CHALLENGES
“
AT THE BORDER
”
149
FIGURE 3.10
Average Tariff Rates of African Countries on Chinese and Indian ImportsSudan
Mali
Chad
Niger
Angola
Ethiopia
Congo, Dem. Rep.
Nigeria
South Africa
Namibia
Tanzania
Zambia
Mauritania
Kenya
Botswana
Guinea
Mozambique
Madagascar
Cameroon
Zimbabwe
Gabon
Ghana
Uganda
Congo, Rep.
Senegal
Côte d’Ivoire
Central
African RepublicBurkina Faso
Benin
Eritrea
Malawi
Liberia
Togo
Sierra Leone
Lesotho
Burundi
Rwanda
Guinea-Bissau
Swaziland
Equatorial Guinea
Mauritius
Cape Verde
Seychelles Average tariff rates low (medium low (medium high (high (21%–30%)
Sudan
Mali
Chad
Niger
Angola
Ethiopia
Congo, Dem. Rep.
Nigeria
South Africa
Namibia
Tanzania
Zambia
Mauritania
Kenya
Botswana
Guinea
Mozambique
Madagascar
Cameroon
Zimbabwe
Gabon
Ghana
Uganda
Congo, Rep.
Senegal
Côte d’Ivoire
Central African Republic
Burkina Faso
Benin
Eritrea
Malawi
Liberia
Togo
Sierra Leone
Lesotho
Burundi
Rwanda
Guinea-Bissau
Swaziland
Equatorial Guinea
Mauritius
Cape Verde
Seychelles
a. Chinese importsb. Indian importsSource: UNCTAD TRAINS.
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150
AFRICA
’
S SILK ROAD
:
CHINA AND INDIA
’
S
NEW ECONOMIC FRONTIERprocedures, causing unintended inefficiency in administration and adding extra barriers for the private sector. Duty suspension can be more effective for helping domestic producers to access imported inputs for the production of exports. However, again, without proper administrative capacity, there is the leakage of goods (without being used for exports)
into the economy.
Besides efficiency in incentive scheme management, another important question is whether incentive schemes effectively promote participation of exporters in the most appropriate sectors—that is, sectors in which countries have comparative advantages in exporting.
Analysis of the WBAATIsurvey data suggests that export incentive schemes do not generate high participation among the sectors where the African countries in question have comparative advantages, such as textiles,
agricultural products, and food industries. Instead, the participation of export incentive schemes is high among the firms producing machinery and nondurable sectors,
where those countries lack comparative advantages.
Almost all governments recognize the difficulties that exporters face in entering foreign markets. Different countries choose different combinations of means to encourage exporters to overcome such difficulties. Some used to directly subsidize export activities (direct income tax incentives, but this is no longer allowed under the World Trade Organization (WTO. The effectiveness of domestic export incentive
schemes has been rather mixed, however. In many cases, the proper domestic investment climate needs to be in place for the effective management of the schemes (chapter TABLE 3.8
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