Cross-border Trade and Export Facilitation Assessment 116 views0 applications

ASSIGNMENT CONTEXT

Globally, Artisanal and Natural Products (ANP) are a design and market trend offering African producers a ready market. The global ANP sector has undergone significant changes due to ever-increasing competition, technological advancement and economic development. In response, efforts are underway to strengthen the sector in Zambia in order to ensure that it can be globally competitive and deliver inclusive development outcomes.

Over the last 18 months, Prospero has worked with public and private sector partners to address supply side issues by growing artisan/producer capacity for innovation and product development, improving quality and consistency of products and supporting companies through enterprise development training to strengthen the entrepreneurial ecosystem in Zambia. Demand-side issues are being addressed, in part, by creating international market linkages (primarily wholesale buyers). To date, our efforts have focused on the handicrafts sector, but also there is wider potential within product categories in the artisanal food, health and beauty markets as well.

Taken together, these efforts have built an expanding foundation for inclusive growth in the Zambian ANP sector. The consultant(s) being sought via this terms of reference will continue to build this foundation.

During Prospero’s efforts in support of craft sector development, it has become evident that several international buyers’ business models involve significant cross-border trade within Africa. A number of international buyers source crafts products from several African countries, ship them separately overland to an intermediate destination (for example, Johannesburg, Mombasa or Harare) where products are consolidated. In the case of Mombasa, consolidated products are then shipped internationally to their final destination from the Port of Mombasa or in the case of Johannesburg and Harare, the consolidated products are transported to a final port of disembarkation (such as the Port of Durban) where they are shipped internationally to their final destination.

To facilitate small-scale cross-border trade, the Common Market for East and Southern Africa (COMESA) has adopted a Simplified Trade Regime (STR):

“The aim is to make it easier to conduct small-scale cross-border trade activities by putting in place instruments and mechanisms tailored to the trading requirements of small-scale traders that are operating in border areas, where informal trade is rampant. In the Southern Africa Development Community (SADC), no simplified trade regime has been implemented yet. However, efforts are currently underway to develop such a regime for intra-SADC trade.”

Zambia’s export economy is heavily dependent on export processes that contribute to efficient management of end-to-end trade transactions. However, on-going engagement with ANP stakeholders in Zambia suggest that it is challenging, time consuming and overly costly to conduct cross-border trade activities, which is affecting the export competitiveness of Zambian producers and their products.

Given the highly competitive nature of the global ANP industry, and the fact that Zambia is a land-locked country, it is critical to better understand the cross-border trade landscape and identify potential solutions to the obstacles constraining more cost effective and efficient cross-border trade.

OBJECTIVES OF THE ASSIGNMENT

Prospero is seeking a service provider to conduct a rapid scan and assessment of the existing small-scale ANP export supply chain system (including relevant crafts, artisanal food, health or beauty products) to:

· Document how the systems currently function.

· Identify primary regulatory barriers, governance challenges or other issues hindering enhanced cross-border trade.

· Identify specific areas where Zambia is not competitive relative to international good practices.

· Highlight international good practices and models that could be replicated in Zambia to improve the prospects for cross-border trade from Zambia.

· Identify potential interventions where specific policies, partnerships or models could improve outcomes and realise more efficient and cost effective cross-border trade from Zambia over the short, medium and long term. This should take into consideration the current COVID circumstances, but also “normal” circumstances should the impact of COVID decrease in Zambia in coming months.

SCOPE OF WORK

To achieve these objectives, the service provider will be responsible for:

· Undertaking a desk review of existing preferential trade programs and other schemes that intend to facilitate cross-border trade in the region (for example, COMESA simplified trade regime (STR), African Growth and Opportunity Act (AGOA) etc.), specifically those relevant to artisanal and natural products.

· Undertaking a desk review of existing Zambian Government customs procedures and processes.

· Interview select stakeholders including private sector supply chain logistics and shipping actors and representatives of key government ministries and agencies that are involved in cross-border trade governance to:

• Understand the cross-border trade governance structure and map key supply chain actors and Interlinkages involved in activities necessary for goods to be delivered to final customers in export markets.
• Identify key Zambian and/or regional government and customs procedures and processes that either facilitate or impede enhanced cross-border trade from Zambia.
• Ideally, this would be undertaken within Zambia itself, but if current travel restrictions do not allow, alternate means may be undertaken.

· Identify specific international good practices that could be applied in Zambia to facilitate efficient and more cost effective cross-border trade.

DELIVERABLES

Summary report detailing (due at the end of the contract):

• Key findings from assessment.
• Priority actions recommended to facilitate improved cross-border trade over the short, medium and long term, and summary of stakeholders engaged during the assessment.

CONSULTANT PROFILE

· Extensive background in global ANP sector with general knowledge of export markets for artisanal products.

· Previous working experience conducting similar trade and export facilitation assessments.

· Proven track record of successful work with both donor agencies and private sector.

· Familiarity with Zambia’s ANP sector and the issues constraining cross-border trade in Africa preferred.

CONTRACT DURATION

8-10 weeks