The Africa Heritage Society ("AHS") is a Pan-African, non-profit association of corporates and individuals who constitute the membership of the body. The principal aim of AHS is to put Africa and its various interests at the centre of business strategy. Further, it seeks to understand, shape, document and promote business best practices in Africa. Accordingly AHS considers vital the issues of sustainable profitability, social responsibility, Black Empowerment, all resting on a full and clear understanding of the African experience, African history, African values, environmental concerns and the African political milieu.

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“AFRICA HERITAGE LEGAL FORUM”_-AN IMPERIVE IN CHANGING GLOBAL ECONOMIC TIMES – SADC’s Free Tade Area.

From: Ramani L. Desai
13 Jan 2010 02:10 am
SADCOn the 17th August 2008, the Southern African Development Community (SADC) region was declared a Free Trade Area (FTA), with the primary objective of promoting sustainable equitable economic growth and social development. The SADC region could therefore be classified as a formidable trading block for international investors. In support of the initiative, the AFRICA HERITAGE SOCIETY hosted a networking forum on the 11Th December 2009, launching the first AFRICA HERITAGE LEGAL FORUM. The objective of the Africa Heritage Legal forum is to provide a platform for experts from the SADC Legal Fraternity and the SADC Trade commissions and other stake holders to discuss the impact the SADC (FTAs) will have in the region and, in particular on business. The growth of business in the region is directly proportional to the need for legal practitioners to facilitate the business objectives of government and private enterprise in the region. It is imperative however, that law practitioners be cognitive of the ‘HERITAGE' of ‘FREE TRADE' in Africa, hundreds of years before the region and continent was cut up into impeding invisible borders, and divisive instruments of border tariffs etc. The recognition that the region should have ‘FREE TRADE', cuts to the heart of the nature of our AFRICAN HERITAGE, which has been a harmonious form of survival and exchange of cultures for thousands of years.
The AFRICA HERITAGE LEGAL FORUM calls upon all African law practitioners to recognize the roots of our cultural heritage, and develop an Africa, region by region, into one united regulatory system. The Foundation of AFRICA'S Law, is that it's HERITAGE. This Legal forum gives expression to the fact that the concept of LAW & HARMONY is not one that was imported from Europe or America, but an innate part of our lives and our trade values. We need to resurrect the spirit that exists within our cultural norms and heritage.

The AFRICA HERITAGE LEGAL FORUM being the first of its kind, will play a vital role in regional economic integration, the forum will seek a formal recognition by the South African Government to be a key facilitator in mobilizing the private sector to actively participate in the development of regional economic hubs. Furthermore, countries in SADC share a common vision and are striving to pursue a common regional integration agenda by focusing on political, economic and trade interests, it is imperative that the Legal Fraternity of SADC, organize themselves as a backbone of this process. Hence, this networking forum is an ideal platform for discussion and debate on Free Trade Areas FTAs.

Through the implementation of FTAs, the SADC region will benefit from increased domestic SADC Countriesproduction, greater business opportunities, higher regional imports and exports, access to cheaper inputs and consumer goods, greater employment, increased Foreign Direct Investment (FDI) and the creation of regional value chains.39135

Mr. Mupelwa Sichilima, Programme Officer in the Directorate of Trade, Industry, Finance and Investment at the SADC Secretariat, explains, "Further objectives expected from the initiative are to promote a common political value from the countries within the SADC region, to consolidate defend and promote democracy, peace security and eradicate poverty." It is the submission of this article that these objectives cannot be met effectively without organizing a "Heritage based Law Society of The Southern African Development Community"

The SADC FTAs are the culmination of years of work, which started when SADC members signed the SADC Trade Protocol in 1996. The protocol came into effect in 2000 and is to remove customs tariffs on goods produced within the SADC region. Eleven of the 14 SADC countries that include Botswana, Lesotho, Malawi, Mauritius Mozambique, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe have complied with the FTAs. Two countries have not begun to reduce their trade tariffs, namely Angola and the Democratic Republic of Congo (DRC), but it is anticipated that they will accede to the trade protocol and join the FTA family in the future, boosting the trade market with a GDP of R559-billion ($71-billion) and adding 77-million to the SADC market.

Madagascar and Seychelles have acceded to the protocol on trade and submitted proposals to reduce their tariff barriers over a period of time. The SADC regional integration targets are to agree on modalities for establishing a customs union by 2010, a common market by 2015, monetary union by 2016 and a single currency by 2018.

The launch of the FTA will not only enhance the SADC region by encouraging dramatic growth, but will also contribute significantly to the trade and investment flow into the region. The region continues to work on insuring that it facilitates the movements of goods through harmonizing customs procedures and customs classifications; increasing custom co-operation; reducing costs by introducing a single and standardized document (Single Administrative Document) for customs clearance throughout the region; and establishing "one stop" border posts, which will cut the time spent at the border in half. Currently, there are pilots at the borders of Mozambique and Zimbabwe (Forbes - Machipanda), South Africa and Mozambique (Lebombo Ressano Garcia) and Zimbabwe and Zamia (Chirundu), making trans-shipment easier by enabling a single form to be used when transporting goods across several borders within the region.

Mr Phemelo Marishane, Director of the South Africa Customs Union at the South African Department of Trade and Industry adds, "The FTA will play a vital role in enhancing competitiveness and allowing the SADC private sector to win over world markets thus ensuring that the SADC region is the destination of choice for international investment. This will result in the facilitation of regional supply chains, enabling the private sector to source inputs from the region at a lower cost. For example, Zambia's trade surplus with the European Union, specifically with regards to vegetables and prepared food products, enable the import of these packaged goods from the SADC region.

panel_021The FTA has certain criteria for trading across borders that SADC member states have to comply with. In order for a product to qualify as originating from a member state, the product is required to meet one of the two criteria. The "wholly produced" rule requires goods to be produced or manufactured in a member state using materials from within the SADC region. The "sufficiently worked or processed" rule involves the working of a product into a new product that is significantly different. In order to establish whether a product has been sufficiently worked or processed, it will undergo an import content or product reclassification test. A product which is simply repacked will not qualify as originating in the member state. Similarly, if a product is simply mixed, acceptance for those allowed, will not qualify as origination either.

Documentary evidence and/or a certificate of origin are required at the customs border for a product to be allowed duty free access in to a member state. Hence, all producers who wish to export goods are required to register with relevant designated authority.

Heads of StateA further development, as a result of the FTAs, is that SADC member states have agreed to eliminate all Non Tariff Barriers (NTB) to trade and not to impose any new ones, accept where necessary on the grounds of the plant and animal health and safety, public morals, environment and national security. Complications can occur where NTBs result from challenges that are not intended to restrict imports. The removal of import and export restrictions has resulted in numerous challenges.

The private sector and other stakeholders have identified delays difficulties at the border as one of the key barriers to doing business in the region. An online mechanism for reporting NTBs to trade and the Private sector are required to play an influential role in reporting and monitoring the removal of any problems that they may encounter with regards to NTBs. This is a noteworthy development for trade and ultimately, for African countries. The AFRICA HERITAGE LEGAL FORUM, for one, supports the principles of such developments as it fosters solid trade facilitation and promotes investment in African countries. It is only when mechanisms, like these, are in place that the continent grows its economic stature, most of all, we have to foster the need to invest in our selves, and our brothering, this is the true mechanism for growth. Let us recognize where we come from, let us recognize our African heritage.


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