COMESA SECRETARIAT REPRESENTATIVE

Trade Facilitation

( COMESA e-Initiative -CVTFS )

Regional Trade Facilitation • Doing Business in Africa

Challenges

Transport Cost

• COMESA Regional Instruments

• What is CVTFS?

CVTFS Architecture

Key Modules & Functions

Benefits

• Current CVTFS Status

Sustainability

Virtual Market - CEMES

Challenges Snap shots

3

Delays in Clearance at Borders Long Queues at Borders

Fuel Tankers Tampering

Un secured Open Bulk Cargo

Challenges Cont..

• Loss of goods during transit

• Diversion of good in transit,

• Not able to control counterfeit

• Cargo dumping

• Long transit time,

• Long release time,

• Delayed clearance at the borders,

• Non availability of Goods regional bond guarantees for most transporters

4

Challenges Cont.. Transport Cost

African landlocked countries transport cost range from 15 to 20

percent of import costs

(MacKellar et al. 2002)

Transport costs (TC’s) = VOCs + other indirect costs

Vehicle operating costs (VOCs) include various direct costs to

operate a given vehicle,

- notably maintenance,

- tires,

- fuel,

- labor, and

- capital costs.

Challenges Cont.. Transport cost - Containers

COMESA Regional Instruments

• Yellow Card,

• Transit Data Transfer Module,

• Carrier License for road freight operators,

• Regional Customs Transit Guarantee

• Harmonised Axle Load,

• Gross Vehicle Mass Limits which includes

Certificate of Overload Control

Customs Declaration Document.

7

CVTFS' main objective is to assist Private and Public

Sector organizations in the Corridor States to manage

and monitor the process of movement of their general,

dry bulk and bulk liquids cargos in effective and

efficient manner and in real-time to reduce the cost of

doing business in the sub-regions.

What is COMESA e-Initiative (CVTFS)

CVTFS Architecture

Overview

Data Exchange module

• This is the module deals with data from the revenue authority legacy system like ASYCUDA ++, ASYCUDA world, SIMBA, TATIS.

• The module manages the exchange of data with CVTFS tracking module

11

Risk Management Module Functions

1. To receive advance information on transit cargo to assist

with targeting of high risk consignments

2. To exchange transit information that will assist Customs

to effect controls whilst facilitating legitimate trade

3. Accumulate data which can be analysed for any trends

and future forecast

4. Help the rapid response team in quick and fast

responses by providing them with actual information

with the location of constant violations.

Cargo management: Involves registration of the seals ; 1) Container 2) Fuel Tankers -Truck 3) Open bulk Cargo 4) Motor Vehicle Locks

Monitoring Management: All cargo armed at the any start point

Notification module: This module will deal with alert notifications

Inspector module : This is officers who will charged with arming of seals, disarming of seal and inspections along the corridors.

User management: Allows registration of operators, administrators and guest users. All system users who need to be defined will be created under this module.

Tracking Module Functions

Reporting module: All reports will be either generated or scheduled under this module

Route/geo-fence management: This a module which handles geo-fence/route creation, edit and deletion.

Dash boards: This a good feature which gives analytical data at a glaze.

Ticket Module: Any information or ticket can be send in between the users of the CVTFS tracking module.

Tracking Module Function Cont…

Alerts/Violation

CVTFS produces the following among other custom alerts;

a) Security and geo-fence

b) Trip start alert

c) Corridor (route) deviation alert-

d) Route violation alert ( zone alert)

e) Check Point alerts

f) End/exit point arrival alert

g) Device alert temper

15

1) Attach road manifests to a specific truck and assign the truck by integration with existing customs system like ASYCUDA, SIMBA, TATIS and other custom systems.

2) CVTFS records events for stakeholders during a whole journey from the departure point to the destination.

3) Stem cargo diversion because most gazetted transit goods routes will be geo-fenced for security.

4) Access in real time the truck and cargo status, location and other pertinent event information

5) Receive different alerts from system assigned COMESA gazetted routes

Biz Operations Benefits

6) Access past trips from the centralized database with playbacks

7) Enjoy seamless systems integration and communication among stakeholders.

6) Increase in the level of security of tracked/monitored goods.

7) Eliminate the need for physical monitoring (escorts) of transit goods.

8) Increase in efficiency and accountability

9) Reduce victimization on the officers

Biz Operational Benefits Cont..

The following are the cost benefits to be achieved by stakeholders

1) Reduce theft and Insurance costs for goods in transit 2) Reduce equipment inventories and increase assets security in

transit in the COMESA region 3) Reduction in undelivered cargo lost by theft when in transit

4) Easy bond clearance translates to lower bond investments

5) Fewer customer allowances (late penalties)

6) Eliminate increased expenses from lack of equipment availability

by providing quick clearance at border points

7) Increase in revenue collection by customs authorities

Cost Benefits

Cost Benefits Cont…

• Quality assurance – CVTFS guarantees the quality of the product. This reduces cases of counterfeits.

• Secure deliveries - CVTFS system manages and secure the product when in transit.

• Playback – Historical data is stored on the system for a defined period.

19

CVTFS implementing Countries Involved

• Djibouti Corridor

- Ethiopia (Has Control Center )*

- Djibouti (Has Control Center ) *

• North-South Corridor

- Congo DR (Has Control Center) *

- Malawi (Has Control Center ) *

- Zambia * ( Control Center set-up in progress)

• Northern Corridor

- Rwanda (Has1 Control Center ) *

- * Kenya Starting point of Northern Corridor Cargo

• Other RECs Involved

- Tanzania * advanced discussion stage

- Mozambique *

Note: Four (4) New Control Centers being installed

20

• 1 Container Lock

• 2 Open Bulk Cargo Lock

• 3 Fuel Tanker-Truck Lock

• 4 Vehicle/Car Lock

Tracking Devices Types

Transporters on Roll out (Northern Corridor )

• SPEDAG INTERFREIGHT

• KUEHNE NAGEL

• BOLLORE Africa Logistics

• HASSAN RAZA

• ONE TO ONE

• ABDUL MTWALIB

• Mitchell Scots

• TRANSAMY

• ERI KENYA

• MASTER STEEL

22

Sample Manufactures Companies in East Africa

• Unilever

• Kenya Wine

• National Cement (Simba Cement),

• Kapa Oil and Taj Ceramics

• EABL Kenya

• BAT Kenya

23

CVTFS Sustainability

CVTFS will be self sustainable

COMESA Secretariat owns the Software

COMESA Secretariat will pay for the maintenance & upgrade of the

Software

Fees from the CVTFS Services provided to transporters, Agents and

other stakeholders will be shared with the Government through the

Revenue Authority

MoU has been distributed to participating Countries

24

Thank you for your attention

Q&A

25

COMESA SECRETARIAT

COMESA Electronic Market Exchange System

-CEMES-

What is CEMES ?

COMESA Electronic Market Exchange System (CEMES) is a COMESA initiative to develop a fully-fledged e-business solution in the COMESA region and beyond.

The main objective of the project is to bring over 450 million people to a new COMESA Virtual Market to help residents of member states and the rest of the world to buy, sell, market, insure, deliver and receive products and services, wherever they are, in real time at a lower cost and to contribute to poverty reduction.

27

COMESA HQ

INSURANCE SALES INVENTORY

BUSINESS DIRECTORY

REPORTS RISK MANAGEMENT

E-COMMERCE

TRACKING (GIS/GPS)

RDBMS

XML

TXT

Network Storage

Internet

SSO

Data Layer - SDW COMESA HQ Admin

BI Experts ICT Experts

COMESA Region Customers

Manufactures Suppliers , Resellers

Distributers &

other RECs Customers &

Suppliers

Example Scenario - COMESA Electronic Market Exchange System (CEMES)

REPSS Clearing House Payment

ZEPRI & ATI Insurance

CEMES Architecture

Stakeholders

The entire business processes will be automated via the internet. The following are some of the Stakeholders:

Manufactures

Wholesalers

Customers

Transporters

Banks

Insurance Firms

Security Firms and

Government Institutions

29

Functions

Customers, Suppliers, key alliance purchasers and corporate infrastructures will be integrated into seamless systems to provide low cost, higher production and significant competitive advantage.

The following are some of CEMES Key functions:

Online Information distribution and marketing

Online Ordering of Goods and Services

Electronic Payments

Product Delivery with Real-Time Tracking for Bulk purchases

After Sale Support

30

Functions Purchase & Delivery

31

Easy for customer to select products of their choice

Customers from other RECs can buy from CEMES

Customers can submit and view their profile

Sample reports of their previous orders can be viewed

Statements of their payments can be viewed

The delivery of products will be insured

Bulk purchases will be tracked online

Business Processed..

32

Order Payment Delivery -Tracking After -Sale Support

The entire business processes will be automated via the

internet.

Customer

Single Sign

On (SSO)

CEMES ONLINE

Customer Support

Wholesaler

Insurance

ZEPRI & ATI

Suppliers &

Resellers

DELIVERY

Transporters

Payment

( Using REPSS

at Clearing

House

33

COMESA

Payment – Using

COMESA – REPSS

thru Clearing

House

Paying using

Mobile - Mobile

Operators

Paying using POS –

Money Transfer

Operators, Exchange

Houses, Retails Outlets

and others

Paying using

website – Third

Party

GATE – Transaction Flow Payment Methods

Money

Received

by Exporter

or Seller

• DESIGNED BY COMESA CENTRAL BANKS PAYMENTS EXPERTS,

INPUTS FROM THE IMF, COMMERCIAL BANKS AND OTHER FINANCIAL INSTITUTIONS

OF THE REGION.

FINANCIAL SUPPORT FROM THE EU UNDER THE REGIONAL INTEGRATION SUPPORT PROGRAMME (RISP).

• MULTILATERAL NETTING SYSTEM WITH END-OF-DAY SETTLEMENT IN A SINGLE CURRENCY (US$ OR EURO).

• ENABLES IMPORTERS/EXPORTERS TO PAY/RECEIVE PAYMENT FOR GOODS/SERVICES THROUGH AN EFFICIENT AND COST EFFECTIVE PLATFORM

• SYSTEM OPERATES THROUGH MEMBER STATES CENTRAL BANKS AND THEIR CORRESPONDING BANKING SYSTEMS.

Regional Payment & Settlement System (REPSS)

7

T+0

T+0 T+1

REPSS

REPSS Model

Benefits

Delivery of immediate boost to business efficiency

Increase the opportunities, reduce cost of sales and services and increase COMESA regional customer satisfaction

Simplification of communication hence creating the ability to process stakeholders’ requests or responses online and communicate electronically using email or SMS.

Automation of business processes via the internet and mobile devices

Business will achieves streamlined and faster communication, improved productivity, Product Transportation and Consignment delivery

Business partners beneficiaries’ Customers, Suppliers, Insurance firm, key alliance purchasers and corporate infrastructures will be intergraded into seamless systems

36

The following are some of the valuable benefits of the proposed COMESA Virtual Market Initiative;

Thank you for your attention

37