Open borders: Opportunities for trade and tourism development

Lazarus Sauti

Tourism and trade, as service sectors, are powerful drivers of economic growth in the Southern African Development Community (SADC).

They have much in common when it comes to the policy environment needed to get the best out of them as they benefit from economies that are open to the outside world, although liberalisation must always be accompanied by appropriate regulation.

Further, both require the creation of complete value chains, and these value chains – to thrive – must be competitive globally.

Sadly, with their immense contribution towards socio-economic transformation, there is lack of integration between these key economic drivers for development in SADC countries.

The African Development Bank (AfDB) – a multilateral development finance institution established to contribute to the economic development and social progress of African countries – says SADC member-states, like many African countries, remain closed off to each other, making tourism and trade within the region difficult.

“SADC is one of the regions in the world with the highest visa requirements. This situation is even more restricted for Africans travelling within Africa, as compared to Europeans and North Americans,” affirmed the AfDB.

The AfDB added: “On average, African citizens require visas to visit 60 per cent of African countries. Visas represent high cost in terms of money and time for the individual applying for visas, as well as missed opportunities for the local service economy and for trade.”

More so, differing rates of economic development resulting in different priorities between the more stable economies in the region and the growing one also hinder trade and tourism development.

For instance, a ‘uni-visa’ system for the 15 countries of the SADC regional grouping is nowhere near to being ready, despite having been mooted in 1998.

One big sticking point has been South Africa’s fear of a so-called overflow of ‘illegal’ African immigrants.

Access to information and communication technology is paramount for both trade and tourism expansion, but countries in the region are still heavily reliant on telephone communications characterised by slow internet as well as obsolete technology due to inadequate funding to upgrade these facilities.

Congestion at border posts also seriously affects travel and trade in the region, a fact that triggered the AfDB to state that delays, congestion and inefficient service delivery experienced at border posts like Victoria Falls, Kazungula and Beitbridge are costly for the region in terms of waiting time.

For this and other reasons, countries in Southern Africa should open border posts as they are gateways to countries in the region from both a trade as well as leisure perspective.

Zimbabwe’s minister of Tourism, Walter Mzembi agrees: “If you want to enjoy the wealth of the world, the gates must be opened. Ministries responsible for trade and tourism in the SADC region, therefore, need to lobby for open skies and border posts if the regional bloc is to improve its trade and tourism development.”

Mthuli Ncube, the chief economist and Vice President of the African Development Bank, concurs, adding that the future of tourism and trade depends on enhanced marketing.

“The future of tourism and trade in the region holds great potential, but its expansion and development depends on open borders as well as improved marketing to niche sectors such as adventure and eco-travellers,” he noted.

Ncube strongly believes that initiatives such as the uni-visa can go a long way in alleviating some of the delays characterising regional borders.

Dr Julius Nyalunga – the director for Export Promotion, South Africa’s Department of Trade and Tourism, added that to effectively integrate regional economies into a single, strong, robust, diversified as well as resilent one, resolving the problem of congestion at border posts is the quickest solution.

“Open borders promote trade and tourism. To integrate regional economies, SADC member-states must, therefore, resolve the problem of congestion at border posts,” explained Nyalunga.

For SADC states to resolve congestion problems at border posts as well as to become trade and tourism hubs, Nikki Forster – Hospitality Industry Leader for PwC, Southern Africa, believes there is need for enabling environments that would facilitate infrastructure growth, investment in human capacity development in addition to growth in regional markets.

Further, Forster said decongesting border posts also requires building strong partnerships, collective efforts along with actions of regional governments, private sector players, civil society groups, regional institutions as well as development partners.

Award-winning leader and business facilitator, Patricia R. Francis concurs, saying success in travel and trade necessitates a holistic policy approach that takes account of the interests of the private sector and involves all concerned.

The former executive director of the International Trade Centre (ITC) – the joint cooperation agency of the United Nations Conference on Trade and Development and the World Trade Organisation for business aspects of trade development, Patricia Francis, added that the infrastructure for trade and tourism must provide an enabling environment which delivers more to each player in the chain if regional countries are to achieve the development outcomes which they have set themselves.

“In opening up border posts, developing ports and airports, too often private sector needs are overlooked,” she observed, adding that if tourism is the economic driver behind a new airport, for example, facilities that can promote trade, such as cold storage, are sometimes omitted.

Francis, therefore, encouraged SADC states to urgently reform customs’ procedures as well as to introduce more ‘one-stop border posts’ if the region is benefit from the opportunities presented by trade and tourism.

She also added: “The region must develop its human capital, with particular emphasis on women and young people. Skills development and investment in human capital development is critical to the economic development of a country.”

Francis also said that technical skills are more important in driving trade and tourism in the region.

Mzembi also said as access to information and communication technology is paramount for both trade and tourism expansion, it is critical for government sectors to facilitate and support ICT upgrades.

“Supporting ICT upgrades should absorb increasing of bandwidth so as to increase the speed of internet access,” Mzembi advised.

Seriously, with a wealth of natural resources including minerals like gold, platinum, diamond, copper  as well as tourist attractions such as Namib Dessert, Ngorongoro Crater, the Victoria Falls and the Transfrontier Park, wildlife, flora and fauna, SADC should be amongst the richest regions in the world.

Sadly, the region is poor, with poverty wreaking havoc on citizens.

Policy decision makers, however, can change this simply by opening borders as well as the creation of regional tourism packages so as to rigger economic growth and economic integration in the region.