Writing the future: one article at a time

Professionals in the logistics and supply chain sector can play an invaluable role in writing the future, says DEVLYN NAIDOO.

As I pen the first of many articles this leap year, an apt quote from Peter Drucker springs to mind: “The best way to predict the future is to create it.”

With some work on our part, the stars can indeed align as we want them to, saving us the trouble of peering into crystal balls or shuffling through tarot cards searching for an answer. 

The co-creation of seamless trade facilitation is something we should all aspire to… the power literally sits with each of you, as active participants in SA Inc’s logistics and international trade stratosphere. It does, as the saying goes, take two to tango: an active and willing participant, accompanied by a competent and determined driver – and these roles should be interchangeable to avoid missing any steps. You may wonder what I am on about, so let me explain.

MAKING PROGRESS

The World Trade Organization Trade Facilitation Agreement (WTO-TFA) entered into force on 22 February 2017. It applies only to the WTO members that have accepted, including South Africa. According to the WTO, the trade facilitation agreement represents one of the most significant means of decreasing trade costs across Africa.

There are 24 articles that effectively constitute the WTO-TFA; each article covers a specific focus area that finds congruency with trade facilitation. Articles often interlink with customs and other government agency controls, proposing efficient mechanisms for consideration. South Africa, being a member of the WTO, has made significant progress in the adoption of the TFA articles and is currently at 90.2%, with two remaining commitments between 2028 and 2038.

WRITING OUR FUTURE

Are we there yet? As you read this question, you could be forgiven for recalling the famous road trip movie of the same name, released some 19 years ago. South Africa still has some way to go, and you can still contribute to taking us there. Through the implementation of advanced rulings and a single window, articles 3 and 10.4 of the WTO-TFA are in the process of being implemented (or written). You can be the co-author toward shaping (writing) the desired outcome by providing the relevant insights – in respect of the operational and supply chain realities – to the relevant administrative stakeholders through your respective industry associations.

It is only once administrative stakeholders understand the impact of the intended design that a balance between risk management and trade facilitation can be achieved. If we as business do not do this, then who will? We have the option to proactively create, as opposed to reactively attempting to correct or complaining after implementation. As business users, you understand your supply chains more intimately than anyone else. Therefore, your invaluable contributions and insights into the predication of costs, time, and service reliability within your supply chain, are best conveyed to the appropriate audience through a structured channel. Let us all contribute daily, today, to the realisation of an intact future transport and logistics network.

CURRENT TRADE STATISTICS

According to South Africa’s latest trade statistics, released by SARS under embargo on 29 December 2023, South Africa recorded a preliminary trade balance surplus of R21 billion in November 2023. This surplus was attributable to exports of R185.8 billion and imports of R164.8 billion, inclusive of trade with Botswana, Eswatini, Lesotho, and Namibia (BELN). The year-to-date (1 January to 30 November 2023) preliminary trade balance surplus of R48.5 billion was a deterioration from the R187.6 billion trade balance surplus for the comparable period in 2022.

On a year-on-year basis, export flows for November 2023 were 8.2% higher compared to the R171.7 billion recorded in November 2022. Import flows were 0.1% higher, having increased from R164.6 billion in November 2022 to R164.8 billion in the most recent period. One of the mechanisms to support an increase in trade flows – and by no means the only cog in the wheel – is the efficient co-design of articles 3 and 10.4 of the WTO-TFA.

EXPERIENCING THE FUTURE

I was privileged to attend a conference in Dubai last year with a colleague. Upon completion of the business of the day, we managed to squeeze in a bit of sightseeing on the night before travelling back home. Walking the streets led us to one Dubai’s lauded tourist attractions. Unfortunately it wasn’t the Burj Khalifa; I reckon we’re still too grounded to reach those heights. Instead, we found ourselves at the doorsteps of the Museum of the Future: an aesthetically and ergonomically pleasing masterpiece, easy on the eye and resonating with its name. We were able to experience the future in a present timeframe.

DARE TO DREAM

The active decision to be vociferous and lobby the relevant public and private sector stakeholders – both locally and on the international stage – will afford you the individual an opportunity to pen proposals for submission via the relevant sector associations and vertical industry bodies to create the future desired state.

 Let us all contribute to enhancing the state of transport, logistics, and trade in South Africa, and to writing the future, one article at a time. The dreams of today can become the realities of tomorrow! Dare to dream, pick up the proverbial pen, and help write our story…