competition among airlines.
No trade diversification, need for export credits.
Non-tariff barriers in foreign markets.
Non-traditional exports are not given a lot of support in terms of training and finance.
Opportunities/ability to participate in industrial establishments and meaningful marketing activities.
Political and economic instability.
Poor controls on dumping
Poor transport - poor electricity and energy.
Pre-shipment financing.
Production capacity.
Shortage of skilled labor/Government involvement in business.
Small size of domestic market
SME's do not have access to financing.
State monopoly on issuing certificates
System for reimbursing value added tax credits does not function properly.
Taxes are too high for businesses and consumers.
Taxes on imports.
The Chamber of Commerce is ineffective.
The development of the tourism industry will require increased imports in the future.
The export sector is the least favored sector.
The government is unable to provide adequate trade support services.
The high costs of transportation and other services.
The high transport costs, since Rwanda is a land-locked country.
The local citizens were doing well until the foreigners pushed in and made the ministers directors of their companies.
The state budget is essentially based on income from high duties.
The state does not assume its catalytic role in trade promotion.
There is no consultation between the Government and the private sector and therefore no collective responsibility.
Uncertainty about the possibility of obtaining work permits for expatriates.
Underestimating the importance of marketing for a successful business.
Unfair profit taxation.
Unreliable suppliers.
Very high cost of raw materials.
Weak education system at every level.
Weak Franc CFA to the dollar.
Weak technology: Products made in Burundi are not competitive on the international market.
Weakness in conserving and packing certain agricultural products. 
Source: Survey carried out by the International Trade Centre UNCTAD/WTO, 1997.