Regional integration : the impact of cross-border cooperation and intergovernmental relations on micro-, small and medium enterprises in Southern Africa

Date
2024-03
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH SUMMARY: The African Development Bank estimates that approximately sixty-five percent of Africa’s traders are medium, small and micro-enterprises (MSMEs), mainly applying their trade in retail and making trade in goods a predominant sector on the continent. Most of these goods are in the raw form, with some value -added, and ready for cross-border trade. MSMEs face challenges when it comes to cross-border trade and it appears that the regional integration agenda seems to focus on the main traders, who normally freight their goods on trucks. Cross-border cooperation in Africa aims to promote the free movement of goods from the communities around the border region, as well as from those that are further from this region. In order for this to happen there is a need for intergovernmental relations that promote collaborative interactions among government units. The motivation that spurred this study is a passion for regional integration and the impact of cross-border cooperation and intergovernmental relations on MSMEs. The problem being investigated in this study is that there is an insufficient understanding of the factors that are responsible for the ineffective way in which cross-border cooperation takes place, and this harms the progress of micro-, small and medium enterprises. The objective of the research was to identify the underlying issues in intergovernmental relations, particularly with the aspects of cross-border cooperation, and their effect on MSMEs as a sector that plays a role in cross-border trade in Southern Africa. In terms of research methodology, the study made use of the mixed-methods approach, and a range of experts in cross-border cooperation were interviewed. The study recorded ratings by these experts of the efficiency of cross-border functions with respect of intergovernmental relations. The findings of the study show that the effects of intergovernmental relations on regional integration and cross-border cooperation concerning MSMEs would be enhanced with improved information and communications technology (ICT) connectivity, which has also influenced other policy interventions, such as one-stop border posts. The study showed that there is a need for the improved harmonisation of laws, regulations and policies. Overall, the study found that intergovernmental relations could improve in specific areas, and that cross-border cooperation is affected by some key government functions that include simplified customs declarations, improvements in the efficiency of trade information processing and clearance, as well as improvements concerning licensing and permits. The study further concludes that the devolution of powers in government should be accompanied by capacity building and the introduction of incentives to promote improved intergovernmental relations and policy coordination.
AFRIKAANSE OPSOMMING: Die Afrika-ontwikkelingsbank beraam dat ongeveer vyf-en-sestig persent van handelaars in Afrika medium, klein en mikro-ondernemings (MKMO’s) is, wat hoofsaaklik hulle handel in kleinhandel toepas en wat handel in goedere ’n oorheersende sektor op die vasteland maak. Die meerderheid van hierdie goedere is nog in die rou vorm, met ’n mate van toegevoegde waarde, en gereed oorgrenshandel. MKMO’s staar uitdagings in die gesig wat oorgrenshandel betref en dit blyk dat die streeksintegrasie-agenda meer fokus op die groot handelaars, wat hulle goedere gewoonlik op vragmotors vervoer. Oorgrenssamewerking in Afrika het ten doel om die vrye beweging van goedere vanaf die gemeenskappe rondom die grensstreek te bevorder, asook van diegene wat verder van die streek af is. Vir dit om te gebeur, is daar ’n behoefte aan tussenregeringsverhoudings wat samewerkende interaksies tussen regeringseenhede bevorder. Die motivering vir hierdie studie is ’n passie vir streeksintegrasie en die impak van oorgrenssamewerking en tussenregerings-verhoudings op MKMO’s. Die probleem wat in hierdie studie ondersoek word, is dat daar ’n onvoldoende begrip is van die faktore wat verantwoordelik is vir die oneffektiewe wyse waarop oorgrenssamewerking plaasvind, en dit het ’n negatiewe uitwerking op die vordering van mikro-, klein en medium ondernemings. Die doel van die navorsing was om die onderliggende kwessies in tussenregeringsverhoudings te identifiseer, veral met betrekking tot die aspekte van oorgrenssamewerking, en die effek daarvan op MKMO’s as ’n sektor wat ’n rol speel in oorgrenshandel in Suider-Afrika. In terme van navorsingsmetodologie het die studie gebruik gemaak van die gemengde-metodes-benadering, en onderhoude is gevoer met ’n reeks kundiges in oorgrenssamewerking. Die studie het die beoordeling deur hierdie kundiges van die doeltreffendheid van oorgrensfunksies ten opsigte van tussenregeringsverhoudings aangeteken. Die bevindinge van die studie toon dat die uitwerking van tussenregeringsverhoudings op streeksintegrasie en oorgrenssamewerking met betrekking tot MKMO’s versterk kan word by wyse van verbeterde inligting- en kommunikasietegnologie (IKT) konnektiwiteit, wat ook ’n invloed op ander beleidsingrypings soos een-stop grensposte gehad het. Dit studie toon dat daar ’n behoefte is aan verbeterde harmonisering van wette, regulasies en beleide. In die algemeen het die studie bevind dat tussenregeringsverhoudings in spesifieke areas kan verbeter, en dat oorgrenssamewerking beinvloed word deur sekere sleutelregeringsfunksies. Laasgenoemde sluit in vereenvoudigde doeane-verklarings, verbeterings in die doeltreffendheid van handel-inligtingverwerking en -klaring, asook verbeterings rakende lisensiering en permitte. Die studie kom verder tot die gevolgtrekking dat die devolusie van mag in die regering gepaard moet gaan met kapasiteitsbou en die instelling van aansporings om verbeterde tussenregeringsverhoudings en beleidskoordinering te bevorder.
Description
Thesis (MPA)--Stellenbosch University, 2024.
Keywords
Citation