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CONTENT OF THE PRESENTATION
To provide a conceptual framework for analysing Africa’s geo-economic and geostrategic make-up
 Indicating the missing link – shipping - within Africa’s intermodal transport plans
 Analysing the role the maritime sector – particularly shipping can play in advancing
Africa’s global geo-economic and geo-strategic interests
To make a case for the development of an African Indigenous Shipping Tonnage
KEY FOCUS ISSUES
Merchandise trade
Regional integration
Geo-economic imperatives
Geo-strategic interests (including security and safety)
Strategic Responses to Africa’s Maritime Domain Challenges
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 largest island on earth with
oceans on all sides:
 Atlantic Ocean (West)
 Indian Ocean (East)
 Southern Oceans (South)
 Mediterrenean & Red Sea
(North)
 total of 54 countries of which
39 (72%) are coastal or islands
 coastline of 31,000 km
inland waterways of 300,000
square kilometers
 seaborne trade volume 91%
Trade dependent GDP (eg RSA:
58% of GDP comes from trade)
 2nd second largest land-mass
in the world after Asia
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 the largest number of landlocked states in the world (15)
INTRA-REGIONAL TRADE IN AFRICA
IMPORTS
EXPORTS
AFRICA
9.6
8.7
DEVELOPING AMERICA
20.9
18.5
DEVELOPING ASIA
48.1
45.5
DEVELOPED AMERICA
23.3
39.8
DEVELOPED EUROPE
68.1
71.4
SOURCE: UNCTAD, 2008c.
 The African continent has the lowest intra-regional trade levels compared to other
regions
 Africa is highly dependent on trade with countries over the oceans
 Africa’s top 7 exports with the rest of the world are concentrated around a few
products, with crude oil alone accounting for 46% of the total
 Intra-African trade is fairly distributed between fuels, non-fuels primary goods (30%) ,
of which ores and minerals = 11% and agriculture = 19%; manufactured goods (40%)
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TOP TEN EXPORTERS TO AFRICA and THE REST OF THE WORLD
EXPORTS TO AFRICA
COUNTRY
EXPORTS TO THE REST OF THE WORLD
SHARE OF TOTAL
INTRAREGIONAL EXPORTS
COUNTRY
SHARE OF TOTAL AFRICAN
EXPORTS TO THE REST OF
THE WORLD
SOUTH AFRICA
24.29
ALGERIA
17.36
NIGERIA
12.37
SOUTH AFRICA
15.98
COTE d’IVORE
7.40
NIGERIA
14.78
KENYA
5.36
ANGOLA
8.80
SWAZILAND
5.34
LIBYA
8.75
NAMIBIA
3.47
MOROCCO
4.30
GHANA
3.42
EGYPT
4.07
ALGERIA
3.36
TUNISIA
3.87
TUNISIA
3.18
CONGO
2.36
ZIMBABWE
3.04
COTE d’IVORE
2.09
SOURCE: UNCTAD, 2008c
# COUNTRIES IN RED APPEAR ON BOTH LISTS AND ARE COASTAL
 Exports to Africa dominated by coastal economies (8 out of 10) representing all regions
 7 of the top 10 exporters to the rest of the world are oil producers; 4 countries accounting for 50%
TOP TEN IMPORTERS TO AFRICA and THE REST OF THE WORLD
IMPORTS FROM AFRICA
COUNTRY
SHARE OF TOTAL
INTRAREGIONAL EXPORTS
IMPORTS FROM THE REST OF THE WORLD
COUNTRY
SHARE OF TOTAL AFRICAN
EXPORTS TO THE REST OF
THE WORLD
SOUTH AFRICA
9.80
SOUTH AFRICA
25.40
BOTSWANA
8.23
MOROCCO
9.22
NAMIBIA
6.59
ALGERIA
9.18
COTE d’IVORE
4.91
EGYPT
8.00
SWAZILAND
4.70
NIGERIA
7.73
ZAMBIA
4.58
TUNISIA
6.00
ZIMBABWE
4.53
LIBYA
3.49
LESOTHO
3.45
SUDAN
2.92
NIGERIA
3.45
LIBERIA
2.78
D R CONGO
3.24
GHANA
2.42
SOURCE: UNCTAD, 2008c
# COUNTRIES IN RED APPEAR ARE COASTAL
 5 of the top 10 importers from Africa are landlocked
 South Africa, Nigeria, Cote d’ivore, Namibia, Zimbabwe, Swaziland
 South Africa, Nigeria, Algeria, Libya, Morocco, Egypt, Tunisia dominate trade with rest of the world
 AFRICA is largely dependent on trade for its economic development
 Intra-regional trade
 International trade
 Africa’s trade is dominated by coastal economies in all the 4 regions of the East,
West, North and South
 That trade is largely seaborne and moves through its ports (91%)
 The development of the land-locked countries and their access to international
markets are dependent on the performance of the network of maritime transport and
logistics corridors, including ports and ships
 Transport, in this case maritime transport and logistics become an essential and
strategic area of economic consideration
 in that context, the development of the maritime transport infrastructure become a
key enabler and catalyst for the competitiveness and development of Africa’s
economy
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Africa is the only world region with no merchant tonnage of note under its control
(registry) to handle her coastal intra-regional and extra-territorial seaborne trade
 Africa imports transport and logistics services with every import - export activity
• No tax and tonnage related benefits hence skewed balance of trade
 Decimation of maritime services expertise (sea based and ashore) and
competitiveness
 Lost opportunities for possible investment in shipping by Africans
 Vulnerability to foreign geo- political and geo-economic pressures
 Undermines the establishment of viable coastal industry to complement the land
and aviation national transport infrastructure and services
 Loss of opportunities for domestic industrial development and job creation
 Weaker position in coordinating intra-regional African coastal trade strategies
 Weakening of the capacity of countries and governments to govern their ocean 8
territories and provide safety and security
International Seaborne Trade and Exports of Goods, 1955-2007
14
13
Seaborne Trade (billions of tons of goods loaded)
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Exports of Goods (trillions of current $US)
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10
9
8
7
6
5
4
3
2
1
0
GLOBAL TRADE GROWTH
& GROWTH IN SHIPPING
Satellite AIS – Africa region
10Apr – 9890 vessels
AFRICA: A SIGNIFICANT PLAYER IN WORLD TRADE
STRATEGIC RESPONSES
HOW DOES AFRICA LEVERAGE THE POTENTIAL BENEFITS ARISING OUT OF THE
MARITIME TRDADE ACTIVITIES IN THE CONTINENT AND ON ITS COAST
“THE NEED FOR AFRICAS OWN CAPACITY”
“Indigenous tonnage ownership” is possible
Article 3(1) of the African Maritime Transport Charter defines the objectives of the Charter
“To declare, articulate and implement harmonised maritime transport policies
capable of promoting sustained growth and development of African Merchant
Fleets......”
STRATEGIC RESPONSES
DEVELOPMENT OF PROPER CONTINENTALLY HARMONISED ENABLING
LEGISLATION
Definition of an African Ship
Africa must ensure that in their respective legislation, the word “African ship” is defined in such a way
that it has the effect of preventing or discouraging foreign ships from being passed as African
ships. This definition may, e.g., include, among others, a condition that a ship must be wholly
owned by nationals or companies of African states and must be crewed by nationals of those
states” etc.
National and Trans African Cabotage Policy
Cabotage as a policy needs to be implemented regionally in order to ensure growth of coastal shipping
which most maritime countries use for the development of their maritime industries
International Commercial Terms
Africa is endowed with many types of mineral resources e.g. oil and gas, iron ore, etc but does not
fully benefit from these. Many countries export FOB. It is estimated Africa loses billions of dollars
as a result. Africa generally imports CIF. With this arrangement in place, Africa’s tonnage will not
survive.
STRATEGIC RESPONSES
SHIPPERS COUNCILS
Shippers Councils are responsible for protecting and defending the interests of shippers by
focussing the simplification of transport and trade procedures
The councils need to be established where they do not exist but such existence needs to be
underpinned by the sole need to ensure the promotion of Africa’s tonnage capacity
The councils need to cooperate continentally as prescribed by Article 3 of the African Maritime
Transport Charter.
STRATEGIC RESPONSES
PROPER MARITIME INFRASTRUCTURE
Further, To support such tonnage, Africa must pay more attention to developing world class
maritime infrastructure that is able to appropriately service its ships and also attract ships from
foreign jurisdictions plying their trade in the waters of Africa. Without such facilities, there is
always inherent risks that such tonnage will ground to a halt or Africa will be forced to service
them in foreign jurisdictions, thus exporting revenue unnecessarily.
STRATEGIC RESPONSES
FOCUSSED MARITIME INDUSTRY DEVELOPMENT
Ship Building
There is a need for Continent to co-operate in ship building capacity building.
Africa through its trade and strategic requirements, has a substantial market for ships that it
requires to support its shipbuilding industry
Individually, Africa may find it difficult to compete with countries of the Far East. Africa
may, for example co-operate in manufacturing different parts of vessels.
Offshore Industry Support
The booming offshore industry needs support that would significantly contribute to the
maritime industry activity and further enhance the expertise and capacity that the continent
requires.
STRATEGIC RESPONSES
Need for Funding
Funding is critical to the establishment and promotion of indigenous African Tonnage
as well as general maritime industry development
Africa must generate such funding through available initiatives such as the Maritime
Industry Development Levy on all foreign vessels handling cargoes in African Ports.
Africa should consider establishing an African Maritime Bank and/or Regional Maritime
Banks and/or National Maritime Banks.
CONCLUSION
Establishing and promoting indigenous tonnage will not happen overnight. Thus as a
start, make use of bareboat charter with conditions attached such as , that the ships
operations office is registered and is situated in the African State in question, the ship
is crewed by a determined number of Africans, the charter is for a period of not more
than five years.
E
SAMSA
STRATEGIC GOALS
SAFETY, SECURITY AND DEFENCE PERSPECTIVE
GOAL 2: Promote South Africa’s maritime industry/economy development


MARITIME
SAFETY OF LIFE,
Promotion of Maritime BBBEE and industry transformation
SUPPLY
CHAIN
PROPERTY
Promotion of maritime awareness, maritime industry skills capacity and
creation of&jobs
SECURITY
TERRITORIAL
INTEGRITY
INDUSTRIAL PERSPECTIVE
SHIP & BOAT
BUILDING
OFFSHORE
ENERGY &
MINING
SHIP REPAIRS
&
CONVERSIONS
EXPLORATION
ENVIRONMENT
PRODUCTION
MID &
DOWNSTREAM
TRANSPORT PERSPECTIVE
LOCAL/REGIONAL
COASTAL SHIPPING
& LOGISTICS
MARITIME
CORRIDORS
INTERNATIONAL
SHIPPING &
LOGISTICS
SHIP
REGISTRY
PORTS &
HARBOURS
SERVICES (VALUE ADDED) PERSPECTIVE
SHIPPING/CARGO
OPERATIONS &
LOGISTICS
FINANCING &
ASSURANCE
SERVICES
ENGINEERING &
TECHNOLOGY
SERVICES
BUSINESS
CONSULTING
SERVICES
SKILLS TRAINING
RESEARCH &
INNOVATION
PORT &
MARITIME
ADMIN
The current recession is offering the continent a unique opportunity to
implement the African Maritime Charter through a comprehensive African
Maritime Development Strategy, thereby positioning itself as a key maritime
trade and shipping region, focussing on:
Policy recognition and and developing of the regional African coastal
shipping as part of the ‘domestic’ transport network planned COMPLETE
with
 appropriate cargo consolidation hubs [hub and spokes] and
 intermodal maritime corridor s linked to inland regions
Establishment of a continental short-sea-shipping strategy, enforceable
through:
 regional cabotage network (exclusive to African tonnage)
 coastal trade policy to integrate the continent’s coastal economies
 serving to strengthen the state’s capacity and capability to enforce
safety, security and territorial integrity
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The key challenge Africa must face up to is the absence of indIgenous blue
sea merchant tonnage to keep the sea lines of communication open
• The current situation is not sustainable, undermining Africa’s ability o:
African naval support for off shore operations
Carry influence in world trade and shipping affairs
 Secure and diversify opportunities for African investors
 Sustain numbers of African who could find jobs at sea if they had
berths for training
Promote the maritime industrialisation programme:
 provide adequate ship repair infrastructure facilities on the
continent
establish regional maritime industrial hubs for ship building, boat
building and component manufacturing
Provide world class ‘soft infrastructure’ development programmes
 introduce maritime awareness and education in the populacel
 Provide high tech training and research centers
 Improve participation of females in maritime
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THANK YOU
ASANTE
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