International trade securities increased in Africa
Three African countries, namely Sudan, South Sudan and Djibouti have been added to the EU list of red countries, a classification that results in strict security measures being imposed on goods transported across the country's borders. There are currently eight African countries classified as red countries.
Oliver Facey, Vice President of Operations for DHL Express Sub-Saharan Africa.
Commenting on this, Oliver Facey, VP of Operations for DHL Express Sub Saharan Africa (SSA), pointed out that globally, the increased concern around public safety has resulted in the intensification of security measures for transportation of goods internationally. Businesses, which trade internationally, need to be aware of the security measures in place to mitigate the risk to their operations and their people.
Countries across the globe are classified according to their security risk profiles and are regarded as red, white or green. The classification determines the level of security measures applicable to the countries and includes various restrictions on the items that can be transported, as well as the screening levels, packages need to be subjected to before being cleared for transportation to the EU and US.
Facey explains that a red country is considered higher risk due to potential national security concerns. Similarly, a white country is considered to have a certain level of risk, but not as high a security risk as a red country whereas green countries have a minimal security risk level.
Security rises as online trading rises
The nature and degree of security is changing, and society needs to be aware of the increased security measures that are required to be taken. "The business-to-consumer (B2C) market in SSA is growing with the emergence of e-commerce and the increased demand for consumer goods. The rise of the SME has also resulted in greater variety and accessibility to new and competing products. Goods are now just a click away, and can be sourced and ordered from anywhere in the world."
Global security breaches, such as terrorist threats and the trading of illegal or prohibited substances have resulted in the global transportation of goods being subjected to a number of security regulations, largely driven by the EU and US.
New regulations require new accreditation
A recent example of this was in the directive by the EU, which required airlines to get ACC3 accreditation (Air Cargo Carrier 3rd Country), and as part of this, DHL Express in SSA acquired RA3 (Regulated Agent 3rd Party) accreditation in 18 of its countries with flights direct to Europe.
"In order to trade with the EU and US, red countries have to comply with set regulations and conditions. These regulations set the benchmark for general security measures and screening, which then is applied, consistently to all goods being processed out of Africa and the rest of the world. There are challenges in implementing these regulations, but companies such as ours continue to invest to meet these regulations and ensure the standards are applied rigorously across the continent. In order to counteract these challenges and to assist local businesses and individuals to trade internationally, DHL Express has invested over EUR 3 million in the last two years to improve security processes in select SSA countries."
While the regulations should not hamper trade between certain countries and the rest of the world, consumers and businesses need to be aware of them and understand that certain items cannot be moved as easily as others can.
"Additional time needs to be spent on planning as certain items may need to be rerouted to countries in order for them to be screened and cleared for shipping. When it comes to global opportunities, knowledge is key to success for many businesses; knowing which markets to target, how to market their product, how to identify customers, how to be paid and critically, how to ship globally. It's important to have a trusted partner to assist you, not only with complying with the regulations, but to assist with solutions to ensure that your products reach the desired recipient," he concludes.
