One-stop border post bill will help boost AfCFTA trade

SA is set to transform intracontinental trade across Africa with the groundbreaking introduction of the One-Stop Border Post Bill. Unveiled on September 11 by home affairs minister Leon Schreiber, this bold initiative aims to dismantle the crippling congestion at land borders by creating unified border systems through agreements with neighbouring states.

By replacing the outdated two-stop model with streamlined one-stop border posts (OSBPs), goods, people and vehicles will undergo necessary checks just once before crossing — slashing delays that currently stretch to days or even weeks during peak seasons. This move not only addresses longstanding border challenges but paves the way for a more efficient and economically integrated African continent. 

The bill allows the minister to conclude agreements with any state to establish at any point of entry an OSBP and a common control zone within the OSBP. The common control zone will enable officials from both states to collaborate in enforcing border laws from both states. Although the bill does not detail the specific content of these agreements, it highlights the following key points as consideration for border law enforcement: 

• The laws of each state apply in the common control zones established in the territory of both states and must be enforced by the officials in the same way as they are enforced in each country's territory. 
• Any violation of any state’s border laws within the common control zone will be subject to the applicable rules of law from both states. 

The implementation of the bill will significantly boost intra-continental trade in Africa, addressing a crucial need for the continent. Delays experienced at borders will be reduced, making cross-border trade more efficient and attractive for businesses. This process is also likely to lead to increased trade volumes, as businesses will find it easier and more cost-effective to engage in cross-border transactions.

Moreover, the establishment of the OSBPs will enhance economic integration and create a more interconnected African economy. Improved border efficiency is also expected to attract investment to border regions, stimulating local economies and creating job opportunities. While the bill aims to simplify processes and present commercial collaboration between African countries, the following issues still need to be addressed by the minister through regulation: 

Simplification of complex clearance procedures

Current laws and clearance procedures in African countries are often complex. In SA, for example, the process involves verifying the goods declaration against documents such as invoices, bills of lading, certificates of origin and permits. If necessary, customs will examine the goods and assess duties and VAT. They may also request additional information or samples and can detain goods for other government departments to ensure compliance with their laws and regulations. For effective implementation of the OSBP the regulations should ensure that the processes are simplified without compromising security and align procedures across different states. 

Standardisation of documents

The lack of uniformity in clearance procedures and documentation requirements across African nations poses a significant challenge. This disparity can lead to complications, particularly when adjoining countries have different regulatory demands for importers and exporters. For instance, an importer in SA might be required to present specific documents that are not mandated by an adjacent country. This discrepancy raises critical questions about how conflicting provisions will be aligned under the OSBP framework. These differences must be reconciled either in the regulations or in agreements to ensure smooth and efficient border operations. 

Fragmented border management

The involvement of multiple stakeholders in border management has been a significant factor contributing to delays at borders. To mitigate this SA recently established the Border Management Agency to consolidate border management functions previously dispersed across seven different departments. However, the bill introduces new complexities as it anticipates the participation of various stakeholders from adjacent countries, which may once again lead to fragmented management. Consequently, the minister must address these potential issues within the regulations. This could involve the establishment of a distinct border management agency or facility to ensure effective border management and the creation of a coherent system. 

This bill is a transformative initiative poised to redefine African trade dynamics and economic integration, aligning closely with the goals of the African Continental Free Trade Area agreement. By dismantling the longstanding bottlenecks at border crossings, it offers a tangible solution to expedite the movement of goods, people and vehicles thereby making cross-border trade more efficient and attractive for businesses. However, the fruition of its potential rests on the minister's ability to address the critical issues of simplifying clearance procedures, standardising documentation and consolidating border management.

Tackling these challenges head-on will not only facilitate the smooth implementation of the OSBPs but also unlock unprecedented economic opportunities across the continent. The imperative now is for decisive action and collaboration among all stakeholders to ensure this bold legislative move translates into real-world benefits, heralding a new era of prosperity and interconnectedness for Africa's economies. 

• Subban is partner for tax and Mavata trainee solicitor at Baker McKenzie SA.