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COUNTRY FOCUS South Africa


acceleration of the regional integration process. Traditionally, the African continent is viewed as a disparate region consist- ing of separate nations with similar problems and potentials. Africa needs to establish greater economies of scale via deeper regional integration in order to improve competitiveness and appeal to investors. Regional integration will make it easier and more efficient to conduct cross-border business and cre- ate markets with greater critical mass and more coherence. The African Union has already recognized eight Regional Economic Communities (RECs) and these should form the building blocks for accelerated regional integration. The agreement between the 26 member states from three RECs to establish a free trade area is another positive step. Regional integration of markets and the accompanying harmonization of customs, regulations and trading rules will expand the size of the market and the number of firms in the marketplace. According to Vorster optimization of freight corridors,


overload control and shortening of the time needed to clear customs was other huge potential ITS opportunities.


WAY FORWARD Vorster says the 10 guidelines in the Ernest & Young Africa on the Move report makes good practical sense also for ITS companies looking to operate in a very difficult but poten- tially profitable emerging market such as Sub-Sahara Africa: • Source local partners to create efficient supply chains and distribution channels


• Develop robust capabilities to manage regulatory compliance


• Develop an effective cost management strategy • Create a strong due diligence process to identify the right market entry strategies


• Create a localized manufacturing strategy • Invest in workforce development and training • Contribute to socio-economic development • Monitor local and global market risks • Increase the use of technology to spur growth • Set and strictly follow moral and ethical principles


ITS South Africa will be hosting its biennial i-Trans- port Conference and Exhibition in September 2013 out- side Johannesburg. Under the theme of “Enabling ITS Integration” its provides the ideal opportunity to explore and enter into the expanding ITS market in South Africa and Sub-Sahara Africa, says Vorster.


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Paul Vorster is CEO of ITS South Africa paul@itssa.orgwww.itssa.org


http://www.fin24.com/Economy/World-Bank-calls- Africa-to-action-20130415


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World Bank calls Africa to action Apr 15 2013 15:03 Reuters


Johannesburg – Sub-Saharan Africa’s economic growth should accelerate to more than 5 per cent over the next three years, far outpacing the global average, but the region must do more to convert this into reducing poverty, the World Bank said on Monday. In its latest Africa’s Pulse analysis of prospects for the region,


the bank saw increased investment, high commodity prices and a pick-up in the global economy driving this expected growth surge in the world’s poorest continent. It said foreign direct investment (FDI) inflows to Sub-Saharan


Africa were projected to increase to record levels each year over the next three years, reaching $54bn by 2015. This compared to $37.7bn in 2012, a 5.5 per cent increase


in a year when FDI flows for developing countries fell on average by 6.6 per cent, the bank added. The Washington-based multilateral lender predicted Sub-


Saharan Africa’s growth would be 4.9, 5.1 and 5.2 per cent for 2013, 2014 and 2015 respectively. In 2012, the region’s growth was estimated at 4.7 per cent. “If properly harnessed to unleash their full potential, these


trends hold the promise of more growth, much less poverty, and accelerating shared prosperity for African countries in the foreseeable future,” said Punam Chuhan-Pole, a lead economist in the World Bank’s Africa department. Compared with Africa’s expected growth spurt, global GDP


was projected to expand by 2.4 per cent in 2013 and gradually strengthen to 3 per cent and 3.3 per cent in 2014 and 2015. The report said a decade of strong growth had reduced


poverty in Sub-Saharan Africa, with provisional data showing that between 1996 and 2010, the share of Africans living on less than $1.25 a day fell from 58 per cent to 48.5 per cent. But World Bank economists cautioned that high inequality and


a dependence on mining and mineral exports in many countries had actually dampened the poverty-reducing effect of income growth. “While the broad picture emerging from the data is that


Africa’s economies have been expanding robustly and that poverty is coming down, the aggregate hides a great deal of diversity in performance, even among Africa’s faster growers,” said Shanta Devarajan, the World Bank’s Chief Economist for Africa. Noting that higher growth does not automatically mean less


poverty, the report said resource-rich countries such as Gabon, Equatorial Guinea, and Nigeria performed worse than their less resource-blessed fellows. The World Bank said better administering of mineral


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