What Shoprite and Woolworths can tell us about Non-tariff Barriers

The research identifies non-tariff barriers (NTBs) as critical constraints to trade in the SADC region, often undermining the benefits of tariff liberalisation. Key barriers include cumbersome customs procedures, transit issues, and corruption, with agricultural products being disproportionately affected. The paper highlights the high cost of compliance for retailers like Shoprite and Woolworths and argues that SADC lacks a coordinated action plan similar to those in the EU or ASEAN. It recommends a 'vertical' approach to prioritising 'low hanging fruit' barriers and the adoption of a 'naming and shaming' mechanism to enforce reforms.

• Non-tariff barriers (NTBs) are pervasive across the SADC region, with all member states found to have at least 'moderate' NTBs in various categories.
• The most severe NTBs in the SADC region, as perceived by the private sector, are cumbersome customs procedures, import licensing/permits, and visa requirements.
• Agricultural commodities are the most heavily affected by NTBs, often justified by food security, health and safety, and the protection of local producers.
• High compliance costs for rules of origin (RoO) and paperwork can significantly erode the benefits of SADC tariff preferences; for example, Shoprite spent ZAR 40 million in 2009 to secure ZAR 93 million in tariff reductions.
• Inefficiencies in transport and border crossings lead to increased costs and the need for excessive inventory; one retailer reported keeping stock in Tanzania at 30 weeks of sales, which is twice the optimal level.
• The Tripartite NTB Monitoring Mechanism (NTBMM) shows that South Africa, Zambia, and Zimbabwe are the most frequently cited countries as imposing NTBs.
• SADC's approach to NTB elimination is deficient compared to international best practices, specifically due to the complete absence of a coordinated action plan or road map.
• While SADC has harmonised over 100 regional standards through the SQAM process, member states have generally failed to adopt these standards at the national level.
• The Namibian small-stock marketing scheme, which includes quantitative export restrictions and a 30% export duty on live bovine animals, has caused a dramatic 84% decrease in live sheep exports to South Africa between 2004 and 2008.

APA

Charalambides, N. (2013). What Shoprite and Woolworths can tell us about Non-tariff Barriers. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/06/Occasional-Paper-148.pdf

Chicago

Charalambides, Nick. What Shoprite and Woolworths can tell us about Non-tariff Barriers. South African Institute of International Affairs, 2013. https://saiia.org.za/wp-content/uploads/2013/06/Occasional-Paper-148.pdf.

Wikipedia

{{cite report |last1=Charalambides |first1=Nick |title=What Shoprite and Woolworths can tell us about Non-tariff Barriers |publisher=South African Institute of International Affairs |date=October 2013 |url=https://saiia.org.za/wp-content/uploads/2013/06/Occasional-Paper-148.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{charalambides2013what, author = {Charalambides, Nick}, title = {{What Shoprite and Woolworths can tell us about Non-tariff Barriers}}, institution = {South African Institute of International Affairs}, year = {2013}, month = oct, url = {https://saiia.org.za/wp-content/uploads/2013/06/Occasional-Paper-148.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }